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CHAPTER 10
General Equilibrium and
Welfare
A. Summary
This chapter provides a very elementary introduction to general equilibrium
theory. It begins by showing why taking a general equilibrium approach may
be necessary to address some important economic questions and then pro-
ceeds to build a simply model of two markets. That model (drawn primarily
from the graphical approach to international trade theory) generalizes “sup-
ply” by using the production possibility frontier and “demand” by using a
typical person’s indifference curve. An advantage of this approach is to
stress that the economic “problem” is how to make the best (utility-
maximizing) use of scarce resources.
The middle portion of the chapter is devoted to showing the “first theo-
rem of welfare economics” (that perfectly competitive prices, under certain
circumstances, yield economic efficiency). Again this is done using the pro-
duction possibility frontier and indifference curves to show how the opera-
tions of markets cause the economy to hone in on the efficient point.
Reasons why the first theorem may fail are discussed in the third section
of the chapter. Subjects given very brief treatment include: (1) Imperfect
competition; (2) Externalities; (3) Public goods; and (4) Imperfect infor-
mation. Each of these topics is covered in considerable detail in later chap-
ters. The discussion here also includes a brief discussion of equity and of
how goals of equity and efficiency may sometime (but by no means always)
be in conflict. The Edgeworth Box Diagram is the primary tool used for this
purpose.
The chapter concludes with a brief discussion of how money enters into
general equilibrium models. The main goals here are: (1) to introduce the
“classical dichotomy” between monetary and real sectors; and (2) to illustrate
the notion of fiat money and why this innovation has important economic
implications.

B. Lecture and Discussion Suggestions

Repeating the development of the general equilibrium model in this chapter
in lecture would probably be quite dull. Hence, it may better to assume that
students have understood the development in the text and just use the model
to illustrate some results. One approach that seems to work well is to use
separate supply and demand curves for goods X and Y together with the gen-
eral equilibrium model to show how both approaches to equilibrium are get-
ting at the same sort of thing. Reasons for the superiority of general
equilibrium should become readily apparent in this comparison. Having an
operational, simple GE model can also provide students with a lot of insights
about how these models work in practice. The model described in W. Ni-
cholson and F. Westhoff, “General Equilibrium Models: Improving the Mi-

154
 Chapter 12: General Equilibrium and Welfare 155

croeconomics Classroom” (Journal of Economic Education, Summer, 2009.

Pages 297-314) provides a nice such introduction. But there are many other
possibilities that could be used.
Discussions of general equilibrium might focus on “what more did you
learn by using these models?” For example, students may find that tax inci-
dence questions are much more complicated than they at first thought. Espe-
cially interesting are discussions of the role of capital taxation and how
theoretical insights might shed light on real world issues about, say, the inci-
dence of the corporate tax. Use of general equilibrium models to look at
trade issues also provides a number of good discussion questions. For exam-
ple, students may have rather simple views about how the NAFTA may have
affected the welfare of low income workers and it may be useful to show
them how complex answering this question actually is.

C. Glossary Entries in the Chapter

• Contract Curve
• Economically Efficient Allocation of Resources
• Equity
• Externality
• First Theorem of Welfare Economics
• General Equilibrium Model
• Imperfect Competition
• Initial Endowments
• Pareto Efficient Allocation
• Partial Equilibrium Model
• Public Goods

SOLUTIONS TO CHAPTER 10 PROBLEMS

10.1 a. The production possibility frontier for M and C is shown as:

b. If people want M = ½ C and technology requires C + 2M = 600, then C +

2(1/2C) = 600.
2C = 600 or C = 300. M = 150.
c. For efficiency RPT=MRS=1/2, so
PC 1
RPT = MRS = =
PM 2
156 Chapter 12: General Equilibrium and Welfare

10.2 a. See Graph

b. See Graph
c. The production possibility frontier is the set of food and cloth outputs that sat-
isfy both constraints (see graph).
d. The frontier is concave because the two goods use differing factor proportions.
The slope changes as a different input becomes the binding constraint.
e. The constraints intersect at F = 50. For F < 50 the slope of the frontier is -1.
P
Hence, in this range, F = 1 . For 50 < F < 75 the slope of the frontier is -2
PC
P
(because land is the binding constraint). In this range therefore F = 2 .
PC

PF 5
f. With these preferences, = .
PC 4
g. Any price ratio between 1.0 and 2.0 will cause production to occur at the kink
in the frontier.
h. This capital constraint lies always outside the previous production possibility
frontier. It will not therefore affect any of the calculations earlier in this prob-
lem.

10.3 a. The frontier is a quarter ellipse:

 Chapter 12: General Equilibrium and Welfare 157

b. If Y = 2 X , X 2 + 2(2 X ) 2 = 900
2
9X = 900; X = 10, Y = 20. This point is shown on the frontier in part a.
c. If X = 9 on the production possibility frontier,
Y = 819 / 2 = 20.24

If X = 11, Y = 779 / 2 = 19.75

Hence, RPT = 0.49/2 = 0.245 . This is the ratio of prices that will cause produc-
tion to occur at X = 10, Y = 20.
d. See graph in part a.
2 2
10.4 Since LF + LC = 8 . the production possibility frontier is F + C = 8

Given H = 16, U = 4F¼ C¼ and we know that optimality will require C = F since the
goods enter both the utility function and the production possibility frontier symmetri-
2
cally. Since C = F, have 2C = 8 or C = F = 2. Utility = 4 2.

