The new company granted lands along the river to individuals or associated persons, who were sometimes actual emigrants, sometimes great personages who sent out colonists at their own cost, or again the company itself undertook the building up of plantations or lands reserved by it for the purpose. One colony of Alsatians was sent out by Law to begin a plantation on the Arkansas.[5] Others, more or less flourishing, were located at the mouth of the Yazoo, Natchez and Baton Rouge. All were agricultural plantations, though in most cases the plantations themselves consisted of a few poor huts covered with a thatch of palm-leaves. The earliest forts were usually a square earthwork, strengthened with palisades about the parapet.

The company's agricultural system was founded upon African slave labor.[6] Slaves were brought from St. Domingo or other of the West India islands. By some their employment was viewed with alarm, because it was thought the blacks would soon outnumber the whites, and might some day rise and overpower them; but we find only the feeblest protest entered against the moral wrong of slavery in any record of the time. Negroes could work in the fields, under the burning sun, when the whites could not. Their labor cost no more than their maintenance. The planters easily adopted what, indeed, already existed among their neighbors. Self-interest stifled conscience.

The new company wisely appointed Bienville governor. Three ships brought munitions, troops, and stores of every sort from France, with which to put new life into the expiring colony.

It was at this time (February, 1718) that Bienville began the foundation of the destined metropolis of Louisiana. The spot chosen by him was clearly but a fragment of the delta which the river had been for ages silently building of its own mud and driftwood. It had literally risen from the sea. Elevated only a few feet above sea-level, threatened with frequent inundation, and in its primitive estate a cypress swamp, it seemed little suited for the abode of men, yet time has confirmed the wisdom of the choice.

Here, then, a hundred miles from the Gulf, on the alluvial banks of the great river, twenty-five convicts and as many carpenters were set to work clearing the ground and building the humble log cabins, which were to constitute the capital, in its infancy.

The settlement was named New Orleans,[7] in honor of the Regent, Orleans, who ruled France during the minority of Louis XV.

Up to this time it was supposed that large ships could not cross the bar, at the river's mouth, but upon sounding the channel, enough water was found to float one of the company's ships, which then sailed up to New Orleans. From this day, the river may be said to have been fairly open to commerce with the outside world. As respects the passage up and down, it had practically become an every-day excursion for the Canadian voyageurs who, with the Indians, had so long formed its floating population. These adventurers now drew up their canoes, along the bank, at New Orleans, whose promiscuous assemblage of Indians, habitants, convicts, soldiers and priests, they joined.

Father Charlevoix, the historian of New France, thus describes New Orleans as he saw it in 1721:—

"The most just idea I can give you is to imagine two hundred persons who have been sent to build a city, and who are encamped on its banks. This city is the first which one of the greatest rivers of the world has seen rise on its borders. It is composed of a hundred barracks placed without much order, a large storehouse built of wood, two or three houses which would not adorn a poor village in France, and part of a wretched barrack which they have been willing to lend the Lord, for his service, and of which He had scarcely taken possession when He was thrust out and made to take shelter under a tent."