TRADE CONDITIONS IN ILLINOIS, 1765-1775.
The peltry trade had been one of the elements which had accentuated,
throughout the eighteenth century, the difficulties between France and
England in the Ohio and Mississippi valleys. It was the chief support
of the French government in Canada and now that the English were in
undisputed possession of the great peltry districts it became apparent
that the management of the trade deserved most serious consideration.
It was becoming of increasing importance to the manufacturing monopoly
of the mother country, and therefore, in the minds of English
statesmen, deserved far more attention than did the few thousand French
colonists scattered throughout the West. The desire to increase this
branch of commerce dictated in a large measure those clauses in the
Proclamation of 1763 which forbade the formation of settlements or the
purchase of lands within the Indian reservation, but at the same time
declared that the trade with the Indians should be free and open to
all English subjects alike. Again, the plan proposed in 1764 related
solely to the management of the Indians and to the regulation of the
trade with a view to making the English monopoly of intrinsic value to
the empire. Even towards the close of the period under consideration
there is little or no change of policy so far as official utterances
are concerned. In 1772 in a report to the crown, the Lords of Trade
made the following declaration: "The great object of colonization upon
the continent of North America has been to improve and extend the
commerce and manufactures of this kingdom. It does appear to us that
the extension of the fur trade depends entirely upon the Indians being
undisturbed in the possession of their hunting grounds, and that all
colonization does in its nature and must in its consequence operate to
the prejudice of that branch of commerce. Let the savages enjoy their
deserts in quiet. Were they driven from their forests the peltry trade
would decrease."[108]
Under the French regime the western Indians and their trade had been
managed with greater success than had the tribes living under English
influence. The success of France was due largely to her policy of
centralization combined of course with the genial character of the
French fur trader and the influence of the missionary. The English,
on the contrary, had managed their relations with the Indians through
the agency of the different colonies, without a semblance of union or
co-operation: each colony competed for the lion's share of the trade, a
policy which resulted disastrously to the peace of the empire.
In 1755 the English government under the influence of Halifax,
president of the Board of Trade, took over the political control of
the Indians, and superintendents were appointed by the crown to reside
among the different nations.[109] A little later in 1761 the purchase
of Indian lands was taken out of the hands of the colonies and placed
under the control of the home government.[110] No further change is
to be noted until after the issue of the war was known, when the
whole question was taken under consideration. The most important step
yet taken respecting the Indian and his concomitant, the fur trade,
appeared in the Proclamation of 1763, issued in October following the
treaty of cession. Some of its provisions for the West have already
been noted. In addition to reserving for the present the unorganized
territory between the Alleghany mountains and the Mississippi River
for the use of the Indians, the government guaranteed the Indians
in the possession of those lands by announcing in the Proclamation
that no Governor or Commander-in-chief would be allowed to make land
grants within their territory, and further all land purchases and
the formation of settlements by private individuals without royal
consent were prohibited. Trade within this reservation was made,
however, free to all who should obtain a license from the Governor or
Commander-in-chief of the colony in which they resided.[111]
The policy was now for the central government to take the Indian
trade under its management; and in the course of the year following
the issuance of the Proclamation an elaborate plan was outlined by
Hillsborough[112] comprehending the political and commercial relations
with all the Indian territory.
According to the proposed scheme[113] British North America was to be
divided, for the purpose of Indian management, into two districts,
a northern and a southern, each under the control of a general
superintendent or agent appointed by the crown: the Ohio River being
designated as the approximate line of division. In the northern
district, with which we are here concerned, the regulation of such
Indian affairs as treaties, land purchases, questions of peace and
war, and trade relations were to be given into the hands of the
superintendent who was to be entirely free from outside interference:
without his consent no civil or military officer could interfere with
the trade or other affairs of any of the Indian tribes. Three deputies
were to be appointed to assist the superintendent and at each post a
commissary, an interpreter, and a smith were to reside, acting under
the immediate direction of the superintendent and responsible only
to him for their conduct. For the administration of justice between
traders and Indians and between traders themselves, the commissary
at each post was to be empowered to act as justice of the peace in
all civil and criminal cases. In civil cases involving sums not
exceeding ten pounds an appeal might be taken to the superintendent.
