MATTHEW L. DAVIS TO GALLATIN. NEW YORK, March 29, 1800. DEAR SIR,--I yesterday saw a family letter of yours developing the views of the Federal party; with many of the facts contained in that letter I was previously acquainted, but I was in some measure at a loss to account for certain proceedings of the supreme Legislature; this letter completely unmasks the party. Your opinion respecting the importance of our election for members of Assembly in this city is the prevailing opinion among our Republican friends. You ask, "What are your prospects?" All things considered, they are favorable. We have been so much deceived already that a prudent man perhaps will not hazard an opinion but with extreme diffidence. At the request of Mr. Nicholson, I shall briefly state the leading features of our plan. You are already acquainted with the circumstances which so much operated against us at the last election: the tale of the ship Ocean, Captain Kemp; the Manhattan Company; the contemplated French invasion; the youth of many of our candidates, &c., &c. These things, united with bank influence and bank jealousy, had a most astonishing effect. The bank influence is now totally destroyed; the Manhattan Company will in all probability operate much in our favor; and it is hoped the crew of the Ocean will not _again_ be murdered; but this is not all: a variety of trifling acts passed during the session of the former Legislature were also brought forward and adapted to the purposes of the party. Menaces from the Federal party had also a great influence. I think they will not dare to use them at the approaching election. The Federalists have had a meeting and determined on their Senators; they have also appointed a committee to nominate suitable characters for the Assembly. Out of the thirteen that now represent the city, eleven decline standing again. They are much perplexed to find men. Mr. Hamilton is very busy, more so than usual, and no exertions will be wanting on his part. Fortunately, Mr. Hamilton will have at this election a most powerful opponent in Colonel Burr. This gentleman is extremely active; it is his opinion that the Republicans had better not publish a ticket or call a meeting until the Federalists have completed theirs. Mr. Burr is arranging matters in such a way as to bring into operation all the Republican interest. He is not to be on our nomination, but is to represent one of the country counties. At our first meeting he has pledged himself to come forward and address the people in firm and manly language on the importance of the election and the momentous crisis at which we have arrived. This he has never done at any former election, and I anticipate great advantages from the effect it will produce.