forty of his warriors, came to his post anxious to make peace. He stated that his party was encamped near the head waters of the Cannon Ball River, and also been in, anxious for pease, stating that there was no use of Indians trying to fight the whites, &c. These Indians were camped near the butte of the Maison do Chien. I place very little confidence in this Indian, for I believe he is one of the biggest scoundrel in the Sioux Nation. I also inclose you a copy of a letter from Captain Moreland in regard to the actions of the half-breeds of the north. They are a great nuisance, and I don't see how we are to manage them without our troops are allowed to follow them into the British Possession. I fear they will always be a great obstacle to any permanent settlement of difficulties in this section of country. I have always been of the opinion that Indians could be used to subjugate Indians, and the letters I have lately received confirm me in that opinion.

With much respect, your obedient servant,

ALF. SULLY,

Brigadier-General.

[Inclosure.]

FORT BERTHOLD, DAK., TER., November 16, 1864.

Brigadier General ALFRED SULLY:

SIR: I have the honor to call attention to the fact that the half-breeds and whites (English and Scotch) from the Red River country northeast of this place are constantly traversing the country adjacent to this post (coming within forty to sixty miles of here), visiting and trading with the various bands of Sioux Indians inhabiting this region, supplying them with armis and munitions of war and inciting them to hostilities; counseling them to drive the whites from the country or exterminate them. There was a small party of these Red River traders visited this place not long since, who had been upon one of these trading excursion with the Sioux. I am not advised whether they reside on this side of the line or in the British Possessions. They are undoubtedly prompted in these proceedings by mercenary motives, but their operation an their counsels are evidently detrimental to the interests of the whites and the Government, and unless they are restricted in some manner will result in much mischief. By being deprived of the means of obtaining necessary supplies through the ordinary channels, the Indians are driven by necessity to sue for peace, and many of the hostile bands already exhibit a desire for peace. But so long as they are allowed to be tampered with by these itinerant vagabonds, so long will all the efforts of the Government to subdue them be futile.

Very respectfully, your obedient servant,

A. B. MORELAND,

Captain, Sixth Iowa Cavalry, Commanding Post.

HDQRS. MILITARY DIVISION OF WEST MISSISSIPPI,
New Orleans, January 7, 1865.

The SECRETARY OF WAR,

Washington, D. C.:

I have the honor to acknowledge the receipt of your communication of the 10th ultimo. * I have not been unmindful of the interests

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* See Vol. XLI, Part IV, p. 816.

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