Philadelphia 11^th February 1799 Sir, It appears by the documents before me received from Springfield that there was expended at that Post in the year 1795. . . . . . . Dollars 12.875. 4. 96 . . . . . . . . . . . . 11.448. 63 97 . . . . . . . . . . . . 10.359. 43. 98 . . . . . . . . . . . . 30.573. 90 Total Dollars 65.257— That there was manufactured in 1795. 245 Muskets 96 . . 835. . "— 97. 1028. . "— 98. 1044. 3.152 That there was cleaned and repaired by New Stocks, Bayonets Ramrods, Springs and Screws &c. In 1795. 6999 estimated at Dolls 1500. 96. . 6.999. . " " " . 650. 97. . 8.499. . " " " . 700. 98. . 9.000. . " " " . 700. carr'd over Drs 3.550 Brought over Dollars 3550 Repairing Artillery Carriages, making Worms and various implements estimated at } — 300. 86 Carbine Barrels turned into the Store estimated — 86. Drs. 3.936. Expended for the necessary Buildings and Machinery from the commencement of the } Drs Works . . . . . . . . . . . . . . . . . 12.580.— Tools, Utensils & Stock on hand December 31^st Estimated at . . . . . . . . } — 6.024.— 640 Locks completely finished 800 Musket Barrels fit for boring Forged Mounting equal to 60 Sets. } 3.552. 280 Ramrods . . . Estimated at Cost of Mill Wright for water Shop . . — 343 Drs. 26.435 The Sum of twenty six thousand four hundred and thirty five Dollars is included in the amount of the whole expenditures, but allowing the Buildings &c as stock on hand and admitting the other charges which makes up this Sum, it may be proper to subtract it from the whole amount of expenditures, which product divided by the whole number of Muskets made will prove each to have cost twelve Dollars & thirty two Cents. It is not possible to procure documents to ascertain accurately the annual expenses of the post as they relate to the Workmen there with others of a trifling nature may be omitted, exclusive of these the foregoing statement will probably be found pretty correct. An Establishment of this kind in its early stages must necessarily be subjected to many embarrassments they arise from the difficulty of obtaining experienced workmen, the want of Machinery and proper accomodations, and many other causes which will readily occur to those conversant with such Establishments. These difficulties are in a great degree surmounted, and the expense in future will be proportionably reduced. The boring Machinery is nearly compleated, the Workmen are better acquainted with their business, and are now well accomodated, the most important Tools are made by the Workmen although they do not appear to the credit of the Post Labour in consequence of the numerous private Contracts is considerably raised while the Wages allowed the Workmen at the Post remains as they were — a circumstance in favor of the Works for the present, and by the time these engagements end it is probable private Contracts may cease and labour of course become more reduced. The past time has afforded no opportunity for a fair experiment to determine the utility of the Establishment but the time is now arrived — the present year will certainly determine the propriety of continuing the present and augmenting the number of Posts for procuring the supplies expected from them — The cost of a compleat Musket in future probably will not exceed twelve Dollars the Superintendant is sanguine in his opinion that he can turn them out at eleven Dollars. — The situation of the Works is favorable in every point of view. All articles necessary for the Works may be conveyed by water & landed at a distance not exceeding half a mile from them — The water Shops for plating the Barrels, boring and polishing them are well constructed and eligibly situated — Provisions may be purchased at as low a rate as at any place in New England or probably in the United States — large Tracts of Woods suitable for Coal and other purposes is found in the vicinity of the Works which may be obtained at a very low rate — Coals are delivered at the Works at the average of four Dollars the hundred Bushels they cannot be furnished cheaper any where — The situation of the Works is such that they may be encreased to any extent, and they will be always safe from sudden invasion and destruction, the adjacent Country being full of hardy veterans and disposed to support the Government they have chosen and from which they have experienced a degree of happiness not known till since its operation. It ought again to be observed that in the Outset of the business of the Post, very few persons could be procured who were perfectly acquainted with the business of making Muskets. Many are now expert in the Work, even Apprentices have been taught who are now compleat Masters of the business. For many months after the commencement of the business all the labour was performed by hand which was painful and slow, and greatly enhanced the price of the Articles made or repaired; this will also account for the small number of Muskets made in the first years. the Superintendant confidently expects, after three Months from this time, he shall be able to turn in three hundred Muskets per Month into the Public Stores, with the means that he will then possess. considerable advantage would arise to the Public if the necessary foreign articles for the Works were purchased in larger Quantities, both Money and time have been lost for want of a more early and generous supply, I might and perhaps I ought in justice to the Post, enlarge, but enough & trust has been said to satisfy your enquiries, & more you have not time to attend to — I therefore forbear and subscribe myself— Your Most Obedient Servt Samuel Hodgdon James McHenry Esq. Secretary of War