WAR DEPARTMENT,

Washington, February 9, 1863.

Major- General POPE, Madison, Wis.:

Your attention is particularly called to the condition of the Sioux and other Indians on the frontiers of Dakota Territory. Mr. Burleigh, United States Yankton agent, represents that they are preparing for hostilities against the whites.

H. W. HALLECK,

General-in-Chief.

KEOKUK, IOWA, February 10, 1863.

Major- General CURTIS:

DEAR SIR: Five days ago I passed into Southern Iowa at Burlington, and have come to this city through Mount Pleasant, Ottumwa, Croton, Farmington, &c., and what I have read in newspapers and seen and heard in hotels and at railroad stations satisfies me of the existence of an alarming state of things in this region and contiguous parts of Illinois, which needs but some decided event, such as a failure of the Federal arms at Vicksburg, Port Hudson, or Tullahoma, to produce the wildest social convulsions, and possibly bring about the shedding of blood. In this view, the letters which I inclose are deserving of attention. Nothing is so well calculated to ward off trouble as to be prepared for it. Longer to neglect the through arming of the "Border Brigade," spoken of by Mr. Hiatt, and its supply with ammunition, it seems to me, would be next to criminal.

Adeceded success at the first struggle to come, be it on the Potomac, in Tennessee, or on the Mississippi, would doubtless quell the spirit of insubordination that is now rising here and hereabout; but a failure, and I fear the loyal people of this region will be compelled to "see sights." There is much anxiety, and not a little depression here. Mr. Gerring is very sick. I am told that months must elapse before, if ever, he will be able to attend the duties which you assigned to him. That being so, would it not be well at once to designate Mr. Hiatt in his stead!

Very respectfully, yours,

W. D. GALLAGHER.

[Indorsement.]

SAINT LOUIS, February 24, 1863.

Respectfully referred, for the information of commanding general, to show how restrictions on trade are urged by the agent of the Treasury.