Trade and Intercourse

United States Trade Policy from 1796 to 1802

© Jeffrey R Gudzune

Jul 6, 2009
Between 1796 and 1802, the United States government refined its trade policy.

Seeking to solidify its relationship with neighboring Indian tribes, Congress moved quickly to enact legislation that would further American economic interests within the region designated as “Indian country.” Moving beyond the $50,000 that had initially been appropriated, the architects of this legislation sought to broaden the government’s steak in the region. Commerce with Indian nations was heavily regulated by the provisions outlined in the Trade and Intercourse Act of 1790 and its subsequent revisions. Government outposts oversaw the exchange of goods between both agents of the United States and specially licensed independent operators and ensured that the compacts negotiated with Indian tribes were fair.

Outlining Indian Country

The 1796 revisions to the Trade and Intercourse Act defined the boundaries of “Indian country” and clarified the legal protections extended to native communities within this boundary. Additionally, the Trade and Intercourse Act of 1796 extended legal protection to the native communities located within the borders of the United States, reaffirming a previous legal policy. Even the transfer of property from one individual to another was regaled under the terms of this legislation.

Peace on the New Frontier: Treaties

With respect to the preservation of peace along the frontier, the Trade and Intercourse Act of 1796 was even more specific than its predecessors. Indian lands were secured through the same terms outlined in the previous legislation, but further punishments for infringing upon native sovereignty were set forth. Treaties were the law of the land and the final word on the subject of settlement. Only legally appointed representatives of the United States were empowered to negotiate treaties with tribal leaders. Additionally, if any native government agreed to sell part of its territory to the United States it was to be suitably compensated. To support this expenditure, Congress passed additional appropriations earmarked for the purpose of compensating Indian nations and supporting the flow of trade in 1798 and 1799.

Settlement on Indian Land

Settlers were only permitted to move into territory that had been transferred to the United States through federally approved treaties. Any illegal settlement found on native land would be dismantled and those responsible would be subject to fine and possible imprisonment. The federal military was empowered to accomplish this end. These terms were once more renewed in 1799, around the time that additional funds were made available for the purchase of additional Indian land. Subsequent renewals of the Trade and Intercourse Act in 1799 and 1800 reaffirmed the provisions of the original legislation. In 1802, the act was made permanent. To manage trade with Indian nations on a national scale, an Office of Indian Trade was established in 1806.

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).


The copyright of the article Trade and Intercourse in Native American/First Nations History is owned by Jeffrey R Gudzune. Permission to republish Trade and Intercourse in print or online must be granted by the author in writing.




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