Pine Ridge Agenct, S. D., Jan. 18.- jast night it looked as though the Indian roubles would be ended today, and that without further bloodshed. The hostiles, rith many warlike demonstrations and iring of rifles, had advanced to within bout a raile of the agency, and Gen. liles confidently expected that by toight peace would reign at the agency. cout Gourard report that the savages were wild and growing more uneasy as hey approached the agency. They feared ;hey were going to be swept off the face of ;he earth for the deviltry they had committed. The crisis will be reached when he savages go into camp here. Then it will only take a spark to set off the whole magazine. Artillerymen were galloping hrough the camp yesterday placing their leavy guns in more commaeding posiions. Everything was so arranged that any hostile demonstration on the part of he savages would be met by a flre which would instantly crush them. Approach of the Indlans. The hostiles reached their camping ground about noon. The spectacle was wildly grand. Of a sudden the sentinels n Capt. Dougherty's fort saw the heads of he scouts of the savages pop up over the ridges at the north. Here they remained or tully ten minutes, apparently scanning he agency. They then disappeared. Fifeen minutes after a squad of horsemen appeared on the crest of a distant butte. ïehind them was another squad, and then came other bands until the summit of the anow-covered range swarmed with the redskins. Through glasses they appeared in all their barbarie splendor. In their white sheets they looked like demons ready for battle. They were now so close hat their rifles could be seen slung to their saddles. Bulldozing the Old Men. After remaining motionless for several minutes, as though to give all Pine Ridge an opportunity to see them, the hostiles moved slowly down the siotes tf the buttes and into the winding valley which leads towards Red Cloud's house. They bolted again, and the soldiers in Capt. Dougher;y's redoubts saw another grand spectacle. The war feeling evidently broke out afresh in the camp, for the young warriors could be seen firing their rifles about ;he ears of the old men, who were doubtless counseling a surrender. Quleted Down at Last. Then they attacked their own horses and dogs, shooting them down in all directions. This demonstration was made within 1,200 yards of the great rifled cannon which peeps over the breastworks bhrown up by Capt. Dougherty. Skirmishers were quickly deployed from the redoubts with instructions not to fire. But gradually the Indians quieted down and everything looked peaceful; still every precaution was taken against a surprise during the night. Miles Wrltes to Buffalo Bill. Last evening Gen. Miles sent the following communication to Buffalo Bill, who is in command of the Nebraska state troops: "I am glad to inform you that the entire body of Indians are now camped near here, within a mile and a half. They show every disposition to cojaply with the orders of the authorities. Ñothing but an accident can prevent peace being established, and it will be our ambition to make it of a permanent character. I fee] that the state troops can now be withdrawn with safety, and desire through you to express to them my thanks for the confidence they have given your peo pie in their isolated homes. Like information has this day beeu given Gen. Colby."