Nube Roja
Delano warned Grant that a war would likely break out if negotiations were not successful. When negotiations broke down, Grant was brought into the process to bargain directly with Red Cloud. Grant told Red Cloud that the Black Hills had no buffalo, so it would benefit the Indians to accept payment because they would at least receive something of value in consideration for signing away valueless hunting rights. He also informed Red Cloud that whites were going to take over the Black Hills anyway, so it would be best not to leave empty-handed. Concerned that they would not be paid if they signed an agreement first, Red Cloud asked Grant to withdraw the money from the Treasury, and hold it until after the signing. Grant refused and walked out, telling Red Cloud he had to sign over the Black Hills before any payment was made. On June 4, Delano offered Red Cloud an additional $25,000 in appropriations, but Red Cloud refused.