CHAPTER IX.

ABOLITION OF THE INDIAN FACTORY SYSTEM.

The experience of the Indian factory system, is an illustration of

the unfitness of the federal government to carry on any system of

trade, the liability of the benevolent designs of the government

to be abused, and the difficulty of detecting and redressing abuses

in the management of our Indian affairs. This system originated in

the year 1796, under the recommendation of President Washington, and

was intended to counteract the influence of the British traders,

then allowed to trade with the Indians of the United States within

our limits; also to protect the Indians from impositions from our

own traders, and for that purpose to sell them goods at cost and

carriage, and receive their furs and peltries at fair and liberal

prices; and which being sold on account of the United States,

would defray the expenses of the establishment, and preserve the

capital undiminished--to be returned to the treasury at the end

of the experiment. The goods were purchased at the expense of

the United States--the superintendent and factors were paid out

of the treasury, and the whole system was to be one of favor and

benevolence to the Indians, guarded by the usual amount of bonds

and oaths prescribed by custom in such cases. Being an experiment,

it was first established by a temporary act, limited to two

years--the usual way in which equivocal measures get a foothold in

legislation. It was soon suspected that this system did not work

as disinterestedly as had been expected--that it was of no benefit

to the Indians--no counteraction to British traders--an injury

to our own fur trade--and a loss to the United States; and many

attempts were made to get rid of it, but in vain. It was kept up

by continued temporary renewals for a quarter of a century--from

1796 to 1822--the name of Washington being always invoked to

continue abuses which he would have been the first to repress and

punish. As a citizen of a frontier State, I had seen the working

of the system--seen its inside working, and knew its operation to

be entirely contrary to the benevolent designs of its projectors.

I communicated all this, soon after my admission to a seat in the

Senate, to Mr. Calhoun, the Secretary at War, to whose department

the supervision of this branch of service belonged, and proposed to

him the abolition of the system; but he had too good an opinion of

the superintendent (then Mr. Thomas L. McKinney), to believe that

any thing was wrong in the business, and refused his countenance

to my proposition. Confident that I was right, I determined to

bring the question before the Senate--did so--brought in a bill to

abolish the factories, and throw open the fur trade to individual

enterprise, and supported the bill with all the facts and reasons

of which I was master. The bill was carried through both Houses,

and became a law; but not without the strenuous opposition which

the attack of every abuse for ever encounters--not that any member

favored the abuse, but that those interested in it were vigilant

and active, visiting the members who would permit such visits,

furnishing them with adverse statements, lauding the operation

of the system, and constantly lugging in the name of Washington

as its author. When the system was closed up, and the inside of

it seen, and the balance struck, it was found how true all the

representations were which had been made against it. The Indians

had been imposed upon in the quality and prices of the goods sold

them; a general trade had been carried on with the whites as well

as with the Indians; large per centums had been charged upon every

thing sold; and the total capital of three hundred thousand dollars

was lost and gone. It was a loss which, at that time (1822), was

considered large, but now (1850) would be considered small; but its

history still has its uses, in showing how differently from its

theory a well intended act may operate--how long the Indians and

the government may be cheated without knowing it--and how difficult

it is to get a bad law discontinued (where there is an interest in

keeping it up), even though first adopted as a temporary measure,

and as a mere experiment. It cost me a strenuous exertion--much

labor in collecting facts, and much speaking in laying them

before the Senate--to get this two years' law discontinued, after

twenty-five years of injurious operation and costly experience. Of

all the branches of our service, that of the Indian affairs is most

liable to abuse, and its abuses the most difficult of detection.

Thirty Years' View (Vol. 1 of 2) or, A History of the Working of the American Government for Thirty Years, from 1820 to 1850 · 第 9 / 166 章