When completed and garrisoned by a strong force they will exercise a powerful effect on the wild bands of Sioux, who for the past two years have occasioned so much mourning and alarm among the white border settlers by their ruthless deeds of massacre and desolation.

In addition to the other duties imposed upon the troops in this district, they have had to act as escort to trains of supplies to distant posts, and one occasion last fall three companies of the Sixth Minnesota Volunteers were dispatched, as guard to a large provision train belonging to the U. S. Indian Department, to the Indian reservation on the Missouri. These companies with their charge left on 15th of November, accomplished the march safely,and returned to this district about the 1st of January last, having marched nearly 800 miles, without any loss of men or animals. The extent of the line to be protected from the hostile Indians my be estimated at upward of 400 miles, and a force is also required at Fort Ripley to operate as a check on the Chippewas, who are uneasy and discontented. Until these indian difficulties are at an end three should be, in my judgment, not less than one entire regiment of men and one battery, in addition to the force required to hold the posts and stations, in order properly to defend the frontier and repel attack. There are now in this district the regiment of Second Minnesota Cavalry, six companies of Independent Battalion, one company Veteran Reserve Corps, Third Minnesota Battery, five companies of U. S. Volunteers and Connecticut cavalry, with detachments of other rebel deserters and refuges which have been dispatched to this district for service. Many of the latter are desperate characters, requiring an equal number of men to keep them in subjection and prevent their desertion. A few men have been on duty in the provost-marshal's department, and one company of the Independent Battalion is now serving as provost guard under the direction of acting assistant provost-marshal-general of the State.

In concluding this report I beg leave to call through you the earnest attention of the honorable Secretary of War to a subject which I have repeatedly presented in my official dispatches to department headquarters. I refer to the fact that the British Government still permits Her Majesty's territories to be made the refuge of the murdering bands who disturb the peace of our frontier, from the pursuit of the troops under my command, and these savages are in constant and open communication with British traders, who furnish them with ammunition and other articles with which to carry on the war with our Government without let or hindrance by the local authorities. Indeed, the half-breed subjects of Her Britannic Majesty traverse our domain in every direction for purposes of trading and hunting, and are thus directly interested in the continuance of hostilities between us and the upper bands of Sioux Indians, and it is known that they foment discontent with the Chippewas with whom they come in contact by representations that they are defrauded by the United States Government by payment in paper instead of coin, of the money due them under treaty stipulations. In fact, until some arrangement shall be made between the two Governments whereby these constant violations of international comity on the part of Her Majesty's subjects can be arrested, and a sufficient force of troops to guarantee the neutrality of British soil stationed in the vicinity of the boundary line, it is almost hopeless to look for a speedy solution of these Indian difficulties. On the contrary,if it can possibly be effect by the influence of the Red River half-breeds, we may anticipate that the Chippewas will soon be added to the number of our active enemies. I trust you will agree with me in my views of the importance