Seeing the need to develop an organization capable of managing the increasingly complex economic relationship with Indian tribes, Congress created the Office of Indian Trade in 1806. Organized as a subdivision of the War Department, this bureau supervised the federal policy outlined in the Trade and Intercourse Acts. Under the auspices of the Trade and Intercourse Acts, a series of government trading posts were established to supervise the distribution of items such as cloth, textiles, guns, and in some cases alcohol (despite an 1808 provision against the distribution of such an item) to Indian nations.
The Factory System
From the administration of George Washington through that of John Adams, there were up to seven active trading posts operating in the United States and the territory known as Indian Country. Thomas Jefferson took a more active involvement in the development of a national trade policy towards Indian tribes and authorized the creation of several more of these outposts. While operating individually, the agents who managed the trading posts worked in tandem with national policy. The final authority in these maters, as outlined in the Trade and Intercourse Acts, was the President of the United States. The creation of the Office of Indian Trade brought these individual posts under a new national directorate.
Superintendent of Indian Trade
The office of Superintendent of Indian Trade was created to manage the purchase and distribution of items to the major trading posts located throughout the territory designated as Indian Country. John Mason held the post from the inception of the department until 1816. Thomas L McKenney was appointed to the post in 1816, coordinating supply requests from government agents in the field and overseeing the distribution of these goods to the main trade posts located in Detroit, St Louis, and New Orleans. Although the Office of Indian Trade was organized as subordinate arm of the War Department, the Superintendent of Indian Trade derived his authority directly from the President. McKenney proved to be a capable administrator and soon became the de facto head of American trade policy as it pertained to Indian nations.
Powers of the Office of Indian Trade
The legislation creating the position called for the superintendent to manage not only the distribution of goods to trade posts, but to oversee the sale of native goods--mainly fur pelts. The Superintendent maintained control of the movement of goods in and out of Indian Country and directed the distribution of supplies from trade posts to Indian nations. These responsibilities placed the superintendent in direct control of the factory system, a series of government owned trading posts that supplied goods to Indian nations and provided an outlet for their products. The overall objective if this policy was to make Indian nations dependent on the United States for essential supplies.
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).
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