810 THE GEORGE CATLIN INDIAN GALLERY. 



The agents or factors, and assistants were appointed by the super* 

 intendent of Indian trade, and established at the several trading posts 

 on the Western frontier. Goods and wares were purchased in open 

 market in the several cities and shipped to the factories. The Govern- 

 ment furnished the capital, which was about $300,000. The furs and 

 peltries were sold by the superintendent and the proceeds deposited in 

 the Treasury. In December, 1821, there were factories at Prairie du 

 Chien, Fort Edwards, and Fort Osage and branches at Green Bay, Chi- 

 cago, Arkansas, Choctaw, and at Eed Eiver, and the merchandise in 

 them valued at about $200,000. These stations were movable and were 

 changed from time to time to suit the convenience of the Indians. The 

 system was an attempt to control or prevent unlawful and unjust traffic 

 with the Indians. It was wise in its day and served a useful purpose. 

 In a pecuniary sense it was entirely to the profit of the Indian. 



This system of factories was abolished by act of Congress of May 6, 

 1822. Its affairs were wound up by George Graham, esq. 



The American Fur Company, the Missouri Fur Company, and other 

 trading organizations under private auspices had (up to 1822) become 

 powerful and useful and supplanted the Government establishment. 



In 1832 Congress created the office of Commissioner of Indian Affairs 

 and organized the Bureau of Indian Affairs. Prior to this time there 

 had been no Commissioner. The Bureau, however, continued in the 

 War Department. A committee of Congress in 1832 reported that the 

 system was " expensive, inefficient, and irresponsible-' (see report of 

 Hon. Horace Everett, No. 479, House of Eepresentatives, first session, 

 Twenty- third Congress). 



In 1834 a more comprehensive act was passed, " To provide for the 

 organization of the Department of Indian Affairs." Eegulations were 

 made thereunder, and the Indian country divided into three districts, 

 and three officers of the Army placed in charge of them as disbursing 

 officers, under general charge of the War Department. 



Under these laws the President was authorized to prescribe rules and 

 regulations to govern in the execution of these laws. 



November 8, 1836, the President ordered the Secretary of War to 

 revise the existing regulations and prescribe a new set governing the 

 business of the office and the duties of the Commissioner. 



November 11, 1836, the revised regulations, known as No. 1, went 

 into effect. They provided that the office and aU of its duties should be 

 under the control of the Secretary of War and the President. The office 

 became a Bureau of the War Department. 



In 1837 new regulations, Nos. 2, 3, 4, and 5, were issued. 



Army officers became the administrative agents — an almost complete 

 military control. 



A Congressional committee in 1842 made a report against the then 

 system (see Senate Eeport No. 693, Third session, Forty-fifth Congress). 



