[Trenton 29^th Oct 1798 Secretary at War rec^d 3^d Nov.] War Department 27 Oct.^r 1798 Sir I had the honour to receive on the 26^th inst. your letter dated Quincy the 17^th, inclosing me a letter from his Ex:cellency Governor Jay, and a copy of an act of the Legislature of N. York, with a copy of your answer to the Governor, and of your letter to General Hamilton, and requiring me to submit these papers to to the consideration of the heads of departments and according to their judgements to confirm officially what you had done, or let it remain as it is or reverse it. Inclosed is a copy of the submission I have accordingly made to the heads of departments. I have the honour to be with the greatest attachment Sir John Adams your most Ob^t. President of the United States. James McHenry War Department 26^th October 1798. The President of the United States, in a letter dated Quincy October 17^th, received this day, enclosed to the Secretary of war, a letter from his Excellency Governor Jay, and a copy of an act of the Legislature of New York, a copy of his answer to the Governor's letter, and also of a letter written by him to General Hamilton. All which he requires to be submitted to the consideration of the heads of departments, and according to them to their judgments to confirm officially, what he has done, or let it remains as it is, or reverse it. The letter from Governor Jay is as follows viz "Albany 26 September 1798. "During the late special session of the Legislature of this state, an act was passed for the further defence of this state, of which a copy is hereunto enclosed. The first section of this act appropriates a sum, not exceeding one hundred and fifty thousand dollars, towards the defence of the city and port of New York and enacts that the said sum shall be expended under the direction of the President of the United States. In pursuance of another section of this act I have lately obtained a loan of one hundred thousand dollars of the above mentioned sum; and should have immediately gone to New York on this and other business, had not a circumstance occurred which made it necessary for me to summon the members of the council of appointment to meet here on the 8^th day of next month. It appears to be the intention of the Legislature that this money shall be laid out only in the manner which the national government will recognize as useful, and abuseable. I therefore take the liberty of submitting to your consideration, whether as Major General Hamilton is a national officer in whom great confidence may be placed, it would not be expedient to authorize him to concert with me the plan of laying out this money, to the best advantage, and to appoint him to superintend the execution of it. I think it would be best that I should leave the money in the Bank of New York, and appoint a proper person to audit and keep the accounts of the expenditures directed from time to time by General Hamilton relative to the works, and pay them as they become due by checks on the bank. The Presidents letter in reply is dated October 9^th. "I received last night, your favour of the 26^th of September, together with the copy of an act of the Legislature of the state of New York in the further defence of the state and for other purposes. I shall transmit these papers to the Secretary at War, that a proper consultation may be had on these contents, and a final arrangement made according to the rules which generally obtain in such cases. In the mean time, that no moments may be lost, I shall not hesitate to comply with your Excellency's request so far as to authorize Gen^l Hamilton to concert with you the plan of laying out the money in question to the best advantage and to appoint him to superintend the execution of it. I must however, at the same time make a reservation of this condition, viz, that this act of the Executive authority of the United States shall not be understood to have any influence on any question or questions which may hereafter come before the Legislature of the United States and may be proper only for their determination. The Presidents letter to Major General Hamilton dated 19^th October. "I have received last night, a letter from his Excellency Governor Jay enclosing a copy of an act of the Legislature of New York in the further defence of that state and for other purposes. The Governor observes that it appears to be the intention of that act, that the money appropriated in it, 150,000 dollars shall be laid out only in the manner which the national government will recognize as useful and abuseable, and his Excellency proposes to my consideration whether it would not be expedient to authorize Major General Hamilton, as a national officer, in whom great confidence may be placed, to concert governor the plan of laying out the money to the best advantage and to appoint the general to superintend the execution of it. I have not hesitated to comply with the Governor's request, saving all the rights of the Legislature of the United States. Accordingly I hereby request you, Sir, to concert with his Excellency the plan, and to superintend the execution of it, at least, until some other arrangement shall be made, if any other should hereafter be thought expedient. The act above referred to is in the following words An act for the further defence of this State, and for other purposes. passed August 27^th 1798. Whereas the intrencations already constructed in the city of New York and its vicinity are extremely inadequate to the defence of the said city and its port; and whereas experience has plainly evinced that the possession of said city and port by an enemy will be highly injurious to the citizens of this State, even in the most interior parts thereof. To guard against evils of such extensive magnitude, and to cooperate with the aid of the government of the United States; and in full confidence that this state will be allowed, and indemnified by the united States for all expenditures which may accrue by virtue of the premises - there give Be it enacted by the people of the State of New York represented in Senate and Assembly, that a sum not exceeding one hundred and fifty thousand dollars be, and the same is hereby appropriated for the purpose of repairing and completing such fortifications as have already been erected and constructed in the said city and its vicinity, and of constructing and erecting such other fortifications, a such place or places upon the Island of New York, Governor's Island, Bedloes Island, Ellis's or another Island and Long Island, and for providing such other means of defence for the security of the said city and port of New York as the person administering the government of this state for the time being shall or may deem best adapted to the security and defence of the same; and enacted that the said sum shall be expended under the direction of the President of the United States. And be it further enacted, that there be a [undecipherable] a sum not exceeding one hundred and [undecipherable] thousand dollars for the purchase of a further quantity of arms and to the use of the militia of this State; the cannon belonging to this state to [undecipherable] stores and for building an arsenal or ware[undecipherable] such parts of this state as the person administering government of this state for the time being shall direct. That the person administering the Government of this State for the time being do cause the said arsenal or [ca]nals