10.5 a. Given the production conditions, the production possibility frontier will be a
straight line with slope - 3/2. Hence the price ratio in this economy must be
PX 3 X Y
= . The equation for the frontier is + = 20 .
PY 2 2 3

3 5 8
b. Using the hint, X S = XJ = XT =
PX PX PX

12
Similarly YT = . Substituting these into the equation for the frontier and us-
PY
2P 4 4 10 1 1
ing the fact that PY = X yields + = = 20 PX = ; PY = . Notice
3 Px PY PX 2 3
how setting the wage here also sets the absolute price level.
158 Chapter 12: General Equilibrium and Welfare

c. With these prices, total demand for X is 16, total demand for Y is 36. Hence 12
hours of labor must be devoted to Y production, 8 hours to X.

10.6 a. For region A the production possibility frontier is X A2 + YA2 = 100 . For region
B it is X B2 + YB2 = 25 . Hence the frontiers are concentric circles with radius 10
for A and 5 for B.
b. Production in both regions must have the same slope of the production possi-
bility frontier. In this case that means that the ratio X/Y must be the same in
both regions – production must take place along a ray through the origin.
c. The geometry of this situation suggests that for efficiency
X A = 2 X B YA = 2YB . Hence X T = 3 X B YT = 3YB and the frontier is given
by X T2 + YT2 = 9( X B2 + YB2 ) = 225 . If X T = 12 YT = 9 .

10.7 a. U1 = 10 U 2 = 5 .

F2
b. F1 = which implies F1 = 40 F2 = 160 .
4
c. The allocation in part a achieves this result --
F1 = F2 = 100  U1 = 10 U 2 = 5 .
d. A natural suggestion would be to maximize the sum of utilities. This would
1 1
require that marginal utilities be equal. Because MU1 = MU 2 =
2 F1 4 F2
equality of marginal utilities requires F1 = 4 F2 F1 = 160; F2 = 40 -- a rather
unequal distribution. Still the sum of utilities is 15.8 – the largest possible.
With an equal allocation the sum of utilities, for example, is 15.0.

10.8 a. The total value of transactions is 20w. So, money supply = 60 = money de-
mand = 5w. So w = 12 (earlier we assumed w = 10 ) So the absolute prices
1 12 1 12
should be changes as:. PX =  = 0.6 PY =  = 0.4 .
2 10 3 10
b. If the money supply increases to 90, all wages and prices increase by 50 per-
cent: w = 18, PX = 0.9, PY = 0.6 . Relative prices and the overall allocation of
resources remain the same. Yes, this economy exhibits the classical dichoto-
my.
 Chapter 12: General Equilibrium and Welfare 159

10.9 a-c. See Graph

d. As before, efficient points are the tangencies of the isoquants.

e. The production possibility frontier shows the maximum amount of Y that can
be produced for any fixed amount of X. Any point off the contract curve has
the property that Y can be increased even if X is held constant.
f.
(i) The production possibility frontier is a single point where X gets all labor
input, Y gets all capital input.
(ii) The frontier would be a straight line
(iii) Again, the frontier would be a straight line. Only with differing factor
intensities would the frontier have a concave shape.
(iv) The frontier would be convex.
160 Chapter 12: General Equilibrium and Welfare

10.10 a. The preferences of Smith and Jones are shown in the figure. The only ex-
change ratio that can prevail is set by Jones’ preferences – 1C must trade for
0.75H. On the other hand, all efficient allocations must lie along the main di-
agonal of the box where, because of Smith’s preferences, C = 2H.

