TO MR. GALLATIN. January 7, 1808. I think with you that the establishment of posts of delivery at Green Bay and Chicago, would only furnish pretexts for not entering at Mackinac; and that a new post at the falls of St. Mary's, requiring a military post to be established there, would not quit cost, nor is this a time to be multiplying small establishments. The collector should have his eye on the schooner Friends on her return, and though proof may be difficult, harass them with a prosecution. I see nothing in the case of the Swedish captain which can produce doubt. The law is plain that a foreign vessel may go with the load she had on board and no more. The exception as to vessels under the President's direction, can only be meant to embrace governmental cases, such as advice vessels, such as permitting foreign seamen to be shipped to their own country. With respect to the Four Brothers, I know not what can be done, unless the amendatory law would authorize the collector to detain on circumstances of strong suspicion, until he can refer the case here, and give a power to detain finally on such grounds. Have you thought of the Indian drawback? The Indians can be kept in order only by commerce or war. The former is the cheapest. Unless we can induce individuals to employ their capital in that trade, it will require an enormous sum of capital from the public treasury, and it will be badly managed. A drawback for four or five years is the cheapest way of getting that business off our hands. Affectionate salutations. TO MR. SMITH. January 7, 1808. Proceeding as we are to an extensive construction of gun-boats, there are many circumstances to be considered and agreed on, viz.: 1. How many shall we build? for the debate lately published proves clearly it was not expected we should build the whole number proposed. 2. Of what size, and how many of each size? 3. What weight of metal shall each size carry? shall carronades be added? 4. Is it not best, as they will not be seasoned, to leave them unsealed awhile? 5. Where shall they be built, and when required to be in readiness? 6. As a small proportion only will be kept afloat, in time of peace, the _safe_ and _convenient_ depositories for those laid up should be inquired into and agreed on, and sheds erected under which they may be covered from the sun and rain. 7. To economize the navy funds of the ensuing year, we should determine how many of the boats now in service ought to be kept in each, and for how many we will depend on the seaport in case of attack. The first of these subjects may require a general consultation, and perhaps the 7th also. The others are matters of detail which may be determined on between you and myself. I shall be ready to consult with you on them at your convenience. Affectionate salutations. TO THE SECRETARY AT WAR.