Lower Sandusky and the U.S. Indian Factory System

Initiated in 1795 by President George Washington and later supported by Thomas Jefferson, a non-profit fur factory system was set up to undercut the influence of British traders with Indian tribes. Washington also believed America would develop better relations with the Indians and in turn reduce Army expenses necessary to protect the frontier. Washington insisted there be no fraud and goods were to be supplied to the Indians at fair prices.  

Government factories were established mostly at forts where soldiers could handle transporting goods and protect against theft and violence. In all 17 factories were created. Lower Sandusky (now Fremont) was the sole Ohio fur factory. It was located at the site of Ft. Stephenson (now the site of Birchard Public Library). It fell under the direction of the older Ft. Wayne agency whose factor was John Johnston, federal Indian Agent. (The restored Johnston Farm and Indian Agency can be visited near Piqua, Ohio). Benjamin Tupper became Lower Sandusky’s first factor, receiving $750 a year. Factors also received $200 for furnishings and $20 each year for upkeep, indicating that houses were also provided for the factors.

Hides of deer, beaver, muskrat, wildcat, bear, otter, fox, mink, and rabbit were traded for the “white man’s goods” all supplied with government funds. Deer hides far outweighed all others.

The private Hudson’s Bay Company and the American Fur Company deeply resented these government, non-profit agencies who paid higher than market prices. In fact, when there was no market at all for deer hides, agencies continued to buy them. Losses escalated with hides suffering from worm and moth damage and transportation problems from Ft. Wayne down the Maumee River. Lack of clerks caused poor baling of hides that needed to be wrapped in smoked elk or deer hides to keep out moths and worms

 

In exchange, Indians traded for beads, bullet molds, fabric, jugs, cups. mugs, tallow, beeswax, traps, muskrat spears, moccasins, drinking glasses, silver arm bands, soap, coffee, blankets, sleigh bells, guns and gun powder, lead, needles, combs and even eye glasses (requested at Lower Sandusky for “old” Indians). Nearly $10,000 of merchandise was sent to Lower Sandusky in the years between 1808 and 1811. Nearby is an 1822 Detroit broadside from the closed Chicago and Green Bay factories, listing goods typically traded.                                                                                     

Courtesy of Wikimedia Commons

During the War of 1812, the British and their Indian allies burned Ft. Wayne and massacred Chicago while nearly $4,000 worth of goods were seized at Lower Sandusky. As war descended, then Factor Jacob Varnum fled with others to Delaware, Ohio. The factory did survive and was eventually “restockaded.”

The arrival of Major George Croghan and his victory at Fort Stephenson during the War of 1812 ended the importance of the factory system at Lower Sandusky.

Many thought the system a success because some tribes remained loyal to America during the War of 1812. However, these were mainly philanthropists, religious reformers, and government officials. But like the Chicago agency, the bulk of sales eventually went to white settlers. Much of the trade goods were of poor quality.  Additionally, Washington officials knew little of tribal needs on the frontier. When the losses became exorbitant, the system was declared “useless.” With continued pressure from private trading companies, Congress took steps to abolish the entire program.   

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More about the U.S. Indian Factory System appears in an article by Royal V. Way  in the "Mississippi Valley Historical Review" and in History of the United States Indian Factory System, 1795-1822 by Ora B. Peake.