b. This is an equilibrium – the allocation lies on the contract curve and any trade
would make at least one person worse off.
c. Now the initial position is off the contract curve. Smith has 20“extra” H. If
Jones gets all the gains from trade because Smith gives these to him/her, utility
will increase from U J = 4(40) + 3(120) = 520 to U J = 4(60) + 3(120) = 600 . If
Smith gets all the gains from trade, the new equilibrium requires
4 H + 3C = 520 and C = 2 H . Hence, the equilibrium requires Jones to get H =
52, C = 104. Smith gets H = 48, C = 96 and is much better off than at the ini-
tial allocation. Smith may be able to enforce this equilibrium or, if he/she is
especially strong may in fact take everything.
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 XVIII.
FORAGE for the horses and mules, and rations for the men,
sufficient of both to last thirty days, having been loaded on the
wagons, the entire command, composed as previously stated, and
accompanied by General Sheridan and staff, left Camp Supply early
on the morning of December 7, and turning our horses’ heads
southward, we marched in the direction of the battle-ground of the
Washita. Our march to the Washita was quiet and uneventful, if we
except the loquacity of California Joe, who, now that we were once
more in the saddle with the prospect of stirring times before us,
seemed completely in his element, and gave vent to his satisfaction
by indulging in a connected series of remarks and queries, always
supplying the answer to the latter himself if none of his listeners
evinced a disposition to do so for him. His principal delight seemed
to be in speculating audibly as to what would be the impression
produced on the minds of the Indians when they discovered us
returning with increased numbers both of men and wagons.
“I’d jist like to see the streaked count’nances of Satanta,
Medicine Arrow, Lone Wolf, and a few others of ’em, when they
ketch the fust glimpse of the outfit. They’ll think we’re comin’ to
spend an evenin’ with ’em sure, and hev brought our knittin’ with us.
One look’ll satisfy ’em thar’ll be sum of the durndest kickin’ out over
these plains that ever war heern tell uv. One good thing, it’s goin’ to
cum as nigh killin’ uv ’em to start ’em out this time uv year as ef we
hed an out an’ out scrummage with ’em. The way I looks at it they
hev jist this preference: them as don’t like bein’ shot to deth kin take
ther chances at freezin’.” In this interminable manner California Joe
would pursue his semi-soliloquies, only too delighted if some one
exhibited interest sufficient to propound an occasional question.
 As our proposed route bore to the southeast after reaching the
battle-field, our course was so chosen as to carry us to the Washita
river a few miles below, at which point we encamped early in the day.
General Sheridan desired to ride over the battle-ground, and we
hoped by a careful examination of the surrounding country to
discover the remains of Major Elliott and his little party, of whose fate
there could no longer be the faintest doubt. With one hundred men of
the Seventh Cavalry, under command of Captain Yates, we
proceeded to the scene of the battle, and from there dispersed in
small parties in all directions, with orders to make a thorough search
for our lost comrades. We found the evidences of the late
engagement much as we had left them. Here were the bodies, now
frozen, of the seven hundred ponies which we had slain after the
battle; here and there, scattered in and about the site of the former
village of Black Kettle, lay the bodies of many of the Indians who fell
during the struggle. Many of the bodies, however, particularly those
of Black Kettle and Little Rock, had been removed by their friends.
Why any had been allowed to remain uncared for, could only be
explained upon the supposition that the hasty flight of the other
villages prevented the Indians from carrying away any except the
bodies of the most prominent chiefs or warriors, although most of
those remaining on the battle-ground were found wrapped in
blankets and bound with lariats preparatory to removal and burial.
Even some of the Indian dogs were found loitering in the vicinity of
the places where the lodges of their former masters stood; but, like
the Indians themselves, they were suspicious of the white man, and
could hardly be induced to establish friendly relations. Some of the
soldiers, however, managed to secure possession of a few young
puppies; these were carefully brought up, and to this day they, or
some of their descendants, are in the possession of members of the
command.
After riding over the ground in the immediate vicinity of the
village, I joined one of the parties engaged in the search for the
bodies of Major Elliott and his men. In describing the search and its
result, I cannot do better than transcribe from my official report,
made soon after to General Sheridan:
 “After marching a distance of two miles in the direction in which
Major Elliott and his little party were last seen, we suddenly came
upon the stark, stiff, naked, and horribly mutilated bodies of our dead
comrades. No words were needed to tell how desperate had been
the struggle before they were finally overpowered. At a short
distance from where the bodies lay, could be seen the carcasses of
some of the horses of the party, which had probably been killed early
in the fight. Seeing the hopelessness of breaking through the line
which surrounded them, and which undoubtedly numbered more
than one hundred to one, Elliott dismounted his men, tied their
horses together, and prepared to sell their lives as dearly as
possible. It may not be improper to add that in describing, as far as
possible, the details of Elliott’s fight I rely not only upon a critical and
personal examination of the ground and attendant circumstances,
but am sustained by the statements of Indian chiefs and warriors
who witnessed and participated in the fight, and who have since
been forced to enter our lines and surrender themselves up, under
circumstances which will be made to appear in other portions of this
report.
“The bodies of Elliott and his little band, with but a single
exception, were found lying within a circle not exceeding twenty
yards in diameter. We found them exactly as they fell, except that
their barbarous foes had stripped and mutilated the bodies in the
most savage manner.
“All the bodies were carried to camp. The latter was reached
after dark. It being the intention to resume the march before daylight
the following day, a grave was hastily prepared on a little knoll near
our camp, and, with the exception of that of Major Elliott, whose
remains were carried with us for interment at Fort Arbuckle, the
bodies of the entire party, under the dim light of a few torches held
by of sorrowing comrades, were consigned to one common resting
place. No funeral note sounded to measure their passage to the
grave. No volley was fired to tell us a comrade was receiving the last
sad rites of burial, that the fresh earth had closed over some of our
truest and most daring soldiers.
 “Before interment, I caused a complete examination of each
body to be made by Dr. Lippincott, chief medical officer of the
expedition, with direction to report on the character and number of
wounds received by each, as well as to mutilations to which they had
been subjected. The following extracts are taken from Dr.
Lippincott’s report:
“Major Joel H. Elliott, two bullet holes in head, one in left cheek,
right hand cut off, left foot almost cut off, ... deep gash in right groin,
deep gashes in calves of both legs, little finger of left hand cut off,
and throat cut.
“Sergeant-Major Walter Kennedy, bullet hole in right temple,
head partly cut off, seventeen bullet holes in back, and two in legs.
“Corporal Harry Mercer, Troop E, bullet hole in right axilla, one in
region of heart, three in back, eight arrow wounds in back, right ear
