SIR: I have the honor, in the absence of the Commissioner of Indian Affairs, who is now and has been for some time past engaged in the discharge of duties devolved upon him, under the act of Congress of 20th July ultimo, creating a commission to establish peace with certain hostile Indian tribes, to submit the usual annual report of the Indian Bureau.

Most of the tribes, particularly those settled upon reservations, who are friendly and peaceable, have, to a considerable degree, made advances in the attainment of many of the benefits of that condition of civilization to which the government, by treaty stipulations, and under a sense of its obligations as their guardian and protector, has sought to raise them. Although their progress has been slow, hardly answering the expectations of those who have looked for more general and marked results, yet the instances are frequent, as the facts in their history develop, of a decided change, indicating the practicability of their being brought from a state of barbarism and ignorance to the possession of a nobler and higher style of life. The reports of the various Indian agents, not only for this year but of preceding years, show the good spirit that prevails with many in regard to their moral, intellectual, and social elevation, and their willingness to engage in industrial pursuits. But so long as the red man remains in a position where he is subject to influences more numerous and potent for evil than those put in motion for his good are capable of counteracting and overcoming, no great progress in these respects may be realized or even expected. No doubt the greatest obstacle to the consummation of ends so much desired is to be found mainly in his almost constant contact with the vicious, unscrupulous whites, who not only teach him their base ways, but defraud and rob him, and, often without cause, with as little compunction as they would experience in killing a dog, take even his life. Another cause or hindrance is the fact that the Indian has no certainty as to the permanent posses. sion of the land he occupies and which he is urged to improve, for he knows not how long he may be permitted to enjoy it. Should it be in a region of remarkable fertility, or in a country abounding in rich mineral ores, it may be wanted for the white man's occupany or use. The plea of "manifest destiny" is paramount and the Indian must give way, though it be at the sacrifice of what may be as dear as life. If the incentives to build up for himself and family a pleasant home are not provided by his condition and prospects, he becomes discontented or indifferent as to his future welfare, and if he does not really retrograde

makes no advance. Evidently the remedy for these evils lies in securing to the Indians a permanent home in a country exclusively set apart for them, upon which no whites or citizens, except government agents and employés, shall be permitted to reside or intrude; in the granting to them allotments of land as individual property, to cultivate and improve; in the appointment of moral, honest, and efficient agents, with a fair compensation for services; and in the prompt fulfilment by the government of its treaty and other obligations, furnishing the necessary aid required for teaching, and placing them in the way of becoming self-sustaining and eventually independent of the government.

more.

With other tribes, however, noted for their warlike disposition and wandering habits, an unfortunate state of things has prevailed during the past year or A spirit of hostility has been strongly manifested against the government and its citizens, arising from alleged injustice or wrongs practiced towards them, or incited by the desire of rapine and love of war. Doubtless causes existed which naturally engendered dissatisfaction, distrust, and purposes of retaliation. It may not be asserted that they have not had some good and just grounds of complaint. Without undertaking to refute the charges against them, of what it is believed they are not guilty, nor to defend or palliate in any degree the atrocious acts they did commit, it will only be the purpose of this office, at present, to set before the Hon. Secretary of the Interior, in this report, such a general statement of facts, ascertained and communicated by authorized agents of both the military and civil branches of the government, as will, it is thought, furnish a true account of our Indian difficulties of late, and tend to enlist such serious attention by the department and Congress upon the subject of the management of our Indian affairs as will result in the adoption of measures that are justly due to a people struggling feebly and vainly against the irresistible course of events.

The late civil war afforded an extraordinary occasion for the development of the inherent war spirit among a large number of Indians; frequent murders, raids, and the destruction of much valuable property resulted therefrom. About the close of the war endeavors were made to turn the most disaffected to the interests of peace. Commissioners were sent in 1865 to the hostile Sioux bands in the north, between the Platte and Missouri rivers, and to the unfriendly Cheyennes, Arapahoes, Apaches and Comanches, south of the Platte, who entered into treaties with these tribes for the settlement of all difficulties, and obligating peaceful conduct. Scarcely had the compacts been proclaimed when depredations and hostilities were again renewed. Among various bands in Dakota serious disaffection was exhibited in the fall of 1866 in the commission of repeated outrages. Emboldened by their successes a large number banded together for the purpose of breaking up certain military posts, and driving the soldiers and citizens out of the country. A considerable force (about 96 men) sent out against this party in December last from Fort Phil. Kearney, one of the new posts established for the protection of the route of travel by emigrants and others to Montana, through what is called the Powder river country, were unfortunately drawn into ambush and barbarously massacred. The determination to wage a desperate war was apparent, and likely to extend far and wide. On the 18th of February last the President appointed a commission of military officers and civilians to visit the scene of hostilities and investigate the difficul

ties.

