In the year 1851, the Sisseton, Wahpeton, M'dewakanton and Wahpekuta bands of Dacotah or Sioux Indians by treaty ceded to the United States, in consideration of certain annuities to be paid them, all their lands within the present limits of the States of Iowa and Minnesota, excepting a reservation set apart for their habitation and use, embracing a narrow strip along the southern side of the Minnesota River, of about ten miles in width and one hundred and fifty in length. To this reservation these four bands removed their people, numbering some seven thousand souls, of whom, perhaps, twelve hundred were warriors. During the eleven years which have elapsed since this treaty was made, they have lived there, the State of Minnesota being meanwhile peopled by the whites with unparalleled rapidity, and the Indians seeing flourishing and populous settlements springing up all about them. With but a single interruption, peace and amity has existed between the two races; missions, schools, and to some extent, agriculture, have been established among them; and a large number of halfbreeds, springing from marriages between white traders and Sioux women, have formed, apparently, a link of consanguinity and interest, which, aided by the influence and laws of civilization, would hereafter prevent any trouble or bloodshed on the part of the savages.

One single and very grave interruption to these peaceful relations has, however, occurred. In March, 1857, Inkpadutah, a Wahpekuta Dacotah, with a small band of followers, committed a terrible massacre near Spirit Lake, in the northwestern corner of Iowa, slaying fifty persons, and carrying away four women into captivity, two of whom were, after some months, ransomed and restored to their friends, the other two having been previously murdered by their captors. But Inkpadutah and his band were outlaws, driven away by their own people for creating internal dissensions; and although the perpetrators were never properly pursued and punished, it was not thought that the outrage had been countenanced by the rest of the nation, or that any danger existed of similar acts on their part.

The cause of the recent outbreak cannot, perhaps, be absolutely determined; the manner of its beginning is more easily traced. It must be understood that, for the purpose of receiving their annuities, the Indians, at a certain period every summer, come down from their hunting grounds to the two Agencies, one at Redwood, near Fort Ridgely, and the other at Yellow Medicine. It is the custom to keep a certain quantity of provisions at these Agencies to feed them during these visits, and also to sometimes send them supplies during times of great want and scarcity of game in winter. Unfortunately, they came last year much earlier than common, and before they had received their usual notification from the Agent, that the annuities were awaiting them. In addition, as if all the accidents were destined to be adverse, the session of Congress was very long, the Appropriation Bill, which included the Indian appropriations, did not pass until the day before the adjournment, and the immense pressure of business on the Departments, and the great difficulty of obtaining coin, all occasioned long and unusual delays. The coin, $71,000 in silver (Indians understand silver coin, and will scarcely take any other), was finally shipped by express from the sub-treasury in New York city, on the 12th of August, reached St. Paul on the 16th, and was immediately despatched by private conveyance to Yellow Medicine, via Fort Ridgely, at which latter place it arrived on the 18th.

The Indians came down to the Agency at Yellow Medicine about the middle of July, to the number of four thousand, men, women, and children. Here they remained in waiting some three weeks. Provisions, in small quantities, were given to them, but for so large a number of mouths the rations were scanty. This supply, with the few wild ducks and pigeons which they could shoot from time to time, the little flour they were able to buy on credit from the trading houses, and the half-grown potatoes they stole from the fields, enabled them to eke out a scanty subsistence.

