The very elements of nature seem to have conspired to lend gloom to his arrival. A terrible thunderstorm and violent downpour of rain was a feature of the landing. He was accompanied by some civil officers, three Capuchin monks and eighty soldiers. The people, resentful of being forced to submit to foreign rule, received him coldly and sullenly. He had brought with him orders to redeem the seven million livres of French paper money which had been a heavy burden upon a population of not more than six thousand souls. He saw at once that the population was unwilling to give up its nationality and to change its allegiance from France to Spain. He learned that the French garrison peremptorily refused to serve under Spanish commanders. So he was forced to leave the government, which he was supposed to administer with the aid of the Spanish officials that he had brought with him, in the hands of the former French functionaries.

When in September of that year an ordinance was introduced by Ulloa forcing French vessels having special permits to accept the paper currency in payment for their cargoes at an unreasonable tariff, the merchants of the colony protested vigorously. They declared stoutly:

"The extension and freedom of trade, far from injuring states and colonies, are their strength and support."

Reports circulating about the disorders caused by this conflict between the French population and the Spanish authorities frightened the owners of merchant vessels that had been in the habit of trading at the colony and its commerce with them was for the time being almost suspended. The ordinance was rescinded, and Ulloa retired from New Orleans to the Balise. He had to be contented to establish Spanish rule at that spot and opposite Natchez at the river Iberville. Perhaps a man of different disposition would have been able to reconcile the colonists to the foreign régime. But Ulloa did not possess the amiable qualities that characterized the Governor of Cuba, Buccarelli. He had to learn, as did Lord Albemarle during his brief administration of Havana, that it was not an easy task to conquer the hearts of a people and win them over to the rule of foreign authorities.

According to Bancroft this irritating state of things continued for more than two years. He writes (p. 123):

"But the arbitrary and passionate conduct of Ulloa, the depreciation of the currency with the prospect of its becoming an almost total loss, the disputes respecting the expenses incurred since the cession of 1762, the interruption of commerce, a captious ordinance which made a private monopoly of the traffic with the Indians, uncertainty of jurisdiction and allegiance, agitated the colony from one end to the other. It was proposed to make of New Orleans a republic, like Amsterdam or Venice, with a legislative body of forty men, and a single executive. The people of the country parishes crowded in a mass into the city; joined those of New Orleans; and formed a numerous assembly, in which Lafreniere, John Milhet, Joseph Milhet, and the lawyer Doucet were conspicuous. 'Why,' said they, 'should the two sovereigns form agreements which can have no result but our misery, without advantage to either?' On the twenty-fifth of October, they adopted an address to the superior council, written by Lafreniere and Caresse, rehearsing their griefs; and in their petition of rights, they claimed freedom of commerce with the ports of France and America, and the expulsion of Ulloa from the colony."

This address was signed by upwards of five hundred persons and at the meeting of the council on the very next day it was, contrary to the warnings of Aubry, accepted. The excitement of the people, when they heard this good news, was indescribable. The French colors appeared in the public square and veteran pioneers of the colony, women and children crowded around to kiss the cherished flag of the much beloved mother country. Nine hundred men pressed around the flag pole when it was about to be raised, eager to lend a hand in what was to them a sacred function, and men, women and children began to cry: "Vive le roi de France! Nul autre que lui pour nous!" This clamorous demonstration manifested to Ulloa the will of the people; and when they proceeded to elect their town officials, he abandoned the attempt of establishing Spanish rule in Louisiana. He set sail for Havana, and through his representatives sent the news of these events to Spain. That incident was so significant of the spirit of the times that Du Chatelet wrote to Choiseul:

"The success of the people of New Orleans in driving away the Spaniards is a good example for the English colonies; may they set about following it."

For at this very time the British colonies of America were entering upon their struggle for deliverance from restrictions upon trade as symbolized in the stamp act and the atmosphere upon the continent was rife with revolution. While the statesmen of France and even some of England were inclined to grant greater freedom of commerce, Spain still lagged behind. She had been the champion of the protective system for centuries, and though it had not added to her wealth, on the contrary, had helped to impoverish her, she was unwilling to depart from the time-honored policy. Grimaldi, the Spanish minister, thus set forth the stand which Spain was to take in this question:

"Besides, the position and strength of the countries occupied by the Americans excite a just alarm for the rich Spanish possessions on their borders. Their interlopers have already introduced their grain and rice into our colonies. If this should be legalized and extended to other objects, it would increase the prosperity of a neighbor already too formidable. Moreover, this neighbor, if it should separate from the metropolis, would assume the republican form of government; and a republic is a government dangerous from the wisdom, the consistency, and the solidity of the measures which it would adopt for executing such projects of conquests as it would naturally form."