The Indian trade was to be under the direct supervision of the general
superintendent. Traders who desired to go among the Indians to ply
their trade could do so by obtaining a license from the province from
which they came. The region into which the trader intended to go was
to be clearly defined in the license and each had to give bond for
the observance of the laws regulating the trade. The superintendent,
together with the commissary at the post and a representative of the
Indians were to fix the value of all goods and traders were forbidden
to charge more than the price fixed; for the still better regulation
of the trade, it was to be centered about the regularly fortified and
garrisoned forts. Regulations for the sale of land were also proposed;
outside the limits of the colonies no individual or company could
legally purchase land from the Indians unless at a general meeting of
the tribe presided over by the superintendent.
The plan thus outlined by the ministry was never legally carried into
effect, although the superintendents used the outline as a guide in
their dealings with the Indians. The original intention had been to
levy a tax on the Indian trade to defray the expense of putting the
scheme into operation, but it was found that the budget was already too
greatly burdened; and the Stamp Act disturbance which soon followed
illustrated the possible inexpediency of imposing such a duty.[114]
The foregoing considerations serve to indicate the importance the
ministry attached to the Indian trade in general. But what of the
trade in the Illinois country? This region had been one of the great
centers of the Indian trade under the French regime; and, in addition,
the French inhabitants had been one of the main supports of New
Orleans since its foundation early in the century. The commercial
connection between the Illinois villages and New Orleans had never been
broken, and at the time of the occupation of Illinois in 1765 French
fur traders and merchants still plied their traffic up and down the
Mississippi River. Now that the title to this trade center passed to
England it was expected that the volume of trade would be turned
eastward from its southerly route. The necessity for this was patent if
any solid benefits were to accrue to the empire from the cession.[115]
The home and colonial authorities early saw the importance of the
redirection of the trade. They hoped and expected that a trade would be
opened with the Indians in and about the Illinois country immediately
after the active occupation by the English troops.[116] A large number
of individual traders were early aware of this and representatives of
some of the large trading corporations of the East were also preparing
to take advantage of the early opening of the trade. In 1765 Fort Pitt
became the great rendezvous for this element, and when the army reached
Fort Chartres in October, 1765, it was followed as soon as the season
of the year would permit, by the traders with their cargoes to exchange
for the Indians' furs. Among the more important figures was George
Morgan,[117] a member of the firm of Baynton, Wharton, and Morgan
of Philadelphia,[118] and the firm's personal representative at the
Illinois, where he first appeared early in 1766,[119] remaining there
the greater part of the next five years.[120] Other representatives
of this company left Fort Pitt in March of the same year with a large
cargo of goods, which reached Fort Chartres during the summer.[121]
Firms such as Franks and Company of Philadelphia and London and Bently
and Company of Manchac also traded extensively in the Illinois during
the following years: all the larger British companies becoming rivals
for that portion of the Indian trade which the English were able to
command.
Other and perhaps greater sources of profit to the English merchants
lay in the privilege of furnishing the garrison with provisions[122]
and the Indian department with goods for Indian presents.[123]
Although the houses of Baynton, Wharton, and Morgan, and Franks and
Company were usually competitors for the former privileges, the latter
company generally had the monopoly.[124] On the other hand, Baynton,
Wharton, and Morgan derived their greatest profits from the sale of
enormous quantities of goods to the government through the Indian
department for distribution among the Indians accustomed to assemble
at the Illinois.[125] But whether all these houses received profits
commensurate with the risks undertaken is problematical.[126] In the
Indian trade, in which all the merchants were interested, they not
only had to compete with each other and with independent English
traders, but with the French and Spanish who had not ceased to ply
their trade among their old friends the Indians. This continuance of
foreign traders in British territory was probably the most serious
problem in the trade situation. Not only did it affect English traders
but the interests of the empire itself were seriously threatened by the
presence within its limits of unlicensed foreign traders.