cut off, head scalped, and skull fractured, deep gashes in both legs,
and throat cut.
“Private Thomas Christer, Troop E, bullet hole in head, right foot
cut off, bullet hole in abdomen, and throat cut.
“Corporal William Carrick, Troop H, bullet hole in right parietal
bone, both feet cut off, throat cut, left arm broken.
“Private Eugene Clover, Troop H, head cut off, arrow wound in
right side, both legs terribly mutilated.
“Private William Milligan, Troop H, bullet hole in left side of head,
deep gashes in right leg, ... left arm deeply gashed, head scalped,
and throat cut.
“Corporal James F. Williams, Troop I, bullet hole in back; head
and both arms cut off, many and deep gashes in back....
“Private Thomas Dooney, Troop I, arrow hole in region of
stomach, thorax cut open, head cut off, and right shoulder, cut by a
tomahawk.
“Farrier Thomas Fitzpatrick, Troop M, bullet hole in left parietal
bone, head scalped, arm broken, ... throat cut.
 “Private John Myres, Troop M, several bullet holes in head,
scalped, nineteen bullet holes in body, ... throat cut.
“Private Cal. Sharpe, Troop M, two bullet holes in right side,
throat cut, one bullet hole in left side of head, one arrow hole in left
side, ... left arm broken.
“Unknown, head cut off, body partially destroyed by wolves.
“Unknown, head and right hand cut off, ... three bullet and nine
arrow holes in back.
“Unknown, scalped, skull fractured, six bullet and thirteen arrow
holes in back, and three bullet holes in chest.”
I have quoted these extracts in order to give the reader an
insight of the treatment invariably meted out to white men who are so
unfortunate as to fall within the scope of the red man’s bloodthirsty
and insatiable vengeance. The report to General Sheridan then
continues as follows:
“In addition to the wounds and barbarities reported by Dr.
Lippincott, I saw a portion of the stock of a Lancaster rifle protruding
from the side of one of the men; the stock had been broken off near
the barrel, and the butt of it, probably twelve inches in length, had
been driven into the man’s side a distance of eight inches. The forest
along the banks of the Washita, from the battle-ground a distance of
twelve miles, was found to have been one continuous Indian village.
Black Kettle’s band of Cheyennes was above; then came other
hostile tribes camped in the following order: Arrapahoes under Little
Raven; Kiowas under Satanta and Lone Wolf; the remaining bands
of Cheyennes, Comanches, and Apaches. Nothing could exceed the
disorder and haste with which these tribes had fled from their
camping grounds. They had abandoned thousands of lodge poles,
some of which were still standing, as when last used. Immense
numbers of camp kettles, cooking utensils, coffee-mills, axes, and
several hundred buffalo robes were found in the abandoned camps
adjacent to Black Kettle’s village, but which had not been visited
before by our troops. By actual examination, it was computed that
over six hundred lodges had been standing along the Washita during
the battle, and within five miles of the battle-ground, and it was from
these villages, and others still lower down the stream, that the
immense number of warriors came who, after our rout and
destruction of Black Kettle and his band, surrounded my command
and fought until defeated by the Seventh Cavalry about 3 P. M. on
the 27th ult.... In the deserted camp, lately occupied by Satanta with
the Kiowas, my men discovered the bodies of a young white woman
and child, the former apparently about twenty-three years of age, the
latter probably eighteen months old. They were evidently mother and
child, and had not long been in captivity, as the woman still retained
several articles of her wardrobe about her person—among others a
pair of cloth gaiters but little worn, everything indicating that she had
been but recently captured, and upon our attacking and routing
Black Kettle’s camp her captors, fearing she might be recaptured by
us and her testimony used against them, had deliberately murdered
her and her child in cold blood. The woman had received a shot in
the forehead, her entire scalp had been removed, and her skull
horribly crushed. The child also bore numerous marks of violence.”
At daylight on the following morning the entire command started
on the trail of the Indian villages, nearly all of which had moved down
the Washita toward Fort Cobb, where they had good reason to
believe they would receive protection. The Arrapahoes and
remaining band of Cheyennes left the Washita valley and moved
across in the direction of Red river. After following the trail of the
Kiowas and other hostile Indians for seven days, over an almost
impassable country, where it was necessary to keep two or three
hundred men almost constantly at work with picks, axes, and
spades, before being able to advance with our immense train, my
Osage scouts came galloping back on the morning of the 17th of
December, and reported a party of Indians in our front bearing a flag
of truce.
It is to this day such a common occurrence for Indian agents to
assert in positive terms that the particular Indians of their agency
have not been absent from their reservation, nor engaged in making
war upon the white men, when the contrary is well known to be true,
that I deem it proper to introduce one of the many instances of this
kind which have fallen under my observation, as an illustration not
only of how the public in distant sections of the country may be
misled and deceived as to the acts and intentions of the Indians, but
also of the extent to which the Indian agents themselves will proceed
in attempting to shield and defend the Indians of their particular
agency. Sometimes, of course, the agent is the victim of deception,
and no doubt conscientiously proclaims that which he firmly believes;
but I am forced by long experience to the opinion that instances of
this kind are rare, being the exception rather than the rule. In the
example to which I refer, the high character and distinction as well as
the deservedly national reputation achieved by the official then in
charge of the Indians against whom we were operating, will at once
absolve me from the imputation of intentionally reflecting upon the
integrity of his action in the matter. The only point to occasion
surprise is how an officer possessing the knowledge of the Indian
character, derived from an extensive experience on the frontier,
which General Hazen could justly lay claim to, should be so far
misled as to give the certificate of good conduct which follows.
General Hazen had not only had superior opportunities for studying
the Indian character, but had participated in Indian wars, and at the
very time he penned the following note he was partially disabled
from the effects of an Indian wound. The Government had selected
him from the large number of intelligent officers of high rank whose
services were available for the position, and had assigned him with
plenary powers to the superintendency of the Southern Indian
District, a position in which almost the entire control of all the
southern tribes was vested in the occupant. If gentlemen of the
experience and military education of General Hazen, occupying the
intimate and official relation to the Indians which he did, could be so
readily and completely deceived as to their real character, it is not
strange that the mass of the people living far from the scene of
operations, and only possessing such information as reaches them
in scraps through the public press, and generally colored by
interested parties, should at times entertain extremely erroneous
impressions regarding the much-vexed Indian question. Now to the
case in point:
 With the Osage scouts who came back from the advance with
the intelligence that a party of Indians were in front, also came a
scout who stated that he was from Fort Cobb, and delivered to me a
despatch, which read as follows:

