Besides these we have in service, the Alfred, Columbus, and Reprisal, ships from sixteen to twentyfour guns, the brigantines Cabot, Camden, Andrew Doria, and Lexington, of twelve to sixteen guns, the sloops Providence, Hornet, Fly, Independence, Sachem, and schooners Wasp, Mosquito, and Georgia Packet, all in actual service, and they have had great success, in taking valuable prizes, as indeed have numbers of privateers from all parts of America. We have besides two very fine low galleys, built here, of ninety feet keel, but they are not yet rigged; and it has lately been determined by Congress to build some line of battle ships, and at all events to push forward, and pay the utmost attention to an American navy. The greatest encouragement is given to seamen, which ought to be made known throughout Europe. Their pay in our navy is eight dollars per month, with the best chance for prize money, that men ever had, and liberty of discharges after every cruise if they choose it. In the merchant service they now get from thirty to forty dollars per month; and this leads me to the state of our commerce. In the Eastern States, they are so intent on privateering, that they mind little else; however, there is some exportation of produce from thence, and as to imports, they are the best supplied of any part of America, having been surprisingly successful in captures. New York being in the hands of the enemy, we have nothing to say to it, and the produce of New Jersey will be totally consumed by their army and ours. In this State, (Pennsylvania,) we had last season the worst crop of wheat ever known, both as to quantity and quality; this being our staple commodity, and stores prohibited, our merchants have been led to purchase much tobacco in Maryland and Virginia, and their ships are employed in the export of this article, with some flour, boards, beeswax, &c. We have a good many imports, but as fast as goods arrive, they are bought up for the army, or for the use of neighboring States, and therefore continue to bear high prices. The value of ships has risen in the same enormous proportion with every thing else, and ships, that were deemed worth L1000, twelve months ago, now sell for L3000, or upwards. Every article belonging to them is also excessively dear, and hard to be got, and the insolence and difficulty of seamen is beyond bearing. In Maryland, Virginia, South Carolina, and Georgia, they have plenty of valuable produce on hand, but no ships to carry it away, and constant cruisers all along the coast make it very dangerous to send ships from one port to another; so that look which way you will, you find us surrounded with difficulties, in the land service, in the sea service, and in our commerce.