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Show NAVNO AGENCY. During the past year the Indians of thia q e n c y have been aa qniat, with m e fe w exceptions, as could have been reasonably expected. The snbsistenee fnrrihhed then, in Ootober last was exhausted in January, and, inconaequenee, there was much suffer-jug among the poorer classes. In view of this dcstitotion, aud t,o prevent mid8 npou the propertv of citizens, (which were beooming frequent,) I ventured to assume the respousibil<ty, iin April and July, of p~trchasing,i n open market, a limited supply of subsisteuce, suflcicnt to relieve their urgent wants for the time, and on the 14th of September last onntraots were made for a liberal supply of beef snd corn. In May last a large quantity of seed-corn, wheat, and callslrash-seed was fnrnished, and planted, and the Indisns have worked faichfally to raiae lwge crops, buta their efforts have been but partially successful, owing to the same causes th5t hhae operated against them heretofore, naruely, the absence of water, the extremel. dry weather, and the early rod snvere fall frosts. At the date of the report of the Navajo farmer, the prospeat for fair crops was more favorable than it ban been for many yeam past, bnt. itcia estimated that theoorn and wheat that may be harvested will not l a t longer than the 1st of Jamlary next. For same time past I have been satisfied that the valley of t.he San Juan River, within the boundaries of the Navajo reservation, sfforded better facilities for farrniog than aoy ot,her portion of the reservs*tioo, and I have directed the ageut to establisl~a ~nb-agencya t a fsvorable p i n t on that river abont ninety .biles north of weet from the present ageooy at Fort Defiance, where,'it is believed, large corn s can be raised next year. The Indiana have not oocupied this valley hereto-fore, for &nr of war parties of Utes, who elaim that oonntry and are diaposed to pre-vent t,he Nthvajoes from planting t,here, but thia fear will be overoome by the presenoe of a detaohment of troops in that vioinity. Upon repratsd spplioations by the agent, anthority was granted in May last to con-tract for 10,000 hend of sheep to be furnished in lieu of a portion of t,he annuities issoed annoally, the delivery of which has given great sp*tisfa~ti;tion. These with the number alreadg in their possession makes a totalof a b u t 130,000 sheapowned by these Indians. The increase of sheep is wonderful. It is estimated that s, quantity will very nearly double its number every two geara, and very little oaloulatianis required to show that in s. few years the Bavajoes will be 5ble to do without beef, and should the fanning facilities in rlia Sm Juan Valley prove to be as reported that the Department will be almoet entirely relieved of the expense of furnishing subkisistenos. -Aside from this, the possessiou of large herds of stock (in addition to sheep, they have about 10,000 head of horscs and irn~leuw) ill tend t,o keep them at home and peaeenhle, and tbwfearof losing their stock sill be a strong inSuoement.to keep the peace in future. It is economy to funlish these Indians liberally with sheep, and I would euggest that a portion of the funds far t,he purchase of annuities be reserved annually and opplied for this purpose. Ou the mornin8 of the llth of June last, Axent James H. Miller, of thia agency, was killed by two te Indians on the Sau Juan River, xbont 100 miles from Fort Defiance. He had left Fort Defiance, accompanied by Mr. B. M. Thooms, the farntar, Mr. John Ayers, the trader, and Jesus Alviso, tlie interpreter, to look for sui$sble farming-lands on the San Juan River, and whde in can, asleep, on the morning of the llth, the party was attaokrd by two Ute Illdians, who Ired into ennlp, killing Agent Miller iustsntly, and escaped with the horses belondng to the party. Every offort has been and will be made to aconre the two Utea who mado thia attmk,nnd ns'thsy we well known, I think it js a question of time only. In the death of Agent Miller the Department has raason to sinoerelr regret the losa of an effioient officer, who was killed iu the faithful perforluanee of hh dtsy. The ~ohooal t this tlgeuoy has not been suocessfi~lp, rincipally on aooount of the dif-fiaulty in parsulldiug the children to attend regularly, and comparatively a very small proportion have attendod school during the year. A boardiug-school will be &ah-lished at the sub-agenay on the Ssn Juan River, and an ageuoy farm opened for its anpport,, and, as the Indians desire to settle permanently in the vicinity of the sub-agency, it ia hoped and believed this school will be aancoeaa iu time by the exeroise of proper care and sttentian. In Angnst last, during my visit to this agency, aud opcm rsuthority granted by Geu-era1 0. 0. Hob~ord, Uoitcd States Armv, hpeaixl ludiau Commissioner, subject to the so.u .r oval of the honorable Comn~issionero f Indian Affairs. I directed the we n t t o urg~ttiro3 CU31p311Y of ntounted pollre, tocov~airor iuue htlndrcd plrlird NavaJnei, (each ot the thirlt,r~tb n~~tllos f i~r?lialitt s lsrnporrion of men,) n t a l to $,lamt he wnr.chiefMa- ~~tialiirno rilnl.xl. oi Ill-: u~ ~oo~t:mg'. CLa J~~1ito.si ihia f i r lcr .310 rt , xuarJ rhd boundaries I ofthe reservation, to arreat tbieGes nlldreooverstolen atook for tlie agent. There wae a great necessity for thia action, to prevent tha syste~natics kaliug pmct.t,iadby a pox-tiou of the tribe, and the result, I am aon\.inced, will prove it. Up to this date about 60 head of stock, oonsiatiog of hor~es,m ules, and s, fow burros, have bsen recovered by this police snd delivewd to the agent for the owners. As an additiond necessary measure, 1 requested the aon~mmdiug officer of this military district to establish n |