a point ten miles from the Mouse River. From here I sent scouting parties up and down the river, one party going near the British line, but found no signs of Indians except several signs of small camps a week or ten days old. We found signs of a small party (not over six) about a day or two old, going west. Mouse River is a beautiful stream of clear running water, filled with fish. The banks are lines with an abundance of excellent timber; the grass and soil very good; the country around filled with game. There is no place in the Territory better located and adapted for Indians to live in. I am satisfied that what the half-breeds told me is correct-that none of the Santee Sioux Indians are south of the line-and it is perfectly impossible to come upon them without we can obtain permission to pursue them into the British Possessions. I would also beg leave to state that it is my opinion that these same half-breeds give the Indians information in regard to the movements of the troops. On my way from Devil's Lake to Mouse River I came onto another camp of half-breeds, some eight or ten men with their families. As they had not been trading nor had anything to trade with I let them alone. Eight men with their families would not dare come into that section of country without they were on very good terms with the Indians. Besides, I recollect seeing in the papers before I left Sioux City that I was directed to march up the Missouri and north. Could not these papers have found their way to the British Possessions and thus notice be given to the Indians to be on the lookout? My march from Mouse River to this point was in direct line over a very dreary country without water fit to drink. My last day's march on this account was near forty miles, and as the country was very broken it took me many hours to accomplish it. On this account the animals, it being a very hot day, suffered greatly for the want of water. I, however, lost only one animal. On my arrival here I heard the following Indian news; By my direction runners were sent to the camp telling them that all who wished to make peace could come in and see me, and those who did not I would make war on. These runners, after remaining several days in the camp, returned and reported that there is considerable division of sentiment on the question of war and peace, but that the peace feeling is the strongest. They are convinced there is no use of fighting with any prospect of success, but yet they fear it is only a trap I have set to capture and slay them; that atone time the feeling was very strong to come in and surrender, but that a chief (who wishes to lead the war party) called Sitting Bull, hearing this on his return to camp, went through the different villages cutting himself with a knife and crying out that he was just from Fort Rice; that all those that had come in and given themselves up I had killed, and calling on the nation to avenge the murder.

In consequence of this 500 warriors went with him to Rice to see if it was true and to avenge the massacre. There are other rune not yet returned. I will get more news by them. The camp is only fifty or sixty miles from here across the river in a southwest direction. They are camped in a position which I know very well; a very strong, defensive position, and easy to retreat from by braking up into small parties and scattering into the Bad Lands of the Little Missouri. They report their camp extends near three miles (I suppose scattered), and over 2,000 lodges or about 10,000 various-Sioux of different bands, Cheyennes, and various others. My wish is to get all who don't wish to fight out of the camp, and then take some steam-boat that may pass to cross my command and fall on the rest. Without a boat it will be