The Americans make a daily parade of their force, and easily impose on the people on this side in regard to their numbers. I do not think they exceed 1,200, but they are represented as infinitely more numerous. For the last fortnight every precaution has been taken to guard against the least communication, and to this day we are ignorant whether the president has sanctioned the war resolutions of the two houses of congress; that is, whether war be actually declared. The car brigade has been completed for service with horses belonging to gentlemen, who spared them free of expense. I have not been honored with a line from Mr. Foster, nor with all my endeavours have I been able to obtain information of any consequence. The Prince Regent made her first voyage this morning, and I purpose sending her to Kingston this evening, to bring such articles as are absolutely necessary, which we know have arrived from Quebec. I trust she will out-sail the Oneida brig. _Colonel Baynes to Major-General Brock._ MONTREAL, July 4, 1812. We have a report here of your having commenced operations by levelling the American fort at Niagara. The general is most anxious to hear good and recent intelligence from your quarter. There is no considerable assembly of troops in our neighbourhood as yet; the flank companies, embodied under Colonel Young, are on their march, and the 2,000 militia will form a chain of posts from St. John's to La Prairie. The town militia of this and Quebec, to the amount of 3,000 in each city, have volunteered being embodied and drilled, and will take their proportion of garrison duty to relieve the troops. The proclamation for declaring martial law is prepared, and will be speedily issued. All aliens will be required to take the oath of allegiance, or immediately quit the province. Our cash is at its last issue, and a substitute of paper must per force be resorted to. This has been Sir George's principal object in calling the legislature together. You have a very arduous and difficult card to play, and have our sincere and confident wishes for your success. Sir George strongly recommends extreme moderation in the use of the Indians, and to keep them in control as much as possible. [This letter contains the details of a large and armed assembly at La Chine, near Montreal, of French Canadians, who refused to serve in the embodied militia. They were dispersed by the light company of the 49th, and a detachment of artillery with two field pieces, under the command of Major Plenderleath, of the 49th, but not before one Canadian was killed and another dangerously wounded.] _Sir George Prevost to Major-General Brock_. MONTREAL, July 7, 1812.