Headquarters Military Division of the Missouri Saint Louis Mo. Feb 19 1867. Maj Genl. A. H. Terry, Comdg Dept of Dahcotah. St. Paul. General, Yesterday I Examined in detail your Estimates for the new Line of Posts to Montana. Endorsed them favorably and transmitted them for the Action of the Sec of War. It is more than likely the heavy demand on the Treasury may force the Secretary to cut down on Estimates but whatever action he may take we must Conform to Cheerfully. In the mean time you can distribute your troops according to your judgment of the probabilities. The Posts at Sun River, and at the mouth of Yellowstone should be as strong as possible. Capable of holding their posts- and if necessary to send out Expeditions against the hostile Sioux [2] who when pressed from the direction of the Platte will surely swing on against your line. In Examining some Reports of Generals Sully, and Sibley I noticed that the Sioux when pushed on more than one occasion crossed the British Line. and Escaped. My opinion is that when Savages, the Enemies of the Civilized races of man - Cross a new National Line when there are no forces or inhabitants to prevent, they may be pursued a reasonable distance. Still international Courtesy might be offended, and if you have reason to anticipate such an event I wish you would clearly state it and allow me to transmit it through military channels to Our Secretary of State with a view of getting the friendly assent of the British Government. It is not likely that they will keep any troops in that Line, west of Pembria, and they ought not to object to our Crossing the Line in pursuit. If the Indians [3] learn they gain no safety by crossing that Line it may have an Effect. I am thus far disappointed that the Management of the Indians has not been Committed solely to us. As long as they are managed by Civilian Agents, in the interest of men traders, I am not willing to leave them the option of saying when Indians are or are not hostile. I must trust to your discretion till Congress settles down to some distinct policy. My own opinion is that we must segregate the hostile from the friendly - remove the latter to some distinct locality and then feed & care for them, and carry on a war of Extermination against the rest, but at the moment we have not the funds, or the legal right to act thus. I enclose you a printed copy of Genl orders no 27 of 1866, by Gen Pope, regulating travel across the Plains. You had better make a similar order, defining Clearly what road may be traveled, and how trains should be organized & government En route. I do not pretend that we have the lawful right, but there is no [4] other authority for this than the military and we must Exercise it. I would confine all travel from Minnesota to Montana to one Road, clearly defined, and give the Post Commander as much latitude of discretion as to Size of trains - and Escorts, as you think proper. Dont attempt this year the Route by the Big Sheyenne, or up the Yellow Stone. If citizens in Montana want to travel by the Yellow Stone, or from [the] mouth of Milk River let them know beforehand that it is at their own risk and peril. You might also prescribe some general Rules for the Steamboats above River - viz that they should have on board say 25 good muskets Carbines & Rifles. - and when tied to the Bank, [illegible phrase] should keep out pickets - & c. Authorizing Post Commanders on the River at discretion to put on board in case of danger, more arms, am[m]unition or men. If the Indians discern the value of steamboats for plunder, and the ease [5] of Capture they may practice it, and for that reason we should guard against the first Case. There is a strong tendency to use the Missouri River up as far as Benton or one of the Regular navigable Rivers, and I have no doubt familiarity with it will remove difficulties and delays hitherto Experienced. You should also now make all the necessary orders for all your troops to move on the first and best stage of water to the posts assigned and to make requisitions for [illegible] to fill the Companies up to Standard. Of course your Quarter Master & Commissary will be Careful that all the up Missouri River Posts receive a full years supply of necessaries. I am with great respect W. T. Sherman Lt. Genl. Comd.