It is therefore evident that the close of hostilities between France
and England in 1763 and the formal transfer of Canada and the West to
Great Britain by no means closed the intense rivalry between the fur
trading elements of the two nations for predominance in the western
trade: it rather accentuated it. As has already been suggested, France,
until cession of the West, had naturally possessed the sphere of
influence among the savages of the Mississippi Valley and Canada, and
consequently the monopoly of the fur trade accrued to her subjects. In
the upper Ohio river region and among the tribes bordering on or living
within the limits of the English colonies, the British, during the
first half of the eighteenth century, were either strong rivals of the
French or were completely dominant. And it was generally expected that
after the cession of the West the British would inherit the influence
of the French among the Indians and succeed to the monopoly of the fur
trade just as Great Britain had succeeded to the sovereignty of the
territory itself. But the Conspiracy of Pontiac, due in large part to
the machinations of the French traders, postponed for a considerable
period the entry of the British traders, during which time the French
became more strongly entrenched than ever in the affections of the
savages.
The character of the French fur traders has already been noted. Their
methods had from the beginning been different from those pursued by
their neighbors and rivals: they lived among the Indians, affected
their manners, treated them kindly and respectfully, and supplied all
their wants, while the missionary, the connecting link between the
two races, was ever present. This association of religion was one of
the causes of the success of the French in gaining such a permanent
foothold in the affections of the Indians, but was entirely absent
in the British relation with that race. The English traders were in
general unscrupulous[127] in their dealings with the savages and
deficient of that tact which enabled Frenchmen to overcome the natural
prejudice of the Indian and acquire an interest with him which would
be difficult to sever. In that section of the Indian country where
the influence of Great Britain was such that her traders could go
among the Indians, there was always considerable dissatisfaction on
account of the methods employed by the large number of independent
and irresponsible traders. Many carried large quantities of rum, some
dealing in nothing else.[128] English traders frequently attended
public meetings of Indians, gave them liquor during the time for
business and defrauded them of their furs.[129] This abuse was one
of the great causes of complaint against British traders.[130]
Indeed, wherever they participated in the trade, its condition was
deplorable. Many of the independent traders had little or no credit so
that the legitimate merchants suffered as well as the Indians.[131]
They adopted various expedients to draw trade from each other, one
of which was to sell articles below first cost, thus ruining a large
number of traders.[132] Fabrications dangerous to the public were
frequently created to explain the price and condition of goods.[133]
But probably more injurious still to imperial interests, was the fact
that whole cargoes of goods were sometimes sold by English firms to
French traders thus enabling the latter to engross a great part of the
trade,[134] depriving the empire of the benefit of the revenue accruing
from the importation of furs into England. This practice was probably
followed to a greater degree in the farther West, where the French
continued to have a monopoly in the trade.
It had been expected that the Illinois villages would be the center of
trade for the English side of the upper Mississippi Valley just as it
had been one of the centers during the French regime.[135] But, except
for the few tribes of Illinois Indians in the immediate vicinity,
very few savages found their way to these posts for trading purposes.
English traders, on the other hand, did not trust themselves far
beyond this narrow circle.[136] But their French and Spanish rivals
from Louisiana, many of whom formally lived in the Illinois, carried
on a trade in all directions, both by land and by water.[137] They
ascended the Ohio, Wabash, and Illinois rivers[138] and crossed the
Mississippi River above the Illinois River, plying their traffic among
the tribes in the region of the Wisconsin and Fox rivers.[139] This
was probably the most productive area in the Mississippi Valley in the
supply of fur bearing animals. The Mississippi River from its junction
with the Illinois northward was also considered especially good for the
peltry business: the otter, beaver, wolf, cervine, and marten were to
be found in abundance.[140] But the British traders dared not venture
into that quarter. The loss of this trade, however, can scarcely be
attributed to their misconduct, for the French had never allowed it
to pass from their own hands. The latter continued to intrigue with
the Indians throughout the greater part of this period just as they
had prior to 1765. As we have seen they pointed out to the savages how
they would suffer from the policy of economy practiced by the British
government.[141] Thus by giving presents and circulating stories and
misrepresentations the French subjects of Spain attempted to checkmate
every move of the English.[142] The Indians were constantly reminded
of the bad designs on the part of the English, and were encouraged
with unauthorized promises of aid in case they took up the hatchet in
defense of their hunting grounds.[143]
This state of affairs continued throughout the greater part of the
period, although it was probably modified to some extent after 1770,
for in that year O'Reilly, the Spanish governor of Louisiana, issued an
order to all the commandants in that colony to prohibit the inhabitants
crossing the river in the pursuit of trade and whenever any excesses
were committed satisfaction was to be given the English commandant
according to the laws of nations.[144]
During the first years of the British occupation there was considerable
friction in the contact between the two alien peoples in the Illinois
villages. In spite of the fact that the French who remained became
subjects of Great Britain there was for several years sharp competition
between the English and French residents in the vicinity of the
villages.[145] The latter were on terms of friendship with the savages
and could go into any part of the country without difficulty and those
Indians who came to Fort Chartres to trade generally preferred to deal
with their trusted friends. The French often carried the packs of
furs thus obtained across the river to St. Louis or transported them
directly to the New Orleans market. Although the British merchants
were occasionally to pool their interests with French residents, such
cases were exceptional prior to 1770. In that year, however, General
Gage informed the home government that "the competition between his
Majestys' old and new Subjects is greatly abated & must by degrees
subside, for if carried to extremes it would be very prejudicial to
both."[146]
We have seen in the foregoing study how the British traders were
handicapped in the prosecution of the trade by their French rivals.