They were instructed to ascertain who were the actors in the massacre at Fort Phil. Kearney; what portion of the Indians in that section were hostile; what friendly, and to separate these classes by placing the latter upon reservations. The commissioners (Generals A. Sully, J. B. Sanborn, N. B. Buford, Colonel E. S. Parker, and Messrs. J. F. Kinney and G. P. Beauvais) have finished the duty assigned them, and submitted several reports, which not only communicate facts in regard to the special matters they were directed to examine into, but ably present their different views as to the policy that should be adopted

in regard to hostile Indians. Some of the reports, with other papers from different government officers pertinent to the matter, were furnished to Congress on call of a resolution of the Senate of 8th of July last, and will be found embraced in Senate executive documents, fortieth Congress, first session. Reports since received will, no doubt, with the proceedings of the commission subsequently appointed to arrange for peace with all the hostile tribes, be hereafter also communicated on a similar call and published. For that reason, and, further, because the including these papers with the documents accompanying this report would render the volume entirely too bulky, I have deemed it proper not to submit copies of the same herewith.

In the opinion of this office the statements and facts presented in the report of the commissioners referred to, show the origin of the hostilities in the Platte country to have been principally, if not altogether, the opening of a road for travel by emigrants, miners, and others, from Fort Laramie to Montana, through the hunting grounds of the Indians; the march of troops in July, 1866, towards that country, which was regarded by some of the chiefs as a declaration of war, and the manner in which the treaty at Fort Laramie in 1866 (one of its chief objects being to secure that road) was negotiated, some of the most influential chiefs refusing to sign it and in displeasure leaving the council. The making that treaty impressed the military and citizens with the belief that the road in question was safe, and parties unprepared to defend themselves sought to pass over it, but were resisted and driven back with the loss of a number of lives and much property. It has been conclusively ascertained that the Indians engaged in the several acts of hostility committed north of the Platte belong to the Minneconjou, Brulé and Ogallalla bands of Sioux, northern Arapahoes and Cheyennes, aided by young men from other bands, whose impelling motive, doubtless, was the desire of plunder and of fame as brave warriors.

The commission before named, of which General Sully was president, met in council a large number of friendly Sioux, under chiefs "Spotted Tail," "Big Mouth," and others, who promised to remain friendly and go upon a reservation; they kept their promise, and were provided subsistence pending military operations. Part of this commission, (General Sully and Colonel Parker,) by agreement with the others, went up the Missouri river, with a view to prevent the Indians in that river country from becoming involved in the hostilities of those on the Platte and Powder rivers, apprehensions being entertained that they would be drawn into them by various influences. They met with many friendly disposed Indians, who yet complained of the bad treatment of the government in not providing for their wants, and compared their destitution with the abundance of horses and other property possessed by the hostile. The commissioners also met many who had participated in the massacre of Fort Phil. Kearney, who professed a desire to be friendly, and talked about peace, but wanted it only upon condition of the soldiers being taken out of their country, and that roads should not be made through it; some of them even demanded the stoppage of navigation on the upper Missouri. This portion of the commission also reports that all the Indians on the east side of the Missouri are friendly at present, but that a change may take place on account of the establishing a military and post road through their land, which is being done without their consent.

Another part of the commission (Judge Kinney) proceeded to Fort Phil. Kearney, and there met the Crow Indians inhabiting a portion of the country west of the Powder river, and who may be relied upon as friends of the government. The country claimed by the hostile Sioux, they assert, belongs to them, and they ask that it be restored, and protection be given them against their enemy the Sioux.

In regard to the difficulties with the Cheyennes and others south of the Platte, we may properly look for their origin in the bad feeling produced by the massacre of friendly Cheyenne women and children, as well as men, in December, 1864,