GENTLEMEN,--Your favor of May the 9th, came to hand on the 25th of June, I immediately communicated to the foreign officers the inability of the treasury at that moment to provide payment of the interest due them, with assurances of your attention to them on the first possible moment. I communicated to Commodore Jones also your order for the balance in his hands. As he was entitled to a part of the money he had received, and it was reasonable to suppose he must have been living here on that resource, so that he could not be expected to pay the whole sum received, I desired him to state his account against that fund as he thought just himself, to pay me the balance on account, reserving to you a full right to discuss the propriety of his charges, and to allow or disallow them as you pleased, so that nothing that passed between us, should either strengthen or weaken his claims. He accordingly rendered me the account which I now enclose, balance 112, 172_l._ 2-4. He desired me at the same time to forward to you the papers, No. 1-12, which will show the objections and difficulties he had to encounter, and which could have been obviated by nobody else. There certainly was no other person whose knowledge of the transactions so well qualified them to negotiate this business, and I do suppose that this fund would have lost some of its capital articles in any other hands. This circumstance, with the real value of this officer, will, I doubt not, have their just influence in settling his claims. There is no doubt but that he has actually expended the money charged to have been expended. Without this supply, Mr. Grand would have been in advance for the United States, according to a rough estimate which I made, 42, 281_l._ 61_s._, besides 24, 437_l._ 11_s._, which, on the failure of the federal funds here, and being apprised of Mr. Grand's advances, I had ventured to order him to take from a sum of money lodged in his hands for the State of Virginia for the purchase of arms. This liberty was taken in order that he might honor the draughts of Mr. Carmichael and Mr. Dumas, pay certain foreign officers who had not yet been paid _pari passu_ with their brother officers, and answer my demand also. These two sums amounting to 66, 719_l._ 7_s._, were first to be replaced, and left a balance of 45, 452_l._ 15, 8_s._ Though you had proposed to leave this in my hands for the calls of diplomatic establishments in Europe, I ventured to have it paid with the residue of the mass into Mr. Grand's hands, to avoid giving him umbrage and lessening his dispositions to advance hereafter, and also because it would have been very insecure in my house which stands on the outline of the city, separated from all others by a considerable interval, and therefore exposed to robbery. The insurance in this situation would have been worth much more than Mr. Grand's commission on it. From this detail, you will perceive that there remains on hand about enough to