DEAR SIR,--I enclose you a letter of July 1st, from Governor Lewis, received from the War Office by the last post. It presents a full, and not a pleasant, view of our Indian affairs west of the Mississippi. As the punishment of the Osages has been thought necessary, the means employed appear judicious. First, to draw off the friendly part of the nation, and then, withdrawing the protection of the United States, leave the other tribes free to take their own satisfaction of them for their own wrongs. I think we may go further, without actually joining in the attack. The greatest obstacle to the Indians acting in large bodies, being the difficulty of getting provisions, we might supply them, and ammunition also, if necessary. I hope the Governor will be able to settle with the Sacs and Foxes without war, to which, however, he seems too much committed. If we had gone to war for every hunter or trader killed, and murderer refused, we should have had general and constant war. The process to be followed, in my opinion, when a murder has been committed, is first to demand the murderer, and not regarding a first refusal to deliver, give time and press it. If perseveringly refused, recall all traders, and interdict commerce with them, until he be delivered. I believe this would rarely fail in producing the effect desired; and we have seen that, by steadily following this line, the tribes become satisfied of our moderation, justice, and friendship to them, and become firmly attached to us. The want of time to produce these dispositions in the Indians west of the Mississippi, has been the cause of the Kanzas, the Republican, the Great and the Wolf Panis, the Matas, and Poncaras, adhering to the Spanish interest against us. But if we use forbearance, and open commerce for them, they will come to, and give us time to attach them to us. In the meantime, to secure our frontiers against their hostility, I would allow Governor Lewis the three companies of spies, and military stores he desires. We are so distant, and he so well acquainted with the business, that it is safest for our citizens there and for ourselves, after enjoining him to pursue our principles, to permit him to select the means. The factories proposed on the Missouri and Mississippi, as soon as they can be in activity, will have more effect than as many armies. It is on their interests we must rely for their friendship, and not on their fears. With the establishment of these factories, we must prohibit the British from appearing westward of the Mississippi, and southward of logarithm degree; we must break up all their factories on this side the Mississippi, west of Lake Michigan; not permit them to send out individual traders to the Indian towns, but require all their commerce to be carried on at their factories,--putting our own commerce under the same regulations, which will take away all ground of complaint. In like manner,