An important council has been held at Fort Gibson, by Colonel Dodge, and by Major Armstrong, the superintendent of Indian affairs, with the chiefs of several of the tribes of that quarter, including some of the wandering bands, whose predatory operations have heretofore kept the frontier in alarm. At this council, the situation of the Indians was fully discussed, and amicable relations established. It is to be hoped that the feelings with which they separated will be permanent, and their intercourse hereafter uninterrupted.

The united tribe of Pottawatamies, Ottawas, and Chippewas, possessing the country in the vicinity of Chicago, have conditionally acceded to the alteration proposed in the boundaries of the tract assigned for them west of the Mississippi, by the treaty concluded in 1833. Should their proposition be accepted, an extensive and valuable region will be opened for settlement, and they will be removed to a district whose climate is suitable to their habits, and whose other advantages cannot fail to offer them strong inducements for moral and physical improvement.

An arrangement has been made with the Miamies for the cession of a part of their reservation in the State of Indiana. The tracts held by them are far more extensive than they require; and as they appear to be not yet prepared for removal, this relinquishment, without injuring them, will relieve the State, in some measure, from the embarrassment caused by such large reservations as they possess, embracing a most valuable part of the country, and interrupting the settlements and communication.

Instructions were given, immediately after the last session of Congress, for purchasing from the Wyandots in Ohio, if they were disposed to sell, the reservation secured to them in that state, and for their removal to the west. The commissioner, Governor Lucas, conducted the negotiation with great fairness and propriety, fully explaining to the Indians their own position, the wishes of the government, and the course of circumstances urging their removal. The matter is not yet terminated, the Indians having requested time for further consideration.

The necessary appropriations will be asked for the removal of the Seminoles, agreeably to the treaty formed with them; and arrangements have been made for the emigration of the Creeks, as fast as they are prepared for a change of residence. There has not yet been sufficient time to ascertain the result of these measures.

I am not able to submit to you any more favourable views of the condition of the Cherokees than were embraced in my last annual report. While every dictate of prudence, and, in fact, of self-preservation, urges their removal, unhappy councils and internal divisions prevent the adoption of that course. Where they are, they are declining, and must decline; while that portion of the tribe which is established in the west, is realizing the benefits which were expected to result from a change of position. The system of removal, however, by enrolment, is going on, and during this season about one thousand persons have passed to the west.

The treaty concluded the 24th of May last, with the Chickasaws, has altered the relations in which they were placed with the United States. The proceeds derivable from a portion of their present possessions have been assigned to them, and reservations have also been provided for such as choose to become citizens of the United States. Their future condition now depends upon their own views and experience, as they have a right to remain or remove, in conformity with their own judgment. The means placed at their disposal are fully adequate to their permanent comfortable establishment, and it is to be sincerely hoped that they will apply them wisely.

The acts of the last session of Congress, on the subject of Indian affairs, have introduced important changes into those relations. Many of the provisions of former laws had become inappropriate or inadequate, and not suited to the changes which time and circumstances had made. In the act regulating the intercourse with the various tribes, the principles of intercommunication with them are laid down, and the necessary details provided. In that for the re-organization of the department, the number of officers employed has been much reduced, and the current expenses diminished.

Any changes which experience may show to be necessary in these acts, can from time to time be provided, until they shall become fully adapted to the situation and condition of the Indians, and to the intercourse, both commercial and political, which ought to exist between them and our government and citizens. The system of removal has changed essentially the prospects of the emigrants, and has imposed new obligations upon the United States. A vast tract of country, containing much more than one hundred millions of acres, has been set apart for the permanent residence of these Indians, and already about thirty thousand have been removed to it. The government is under treaty stipulations to remove nearly fifty thousand others to the same region, including the Illinois and Lake Michigan Indians, with whom a conditional arrangement has been made. This extensive district, embracing a great variety of soil and climate, has been divided among the several tribes, and definite boundaries assigned to each. They will there be brought into juxta-position with one another, and also into contact, and possibly into collision, with the native tribes of that country; and it seems highly desirable that some plan should be adopted for the regulation of the intercourse among these divided communities, and for the exercise of a general power of supervision over them, so far as these objects can be effected consistently with the power of Congress, and with the various treaty stipulations existing with them. It is difficult, indeed, to conceive how peace can be preserved, and the guaranty of protection held out to the eastern Indians fulfilled, without some legislative provision upon this subject.