Headquarters Southern Indian District, Fort Cobb, 9

P. M. December 16, 1868.
To the Officer, commanding troops in the Field.
Indians have just brought in word that our troops to-day
reached the Washita some twenty miles above here. I send this
to say that all the camps this side of the point reported to have
been reached are friendly, and have not been on the war path
this season. If this reaches you, it would be well to communicate
at once with Satanta or Black Eagle, chiefs of the Kiowas, near
where you now are, who will readily inform you of the position of
the Cheyennes and Arrapahoes, also of my camp.
Respectfully,
(Signed) W. B. Hazen, Brevet Major-General.

This scout at the same time informed me that a large party of

Kiowa warriors, under Lone Wolf, Satanta, and other leading chiefs,
were within less than a mile of my advance, and notwithstanding the
above certificate regarding their friendly character, they had seized a
scout who accompanied the bearer of the despatch, disarmed him,
and held him a prisoner of war. Taking a small party with me, I
proceeded beyond our lines to meet the flag of truce. I was met by
several of the leading chiefs of the Kiowas, including those above
named. Large parties of their warriors could be seen posted in the
neighboring ravines and upon the surrounding hilltops. All were
painted and plumed for war, and nearly all were armed with one rifle,
two revolvers, bow and arrow, some of their bows being strung, and
their whole appearance and conduct plainly indicating that they had
come for war. Their declarations to some of my guides and friendly
Indians proved the same thing, and they were only deterred from
hostile acts by discovering our strength to be far greater than they
had imagined, and our scouts on the alert. Aside, however, from the
question as to what their present or future intentions were at that
time, how deserving were those Indians of the certificate of good
behavior which they had been shrewd enough to obtain? The
certificate was dated December 16, and stated that the camps had
not been on the war path “this season.”
What were the facts? On the 27th of November, only twenty-one
days prior to the date of the certificate, the same Indians, whose
peaceable character was vouched for so strongly, had engaged in
battle with my command by attacking it during the fight with Black
Kettle. It was in their camp that the bodies of the murdered mother
and child were found, and we had followed day by day the trail of the
Kiowas and other tribes, leading us directly from the dead and
mangled bodies of our comrades, slain by them a few days previous,
until we were about to overtake and punish the guilty parties, when
the above communication was received, some forty or fifty miles
from Fort Cobb, in the direction of the Washita battle-ground.
This, of itself, was conclusive evidence of the character of the
tribes we were dealing with; but aside from these incontrovertible
facts, had additional evidence been needed of the openly hostile
conduct of the Kiowas and Comanches, and of their active
participation in the battle of the Washita, it is only necessary to refer
to the collected testimony of Black Eagle and other leading chiefs.
This testimony was written, and was then in the hands of the agents
of the Indian Bureau. It was given voluntarily by the Indian chiefs
referred to, and was taken down at the time by the Indian agents, not
for the army, or with a view of furnishing it to officers of the army, but
simply for the benefit and information of the Indian Bureau. This
testimony, making due allowance for the concealment of much that
would be prejudicial to the interests of the Indians, plainly states that
the Kiowas and Comanches took part in the battle of the Washita:
that the former constituted a portion of the war party whose trail I
followed, and which led my command into Black Kettle’s village: and
that some of the Kiowas remained in Black Kettle’s village until the
morning of the battle.
 This evidence is all contained in a report made to the
Superintendent of Indian Affairs, by one Philip McCuskey, United
States interpreter for the Kiowa and Comanche tribes. This report
was dated Fort Cobb, December 3, while the communication from
General Hazen, certifying to the friendly disposition and conduct of
these tribes, was dated at the same place thirteen days later. Mah-
wis-sa also confirmed these statements, and pointed out to me,
when near the battle-ground, the location of Satanta’s village. It was
from her, too, that I learned that it was in Satanta’s village that the
bodies of the white woman and child were found. As I pen these
lines, the daily press contains frequent allusions to the negotiations
which are being conducted between the Governor of Texas and the
General Government, looking to the release of Satanta from the
Texas penitentiary, to which institution Satanta, after a trial before the
civil authorities for numerous murders committed on the Texas
frontier, was sent three or four years ago to serve out a life sentence.
After meeting the chiefs, who with their bands had approached
our advance under flag of truce, and compelling the release of the
scout whom they had seized and held prisoner, we continued our
march toward Fort Cobb, the chiefs agreeing to ride with us and
accompany my command to that place. Every assurance was given
me that the villages to which these various chiefs belonged would at
once move to Fort Cobb, and there encamp, thus separating
themselves from the hostile tribes, or those who preferred to decline
this proposition of peace, and to continue to wage war; and as an
evidence of the sincerity of their purpose, some eighteen or twenty of
the most prominent chiefs, generally Kiowas, voluntarily proposed to
accompany us during the march of that day and the next, by which
time it was expected that the command would reach Fort Cobb. The
chiefs only requested that they might send one of their number,
mounted on a fleet pony, to the villages, in order to hasten their
movement to Fort Cobb. How eager for peace were these poor,
confiding sons of the forest is the mental ejaculation of some of my
readers, particularly if they are inclined to be converts to the
humanitarian doctrines supposed to be applicable in the government
of Indians. If I am addressing any of this class, for whose kindness of
heart I have the utmost regard, I regret to be compelled to disturb the
illusion.
Peace was not included among the purposes which governed
the chiefs who so freely and unhesitatingly proffered their company
during our march to Fort Cobb. Nor had they the faintest intention of
either accompanying us or directing their villages to proceed to the
fort. The messenger whom they seemed so anxious to despatch to
the village was not sent to hasten the movement of their villages
toward Fort Cobb, as claimed by them, but to hasten their movement
in a precisely opposite direction, viz., towards the head waters of
Red river, near the northwestern limits of Texas. This sudden
effusion of friendly sentiments rather excited my suspicions, but I
was unable at first to divine the real intents and purposes of the
chiefs. Nothing was to be done but to act so as to avoid exciting their
suspicion, and trust to time to unravel the scheme. When we arrived
at our camping ground, on the evening of that day, the chiefs
requested permission to despatch another messenger to their people
to inform them where we were encamped. To this proposition no
objection was made. That evening I caused an abundant supply of
provisions, consisting principally of beef, bread, coffee, and sugar, to
be distributed among them. In posting my pickets that night for the
protection of the camp, I arranged to have the reserve stationed
within a short distance of the spot on which the chiefs were to
encamp during the night, which point was but a few paces from my
headquarters. Before retiring, I took Romeo, the interpreter, and
strolled down to pay a visit to the chiefs. The latter, after the
substantial meal in which they had just indulged, were seated, Indian
fashion, around a small fire, enjoying such comfort as was to be
derived from the occasional whiffs of smoke which each in proper
turn inhaled from the long-stemmed pipe of red clay that was kept
passing from right to left around the circle. Their greeting of me was
cordial in the extreme, but, as in the play—of “Richelieu,” I believe—
they “bowed too low.” Through Romeo I chatted on indifferent
subjects with the various chiefs, and from nearly all of them received
assurances of their firmly fixed resolution to abandon forever the
dangers and risks of the war path, to live no longer at variance with
their white brothers, to eschew henceforth all such unfriendly
customs as scalp-taking, murdering defenceless women and
children, and stealing stock from the settlers of the frontier. All this
was to be changed in the future. It seemed strange, listening to
these apparently “artless sons of nature” that men entertaining the
ardent desire for repose which they professed, had not turned their
backs on the war path long ago, and settled down to the quiet
enjoyment of the blessings of peace. But better that this conclusion
should be arrived at late than not at all. The curtain had fallen from
their eyes, and they were enabled to see everything in its proper
light. To adopt their own language, “their hearts had become good,”
“their tongues had become straight,” they had cast aside the bad
ways in which they had so long struggled unsuccessfully, and had
now resolved to follow the white man’s road, to adopt his mode of
dress, till the soil, and establish schools for the education of their
children, until in time the white man and the red man would not only
be brothers in name, but would be found travelling the same road
with interests in common.
Had I been a latter-day Peace Commissioner, I should have felt
in duty bound to send a despatch to the chief of the proper bureau at
Washington, in terms somewhat as follows:

