"I have repeatedly mentioned to your Excellency, for some months past, that the supplies of money furnished the department were very unequal to the current expenses. I have all along flattered myself that affairs would take a new and more favorable turn. As Congress were deliberating upon the subject of finance, I was led to believe that the schemes and plans they were adopting would afford more ample relief; and have encouraged the agents, under such an expectation, to proceed in the execution of the business. They have been enabled to extend their credit thus far, so as to keep the wheels in motion, hoping not to fail until government could find ways and means for furnishing us with cash more adequate to the demands."

“But whatever grounds I supposed there were for authorizing such expectations, I now find they were vain and nugatory. The cloud thickens, and the prospects are daily growing darker. There is now no hope of cash. The agents are loaded with heavy debts, and perplexed with half-finished contracts, and the people clamorous for their pay, refusing to proceed in the public business unless their present demands are discharged. The constant run of expenses, incident to the department, presses hard for further credit., or immediate supplies of money. To extend one, is impossible; to obtain the other, we have not the least prospect. I see nothing, therefore, but a general check, if not an absolute stop, to the progress of every branch of business in the whole department, I have little reason to hope that, with the most favorable disposition in the agents, it will be in our power to provide for the occasional demands of the army in their present cantonments; much less, to have in readiness the necessary apparatus, and supplies of different kinds, for putting the army in motion at the opening of the campaign. My apprehensions of a failure in these respects are so strong, and my anxiety for the consequences so great, that I feel it my duty once more to represent to your Excellency our circumstances and prospects. From such a view of our situation, you may be led not to expect more from us than we are able to perform, and may have time to take your measures consequent upon such information.”

“The growing extravagance of the people, and the increasing demand for the article of forage in this quarter, have become a very alarming affair. Hay is from sixty to eighty dollars a ton, and upon the rise.* Corn is ten dollars a bushel, and oats four; and every thing else, that will answer for forage, in that proportion. Carting is nine shillings a mile by the ton, and people much dissatisfied with the price. I have represented to the States of Rhode Island and Connecticut the absolute necessity of legislative interposition, to settle the prices of things upon some reasonable footing, of all such articles and services as are necessary for the use of the public in my department. I am going to do the same to the Council of this State. What effect it will have, I cannot say; but, if there is not something done to check the extravagance of the people, there are no funds in the universe that will equal the expense.”

“Before I came into the department, your Excellency was obliged often to stand Quarter-master. However capable the principal was of doing his duty, he was hardly ever with you. The line and the staff were at war with each other. The country had been plundered in a way that would now breed a kind of civil war between the staff and the inhabitants. The manner of my engaging in this business, and your Excellency's declaration to the Committee of Congress, that you would stand Quarter-master no longer, are circumstances which I wish may not be forgotten; as I may have occasion, at some future day, to appeal to your Excellency for my own justification. One thing I can say, with truth and sincerity, that I have conducted the business with as much prudence and economy, as if my private fortune had been answerable for the disbursements. And I believe your Excellency will do me the justice to say, the department has cooperated with your measures as far as circumstances were to be governed by me; and this you had reason to apprehend would not have been the case had I not taken direction of the business. And here, in justice to my colleagues, I shall mention that I think them entitled to your Excellency's personal esteem, from the warmth of their wishes, and a desire to promote your ease and convenience.”

“I would write your Excellency a more particular account of the battle and retreat, but I imagine General Sullivan and Colonel Laurens have done it already, and I am myself very much unwell. I have had no sleep for three nights and days, being severely afflicted with the asthma.”

“They were prodigiously shattered, from the fire of our cannon. The same evening, Colonel Tupper attempted passing the ships with the petiaugres, loaded with flour. The enemy manned several barges, two tenders, and a row-galley, and attacked them. Our people ran the petiaugres ashore, and landed and defended them. The enemy attempted to land several times, but were repulsed. The fire lasted about an hour and a half, and the enemy moved off. Colonel Tupper still thinks he can transport the provision in flat-bottomed boats. A second attempt shall be speedily made. We lost one man, mortally wounded.”

“We soon put the enemy to the rout, and I had the pleasure to see them run in worse disorder than they did at the battle of Monniouth. Our troops behaved with great spirit; and the brigade of militia, under the command of General Lovell, advanced with great resolution and in good order, and stood the fire of the enemy with great firmness. Lieutenant-Colonel Livingston, Colonel Jackson, and Colonel Henry B. Livingston, did themselves great honor in the transactions of the day; but it's not in my power to do justice to Colonel Laurens, who acted both the General and the partisan. His command of regular troops was small, but he did every thing possible to be done by their numbers. He had two most excellent officers with him, Lieutenant-Colonel Henry and Major Talbot.”