On the ninth Instant from an Investigation of Mr. Grands Accounts then lately received I found that after making due Allowance for Loan Office Bills &ca. which might still come upon him my Drafts and those which I have directed would exceed by Something more than six Millions (exclusive of the Interest payable by him in November on the Dutch Loan) any Funds which he could be possessed of. It appeared also by indirect information so late as in the Month of September that the Loan opened by Mr. Adams had not produced above three Millions so that unless he had met with further Success there would be a Deficiency of three Millions. Had the Court granted us twelve Millions in the first Instance. Had Mr. Adams Loan produced six Millions had Mr. de Beaumarchais Bills been provided for without Recurrence to the American Banker or finally had the heavy Deduction made by those Bills been replaced this disagreeabl thing would not have happened. Presuming that the Loan of the last Year was exclusively at my Disposition I drew during the Year to the Amount of it and I am convinced that all my Bills and those drawn by my Authority will have been paid. Rely on it that as I told you in a former Letter I have acted under the Influence of dire Necessity and this you will be convinced of by a few out of many Circumstances. Enclosed you have a general State of the public Account until the End of 1781. On which you will observe that the Army was fed principally tho scantily by the specific Supplies called for at different previous Periods and that there remained in the Treasury near three hundred thousand Dollars being Part of the Money which Colo. Laurens brought with him from France. I also enclose you the Copy of a Letter written to Congress on the twenty first of October and of its several Enclosures which will need no Commentary or if it did I would only add that I have been obliged to sell part of the Goods which arrived here from Holland in Order to raise so much Money as would save my sinking Credit from Destruction. I would go into a Detail of the various Measures pursued to stimulate the Exertions of the States but to do this with Accuracy would be to give a tedious History of my whole Administration. Whatever Expedient could suggest itself, which might have that desirable Effect I have tried and I do assure you that when I look back at the Scenes I have passed thro they strike my own Mind with Astonishment. As soon as I can get the Accounts made up I will transmit you the Total of our Expenditures but to transmit or even relate our Hazards and Difficulties would be impossible.

Even at this Moment I am making farther Exertions to bring our unwieldy System into Form and ward off impending Evils but what the Success may be Heaven knows. Imagine the Situation of a Man who is to direct the Finances of a Country almost without Revenue (for such you will perceive this to be) surrounded by Creditors whose Distresses while they encrease their Clamors render it more difficult to appease them. An Army ready to disband or mutiny. A Government whose sole Authority consists in the Power of framing recommendations. Surely it is not necessary to add any Colouring to such a Piece, and yet Truth would justify more than Fancy could paint. The settlement of Accounts long and intricate beyond Comprehension becomes next to impossible from the want of that Authority which is on the Verge of Annihilation from those Confusions which Nothing can disipate except the complete Settlement of Accounts and an honest Provision for Payment.

Upon Discovering the Situation of our Affairs in the Manner already Mentioned I laid them before Congress you will know the Result. The Secretary of foreign Affairs will doubtless transmit their Act to which I must add this farther Communication that I expect my Bills will Amount to a Million within a Month from this Date. There are Cases where Nothing worse can be apprehended from a Measure than what would inevitably happen without it and our present Position is one of them. An immediate command of Money is alike Necessary to our present Existence and future Prospects. In Europe when this Letter arrives you will know decidedly whether we are to expect Peace or War but in America we must prepare for the latter, by so doing we may forward Negotiations for Peace and at the Worst will only have incurred some additional Expence whereas by neglecting it we risque the Chance of being taken unawares and paying very dearly the Penalties of Neglect.

But Sir notwithstanding these Reasons and many other which will justify every Counsel and every Act however irregular in other Respects I would not draw one more Bill and I would boldly hazard every Consequence of the Omission if I were not persuaded that they would be paid. On this Occasion your Sovereign will expect your most vigorous Exertions and your Country will I trust be indebted to you in a Degree for her political Existence. I am Sir your most obedient and humble Servant