Page 364

364        REPORT OF COMMISSIONER          OF INDIAN    AFFAIRS. 
In the annual trust-fund report of November 1, 1872, attention was invited
to the 
complicated condition of many of the trust-fund accounts, and especially
to the accounts 
with the Chickasaw Nation, and it was then suggested "that the honorable
Secretary of 
the Interior be requested to call upon the Treasury Department to furnish
this office 
with full and complete statements of all financial transactions on the part
of the 
Government with the Chickasaw Nation from the origin of their trust-funds,"
&c. 
In compliance with a request of the Department the Secretary of the Treasury
has 
since transmitted official statements of the original investments made for
the benefit 
of the Chickasaw Nation, with an exhibit of the changes since occurring in
their stock 
and interest accounts, as appears upon the records of the Treasury Department.
The information thus obtained will enable this Department to determine any
arrears 
or balances that may be due to said nation, or by them to the Government.
In justice to the members of the various tribes for whose benefit so extensive
invest- 
ments have been made, and for the purpose of simplifying the accounts with
them, the 
Government should assume the State bonds now held in trust and issue in lieu
thereof 
United States bonds. 
The investments in State bonds, the greater portion of which are still held
in trust, 
have proved unprofitable on account of their depreciation in value, and frequent
sus- 
pensions or deferments of interest due the fund. The whole amount of State
bonds 
held in trust is $2,332,916.83f, of which $1,984,466.66f are classed as non-paying
bonds. 
The arrears of interest now due, and that will accrue on said bonds prior
to July 1, 
1874, amount to-------------------------------------------$1,077,522 00 
Of which amount there is due the tribes the sum of --------.$297,890 25 
Being arrears of interest embraced in estimates for the fiscal 
year ending July 1, 1873, in excess of appropriations made 
by Congress to cover deficiencies to that date, and the sum 
of .........................                        89,678 00 
387,568 25 
embraced in the estimates to cover arrears of interest on said 
bonds accruing during the fiscal year ending June 30,1874.           ___
The balance.-...   ..     .  ..      ..................         689,963 75
will be due the Government for moneys advanced for interest in default. 
Whatever reasons may have formerly induced said investments, no good reasons
now exist to justify the Government in continuing them, and it is specifically
stipula- 
ted in nearly all treaties providing for the investment of any portion of
the proceeds 
of the sale of Indian trust-lands, that the investments so authorized shall
be in "safe 
and profitable stocks." 
Very respectfully, your obedient servant, 
LONSVILLE TWITCHELL, 
Trust-fund Clerk, Indian Office. 
Hon. EDWD. P. SMITH, 
Commissioner of Indian Affairs. 
82. 
DEPARTMENT OF THE INTERIOR, 
Office Indian Affairs, November 1, 1873. 
SiR: I have the honor to submit herewith a report upon the various financial
transac- 
tions relating to the receipts and disbursements of moneys received on account
of sales 
of Indian lands. 
Having been unable to complete an annual report on this branch of business
in 
1872, the transactions which occurred during the year ending October 31,
1872, will be 
stated preceding the account of the transactions occurring during the last
twelve 
months. 
In order to make the whole subject understood, if possible, by the members
of the 
various tribes interested, and for the purpose of facilitating official business
which 
may occur hereafter in connection with the same, all transactions referred
to will be 
stated in detail, and fully explained with complete references to all treaties
and acts 
of Congress, upon which official action has been based.