31st. Mr. John Holiday, a trader, arrived from the Ance Kewy-winenon in Lake Superior, bringing a small coffin painted black, inclosing an American scalp, with the astounding intelligence that a shocking murder had been committed by a war party of Chippewas at Lake Pepin, on the Mississippi. The facts turned out to be these: In the spring of the year (1824), Kewaynokwut (Returning Cloud), a chief of Lake Vieux Desert, at the source of the Wisconsin, suffered a severe fit of sickness, and made, a vow, if he recovered, to collect a war party and lead it against the Sioux, which he did early in the summer. He passed the trading-post of Lac du Flambeau, with twenty-nine men in canoes on the 1st of July. He pursued down the Waswagon branch into the main Chippewa River, after a cautious journey, and came to its mouth early in July, at an early hour in the morning, when a fog prevailed. This river enters the Mississippi at the foot of the expanse called Lake Pepin, which is a common place for encampment. It is the usual point of issue for Chippewa war parties against the Sioux, for which it has been celebrated since the first migration of the Chippewas into the rice lake region at its sources. Prom the usual lookout, called Mount Le Gard, they discovered imperfectly an encampment on the shores of Lake Pepin. On coming to it, it proved to be an American, a trader of the name of Finley, with three Canadians, on his way from Prairie du Chien to St. Peter's. One of the men spoke Chippewa. They were asleep when the advance of the Indian party arrived. When they awoke they saw the Indians with terror and surprise. The Indians cried out to their comrades in the rear that they were not Sioux, that they were white people. The party then all came up. The war chief Kewaynokwut Said, "Do not be afraid. This party you see are my young men; and I command them. They will not do you any harm, nor hurt you." Some of the party soon began to pillage. They appeared to be half famished, first taking their provisions, which consisted of half a bag of flour, half a bag of corn, a few biscuits, and half a hog. The biscuits they immediately eat, and then began to rob the clothing, which they parted among themselves.

The Indians diligently inquired where the Sioux abroad on the river were, what number they might be, where they came from, and whither they were going? to all which judicious replies appear to have been made, but one, namely, that they consisted of thirty, on their way from St. Peter's to Prairie du Chien. Being but twenty-nine men, the rencontre appeared to them to be unequal, and, in fact, alarmed them. They immediately prepared to return, filing off one after another, in order to embark in their canoes, which were lying at a short distance. Before this movement, Kakabika had taken his gun to fire at the whites, but was prevented by the others. But they went off disappointed, and grumblingly. This was the case particularly with Kakabika, Okwagin, Whitehead, Wamitegosh, and Sagito, who began crying they wanted to kill the whites. Sagito then said that it was a very hard thing that they should return light--that when one went out a hunting, he did not like to return without killing something. "What," he said, "did we come here for? Was it not to kill?" At this Kewaynokwut wavered, who had promised safety, and did not interpose his authority to check the brooding evil, although he took no part in it. Whitehead, Okwaykun, and Wamitegosh, who were in the rear of the party, leveled their arms and fired, killing on the spot the three men, who were immediately scalped. The wildest fury was instantly excited.

Finley, in the mean time, had gone to the Indian canoes to recover his papers, saying they were of no use to them, and of importance to him. Hearing the report of guns behind him, he perceived that his companions were killed, and took to flight. He threw himself into the water. Annamikees, or the Little Thunder, then fired at him and missed. He quickly reloaded his gun, and fired again, effectively. Finley was mortally shot. The Indian then threw himself into the water, and cut off the unfortunate man's head, for the purpose of scalping it, leaving the body in the water. The party then quickly returned back into the region whence they had sallied, and danced the scalps in their villages as Indian scalps.

Mr. Holliday was also the bearer of a speech from Gitshe Iauba, the ruling chief of Ance Kewywenon, through whose influence this occurrence was brought to light. He first addressed his trader in the following words:--

"We were deceived. Word was sent to us to come and fetch the scalp of a Sioux Indian of our enemy. This was my reason for sending for it. But, ah me! when they brought word that it was the scalp of an American, I sent for the young man whom you left in charge of your house and store, and asked him what should be done with the scalp of our friend. It was concluded to have it buried in the burying-ground."

He then addressed the United States agent at Sault Ste. Marie, in the following words, accompanying them with a string of wampum:--

"Our father. This wampum was given to me that I might remain in peace. I shook hands with you when I left St. Mary's. My heart was in friendship. I have taken no rest since I heard of the foul deed of our friends, the people of Vieux Desert, and Torch Lake, in killing a citizen of the American Government, the government that protects me.

"Now, Americans, my situation is to be pitied. My wish is, that we should live in friendship together. Since I shook hands with you, nothing on my part shall be wanting to keep us so."

I immediately forwarded the little scalp-coffin received from the interior, with a report of this high-handed outrage to the Executive of the Territory and Superintendent of Indian Affairs, at Detroit, that the occurrence might be reported promptly to the War Office at Washington.

November 27th. I determined to spend the winter in New York; to place the agency, in the interim, in charge of an officer of the garrison, and to visit Washington from this city during the season. Captain N.S. Clarke, 2d Infantry, consented to perform the duties of the agency during my absence. And having obtained leave of absence from my superior in the department, I embarked, in September, on board a schooner for Detroit, with Mrs. Schoolcraft, her infant son William Henry, my sister-in-law, Miss Anna Maria Johnston, and a servant, making a little group of five. We touched at Michilimackinack.