The reason why Capt. Phelon's accounts are not settled is due to the defiency of his vouchers and the unauthorized advances he has made, in addition to the confusion caused by the blending of his accounts with those of other officers.
The Treasurer has been directed to remit to Gorham funds for those who will mount the Artillery: Daniel Rogers at Gloucester; Nathaniel Fosdick at Portland; Joseph Hiller at Salem; Samuel Gerry at Marblehead; and Amasa Davis at Boston.
The Treasurer will remit to Dexter five hundred dollars to be transmitted to Mr. Gibbs and Mr. Channing at Newport for the purpose of mounting the Artillery.
Return of clothing wanted for the detachment under the command of Capt. William Kersey which is included in the extra supply needed for the recruiting service in Charleston [South Carolina].
Knox sends general instructions to Blagge as Naval Agent. Notes that the Secretary of Treasury will furnish money and instructions for purchase of certain articles. Asks about the availability of a master builder for the proposed frigate construction. Notes the rate of pay, between $1400 and $2000 per year. Also asks about blacksmiths and journeymen shipbuilders and their rates of pay.
Letter appoints Josiah Fox as a clerk in the Department of War under Joshua Humphreys, who is constructing models and draughts frigates to be built in the United States. Rate of pay $500 per year.
Knox forwards instructions to Naval Agent Jeremiah Yellot. Notes that Secretary of Treasury will forward instructions on purchase of articles. Asks if a master builder with sufficient skill can be obtained at Baltimore. Describes pay scale between $1400 and $2000 per year.
Fox is notified that he is appointed as a clerk to assist Joshua Humphreys who is constructing the models and drafts of the frigates to be built by the United States. When that business is finished, Fox will be informed of additional duties as the public service may require.
From 1787-1790 Hodgdon was paid at the rate of $500 per year and yet his request for a greater allowance has been protested. As it now stands, that amount will not cover his expenses so Knox and Hamilton are asked to make the necessary settlement.