[I 16 1] 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 remain as it is, or reverse it. The letter from Governor Jay is as follows [mg] " 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 herewith 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 summons 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 adviseable. 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 7^th "I received last night, your favour of the 26^th of September, with the copy of an act of the Legislature of the State of New York for 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 their 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. Hamilton