[undecipherable] War Department [undecipherable] Oct[undecipherable] 179[undecipherable] [undecipherable lines] I have received your two letters [strikethrough: and] and dated [undecipherable] the 9^th and 23^d ultimo. you inform that the Seneca Nation have requested [undecipherable] petition, to have their money, payable under the Seneca treaty forwarded. that by said articles the first years payment is to be 5000 dollars—that the Indians so understand it— [undecipherable] that this amount, and will not be satisfied with a less sum—that it would be impossible to explain to their comprehension the principles of a Banking system.— express a hope that if the dividends upon their stock do not equal this sum, an advance may be made for the purpose. that the Indians expect the money to be paid in silver dollars, and have suspended receiving their goods from the United States, until their money arrives. as the subject to the expectation you intimate to be entertained by the Indians that they are to receive ten thousand dollars, as due and payable on the 15^th of September ultimo which completes one year from the date of the treaty. I observe that it is difficult for me to conjecture how they could have received the idea. By the treaty one hundred thousand dollars is to be vested in Bank stock to be held in the name of the President for their use, they were advised by me on the 14^th of May last of the investment of their monies in stock agreeably to the intention thereof. and that the President, by and with the consent of the Senate had ratified the convention or treaty. that dividends upon the Bank Stock were to be paid half yearly, the first about the middle of July. and these payments are any from the dividends, when made, should be made to their order, and in such manner as they should direct. Now if the dividends are half yearly, and the first to be made on the middle of July, it is evident a second could not be made before the middle of January 1799. and if this had been explained to them, they would not have indulged the extravagant expectations of receiving 5000 dollars on amount on the 15^th of September ultimo. The monies now in Bank are at the disposition of the President in pursuance of his trust for the use and behalf of the Seneca Nation do not amount [undecipherable], this falls much short of 5000 dollars. So that, if the same [undecipherable] sum must at this time be paid them, then they must expect what would be a disappointment, or the President or Government must make an advance and that must every year be the case. The President, as he has accepted, is to faithfully fulfill his trust, but this does not bind him to trouble himself or the officers of this government in the way that annual advances would occasion. He has acted justly when he has paid over the monies received by him in pursuance of his trust, to the persons entitled to receive them, and this he would faithfully do. This is so palpable that it is impossible the Indians can not be made to understand it. If, however, the first annual payment is suspended until the second half yearly dividend is received at the Bank, the President will then have it in his power to forward full 5000 dollars. and if the season for paying and receiving the future annual payments is fixed always for the same time day, the latter end of January, or beginning of February, and the two half yearly dividends upon the Stock at the Bank shall then probably well meet the President to do so, five thousand dollars precisely, and every year may be exact and paid to the Seneca Nation. To effect this postponement which amounts to a convenience to the Government and not an expense but probably beneficial to the Indians, I have written [undecipherable] to the nations what [undecipherable] minutes to subscribe and fully explains to them. To reduce the particular difficulty [undecipherable] the power of obtaining the quarterly payments with the amount of 5000 dollars, beside the expediency of transporting the same in specie it is contemplated to lay out whatever surplus there may be from time to time in Bank Stock to be held in like manner for the use and behalf of the said [undecipherable] — this procedure would [undecipherable] against the possible [undecipherable] of dividends to a lower amount than here [undecipherable] and the [undecipherable] equal payments, it is presumed would be more satisfactory, because requiring [undecipherable] explanation to the Indians. You will be careful to impress upon the Indians that the postponement now proposed to them, is solely occasioned by a solicitude for their welfare to prevent all future misunderstandings relative to the payments. and that they may expect to receive full 5000 dollars by the latter end of January or beginning of February 1799. I am Sir with respect Your most ob'd Serv't James McHenry Israel Chapin Esq^r. Superintendant of the affairs of the Six Nations Canandaigua