As might be readily imagined, this state of things bred great discontent. On the morning of the 4th of August, a large number of Indians came over from their encampment, and some on horseback, and some on foot, with guns and hatchets, rushed to the door of the warehouse, cut it down, and commenced carrying out bags of flour. The few soldiers who were stationed at the Agency, were, as well as the Agent and employés, taken completely off their guard by this movement; but in a short time they recovered themselves; got a field piece loaded and turned upon the crowd, and sent a squad of soldiers to the warehouse. At these preparations, the Indians desisted; but the military force was too small to make more than a formal demonstration. The pile of flour taken out of the warehouse had not been carried away, and while the soldiers prevented this being done, the Indians placed a guard to hinder its being recovered by the whites. Thus they stood during the remainder of the day, in an attitude of mutual defiance, yet neither party was willing to inaugurate hostilities. The next morning, when the Indians again as usual flocked down to the Agency, a couple of arrests were promptly made by the guard. This had the effect of driving them all back to their camps. Almost immediately afterward they struck their tents, and removed to a distance of from two to four miles. This was looked upon at the Agency as a war movement, and all possible defensive preparations were at once made. Some of the women were sent away, guns and pistols were loaded, field pieces and troops were placed in position, and pickets were thrown out. Everything looked like war. Still there had been no actual bloodshed. Through the mediation of Rev. Mr. Riggs, who had long resided among them as a missionary, peaceful counsels finally prevailed with the Indians. Thirty-six of the chiefs met the Agent in council, smoked the pipe of peace, acknowledged their offence, and expressed their sorrow and shame at its occurrence. Three days afterward another council was held, in which they agreed to receive certain rations, and promised to induce their people to move away until the annuity money should arrive. The Agent, on his part, forgave their trespass, and promised to send for them as soon as he should be prepared to make their payment. So confident was he that the arrangement was amicable and satisfactory, that he went soon afterward to St. Paul on business, leaving his family at the Agency.

Things remained in this condition until Sunday, the 17th of August, 1862. On that day, four young Indians, belonging to Little Six's band, went to the house of Mr. Jones, at Acton, Meeker county, Minnesota. As they evinced an unfriendly disposition, Mr. Jones locked his house, and with his wife, went to the house of Mr. Howard Baker, a near neighbor, where he was followed by the Indians. They proposed to go out and shoot at a mark, but after leaving the house, suddenly turned and fired upon the party, mortally wounding Mr. and Mrs. Jones, Mr. Baker, and a Mr. Webster. Mrs. Baker, with a young child, concealed herself in the cellar and escaped. The Indians then returned to Jones' house, which they broke into, killing a young woman who had been left there. This was the first bloodshed of the war.

Up to this time there seems to have been no deliberate preparation, no concerted arrangement for the outbreak against the whites. There was excitement and discontent among the Indians on account of hunger, the delay of their payment, and the real or supposed wrongs and frauds committed by white traders and officials; but no organized hostile movement had been agreed on. They knew that a great war was in progress between the whites; that armies were being raised, and the country was being drained of men. All this was known and discussed among them. There are also grave suspicions, and not without considerable show of evidence, that rebel emissaries, Indians or half breeds from the Missouri border, had been among them fomenting the discord and urging war.

When these four young men returned on the 18th to their band, which was then with others at the Sioux Agency at Redwood, the recital of their murders created the most intense excitement among the Indians. They became infuriated at the idea of bloodshed. Before the whites were aware that trouble was brewing, Little Six's, Little Crow's, Grey Iron's, and Good Road's bands of M'dewakantons, and a part of the Lake Calhoun band, gathered around the buildings, and, with a general rush and yell, massacred the whites, some twenty-five in number, robbed and plundered the stores, and laid the whole place in ashes.

The party who were conveying the annuity money to the Agency, reached Fort Ridgely on the afternoon of the same day, and there learned that the outbreak had taken place. A garrison of about seventy-five men was in the fort at the time the news of the massacre reached it, and Captain Marsh, taking fifty of them, proceeded toward the Agency, fifteen miles up the river. In the evening twenty-one of the men returned, to tell that the detachment had fallen into an ambush, and that all the others, including the captain, were either killed or drowned.

The Indians seem to have at once despatched messengers with the news of these hostilities to the bands at the Upper Sioux Agency, at Yellow Medicine. The chiefs there immediately called their followers into council. About one hundred Sissetons, Wahpetons, and thirty young Yanktons, were present. The council was stormy, and divided in sentiment; the Sissetons urging the killing and robbing of the whites, saying the M'dewakantons had already gone so far that they could not make matters worse, and that, as the whites would inflict punishment upon all alike, the best thing to be done was to kill them and take their goods. The Wahpeton chiefs, though willing to rob the whites, insisted on sparing their lives, and sending them off with their horses and wagons across the prairies.