a large body of troops, and I do not therefore think it will be necessary to have another expedition. Yet, owing to the vast extent of country over which these Sioux can rove, the peculiar nature of a large portion of the country, such as the Black Hills, the mountains near the Big Horn, the Bad Lands, extending ten miles and over, on both sides of the Little Missouri, Gros Ventres, so broken up in places with narrow ravines, hundreds of feet deep,t eh sides of which are perfectly perpendicular, it is not only easy then to lose Indians you may be in pursuit of, but even lose yourself and then, again, the safe refuge the Indians have in the British possessions under the protection of the half-breeds of the North, who urge the Indians to keep up the war, so that they may be benefitted by their trade, it will be exceedingly difficult to bring all the bands of the Sioux to a complete subjection. A peace could no doubt be made with these Indians, as was made in 1857, by Congress making a heavy appropriation, promising to feed and clothe these Indians and begging them not to be bad any more, and there is no doubt such a peace would be just as well kept as the peace already made - that is, every white man who entered their country would be robbed or killed, without they went in sufficient numbers to protect themselves. The Indians regard the annuities given by the Government because they fear them. It will be necessary, however, to garrison posts in the country, keeping up a sufficient force for a few years not only to guard the posts but to send out parties to hunt up the Indians.

The matter of the greatest consequence in regard to these posts is the selection of a proper commander, so few officers in the army, at least in the volunteer service, that have had the opportunity to become well acquainted with the Indian character. It would be better to have no garrison at all than to have it commanded by an incompetent officer. The post on the Yellowstone should be built, but the question is where to place it. In a military point of view, near the mouth of the Powder River would be a good point, but from what I saw on the Yellowstone Valley, and from what I am told by those who ought to know, there will be great difficulty in procuring hay.

All the Indians north of the Missouri, above the Big Bend, could easily be banded together to assist a body of troops to war against the Sioux. In my opinion it would be policy and economy for the Government to expend a few thousand dollars and get these Indians into a war with the hostile portion of the Sioux, and to assist them also with troops, till all the posts are permanently established.

With much respect, your obedient servant,

ALF. SULLY,

Brigadier-General.

ASSISTANT ADJUTANT-GENERAL, DEPT. OF THE NORTHWEST.

HEADQUARTERS NORTHWESTERN INDIAN EXPEDITION,
Crow Creek Agency, Dak. Ter., October 10, 1864.

SIR: I have the honor to report I arrived here to-day; left the camp near Farm Island the 8th. The same day the First U. S. Volunteers reached there marching. They had to leave their boat some thirty miles below here, owing to the unusual low stage of water. The battalion was in a poor condition to march in this season of the year, with-