Tr. D. Septr. 17th.‘96 Sir, Mr. Nathan Jones has transmitted to me a Copy of Mr. Isaac Craig’s Letter to your Department dated the 9th. instant. My understanding of the transaction which has occasioned so much difficulty [undecipherable] is as follows. Representations were made from your Department & by General Wayne, that the Army was in great danger of suffering for want of flour. As no Contract could be immediately obtained, an a conditional agreement was made with Mr. Alex. Scott by the Purveyor, that [undecipherable] measures should be taken for the purchase of about one thousand Barrells to be forwarded without delay. [undecipherable] It was understood that if Mr. Scott obtained the new Contract, the flour so purchased & forwarded was to be recd. agreably to such terms as should be [undecipherable] [undecipherable]. Yet if Mr. Scott did not obtain the new Contract, the public was to take the flour at the first Cost, & to accru a Comm. from purchasing the same. Seven thousand Dolls were advanced against to Mr. Scott on these conditions. Mr. Ernest, [undecipherable] [undecipherable] understood to be the [undecipherable] who made the purchases, & so has aff declared, that the flour in question was purchased under the agreement with the Purveyor. No more has been purchased than was necessary the representations of Genl Wayne [undecipherable] have been mistaken. At the time the agreement was made I am certain that the General[undecipherable] the [undecipherable] wants of the Army to be [undecipherable]. As matters are circumstanced, I am satisfied that no advantages can arise from Mr. Craig [undecipherable]. On the contrary, the loss, if any is [undecipherable], and will probably be in [undecipherable]. Mr Ellicot will I understand want some flour supplies, which may be advantagiusly furnished, from the quantity in dispute. I am The Secy of War