Sir: As it is probable that this will reach you before my despatches of the 27th of last month, by way of New Orleans, I have enclosed duplicates.

About seven days ago, twenty-five Spanish soldiers arrived at this place, where they continued one night, and then proceeded up to the Walnut Hills. On the 28th of May, I received a letter from Governor Gayoso, No. 1, to which I replied on the 31st, No. 2. From Governor Gayoso’s letter, it appears that the Baron de Carondelet is not well satisfied with his conduct; they are at this time not on good terms, and the breach has been widened by the artful management of a certain Mr. Power, now at this place, who was last season intriguing in the State of Kentucky for the Spanish Government; he is particularly patronized by the Baron. The transactions which the Baron alludes to, I suspect, are the arrangements I made with Governor Gayoso, by which the troops of the United States were brought into this district with his consent and apparent approbation. The difficulty of getting them away is now obvious both to himself and the Baron, and as it was done without consulting the latter, he feels an inclination to condemn the conduct of the former.

It is now reported by the Spaniards that a Minister Plenipotentiary has been sent by the Court of Madrid to the United States to inform our Executive that the country and posts now held by His Catholic Majesty on the east side of the Mississippi, above the thirty-first degree of North latitude, are not to be given up until a general peace takes place in Europe, and that, from the uniform pacific disposition of the United States there can be no doubt of his success. This report is credited but by few.

The citizens of the United States, who are trading on the Mississippi, are frequently treated with great insolence at the Spanish posts, and their property taken for the use of His Catholic Majesty, when wanted, and always at a reduced price. About three weeks ago, a cargo of flour, consisting of between three and four hundred barrels, was taken at the Walnut Hills from a Mr. McCluny, of Washington County, in the State of Pennsylvania, against his will, to be paid for in New Orleans at such price as the officers of Government see proper to give, which is generally three dollars per barrel less than the current price in market. A few days ago Mr. Francis Baily, a citizen of the United States, who had lately come on here with some goods, had a tender of a commissary’s certificate payable at the treasury in New Orleans, which species of paper was passing at a discount of twelve per cent.; Mr. Baily declined taking the certificate as payment for the debt, and appealed to Governor Gayoso for redress, who immediately decreed that the tender was legal. These cases are not singular; they are particularized because both the gentlemen mentioned will be in Philadelphia in the course of a few weeks, and I expect will make a point of substantiating the facts—both cases being a violation of the late treaty between His Catholic Majesty and the United States.

From the jealous and suspicious disposition of the Spaniards, I do not think it possible that any treaty or compact can be lasting between that nation and our Western people, while the former have any possessions on the east side of the Mississippi.

Dr. Watrous is now here. He was on his way from Fort Hamilton, on furlough, to the State of Connecticut, but Captain Pope and myself prevailed upon him to stay with us, until we have some intelligence respecting our continuance in this country.

I am, sir, with great esteem and respect, your friend and humble servant,

ANDREW ELLICOTT.

Hon. Secretary of State.

P. S.—At the moment I was folding this, the enclosed proclamation, No. 3, by the Baron de Carondelet, was put into my hands. The various and contradictory reasons assigned by the Spanish officers for their delay in carrying the late treaty into effect, are too obvious to need a comment.