The quotation that explains why the tribes suggested the US government spend the money on its own citizens is:
"... give to each also a proportion of what you say you would give to us annually, they would most readily accept of it in lieu of the lands you sold them."
This quotation suggests that the tribes believed that if the government were to give money directly to its own citizens, instead of providing it to the tribes annually, the citizens would prefer this arrangement over the lands being sold to them. The tribes likely thought that by proposing this alternative, the government could address the needs of its citizens while also fulfilling its commitments to the tribes. This shows the tribes' consideration for the well-being of both their own communities and the broader population.