Hon John Smith, Secretary of the —— Department.

I have just concluded a most satisfactory council with the
Kiowa and other tribes, certain members of which have lately
been accused of being more or less connected with the troubles
lately occurring upon our frontier. All the prominent chiefs met
me in council, and after a free interchange and expression of
opinions, I am happy to inform the Department that these chiefs,
representing as they do one of the most powerful and important
of the southern tribes, have voluntarily and solemnly agreed to
cease all hostile acts against the white men, to prevent raids or
war parties from being organized among their young men, to
abandon for all future time the war path, and to come within the
limits of their reservation, there to engage in the peaceful
pursuits of civilized life. They express a warm desire to have
educational facilities extended them for the benefit of their
 children. As the season is far advanced, rendering it too late for
them to successfully cultivate a crop the present year, they ask,
and I recommend, that provisions sufficient for their subsistence
the present season be issued them. They also request that,
owing to the scarcity of game, a few breech-loading arms be
furnished them, say one rifle and one revolver to each male over
fourteen years of age. I am satisfied that this is a most
reasonable request, and that the granting of it would go far to
restore confidence in the good intentions of the Government, as
I am forced to remark that some of the recent acts of the military,
such as the occurrence on the Washita, have done much to
produce an unsettled feeling on the part of these untutored
wards of the nation. No further anxiety need be felt as to the
complete pacification of this tribe. I wish you might have shared
with me the pleasure of listening to these untaught chieftains,
begging for such assistance and guidance as would lead them in
the paths of peace. I leave here on the —th, to visit the
neighboring tribes, provided the military commander at this point
will furnish me a suitable escort.
I have the honor to be your obedient servant,
John Jones, Indian Agent.
P. S.—I have thought that if we could confer the ballot upon
those of the chiefs and warriors who show the greatest aptitude
and desire for peace, it might be a great step toward completing
their civilization. Of course some line of distinction or
qualification would have to be drawn; for example, confer the
right of ballot upon all those who faithfully accept their rations
from the Government for a period of six months. I merely throw
this out for the consideration of the Department.
J. J.

