The declaration of war by the United States was only known in Quebec on the 24th of June. A notification was immediately given by the police authorities to all American citizens then in Canada, requiring them to leave the province on or before the third of July. But Sir George Prevost afterwards extended the time to fourteen days longer, to suffer American merchants to conclude their business arrangements. Proclamations were issued, imposing an embargo on the shipping in the port of Quebec, and calling the legislature together, for the despatch of business. Parliament met on the 16th of July. The Governor-in-Chief announced the declaration of war, expressed his reliance upon the spirit, the determination, the loyalty and the zeal of the country. With the aid of the militia, His Majesty's regular troops, few in number, as they were, would yet gallantly repel any hostile attempt that might be made upon the colony. It was with concern that he saw the expense to which the organization and drilling of the militia would put the province. But battles must be fought, campaigning had to be endured, and true and lasting liberty was cheap at any cost of life or treasure. The reply was all that could be desired. While the House deplored the hostile declaration that had been made against Great Britain, and seemed to shrink from the miseries which war entails, they assured the Governor that threats would not intimidate, nor persuasions allure them from their duty to their God, to their country, and to their king. They were convinced that the Canadian militia would fight with spirit and determination, against the enemy, and would, with the aid of the tried soldiers of the king, sternly defend the province against any hostile attack. As far as spirit went there was no deficiency, but Canada was worse off for money than the United States was for soldiery. There were forty thousand militia about to rise in arms, but where was the money to come from necessary to keep them moving? Congress intended to raise an immediate loan of ten millions of dollars. It was essential Canada should immediately replenish her exchequer, as those not being the days of steamships, funds from England could not be soon obtained. Sir George Prevost resolved to issue army bills, payable either in cash, or in government bills of exchange, on London. The House of Assembly assented to the circulation of any bills, and granted fifteen thousand pounds annually for five years, to pay the interest that would accrue upon them. Bills to the value of two hundred and fifty thousand were authorised to be put in circulation; they were to be received in the payment of duties; they were to be a legal tender in the market; and they were to be redeemed at the army bill office, in any way, whether in cash or bills, the Governor-in-Chief might signify. Nothing could have been more satisfactory to Sir George Prevost. He prorogued the Parliament on the 1st of August, with every expression of satisfaction.