Immediately on my arrival he-re, l had a conference with the President of one of the Banks with a view Lo a negotiation for a loan-I told him from .what I learnt. I apprehended the prospect was bad, but that I had thought of additional induccmenls over and above the interesl-lowit: to make his notes the circulation of Texas: receivablr for government dues there &c. That the distance would produce much loss of paper especially in the army and much consequently would nevt>r get back, that I had no such authority, but the Execu live coulei Ly an orcl inance declare Lhe paper receivable, and it unly for government dues &c-and doubtless would do so-This I thought would be equal to several pr cent. to the Bank and I sanguinly hoped it would have produced some effect-but il did nol-He said they had lriccl it by loans to individuals, and that the paper had come imediatcly back. This results from an entire lack of revenue in Lhe country-For the same reason no bank could stand until there was a home demand for a circulation equal lo the paper issued. The specie would all come to New Orleans. I tried a second President of another Bank also interested in the loan (for their are two Presidents of hanks stockholders, tho their names are not known) but with the same result-I spoke of my intention to try Northward, they replied they were satisfied it would be useless. I am inclined lo believe so, and the less inclined to make the trial because, I presume if anything can be clone, it has been by Messrs. Austin Wharton & Archer, or will be done by Mr. Hamilton; and the fact of too many agents being appointed, seems lo be doing an injury here, therefore except a certainty existed of success it would probably be better for me to make no trial. I think of making one for a ship of war, but the terms to he first submitted for ratification by tlw Cabinet. I shall invile proposals (not by public notice of course) for a vessel of the size required, payable on delivery in cash, and another payable in script, for a loan for five years, although the Executive cannot give over seven pr cl for money, yet if in their opinion the emergency of the case required il, they may give a higher price for the vessel lo a man who will take the loan a11d make up the difference in that way, and thal is the only mode that I can devise, for obtaining the vessel. Whether she will he necessary or not can he determined al the time that tlw proposals arc made. I had a few days since an application to aid some young men here, in filling out a vcssle, as a government cruiser, upon certain vague
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