Initially legislators were uncertain that the factory system of government-backed trade would have the desired effects and only two trading posts were authorized. To ensure that the government’s traders, known as factors, could undersell private traders and other nations, the congressional committees authorizing the enterprise recommended, “that as this transaction is intended to conciliate the affections of the Indians, it should not be the object of the government to profit thereby.” 8 From the start, the government did not intend to receive any additional funds for its initial investment. The original outlay of money was set at $150,000 and the statute stipulated that the original capital remain undiminished. The intention of the government was simply to recoup the money they had spent on goods by selling the furs and peltries they received from the Indians in trade. Jefferson was correct when he reported on the success of the factory system early in his presidency. In fact, there had been a favorable return in the initial years. 9 The true success of the factories would not be measured not by how much money the system made but if America could establish political control over a safe and secure western territory.
      In the opening years of the nineteenth century, the federal government used a mix of tactics when dealing with the Indians. Part of the reason for establishing the factory system was to foster close relations in ease tensions in areas where whites and Indians lived in close proximity. At the same time, America was negotiating with Indian tribes to acquire their lands for white only settlement. Throughout its history the United States juggled several policies in its official dealings with the Indians. According to S. Tyler Lyman, an historian of federal Indian policy, “discussions of the assimilation, removal, allotment, establishment of reservations, and the extension of local laws over tribes within the established States have occurred intermittently throughout the history of relations between the United States and the Indian tribes.” Henry Knox, the very first U.S. Secretary of War, even considered the use of armed force to prevent the further emigration of non-Indians beyond United States borders to prevent potential conflict. 10 Discussions of these different policies exist side-by-side in federal documents but their emphasis varied over time depended upon executive and legislative priorities. At times long forgotten policies were resurrected, and at other times existing policies were given new strength. 11 Even as the government authorized the factory system and developed its trade with Indians, established policies supporting negotiation with Indians for their land were in full force.
      At the root of all histories of Indians in North America lay the constant struggle over land claims. America’s unquenchable desire for land would often put American citizens in direct conflict with intransigent Indians. 12 As one of the most successful negotiators with the Indians on the frontier, William Henry Harrison was the “prime mover in fifteen treaties which quieted title to most of what is today Indiana and Illinois, a segment of Ohio, and smaller portions of Michigan and Wisconsin, at bargain prices which seldom ran over a cent an acre.” 13 Regardless of how successful negotiators like Harrison were or how efficiently trading houses could create hospitable relations between the white settlers and the Indians, it always seemed that settlers were pushing beyond the influence of the federal government. The westward expansion was so rapid, according to historian Reginald Horsman, that the land used by Indian tribes was overrun with settlers almost before federal policies could be put into place. 14
      Purpose of a frontier fort was for security and to foster positive relationships between the Indians and United States citizens who were moving west. The western military forts were a key element in the government’s effort to control life on the frontier. Historian Francis Paul Prucha argued that federal soldiers played a prominent role on the frontier. Not only did they occupy the land and provide safety for settlers in remote areas, but they also acted as agents of the U.S. government’s ongoing efforts involving trade, negotiation, and peacekeeping. 15 Unfortunately the number of soldiers at frontier posts was not always enough to maintain peace; frequent skirmishes occurred. With only a minimal presence at the edges of United States territory, the government relied on a subtle mix of threat and negotiation.

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