Indians were beaten with heavy loss and totally dispersed, the bands from the north and east side of the Missouri (principally Yanktonais) having deserted their allies and taken temporary refuge in very destitute condition within the British possessions. Sully followed them after crossing the Missouri at mouth of the Yellowstone to near the British line. At last dates from Fort Rice messengers from the Yanktonais had reached there to see General Sully and ask for peace. Reports via Pembina confirm the destitute condition of the Sioux who fought Sully, some of whom had already reached the English settlements on Red River, and held conferences with the British officials. The Indians are in a desperate condition. I have little doubt that Sully will arrange a satisfactory peace with them. It is not likely that they will again give trouble on any considerable scale to the frontier settlements. Small raids may from time to time be attempted by small parties of desperate Indians for robbery or theft, but there are forces enough along the frontier to give all necessary protection, even in the absence of the two regiments I am sending South.

I will, in a few weeks, make a careful resume of operations in this department during the past season and present in detail the precise condition of our Indian relations in their present and future aspect. Meantime there are several points in the inclosed communications,* especially in those of the 9th and 11th of September, to which I desire to invite your particular attention.

First. As to the expedition of Captain Fisk, assistant quartermaster, under a special appropriation of Congress. The complaints against this officer by General Sully are simply a repetition of the same statements made by General Sibley as to his conduct last year while conducting an expedition of the same character. General Sibley then predicted that Captain Fisk would eventually be cut off by the Indians, as he was both too reckless and too ignorant to be trusted. He manifested the same disrespect and used the same disrespectful language in regard to General Sibley that General Sully now reports in regard to himself. As Captain Fisk is beyond my control, I trust that the War Department will take such action in his case as the gross military offenses charged against him by Generals Sully and Sibley warrant. General Sully states that his present expedition consists simply of men running away from the draft. I request your attention to General Sully's letters of the 9th and 11th of September for an account of this whole matter, and of the serious results to the Government which may arise from the conduct of Captain Fisk.

Second. Attention is invited to the conduct of the half-breeds and other English subjects, who are continually coming into United States territories, encouraging the Indians to continue the war against United States citizens and furnishing them (the Indians) with ammunition and supplies for that purpose. I have several times asked the attention of the Government to this subject. It is sufficiently clear that unless such practices are stopped, the Indian, having constant encouragement to commit hostilities, a safe place of refuge and supplies of ammunition and provisions, is not likely to make peace, and can only be prevented from committing hostilities within our borders by the employment of large forces at great expense along our whole northern frontier. The English authorities are directly accountable for the results, by giving refuge to Indians at war with the United States and by refusing to control them or to permit the United States forces to follow them into British territory.

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*See Sully's report, p. 141.

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