SIR,--Just as the letter accompanying this was going off, Colonel Mathews arrived on parole from New York, by the way of head-quarters, bringing your Excellency's letter, on his subject, with that of the British commissary of prisoners. The subject is of great importance, and I must, therefore, reserve myself to answer after further consideration. Were I to speak from present impressions, I should say it was happy for Governor Hamilton, that a final determination of his fate was formed before this new information. As the enemy have released Captain Willing from his irons, the Executive of this State will be induced, perhaps, not to alter their former opinion. But it is impossible they can be serious in attempting to bully us in this manner. We have too many of their subjects in our power, and, too much iron to clothe them with, and I will add, too much resolution to avail ourselves of both, to fear their pretended retaliation. However, I will do myself the honor of forwarding to your Excellency the ultimate result of Council on this subject. In consequence of the information in the letter from the British commissary of prisoners, that no officers of the Virginia line should be exchanged till Governor Hamilton's affair should be settled, we have stopped our flag, which was just hoisting anchor with a load of privates for New York. I must, therefore, ask the favor of your Excellency to forward the enclosed by flag, when an opportunity offers, as I suppose General Phillips will be in New York before it reaches you. I have the honor to be, Sir, with the greatest esteem, Your most obedient, and most humble servant. TO HIS EXCELLENCY GENERAL WASHINGTON. IN COUNCIL, Oct. 8, 1779.