Not being an orthodox Peace Commissioner, in good standing in

that fraternity, I did not send a despatch of this character. What I did,
however, answered every purpose. I went to the station of the guard
near by and directed the non-commissioned officer in charge to have
his men keep a watchful eye upon those same “untutored sons of
the forest,” as I felt confident their plans boded us no good. Romeo
was also told to inform the chiefs that after the camp had quieted
down for the night, it would not be prudent for them to wander far
from their camp fire, as the sentries might mistake them for enemies
and fire upon them. This I knew would make them hug their fire
closely until morning. Before daylight we were again in the saddle
and commencing the last march necessary to take us to Fort Cobb.
Again did it become important, in the opinion of the chiefs, to
despatch another of their number to hurry up the people of their
villages, in order, as they said, that the villages might arrive at Fort
Cobb at the same time we did. As the march progressed these
applications became more frequent, until most of the chiefs had
been sent away as messengers. I noticed, however, that in selecting
those to be sent, the chiefs lowest in rank and importance were first
chosen, so that those who remained were the highest. When their
numbers had dwindled down to less than half the original party, I saw
that instead of acting in good faith this party of chiefs was solely
engaged in the effort to withdraw our attention from the villages, and,
by an apparent offer on their part to accompany us to Fort Cobb,
where we were encouraged to believe the villages would meet us,
prevent us from watching and following the trail made by the lodges,
which had already diverged from the direct route to Fort Cobb, the
one the villages would have pursued had that fort been their
destination. It became palpably evident that the Indians were
resorting, as usual, to stratagem to accomplish their purpose, which
of course involved our deception. Fortunately their purpose was
divined in time to thwart it. As no haste was necessary, I permitted
the remaining chiefs to continue the march with us, without giving
them any grounds to suppose that we strongly doubted their oft-
repeated assertions that their hearts were good and their tongues
were straight. Finally, as our march for that day neared its
termination and we were soon to reach our destination, the party of
chiefs, which at first embraced upwards of twenty, had become
reduced until none remained except the two head chiefs, Lone Wolf
and Satanta, and these no doubt were laughing in their sleeves, if an
Indian may be supposed to possess that article of apparel, at the
happy and highly successful manner in which they had hoodwinked
their white brethren. But had they known all that had been transpiring
they would not have felt so self-satisfied. As usual, quite a number of
officers and orderlies rode at the head of the column, including a few
of General Sheridan’s staff.
As soon as the scheme of the Indians was discovered, I
determined to seize the most prominent chiefs as hostages for the
fulfilment of their promises regarding the coming on of the villages;
but as for this purpose two hostages were as valuable as twenty, I
allowed all but this number to take their departure apparently
unnoticed. Finally, when none but Lone Wolf and Satanta remained,
and they no doubt were prepared with a plausible excuse to bid us in
the most improved Kiowa au revoir, the officers just referred to, at a
given signal, drew their revolvers, and Lone Wolf and Satanta were
informed through Romeo that they were prisoners.
 XIX.
NOT even the proverbial stoicism of the red man was sufficient to
conceal the chagrin and disappointment recognizable in every
lineament of the countenances of both Satanta and Lone Wolf when
they discovered that all their efforts at deception had not only failed,
but left them prisoners in our hands. Had we been in doubt as to
whether their intention had really been to leave us in the lurch or not,
all doubt would have been dispelled by a slight circumstance which
soon after transpired. As I before stated, we had almost reached Fort
Cobb, which was our destination for the time being. The chiefs who
had already made their escape now became anxious in regard to the
non-arrival in their midst of Satanta and Lone Wolf. The delay of the
last two could not be satisfactorily accounted for. Something must
have gone amiss.
Again was stratagem resorted to. We were marching along
without interruption or incident to disturb our progress, such of us as
were at the head of the column keeping watchful eyes upon our two
swarthy prisoners, who rode sullenly at our sides, and whose past
career justified us in attributing to them the nerve and daring
necessary to induce an effort to secure their liberty should there be
the slightest probability of success. Suddenly a mounted Indian
appeared far away to our right, and approached us at a gallop until
almost within rifle range, when halting his well-trained pony upon a
little hillock which answered his purpose, he gracefully detached the
scarlet blanket he wore, and began waving it in a peculiar but regular
manner. Both chiefs looked anxiously in the direction of the warrior,
then merely glanced toward me as if to see if I had also observed
this last arrival; but too proud to speak or prefer a request, they rode
silently on, apparently indifferent to what might follow. Turning to
Romeo, who rode in rear, I directed him to inquire of the chiefs the
meaning of the signals which the warrior was evidently endeavoring
to convey to them. Satanta acted as spokesman, and replied that the
warrior in sight was his son, and that the latter was signalling to him
that he had something important to communicate, and desired
Satanta to ride out and join him.
To have seen the innocent and artless expression of
countenance with which Satanta made this announcement, one
would not have imagined that the son had been sent as a decoy to
cover the escape of the father, and that the latter had been aware of
this fact from the first. However, I pretended to humor Satanta. Of
course there was no objection to his galloping out to where his son
awaited him, because, as he said, that son was, and for good reason
perhaps, unwilling to gallop in to where his father was. But if Satanta
was so eager to see and communicate with his son, there should be
no objection to the presence of a small escort—not that there existed
doubts in my mind as to Satanta’s intention to return to us, because
no such doubt existed. I was positively convinced that once safely
beyond our reach, the place at the head of the column, which had
known him for a few brief hours, would know him no more forever. I
told Romeo to say to Satanta that he might ride across the plain to
where his son was, and not only that, but several of us would do
ourselves the honor to volunteer as his escort.
The most careless observer would have detected the air of
vexation with which Satanta turned his pony’s head, and taking me
at my word started to meet his son. A brisk gallop soon brought us to
the little hillock upon which Satanta’s son awaited us. He was there,
a tall, trimly built, warrior-like young fellow of perhaps twenty, and
bore himself while in our presence as if he would have us to
understand he was not only the son of a mighty chief, but some day
