Of course the action of the American Government in procuring the recall of Genet and putting a stop to Clark's operations lightened for a moment the pressure of the backwoodsmen upon the Spanish dominions; but it was only for a moment. The Westerners were bent on seizing the Spanish territory; and they were certain to persist in their efforts until they were either successful or were definitely beaten in actual war. The acts of aggression were sure to recur; it was only the form that varied. When the chance of armed conquest under the banner of the French Republic vanished, there was an immediate revival of plans for getting possession of some part of the Spanish domain through the instrumentality of the great land companies.
The Land Companies.
These land companies possessed on paper a weight which they did not have in actual history. They occasionally enriched, and more often impoverished, the individual speculators; but in the actual peopling of the waste lands they counted for little in comparison with the steady stream of pioneer farmers who poured in, each to hold and till the ground he in fact occupied. However, the contemporary documents of the day were full of details concerning the companies; and they did possess considerable importance at certain times in the settlement of the West, both because they in places stimulated that settlement, and because in other places they retarded it, inasmuch as they kept out actual settlers, who could not pre-empt land which had been purchased at low rates from some legislative body by the speculators. The companies were sometimes formed by men who wished themselves to lead emigrants into the longed-for region, but more often they were purely speculative in character, and those who founded them wished only to dispose of them at an advantage to third parties. Their history is inextricably mixed with the history of the intrigues with and against the Spaniards and British in the West. The men who organized them wished to make money. Their object was to obtain title to or possession of the lands, and it was quite a secondary matter with them whether their title came from the United States, England, or Spain. They were willing to form colonies on Spanish or British territory, and they were even willing to work for the dismemberment of the Western Territory from the Union, if by so doing they could increase the value of the lands which they sought to acquire. American adventurers had been in correspondence with Lord Dorchester, the Governor General of Canada, looking to the possibility of securing British aid for those desirous of embarking in great land speculations in the West. These men proposed to try to get the Westerners to join with the British in an attack upon Louisiana, or even to conduct this attack themselves in the British interests, believing that with New Orleans in British hands the entire province would be thrown open to trade with the outside world and to settlement; with the result that the lands would increase enormously in value, and the speculators and organizers of the companies, and of the movements generally, grow rich in consequence. [Footnote: Canadian Archives, Dorchester to Sydney, June 7, 1789; Grenville to Dorchester, May 6, 1790; Dorchester to Beckwith, June 17, 1790; Dorchester to Grenville, Sept. 25, 1790. See Brown's "Political Beginnings," 187.] They assured the British agents that the Western country would speedily separate from the eastern States, and would have to put itself under the protection of some foreign state. Dorchester considered these plans of sufficient weight to warrant inquiry by his agents, but nothing ever came of them.
The Yazoo Land Companies.
Much the most famous, or, it would be more correct to say, infamous, of these companies were those organized in connection with the Yazoo lands. [Footnote: The best and most thorough account of these is to be found in Charles H. Haskin's "The Yazoo Land Companies.">[ The country in what is now northern Mississippi and Alabama possessed, from its great fertility, peculiar fascinations in the eyes of the adventurous land speculators. It was unoccupied by settlers, because as a matter of fact it was held in adverse possession by the Indians, under Spanish protection. It was claimed by the Georgians, and its cession was sought by the United States Government, so that there was much uncertainty as to the title, which could in consequence be cheaply secured. Wilkinson, Brown, Innes, and other Kentuckians, had applied to the Spaniards to be allowed to take these lauds and hold them, in their own interests, but on behalf of Spain, and against the United States. The application had not been granted, and the next effort was of a directly opposite character, the adventurers this time proposing, as they could not hold the territory as armed subjects of Spain, to wrest it from Spain by armed entry after getting title from Georgia. In other words, they were going to carry on war as a syndicate, the military operations for the occupation of the ceded territory being part of the business for which the company was organized. Their relations with the Union were doubtless to be determined by the course of events.
The South Carolina Yazoo Company.
This company was the South Carolina Yazoo Company. In 1789 several companies were formed to obtain from the Georgia Legislature grants of the western territory which Georgia asserted to be hers. One, the Virginia Company, had among its incorporators Patrick Henry, and received a grant of nearly 20,000 square miles, but accomplished nothing. Another, the Tennessee Company, received a grant of what is now most of northern Alabama, and organized a body of men under the leadership of an adventurer named Zachariah Cox, who drifted down the Tennessee in flat-boats to take possession, and repeated the attempt more than once. They were, however, stopped, partly by Blount, and partly by the Indians. The South Carolina Yazoo Company made the most serious effort to get possession of the coveted territory. Its grant included about 15,000 square miles in what is now middle Mississippi and Alabama; the nominal price being 67,000 dollars. One of the prime movers in this company was a man named Walsh, who called himself Washington, a person of unsavory character, who, a couple of years later, was hung at Charleston for passing forged paper money in South Carolina. All these companies had hoped to pay the very small prices they were asked for the lands in the depreciated currency of Georgia; but they never did make the full payments or comply with the conditions of the grants, which therefore lapsed.
Its Abortive Efforts in Kentucky.
Before this occurred the South Carolina Yazoo Company had striven to take possession of its purchase by organizing a military expedition to go down the Mississippi from Kentucky. For commander of this expedition choice was made of a Revolutionary soldier named James O'Fallon, who went to Kentucky, where he married Clark's sister. He entered into relations with Wilkinson, who drew him into the tangled web of Spanish intrigue. He raised soldiers, and drew up a formal contract, entered into between the South Carolina Yazoo Company and their troops of the Yazoo Battalion—over five hundred men in all, cavalry, artillery and infantry. Each private was to receive two hundred and fifty acres of "stipendiary" lands and the officers in proportion, up to the Lieutenant Colonel, who was to receive six thousand. Commissions were formally issued, and the positions of all the regular officers were filled, so that the invasion was on the point of taking place. [Footnote: American State Papers, Indian Affairs, I., James O'Fallon to the President of the United States, Lexington, Sept. 25, 1790, etc., etc.] However, the Spanish authorities called the matter to the attention of the United States, and the Federal Government put a prompt stop to the movement. [Footnote: Draper MSS., Spanish Documents, Carondelet to Alcudia, Jan. 1, 1794, and May 31, 1794.] O'Fallon was himself threatened with arrest by the Federal officers, and had to abandon his project. [Footnote: Draper MSS., Clark and O'Fallon Papers, anonymous letter to James O'Fallon, Lexington, March 30, 1791, etc., etc.] He afterwards re-established his relations with the Government, and became one of Wayne's correspondents; [Footnote: Draper MSS., Wayne to O'Fallon, Sept. 16, 1793.] but he entered heartily into Clark's plans for the expedition under Genet, and, like all the other participators in that wretched affair, became involved in broils with Clark and every one else. [Footnote: Draper MSS., De Lemos to Carondelet, Dec. 23, 1793.]
Revival of the Companies.