The most comprehensive statement of the existing Indian troubles on the frontier, and their causes, is to be found in the following correspondence, which includes a letter from Gen. GRANT to the Secretary of War, inclosing the accompanying report from Major DOUGLAS, of the Third Infantry, now in command at Fort Dodge, Kansas.

                                      FORT DODGE, Kansas, Jan. 13, 1867.
    GENERAL: I consider it my duty to report what I have observed with reference to Indian affairs in this country, so that such representations may be made to the Department of the Interior by the Commanding-General of division as he may think proper; also other items of information which may be useful. The issue and sale of arms and ammunition, such as breech-loading carbines and revolvers, powder and lead, loose and in cartridges, and percussion caps, continues without intermission. The issue of revolvers and ammunition is made by Indian agents, as being authorized by the Commissioner of Indian Affairs, and the sale of them in the greatest abundance is made by traders. BUTTERFIELD, an Indian trader, formerly of the Overland Express, has the largest investment in Indian goods of all the traders. He has sold several cases of arms to the Cheyennes and Arapahoes. CHARLEY RATH, a trader who lives at Zarah, has armed several bands of Kiowas with revolvers, and has completely overstocked them with powder. Between the authorized issue of agents and the sales of the traders, the Indians were never better armed than at the present time. Several hundred Indians have visited this post, all of whom had revolvers in their possession. A large majority had two revolvers, and many three. The Indians openly boast that they have plenty of arms and ammunition in case of trouble in the Spring. The Interior Department does not seem to appreciate the danger of thus arming those Indians. The evil of presenting a revolver to each of the chiefs of bands would hardly be appreciable; but when the whole rank and file are thus armed, it not only gives them greater courage to murder and plunder, but renders them formidable enemies, the agents have no real control over the traders--in fact, they are accused by many, both Indians and white man, of being in league with them and of drawing a large profit from the trade. Should such be the case--and I think it highly probable--it is a natural consequence that the agent does not wish to control the trader. The anxiety of the Indians at the present time to obtain arms and ammunition is a great temptation to the trader. For a revolver an Indian will give ten, even twenty times its value in horses and furs. Powder and lead are sold to them at almost the same rate, and as the bulk is small, large quantities can be transported at comparatively little expense. This anxiety cannot be caused by s lack of such articles, because they have plenty to last for some time, but everything tends to show that the Indians are laying in large supplies, preparatory to an outbreak. When the outbreak occurs, we shall see too late that we have provided our enemies with the means for our destruction. A great deal of dissatisfaction seems to have been created among the Indians by the unequal distribution of presents. The Kiowas complain bitterly of Col. LEAVENWORTH, their agent, stationed at Fort Zarah. KICKING BIRD, Chief of the Kiowas, states that only a few small bands of Kiowas got any presents; the balance, last year, got nothing; that it had been represented to Col. LEAVENWORTH that most of the bands were bad in their hearts and would not go in to get their presents; that he (KICKING BIRD) sent runners to tell Col. LEAVENWORTH that his stock was poor and he could not move in there; but he would, in the Spring, if the agent would keep his share of the goods. But Col. LEAVENWORTH would not listen, and either gave all the goods to the bands then in, or sold them to other Indians, and told them they would get no goods that year. How much of this is true I know not; but from all I can learn there seems to be at least some foundation for the story. Bad management, bad faith and injustice are sure to produce the worst results. KICKING BIRD says that all bad feeling in his tribe is owing to the injustice of their agent; that it required all his influence to prevent an outbreak, and he is afraid that they will commence hostilities in the Spring. The Arapahoes, Cheyennes, and a large band of Sioux, under the leadership of BIG BEAR, are now en route for the purpose of crossing the Arkansas into the Kiowa country. They move ostensibly to graze and hunt buffalo. A portion of the Arapahoes under the general leadership of LITTLE RAVEN, crossed the river about four miles below this post. The Sioux and Cheyennes are encamped about 160 miles north of this post on the Republican, and are said to be hostile. They are to cross about seven miles below here. They are all well mounted and well armed with carbines and revolvers, and supplied with plenty of ammunition. KICKING BIRD says the Sioux and Cheyennes asked his permission to cross the river, and that he refused it for fear of trouble, but that his men wished them to cross, and he believes that they will all cross the river, and that in the Spring, when the grass comes up, there will be war. He had been treated kindly at Fort Dodge, or he would not tell us so; but we must look out for our lives and for our stock in the Spring. He says, as they talk now all the tribes north and south of the Arkansas will be in the outbreak; his own among them. He also states that Satante, or White Bear, a principal chief of the Kiowas, is always talking of war; that they have already had a council at the Kiowa camp, in which the Cheyennes, Sioux, Arrapahoes, Kiowas, Comanches and Apaches were represented, and it was agreed that as soon as the grass was old enough they would commence war; that he, KICKING BIRD, had been kindly treated at Fort Dodge, and he wished to put us on our guard; that before Spring the Indians might change their minds, but at present their intention was war. He said he would be backward and forward frequently, to give us the news. The Chief, KICKING BIRD, is known to Gen. SHERMAN, who talked with him last Fall, and is believed at this post to be the most reliable of all the Indians. I would respectfully state that it is my purpose to keep the district and department informed of all movements of Indians in large bodies as far as it is possible.
    I am, very respectfully, your obedient servant,
                        H. DOUGLAS, Major Third Infantry,
                                                Commanding Post.
To the Assistant Adjutant-General, Division of Missouri.