to be built, and the said purchases to be made in such manner, and on such terms as to him shall seem most advantageous to the interest of this state. And be it further enacted that the arms, ammunition cannon and military stores now belonging to the people of this state and such as may be purchased by virtue of this act shall be distributed or deposited in such place or places as the person administering the Government of this State shall from time to time direct. And be it further enacted that it shall and [undecipherable] to and for the person administering the government of this state for the time being [undecipherable] and the [undecipherable] this [undecipherable] therefore the [undecipherable] And be it further enacted, that the Comptroller of this State shall, on the order of the person administering the Government of this State for the time being, draw his warrant on the Treasurer of this State for the payment of the aforesaid several sums of money, hereby appropriated, or for such parts thereof as may from time to time be requisited or devanted, for the purposes aforesaid by the person administering the Government of this State. And that the said Comptroller shall audit the accounts of the expenses and disbursements which may accrue by reason of the premises, and shall annually lay the same before the Legislature at their stated meetings. And be it further enacted, that it shall and may be lawful for and for the person administering the Government of this State for the time being to borrow from the Bank of New York, or from any other bank within this State or from any individual, or individuals the several sums of money hereby appropriated or such proportions or parts thereof as may be deemed necessary for carrying into effect the objects of this act. And the faith of the State is hereby pledged for the reimbursement thereof. And be it further enacted that the Comptroller be and he is hereby directed to borrow from the Bank of New York, the Bank of Albany, or any other person or persons, and such sums as may be sufficient to compensate the members and officers of both houses of the Legislature on their travelling and attendance at the present meeting of the Legislature and allowed by law; and to pay the same out of any money that may come into the Treasury after the lapsing of this act, not otherwise appropriated. And be it further enacted that it shall be lawful for the person administering the Government of this State for the time being in case of necessity to apply a part of the sum mentioned in the second clause of this act not exceeding ten thousand dollars, to pay for any necessary contingent military expenses. Secretary's office of the State of New York August 31 1798. Certify the preceding to be a true copy of the original act now on file in this office. Signed Daniel Haile Sec^ty The laws of the United States which respect this case are 6^th The act to provide for the further defence of the ports and harbours of the United States, passed the 23^d June 1798 and the act supplementary thereto passed the 8^th of May 1798. By the 3^d section of the former it is declared "that the President of the United States be, and he is hereby empowered to authorize any of the states where to this were found indebted to the United States in a settlement of the accounts between them and the respective states, to expend under his direction, the sums respectively due from them, in fortifying their ports and harbours and the sums which may be so expended shall be credited to the credit of the said states on an account of the balance found and reported by the commissioners on settling accounts between the United States and the independent states to be due from the said states to the United States, provided the said states shall cede and do cede to the United States the lands or places on which such fortifications shall be erected in cases when the lands are the property of such states." The 2^d and 3^d sections of the latter act likewise [undecipherable] that when any state wherein were lands indebted to the United States by the report of the commissioners on settling the accounts between the United States and the independent states, [undecipherable] the authorization of the President of the United States [undecipherable] direct or complete any fortifications [undecipherable] such states for the defence of any ports or harbours within the same, or shall under the directions of the President of the United States make and erect any additional fortifications, pursuant to the act entitled the 'Plan act to provide for the further defence of the ports and harbours on the United States,' as such of the provisions or instructions made during the 26^th day of [undecipherable] 1798 or which shall be approved by the President of the United States as the expenditures which have been, or which shall be directed by him, shall be allowed and credited to such states on account of the balance found and reported as aforesaid. proviso that no where [undecipherable] exceeding the balance found and reported against the respective state shall be allowed as aforesaid and [undecipherable] that the fortifications for which the whole or any part of the expenditures shall be [undecipherable] and ca[undecipherable] credited as aforesaid, with the privileges and appurtenances shall be, and shall be vested and established as the property of the United States where maintained. By the 3^d Section of the said act it is declared that these words of the said act entitled 'An act for the further defence of the ports and harbours of the United States,' [undecipherable] is accordingly provided the said state shall cede and do cede to the United States the lands or places on which such fortifications shall be erected in cases where the lands are the property of such state, shall be, and the same are hereby repealed. The Presidents letter together with all enclosures are now submitted to the consideration of the heads of departments and their opinions are requested whether the act of the President ought to be confirmed officially by the Secretary of War, in which case it is to remain as it is, or reversed. If this can be confirmed, it is to be confirmed, and the whole 150,000 dollars appropriated should be expended, conformably to the act of the Legislature of New York, they are requested to advise whether any other instructions should be given to General Hamilton who Than 5^th To apply the aforesaid monies on any part thereof that may be requisite to erect or complete such works on Governor's, Bedloes, Ellis's or Governor's and New York Islands as in his opinion may be indispensable and proper, under such regulations for the government of those employed on the works as will ensure the strictest attention to economy. 2^dly That no work or works, or repairs to existing works are to be undertaken which cannot be completed or rendered useful as desireable by the time aforesaid. 3^dly That the Governor be informed of the premises and that all sums to be expended aforesaid not exceeding the appropriations and duly admitted and inspected by the proper officer to be by him appointed, shall be considered as coming within the meaning of the 2^d Section of the before recited act, and be admitted accordingly as amounts to the State on account of the balance found and reported against the said State by the commissioners for settling the amounts between the United States and the independent States. James McHenry