Sir:
As [you are] a proprietor of the N. W. Company and director of the Zond [Fond] du Lac department, I conceive it my duty as an officer of the United States, in whose territory you are, to address you solely on the subject of the many houses under your instructions. As a member of the greatest commercial nation in the world, and of a company long renowned for their extent of connections and greatness of views, you cannot be ignorant of the rigor of the laws of the duties on imports of a foreign power.
Mr. Jay's treaty, it is true, gave the right of trade with the savages to British subjects in the United States territories, but by no means exempted them from paying the duties, obtaining licenses, and subscribing unto all the rules and restrictions of our laws. I find your establishments at every suitable place along the whole extent of the south side of Lake Superior to its head, thence to the source of the Mississippi, and down Red River, and even extending to the center of our newly acquired territory of Louisiana, in which it will probably yet become a question between the two governments, whether our treaties will authorize British subjects to enter into the Indian trade on the same footing as in the other parts of our frontiers, this not having been an integral part of the United States at the time of said treaty. Our traders to the south, on the Lower Mississippi, complain to our government, with justice, that the members of the N. W. Company encircle them on the frontiers of our N. W. territory, and trade with the savages upon superior terms to what they can afford, who pay the duties on their goods imported from Europe, and subscribe to the regulations prescribed by law.
These representations have at length attracted the attention of our government to the object in question, and, with an intention to do themselves as well as citizens justice, they last year took some steps to ascertain the facts and make provision against the growing evil. With this, and also with some geographical and local objects in view, was I dispatched with discretionary orders, with a party of troops, to the source of the Mississippi. I have found, Sir, your commerce and establishments extending beyond our most exaggerated ideas; and in addition to the injury done our revenue by evasion of the duties, other acts done which are more particularly injurious to the honor and dignity of our government. The transactions alluded to are the presenting medals of his Britannic Majesty, and flags of the said government, to the chiefs and warriors resident in the territory of the United States. As political subjects are strictly prohibited to our traders, what would be the ideas of the executive to see foreigners making chiefs, and distributing flags, the standard of an European power? The savages being accustomed to look on that standard, which was the only prevailing one for years, as that which alone has authority in the country, it would not be in the least astonishing to see them revolt from the United States' limited subjection which is claimed over them by the American government, and thereby be the cause of their receiving a chastisement which, although necessary, yet would be unfortunate, as they would have been led astray by the policy of the traders of your country.
I must likewise observe, Sir, that your establishments, if properly known, would be looked on with an eye of dissatisfaction by our government, for another reason, viz., there being so many furnished posts, in case of a rupture between the two powers the English government would not fail to make use of those as places of deposit of arms, ammunition, etc., to be distributed to the savages who joined their arms, to the great annoyance of our territory, and the loss of the lives of many of our citizens. Your flags, Sir, when hoisted in inclosed works, are in direct contradiction of the law of nations, and their practice in like cases, which only admits of foreign flags being expanded on board of vessels, and at the residences of ambassadors or consuls. I am not ignorant of the necessity of your being in such a position as to protect yourself from the sallies of drunken savages, or the more deliberate plans of intending plunderers; and under those considerations have I considered your stockades.
You, and the company of which you are a member, must be conscious from the foregoing statement that strict justice would demand, and I assure you that the law directs, under similar circumstances, a total confiscation of your property, personal imprisonment, and fines. But having discretionary instructions and no reason to think the above conduct to be dictated through ill-will or disrespect to our government, and conceiving it in some degree departing from the character of an officer to embrace the first opportunity of executing those laws, I am willing to sacrifice my prospect of private advantage, conscious that the government looks not to its interest, but to its dignity in the transaction. I have therefore to request of you assurances on the following heads which, setting aside the chicanery of law, as a gentleman you will strictly adhere to:
1st. That you will make representations to your agents, at your headquarters on Lake Superior, of the quantity of goods wanted the ensuing spring for your establishments in the territory of the United States, in time sufficient (or as early as possible) for them to enter them at the C. H. of Michilimackinac, and obtain a clearance and license to trade in due form.
2d. That you will give immediate instructions to all the posts in said territory under your direction, at no time and under no pretense whatever to hoist, or suffer to be hoisted, the English flag. If you conceive a flag necessary, you may make use of that of the United States, which is the only one which can be admitted.
3d. That you will on no further occasion present a flag or medal to an Indian, or hold councils with any of them on political subjects, or others foreign from that of trade; but that, on being applied to on those heads, you will refer them to the American agents, informing them that these are the only persons authorized to hold councils of a political nature with them.
There are many other subjects, such as the distribution of liquor, etc., which would be too lengthy to be treated of in detail. But the company will do well to furnish themselves with our laws regulating commerce with the savages, and regulate themselves in our territories accordingly.