The factory system, managed by the Office of Indian Trade, eventually grew too large to be effectively safeguarded against corruption. Independent agents proved to be much more efficient and were better able to keep up with the demand for Indian furs. Funding was cut off and the Office of Indian Trade was abandoned in 1822. Government own trading posts were shuttered and the factory system was no more. In order to meet the growing demand for Indian furs, provisions were made for the licensing of independent traders. Independent traders had participated in the fur trade in the past, but only through the provisions established in the Trade and Intercourse Acts.
Independent Fur Companies
One of the most successful independent fur traders was the American Fur Company, established by John Jacob Astor in 1808. Fur traders had lived among native tribes during the era of the factory system, often serving as guides or interpreters for government agents. By the time the factory system was abolished, there was already an existing relationship between independent traders and native tribes. Capitalizing on mutual trust between company agents and native tribes, the American Fur Company quickly established itself as one of the preeminent players in the fur trade. Other independent companies would follow and fill the void left by the factory system.
Replacing the Factory System
While the factory system was inefficient and easily corruptible, the Office of Indian Trade was the focal point of American policy towards native tribes. To replace the Office of Indian Trade, the independent minded Secretary of War John C Calhoun created the Office of Indian Affairs in 1824. Like its predecessor, the Office of Indian Affairs was organized as a subdivision of the War Department. Acting on his own, Calhoun sought to maintain the status quo with respect to American policy towards Indian tribes. Thomas L McKenney, formerly the head of the Office of Indian Trade, was appointed to serve as the first Commissioner of Indian Affairs. McKenney’s position, as well as the Office of Indian Affairs, itself remained unofficial until Congress approved of the creation of the department in 1832.
A New Policy
The objective of the Office of Indian Affairs was to implement federal policy towards the various Indian nations bordering the United States. McKenney’s ideas were in line with Calhoun’s and together the two outlined a strategy that called for the gradual resettlement of native tribes to western lands. Assimilation of Indian tribes into the greater United States would be a key factor in this new policy.
Sources:
Mark M. Boatner III, Encyclopedia of the American Revolution. (Mechanicsburg: Stackpole Books, 1994).
Mark C Carnes, Ed. U.S. History. (New York: MacMillan Library Reference, 1998).
Marilyn Miller and Martin Faux, American History Desk Reference. (New York: MacMillan, 1997).
Carl Waldman, Atlas of the North American Indian. (New York: Checkmark Books, 2000).
Carl Waldman, Encyclopedia of Native Tribes. (New York: Checkmark Books, 2006).
