In conformity with the treaty of 1794 with Great Britain, the citizens and subjects of each country were permitted to trade with the Indians residing in the territories of the other party.  The reciprocity was altogether nominal.  Since the conquest of Canada, the British had inherited from the French the whole fur trade, through the great lakes and their communications, with all the western Indians, whether residing in the British dominions or the United States.  They kept the important western posts on those lakes till about the year 1797.  And the defensive Indian war, which the United States had to sustain from 1776 to 1795, had still more alienated the Indians, and secured to the British their exclusive trade, carried through the lakes, wherever the Indians in that quarter lived.  No American could, without imminent danger of property and life, carry on that trade, even within the United States, by the way of either Michilimackinac or St. Mary’s.  And independent of the loss of commerce, Great Britain was enabled to preserve a most dangerous influence over our Indians.

It was under these circumstances that you communicated to our government the prospect you had to be able, and your intention, to purchase one half of the interest of the Canadian Fur Company, engaged in trade by the way of Michilimackinac with our own Indians.  You wished to know whether the plan met with the approbation of government, and how far you could rely on its protection and encouragement.  This overture was received with great satisfaction by the administration, and Mr. Jefferson, then President, wrote you to that effect.  I was also directed, as Secretary of the Treasury, to write to you an official letter to the same purpose.  On investigating the subject, it was found that the Executive had no authority to give you any direct aid; and I believe you received nothing more than an entire approbation of your plan, and general assurances of the protection due to every citizen engaged in lawful and useful pursuits.

You did effect the contemplated purchase, but in what year I do not recollect.  Immediately before the war, you represented that a large quantity of merchandise, intended for the Indian trade, and including arms and munitions of war, belonging to that concern of which you owned one half, was deposited at a post on Lake Huron, within the British dominions; that, in order to prevent their ultimately falling into the hands of Indians who might prove hostile, you were desirous to try to have them conveyed into the United States; but that you were prevented by the then existing law of non-intercourse with the British dominions.

The Executive could not annul the provisions of that law.  But I was directed to instruct the collectors on the lakes, in case you and your agents should voluntarily bring in and deliver to them any part of the goods above mentioned, to receive and keep them in their guard, and not to commence prosecutions until further instructions:  the intention being then to apply to Congress for an act remitting the forfeiture and penalties.  I wrote accordingly, to that effect, to the collectors of Detroit and Michilimackinac.