    When the House assembled to-day, it was whispered around that the Reconstruction Committee had agreed upon a bill to be submitted to the House, but that secrecy had been enjoined, and it would not be made public until announced in regular order. It soon transpired, however, that the Committee had agreed upon the bill introduced into the Senate on Monday by Senator WILLIAMS, providing for the establishment of a Supervisory Military Government in the Southern States. The bill divides the ten States into five districts, each to be commanded by an officer not less in rank than Brigadier-General in the Regular Army. The other details of the bill, given elsewhere, practically give the military authority control over nearly all matters of Government in the Southern States. The minority attempted to effect an adjournment before the bill could be presented, but failed to do so, and at 4:30 P. M., Mr. STEVENS sent it to the Clerk's desk. Mr. LE BLOND, of Ohio, fearing that it was the intention of the majority to push the bill through to-night, offered an earnest protest against haste in disposing of it, and finally demanded at least an hour for its debate by the Democrats. He claimed that the House should act with a due regard for the will of the American people; and Mr. STEVENS replied that he would consult the American people to-night, and press the bill through to-morrow, when it will come up as a matter having precedence over everything else. Mr. BINGHAM, of Ohio, sought to introduce an amendment to the bill, striking out the preamble, and inserting as follows: "Whereas, it is necessary that peace and good order should be enforced in the several States lately in rebellion, until said States shall have been fully restored to their constitutional relations to the Government of the United States; therefore, resolved," &c. Mr. BINGHAM also sought to amend the fourth section as follows: "That the Courts and judicial officers of the United States shall not issue writs of habeas corpus except in cases in which such person or persons are held exclusively for a crime or crimes which, by law of the United States, are indictable by the Courts of the United States within such military district." The bill is looked upon as the entering wedge in the destruction of the present Governments of the Southern States, and as an indication that nothing definite will be accomplished in their reorganization until the Fortieth Congress meets. Prominent Southern loyalists now here, express themselves satisfied with its provisions as a matter of temporary relief, and are particularly gratified that it has been presented just at this time, when the Johnson men of the South are urging their compromise.

    The House Committee on Claims have concluded the hearing on the Senate bill for the relief of the iron-clad builders, and expect to report on Friday next a bill differing from that which passed the Senate. The latter fixed a general per centage of increase to be applied to all the claims alike. The House Committee propose to give an increase of contract pay in accordance with the amount of each particular claim, and they may refuse to give any relief in several cases.

    On Saturday next it is expected that the Supreme Court of the District of Columbia will decide the case of Gen. MAGRUDER, who asks to be permitted to resume the practice of law in that Court. MAGRUDER was in the rebel army, and cannot, therefore, take the testoath, and he claims that under the recent decision in the Supreme Court of the United States, he is entitled to pursue his profession without taking the above-named oath. This is resisted, singularly enough, by lawyers who claim that the decision of the United States Supreme Court is not binding upon the District Court in this instance, and the anomalous and novel legal proposition is argued that an inferior Court may revise, and, if it pleases, disregard the decision of a superior and supreme tribunal.

    Gen. SHERIDAN is now the guest of Gen. GRANT. He was subpoenaed to-day to appear before the Southern Railroad Investigating Committee. He has not been summoned before any other Committee.

    The Indian Appropriation Bill was taken up in the House to-day, and after the appropriations for subsistence and presents to tribes not under the control of Government had been stricken out, it was recommitted to the Committee on Appropriations. Messrs. WINDOM and KASSON indulged in some sharp debate during its consideration, arising out of differences in statements regarding the cost of keeping up the Indian Bureau.

    The loan certificate proposition is now before a sub-committee of the Senate Finance Committee, composed of Senators SHERMAN and CATTELL, who are both favorably disposed to the project. It will be reported to the Committee to-morrow, and submitted to the Senate this week.

    Gen. JOS. J. BARTLETT has been nominated for Minister Resident at Stockholm, vice MCGINNIS rejected.

    It is announced that the Retrenchment Committee has agreed to report in favor of the abolishment of naval offices at New-York, Philadelphia, Boston and Baltimore, and recommend that the duties of these offices be performed by an officer to be called an auditor, whose salary shall be $5,000 without fees.

    The paragraph going over the country, credited to the Washington correspondence of the TIMES, to the effect that the Judiciary Committee had agreed upon articles of impeachment, and that the Reconstruction Committee had, as early as Saturday last, agreed upon a report, never appeared in these dispatches.