would wear that title himself. What was intended to be gained by the
interview did not become evident, as the presence of Romeo
prevented any conversation between father and son looking to the
formation of plans for escape. Questions were asked and answered
as to where the village was, and in regard to its future movements,
but nothing satisfactory either to Satanta or his captors was learned
from the young warrior. Finally, I suggested to Satanta that as we
only intended to proceed a few miles further, being then in the near
vicinity of Fort Cobb, and would there encamp for an indefinite
period, his son had better accompany us to camp, where Lone Wolf
and Satanta would be informed what was to be required of them and
their people, and then, after conferring with each other, the two
chiefs could send Satanta’s son to the village with any message
which they might desire to transmit to their people. At the same time
I promised the young warrior good treatment, with permission to go
and come as he chose, and in no manner to be regarded or treated
as a prisoner.
This proposition seemed to strike the Indians favorably, and
much to my surprise, knowing the natural suspicion of the Indian, the
young warrior readily consented to the plan, and at once placed
himself in our power. Turning our horses’ heads, we soon resumed
our places at the head of the column, the three Indians riding in
silence, brooding, no doubt, over plans looking to their freedom.
By way of a slight digression from the main narrative, I will here
remark that during the prolonged imprisonment of the two chiefs,
Satanta’s son became a regular visitor to our camp, frequently
becoming the bearer of important messages from the chiefs to their
villages, and in time he and I, apparently, became firm friends. He
was an excellent shot with the rifle. Satanta said he was the best in
the tribe, and frequently, when time hung heavily on my hands, and I
felt a desire for recreation, he and I took our rifles, and, after passing
beyond the limits of camp, engaged in a friendly match at target
practice, a much more agreeable mode of testing our skill as
marksmen than by using each other as a target.
Satanta had exhibited no little gratification when I first engaged
to shoot with his son, and as the lodge in which he was kept a
closely guarded prisoner was on my route in returning from target
practice to my tent, I usually stopped a few moments in his lodge to
exchange passing remarks. He was evidently disappointed when
informed as to the result of the first trial with our rifles, that his son
had come off only second best; and numerous were the explanations
which his fertile mind suggested as the causes leading to this result
—a result which in the eyes of the Indian assumed far greater
importance than would ordinarily be attached to it by white men. As
we had agreed to have frequent contests of this kind, Satanta
assured me that his son would yet prove himself the better man.
Each meeting, however, only resulted as the first, although by
varying the distance every opportunity was given for a fair test.
Finally, when all other explanations had failed, Satanta thought he
had discovered the real obstacle to the success of his son, by
ascribing superior qualities to my rifle as compared with the one
used by him. Fairness on my part then required that I should offer
the young warrior the use of my rifle, and that I should use his in the
next match; a proposition which was at once accepted, and, as if to
be better prepared to make an excellent score, my rifle was soon in
his hands and undergoing the critical inspection and manipulation of
trigger, sights, etc., which always suggest themselves the moment
an experienced marksman finds a new rifle in his hands. The
following day we engaged as usual in rifle practice, he with my rifle, I
with his. I frankly confess that having entered into the contest from
the first with as much zest and rivalry as even my dusky competitor
could lay claim to, and having come off victor in the preceding
contests, I was not entirely free from anxiety lest the change in rifles
might also change the result, and detract, in the eyes of the Indians
at least, from my former successes. On this occasion, as on all
previous ones, we were alone, and consequently we were our own
judges, umpire, and referee. Greatly to my satisfaction, my good
fortune enabled me to make a better score than did my opponent,
and this result seemed to settle his opinion finally as to our relative
merits as marksmen. I attached no little importance to these frequent
and friendly meetings between Satanta’s son and myself. Any
superiority in the handling or use of weapons, in horseback
exercises, or in any of the recognized manly sports, is a sure
stepping-stone in obtaining for the possessor the highest regard of
the red man.
Upon our arrival at Fort Cobb, the day of the seizure of the two
chiefs, Lone Wolf and Satanta, we selected a camp with a view of
remaining at that point during the negotiations which were to be
conducted with the various tribes who were still on the war path. So
far as some of the tribes were concerned, they were occupying that
equivocal position which enabled them to class themselves as
friendly and at the same time engage in hostilities. This may sound
ambiguous, but is easily explained. The chiefs and old men, with the
women and children of the tribe, were permitted to assemble
regularly at the agency near Fort Cobb, and as regularly were
bountifully supplied with food and clothing sufficient for all their
wants; at the same time the young men, warriors, and war chiefs of
the tribe were almost continually engaged in making war upon the
frontier of northern Texas and southeastern Kansas. Indeed, we
established the fact, while at or near Fort Cobb, that while my
command was engaged in fighting the warriors and chiefs of certain
tribes at the battle of the Washita, the families of these same
warriors and chiefs were being clothed and fed by the agent of the
Government then stationed at Fort Cobb.
Surprising as this may seem, it is not an unusual occurrence.
The same system has prevailed during the past year. While my
command was resisting the attacks of a large body of warriors on the
Yellowstone river last summer, the families of many of these
warriors, the latter representing seven tribes or bands, were
subsisting upon provisions and clothed in garments issued to them
at the regular Indian agencies by the Government. But of this more
anon.
The three tribes which became at that time the special objects of
our attention, and with whom we were particularly anxious to
establish such relations as would prevent in the future a repetition of
the murders and outrages of which they had so long been guilty,
were the Kiowas, Cheyennes, and Arapahoes; the object being to
complete our work by placing these three tribes upon reservations
where they might be cared for, and at the same time be kept under
proper surveillance. The Washita campaign had duly impressed
them with the power and purpose of the Government to inflict
punishment upon all who chose to make war; and each tribe,
dreading a repetition of the blow upon themselves, had removed
their villages to remote points where they deemed themselves
secure from further chastisement. Having Lone Wolf and Satanta,
the two leading chiefs of the Kiowas, in our hands, we thought that
through them the Kiowas could be forced to a compliance with the