The suspension of payments in specie by the banks is undoubtedly a species of insolvency. At this time, the foundation of their credit with the public, in a principal degree, at least, is the stock of the u states in their possession. On it they issue their paper, for which they obtain an interest of about 7 pr cent. The u States pay them that interest on advances, on the credit of their own funds. The demonstration is complete, that having better credit than any bank, or than all the banks together, the govt might issue a paper, which would circulate without their aid, throughout the U States, and on much better terms to the public. Your letters I shall take the liberty of shewing to mr Dallas, who is expected here in a day or two. They were put up with my papers on the late occurrence, and are not yet unpack,d, being sent to Lee’sbg.

I shall be happy to promote the disposition of your library in the manner your propose, tho’ I regret that you are to be deprivd of such a resource & consolation in your retirment.

Letters were recd yesterday from our ministers at Ghent, which announce the approaching termination of the negotiation, without any hope of peace. They will probably return in less than a month. The demands of G Britain, corresponding with what the papers had before given us, have renderd all accomodation impracticable. The President will communicate these despatches to Congress to day, so that you may probably receive them by this mail. very respectfully your friend