Naturally the large quantities of furs and skins obtained by such
contraband traders as well as by the French residents of Illinois were
taken directly to New Orleans and there embarked for the ports of
France and Spain. These foreign interlopers, however, only followed
the course they had long been accustomed to take. On the other hand it
was expected by the government that the traders who carried English
manufactured goods down the Ohio River would return by the same route
with their cargoes of peltry for the purpose of transporting them to
England. In this the aim of the ministry miscarried. English traders
and merchants followed the line of least resistance: the route down
the Mississippi to New Orleans was easier and quicker than up the
Ohio and across the country to the sea-coast.[147] Moreover, the New
Orleans market was attractive, for peltries sold at a higher price
there than in the British market.[148] The tendency of the English
traders and merchants to follow this course was discovered soon after
the occupation.[149] In a communication to Secretary Shelburne in 1766
Gage informed the government that "it is reported that the Traders in
West Florida carry most of their Skins to New Orleans, where they sell
them at as good a price as is given in London. As I had before some
Intelligence of this, the Officer commanding at Fort Pitt had Orders
to watch the Traders from Pensilvania (sic) who went down the Ohio in
the Spring to Fort Chartres; & to report the quantity of Peltry they
should bring up the Ohio in the Autumn. He has just acquainted me
that the traders do not return to his Post, that they are gone down
the Mississippi with all their Furrs and Skinns under the pretense of
embarking them at New Orleans for England."[150] A few weeks later
he wrote again in a similar strain: "That Trade will go with the
stream is a maxim found to be true from all Accounts that have been
received of the Indian Trade carried on in that vast Tract of Country
which lies in the Back of the British Colonies; and that the peltry
acquired there is carried to the Sea either by the River St. Lawrence
or River Mississippi."[151] Gage seemed to believe that the part
which went down the St. Lawrence would be transported to England; but
that the peltry passing through New Orleans would never enter a British
port.[152] "Nothing but prospect of a superior profit or force will
turn the Channel of Trade contrary to the above maxim."[153]
It seems impossible to figure exactly what the loss to imperial
interests was under these conditions.[154] Furs and skins, however
being among the enumerated commodities[155] some loss certainly accrued
to British shipping and to the government through loss of the duty, as
well as to English manufacturers. While practically no peltries reached
the Atlantic ports from the Illinois region, enormous quantities were
carried to New Orleans. The few who have left any estimate of the
amount of peltries exported to New Orleans agree in general that from
500 to 1000 packs were shipped annually from Illinois. According to
the usual estimate 500 packs were worth in New Orleans about 3500
pounds sterling.[156] At New Orleans, where the western trade finally
centered, it was estimated that peltries worth between 75,000 and
100,000 pounds sterling were sent annually to foreign ports.[157]
It became apparent to those in a position to understand the situation
that those solid advantages which the Government had expected would
accrue in return for the expense of maintaining establishments in the
West would not be forthcoming, unless some effective though expensive
measures be taken. The rivalry of the French who monopolized the larger
part of the trade and who naturally followed their old road to New
Orleans, and the action of the English traders in turning the channel
of their trade down the stream effectually deprived the empire of any
benefits. Conditions grew no better as the years went by. In 1767 we
find General Gage complaining that "as for the Trade of the Ilinois,
and in general of the Mississippi, we may dispose of some manufactures
there, but whilst Skins and Furrs bear a high price at New Orleans, no
Peltry gained by our manufactures, will ever reach Great Britain, and
if our Traders do not return with the Produce of their Trade to the
Northern Provinces, by way of the Ohio or Lakes, it will not answer to
England to be at much expence about the Mississippi."[158] Not only
were the officials in America, who were in close touch with western
affairs, convinced of the impossibility of obtaining any immediate
commercial benefits from the country, but one of the leading members
of the ministry, Lord Hillsborough, Secretary for the colonies, took a
similar view, in an argument against the planting of western colonies.
