After the departure of Father Marquette several other mission settlements were attempted at Chicago, but these were all abandoned in 1700 and for almost a century Chicago ceased to be a place of residence for white men.

The strategic value of Chicago as a centre of control for the regions of the Great Lakes and the Mississippi River had long been recognized, but it was not until after the Battle of Fallen Timbers (1794), that the government took active steps to establish a fort here. The treaty made by Gen. Wayne with the Indians after that battle provided for the cession to the American government of a tract of land at the southern end of Lake Michigan including the site of the present city. In 1803 Ft. Dearborn, a block-house and stockade, was constructed by the government on the southern bank of the Chicago River near the present site of the Michigan bridge.

In 1812, during the Indian War of Tecumseh, the Ft. Dearborn massacre occurred. The garrison, 93 persons in all, including several women and children, were attempting to escape to Ft. Wayne, when they were set upon by some 500 Indians about a mile and a half south of the fort (southern part of the present Grant Park). The Americans killed included 39 soldiers, 2 women and 12 children. The survivors were captured by the Indians and though some were tortured and put to death, the majority finally escaped to civilization A tablet now marks the site of the old fort and a monument has been erected near Grant Park commemorating the massacre. In 1816 the fort was rebuilt and a settlement rapidly grew up around it. By 1837 the Federal government had begun the improvement of the harbor and had started the Illinois and Michigan Canal. The lake trade grew to enormous proportions, and the building of the railways, especially the New York Central Lines connecting Chicago with the East, as well as other lines connecting it with the Northwest, and the South, gave the city an extraordinary impetus.

At the Republican convention held at Chicago in 1860, Abraham Lincoln was nominated for the presidency and during the Civil War, Camp Douglas, a large prison camp for Confederate prisoners, was maintained here.

The Republican national convention, which made "extension of slavery" the essential plank of the party platform, met at Chicago on the 26th of May, 1860. At this time William H. Seward was the most conspicuous Republican in national politics; Salmon P. Chase also had long been in the forefront of the political contest against slavery. Both had won greater fame than Lincoln, and each hoped to be nominated for president. Chase, however, had little chance, and the contest was virtually between Seward and Lincoln, who by many was considered more "available" because he could, and Seward could not, carry the votes of certain doubtful states. Lincoln's name was presented by Illinois and seconded by Indiana. At first Seward had the stronger support, but on the fourth ballot Lincoln was given 334 (233 being necessary) and the nomination was then made unanimous. The convention was singularly tumultuous and noisy: large claques were hired by both Lincoln's and Seward's managers.

Block House at Chicago in 1856

The great fire in 1871 was the most serious check to the city's constantly increasing prosperity, but recovery from this disaster was rapid. The solidity of this prosperity was demonstrated during the financial panic of 1873, when Chicago banks alone among those of the large cities of the country continued steadily to pay out current funds.

The precise cause of the great fire is not known, but it is popularly attributed to Mrs. O'Leary's cow, which according to tradition "kicked over the lamp" and started the flames. The fire spread over an area of 3-1/3 Sq. M., and destroyed 1,700 buildings and property valued at $196,000,000. Almost 100,000 people were made homeless, and 250 lost their lives. The relief contributions from the United States and abroad amounted to nearly $5,000,000, of which about $500,000 was contributed in England. The fire at least gave an opportunity to rebuild the old wooden city with brick and stone.