    Our Western farmers are about to have an opportunity to see an experiment tried to test the adaptability of steam to our American agriculture. JOHN FOWLER & CO., of England, have sent out a complete set of their plowing apparatus, with engines and tackle, in charge of a skilled agent, and, at their own expense, are going to set it to work. It is said to be capable of plowing more than an acre an hour to a depth of twelve inches, and at a cost considerably less than horse and hand labor. The only objection seems to be the cost of the machinery, which is about $10,000; but there are many large farmers in the West and in California, who would invest this much if the plan proves feasible. The customs officers levied a duty of nearly $4,000 on this sample plow, but a joint resolution has been introduced in the House, by Mr. BIDWELL, of the Agricultural Committee, to refund this, and it will undoubtedly pass without objection.

    The Senate in executive session to-day confirmed the following appointments:

    Collectors of Internal Revenue--David Littler, Eighth District of Illinois; Ernest M. Bouligny, Second District of Louisiana; Barton Able, First District of Missouri.
    Consuls--Morgan L. Smith, at Honolulu; Hiland R. Hurlburd, to be Comptroller of the Currency; John Friend, to be direct Tax Commissioner for Florida; Thomas O'Brien, to be Surveyor of Customs at Wheeling, West Va.; Edward W. Wynkoop, to be Agent of the Upper Arkansas Indians; Col. Benjamin W. Brice, to be Paymaster-General United States Army, with rank of Brigadier-General; Alfred Kilgore, to be United States Attorney for the District of Indiana; John E. Rosett, to be United States District Attorney for the Southern District of Illinois; Francis L. Dallan, to be United States Marshal for the Eastern District of New-York.
    The following to be Major-Generals by brevet: Brig.-Gen. Edgar M. Gregory, for the battle of Five Forks; Brig.-Gen. Thomas L. Mane, for the battle of Gettysburgh; Brlg.-Gen. Halberd E. Paine, for the attack at Port Hudson: Brevet Brig.-Gen. Daniel C. McCollum.

    The Senate also confirmed a large number of other military appointments for gallant or meritorious services. Among them are the following:

    Colonels to be Brigadier-Generals by brevet--William L. Duff, R. Brinkerhoff, A. J. McNeth, W. T. King, S. B. M. Young, A. G. Lawrence, C. H. Potter, L. Stephenson, Jr., John J. Gleeson, Joseph Dickinson, John F. Anderson, Hancey Graham, Alexander Von Schrader, H. M. Cist, G. P. Thurston, John W. Burke, D. C. Anthony, S. Graham, J. P. Spofford, E. R. Biles, Peter Fritz, Matthew McEwen, R. H, Bentley, Thomas F. Wrigst, B. F. Fisher, James Dunlap, Paul Frank, G. A. Cobham, John Marshall Brown, P. J. Sullivan, Wilson Barstow, John S. Wilcox, W. Ely and William Ames.

    The Senate rejected the following nominations:

    Naval Officer, J. L. Swift, Boston and Charlestown, Mass.; Surveyor of Customs, William Wallis, Baltimore, Md.; Isaac G. Worden, of Michigan, to be Register of Land Office at East Saginaw. United States District Attorneys--Moses Kelley, for the Northern District of Ohio; Charles G. Manro, for the Eastern District of Missouri; M. L. Perkins, for the Western District of Tennessee; Andrew T. McReynolds, for the Western District of Michigan; Geo. G. Munger, for the Northern District of New-York; Thos. E. Hayden, for the District of Nevada. United States Marshals--Seth B. Moe, for the Northern District of Ohio; J. M. Walker, for the District of Iowa; Wm. B. Thomas, for the Western District of Michigan; John G. Parkhurst, for the Eastern District of Michigan; Samuel Walker, for the District of West Virginia. Collectors of Internal Revenue--H. W. Harrington, Third District of Indiana; Benjamin F. Coates, Eleventh District of Ohio; Joseph W. Frizell, Fourth District of Ohio; Wm. M. Hamilton, Second District of Missouri; John M. Glover, Third District of Missouri; Thomas T. Crittenden, Fifth District of Missouri. Collectors of Customs--Sylvanus B. Phinney, Barnstable, Mass.; Darius M. Couch, Boston, Mass. Assessors of Internal Revenue--Wm, P. Wells, First District, Michigan; John E. Cummings, Fourth District, Ohio; Thomas E. Cunningham, Fifth District, Ohio; John Pitcher, First District, Indiana; Wm. C. Wilson, Eighth District, Indiana; James W. Eldridge, Ninth District, Indiana; Garland C. Brodhead, Fifth District, Missouri; Richard C. Vaughan, Sixth District, Missouri; Wm. D. H. Hunter, Fourth District, Missouri; James A. Grierson, Second District, Missouri; Abner A. Steele, Fourth District, Tennessee; Augustus W. Brown, Twelfth District, Illinois; Abel Longworth, Sixth District, Illinois; Isaac I. Ketchum, Tenth District, Illinois; Wm. M. Chambers, Seventh District, Illinois.

Source:

Unknown, "Washington. Indian Affairs--Interesting and Comprehensive Letters from Gen. Grant and Major Douglas Regarding the Treatment of Indians--Government Agents and Traders Supplying them with Arms and Ammunition--Military Government for the Southern States--The Iron-Clad Builders--Gen. Magruder and the Test Oath, also Nominations Confirmed," New York Times, Thursday, 7 February 1867, p. 5.