The posts surrendered are four in number; namely, Fort Oswego, at the mouth of Oswego River, which falls into Lake Ontario, on the south side; Fort Niagara, at the mouth of Niagara River; Fort Detroit, on the western bank of Detroit River; and Fort Michillimachinack, at the straits of the same name, between Lake Michigan and Lake Huron. From Oswego, the first of these, we derived no benefit whatever. The neighbouring country, for miles round, was a mere forest; it was inhabited by but few Indians, and these few carried their furs to Cataragui or Kingston, where they got a better price for them than at Oswego, as there were many traders there, and of course some competition amongst them; at the same time, the river, at the mouth of which this fort stands, was always open to the people of the States, and along it a small trade was carried on by them between New York and Lake Ontario, which was in no wise ever interrupted by the troops at the fort. By the surrender of this place, therefore, they have gained nothing but what they enjoyed before and the British government is saved the expence of keeping up a useless garrison of fifty men.

SURRENDERED FORTS.

The quantity of furs collected at Niagara is considerable, and the neighbourhood being populous, it is a place of no small trade; but the town, in which this trade is carried on, being on the British side of the line, the few merchants that lived within the limits of the fort immediately crossed over to the other side, as soon as it was rumoured that the fort was to be given up. By the possession of a solitary fort, therefore, the people of the States have not gained the smallest portion of this part of the lake trade; nor is it probable that any of them will find it their interest to settle as merchants near the fort; for the British merchants, on the opposite side, as has already been shewn, can afford to sell their goods, brought up the St. Lawrence, on much lower terms than what goods brought from New York can be sold at; and as for the collecting of furs, it is not to be imagined that the Indians, who bear such a rooted hatred to the people of the States, who are attached to the British, and who are not a people ready to forsake their old friends, will carry their furs over to their enemies, and give up their connexions with the men with whom they have been in the habit of dealing, and who can afford to pay them so much better than the traders on the opposite side of the water.

Detroit, of all the places which have been given up, is the most important; for it is a town, containing at least twelve hundred inhabitants. Since its surrender, however, a new town has been laid out on the opposite bank of the river, eighteen miles lower down, and hither many of the traders have removed. The majority of them stay at Detroit; but few or none have become citizens of the States in consequence, nor is it likely that they will, at least for some time. In the late treaty, a particular provision for them was made; they were to be allowed to remain there for one year, without being called on to declare their sentiments, and if at the end of that period they chose to remain British subjects, they were not to be molested[[12]] in any manner, but suffered to carry on their trade as formerly in the fullest extent; the portion of the fur trade, which we shall lose by the surrender of this place, will therefore be very inconsiderable.

[12]. This part of the late treaty has by no means been strictly observed on the part of the States. The officers of the federal army, without asking permission, and contrary to the desire of several of the remaining British inhabitants, appropriated to their own use several of the houses and stores of those who had removed to the new town, and declared their determination of not becoming citizens of the States; and many of the inhabitants had been called on to serve in the militia, and to perform duties, from which, as British subjects, they were exempted by the articles in the treaty in their favour. When we were at Detroit, the British inhabitants met together, and drew up a memorial on the subject, reciting their grievances, which was committed to our care, and accordingly presented to the British minister at Philadelphia.

The fourth post, Michillimachinack, is a small stockaded fort, situated on an island. The agents of the North-west Company of merchants at Montreal, and a few independent traders, resided within the limits of the fort, and bartered goods there for furs brought in by different tribes of Indians, who are the sole inhabitants of the neighbouring country. On evacuating this place, another post was immediately established, at no great distance, on the Island of St. Joseph, in the Straits of St. Mary, between lakes Superior and Huron, and a small garrison left there, which has since been augmented to upwards of fifty men. Several traders, citizens of the States, have established themselves at Michillimakinac but as the British traders have fixed their new post so close to the old one, it is nearly certain that the Indians will continue to trade with their old friends in preference, for the reasons before mentioned.

LAKE TRADE.

From this statement it appears evident, that the people of the States can only acquire by their new possession a small part of one branch of the fur trade, namely, of that which is carried on on one of the nearer lakes. The furs brought down from the distant regions in the north-west to the grand portage, and from thence in canoes to Montreal along the Utawa River, are what constitute by far the principal part, both as to quantity and value, of those exported from Montreal; to talk, therefore, of their acquiring possession of three-fourths of the fur trade by the surrender of the posts on the lakes is absurd in the extreme; neither is it likely that they will acquire any considerable share of the lake trade in general, which, as I have already pointed out, can be carried on by the British merchants from Montreal and Quebec, by means of the St. Lawrence, with such superior advantage.

It is worthy of remark, that as military posts, all those lately established by the British are far superior, in point of situation, to those delivered up. The ground on which the new block house is building, on the British side of Niagara River, is nine feet higher than the top of the stone house in the American fort, and it commands every part of the fort. The chief strength of the old fort is on the land side; towards the water the works are very weak, and the whole might be battered down by a single twelve pounder judiciously planted on the British side of the river. At present it is not proposed to erect any other works on the British side of the river than the block house; but should a fort be constructed hereafter, it will be placed on Mississaguis Point, a still more advantageous situation than that on which the block house stands, as it completely commands the entrance into the river.

The new post on Detroit River commands the channel much more effectually than the old fort in the town of Detroit; vessels cannot go up or down the river without passing within a very few yards of it. It is remarkable, indeed, that the French, when they first penetrated into this part of the country, fixed upon the spot chosen for this new fort, in preference to that where Detroit stands, and they had absolutely begun their fort and town, when the whole party was unhappily cut off by the Indians.