To M^r James Byers jun^r Sir, War Office, Decemr 3^d 1796 You will receive herewith certain forms established by the Treasury Department for the government of the Agents or factors, in keeping their accounts, who have been appointed under the act of Congress passed the 18^th of April last, entitled "An act for establishing trading houses with the Indian tribes" I am Sir &c [Signed] James McHenry To M^r James Byers jun^r Sir War Office, Dec^r 21^th 1796 I have received your letter of the 9^th November setting forth with respect to your request for permission to retain M^r Carey exclusively. I shall write to M^r Dinsmoor on this subject, who will inform you whether he can be wholly or partially, given the Factory. If the former, he is to be about three hundred dollars per annum and his board, which is to be charged to the Store. At the same time, should any occasion occur to render his services useful to M^r Dinsmoor, he is to understand that they are to be rendered as heretofore. You have stated, in letters to the Purveyor, that you can buy upon the Spot, or delivered at the factory, Hominy at 8/6 per [undecipherable] Virginia currency, Lead at 8, and Salt at 14 dollars per bushels. Lowry is also mentioned as another article that may be procured cheaper with you than here. Both our prices will make these articles come lower than they can be sent from this town, I shall instruct Col Henley to purchase such quantities of them, or either of them, upon your requisition, as you may stand in need of from time to time, to be paid out of the proceeds of your remittances. The casualties attendant upon the trade in which the public have engaged, and frequent alterations in the prices of Indian Goods, render it expedient that it should be conducted in such a manner as that it shall produce a net annual profit, when with constitute an increasing fund to meet these casualties and contingencies. Besides, whenever it shall please Congress to suspend the experiment, there should be found effects that will bring at public Sale an amount equal to the original Capital employed, clear of all expences whatever; a circumstance which renders such a fund indispensably necessary. You will, therefore, be pleased to keep this object always in view; and so proportion your selling prices as to make sure of this annual profit. And, that the state of the trade may labour under no uncertainty, and the progress of the fund be fully known, you will take, and transmit once every year, an inventory of the effects of the factory, stating their value; and deduct right therefrom all expences of the year; so as to shew the surplus gained to the fund, to be laid before the President; and will annex thereto your Oath that it is just and true Statement of the goods on hand and the effects of the Factory. I am Sir, &c [Signed] James McHenry