In the circular letter, which I did myself the honor to transmit on the 19th day of October last, I stated our situation as clearly and explicitly as I could, so that you might be in a capacity to form a solid judgment as to what would be proper. I am now to inform you, that the most recent and authentic information from Europe, contains the reiterated determination on the part of France, to grant us no further pecuniary aid. Spain appears to have neither the inclination nor the ability to afford any, and in Holland it can only be obtained from individuals, who will always require security, and of consequence will not lend to the United States, who as you well know have no security to give. The want of proper funds has so reduced domestic credit, that we can draw no resources from thence, and until domestic credit is established, foreign credit cannot exist, for it is absurd to expect, that foreigners will confide in a government, which has not the confidence of its own citizens. It is hardly possible to describe the consequences, which have followed on a loss of credit. We have seen the people diffident, jealous, and unhappy, nor have they yet recovered, even where the removal of undue restrictions has given them time to breathe from the load of oppression. But the public is, if possible, in a still worse situation. No persons will trust the public from a deep apprehension of ruin if they should, and consequently our operations must be bounded by the taxes, which can be collected, while at the same time we must contend for our very existence as a free country at an expense, which we cannot limit because we cannot limit the efforts made against us. Whenever proper methods shall have been taken to restore credit, the benefits arising from it will be as evident to all, as the want is now, to those who are intrusted with the administration. Our expense at this moment is greater than it ought to be, though less than it was, and I cannot retrench, because I have not sufficient means in my power, and have not at this moment any certain reliance on sufficient aid from the several States.