"This Commerce cannot (I apprehend) be useful to Great Britain
otherwise than as it furnishes a material for her Manufactures, but
it will on the contrary be prejudicial to her in proportion as other
Countries obtain that material from us without its coming here first; &
whilst New Orleans is the only Post for Exportation of what goes down
the Mississippi, no one will believe that that town will not be the
market for Peltry or that those restrictions, which are intended to
secure the exportation of that Commodity directly to G. Britain, can
have any effect under such circumstances."[159] Though there seems to
have been a unanimity of opinion respecting the commercial inutility of
the Illinois and surrounding country under existing conditions, there
were those, however, who believed that with the adoption of certain
measures the western country could be made of intrinsic commercial
value. Whether any adequate steps could have been taken to turn the
channel of trade eastward and to exclude foreign traders is uncertain.
The original intention of the British government had been to use
Fort Chartres to guard the rivers in order to prevent contraband
trading;[160] but its inefficiency was soon apparent.[161] Although
well constructed, its location was not strategic; it commanded nothing
but an island in the river.[162] An indication to the Indians of
British dominion[163] and a place of deposit for English merchants
was about the sum total of its efficiency.[164] In order to make the
Illinois country effective as a bulwark against foreign aggression and
to keep the trade in English hands, thus insuring material advantages
to the empire, it seemed imperative to many who were familiar with
the situation to adopt measures looking toward the closure of those
natural entrances into the country, the mouths of the Illinois and
Ohio rivers.[165] Almost all the correspondence of the time relating
to Illinois, contains references to the practicability of erecting
forts at the junctions of the Illinois and Ohio rivers with the
Mississippi; in most cases this was insisted upon as the only measure
to be adopted to make the country of value.[166] All were further in
agreement that until such plan was carried out no benefits would arise
from the possession of that territory. Suggestion were also offered
relative to the erection of a fort on the Mississippi River above its
junction with the Illinois for the protection of that section of the
country.[167] Perhaps the most novel suggestion emanated from General
Gage, who declared that in order to gain all the advantages expected it
would be necessary to amalgamate all the little French villages lying
between the Illinois and Ohio rivers into one settlement, which would
also be the centre of the military establishment; detachments could
then be sent out to guard the rivers and prevent British merchants
from descending the stream to New Orleans and also watch for foreign
interlopers.[168]
But these suggestions one and all failed to receive recognition from
the government. One of the main reasons for this non-action may well be
summed up in a statement of Hillsborough's, who appears by 1770 to have
become somewhat pessimistic regarding the prospect of any immediate
advantages from the western trade. He declared in that year that "Forts
& Military Establishments at the Mouths of the Ohio & Illinois Rivers,
admitting that they would be effectual to the attainment of the objects
in view, would yet, I fear, be attended with an expence to this Kingdom
greatly disproportionate to the advantage proposed to be gained.——"[169]
The failure of the government to manage successfully the western trade
previous to 1770 was not the only reason the ministry hesitated to
do any thing further. Any measure would have meant the expenditure
of large sums of money with no absolute certainty of an adequate
return. The problem of the western trade confronted the ministry at
a most unfortunate time. Questions of graver import were arising and
demanding immediate attention. Instead of seeking new schemes upon
which to lavish money, every opportunity was seized upon to curtail
expenses. The government failed to put into full operation the plan
of 1764 because of the added financial burden it would entail and in
1768 the management of the Indian Trade was transferred from the crown
to the colonies to further reduce the budget. The western question
had become subordinated to that of the empire. Furs were important
to the manufacturing monopoly of Great Britain, but at this time of
rising discontent and dissatisfaction in the colonies any new projects
entailing further expense were out of the question.