Fort Berthold, a copy* of which I inclose. Of the fact of the concentrating of hostile Indians in the vicinity of Fort Berthold, under Medicine Bear and the Man Who Strikes the Ree, rejecting all overtures of peace and being incited to unlawful acts and encouraged by presents and munitions of war by certain parties, said to be from the Red River of the North, I have already informed your headquarters some three weeks since. Captain Moreland does not ask for assistance; in fact, I do not know the number or strength of his garrison. I shall send to-morrow by two trusty Indians and open communication with him, and if he needs assistance shall send it. I held a conference to-day with Two Bear and the Shield and some representatives sent from the Gros Ventres on the Little Missouri River. They came in to hear what the whites had to say. They had heard much before, but would not believe it. Told them what was contained in the general's letter of instructions to me. On the evening of the 19th instant some thirty warriors from the hostile camp below Berthold came down opposite the fort and stole sixty horses from Two Bear's camp. Sixteen of Two Bear's young men came down from the camp above, intercepted them, and recovered most of their horses. These young men report the following, the truth of which is vouched for by Two Bear: Half-breed traders from the British lines came into the hostile camp below Berthold with ten sleigh loads of goods. They rode into camp with the English flag at their head and said: "This flag will not be put down for anybody, only for God Almighty. Those who join us will not get hurt. Those who join Americans will get hurt. We will return the last of the month with more powder, ball, and arms, and some Santees, and will take Fort Berthold and then Fort Rice. " They then gave a feast and presented the Indians with five kegs of powder and some sacks of bullets and traded more. At the feast the Man That Strikes the Ree said: "As long as I live I never shall shake hands with the whites. " Medicine Bear said: "I am the man to make war with the Americans; kill all you can, I shall say nothing against you. " There are over 1,500 lodges of Santees at Devil's Lake and Mouse River. Of the hostile camp seventy lodges have quarreled and are starting down here for peace. Five hundred lodges of half-breeds have started for Fort Abercrombie to join the whites.

Mr. F. T. Pease, trader, whom, after I had seized his powder and ball, I perhaps unwisely allowed to proceed to Fort Berthold, was stopped by the Indians at the hostile camps above mentioned. All his horses, some oxen, and about $4,000 worth of goods were stolen. His life was only saved by the intervention of some of his relations. I still believe that the war spirit among the Indians is broken, and that the peace party is yet predominant, but would again urgently request of the general commanding permission to break up these trading parties from the British possessions and execute summary justice on the principals engaged this winter. I have no doubt but what there is a Confederate element at work. And again I repeat I fear the consequence in the spring if their influence is allowed to have full sway with the Indians this winter. I would very respectfully urge upon the general commanding the evident necessity of some more stringent rules and regulations governing traders at different posts on this River. There are now at Fort Sully and the camps immediately adjoining some ten unauthorized petty traders who are governed by no law whatever; also here at Fort Berthold there are four that are allowed to visit Indian camps and trade promiscuously. Feeling the necessity of the case at

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* Not found.

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