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and to be paid in Merchant's Notes, that he would prefer receiving 12/6 per Cwt. in Specie or Government Bills, and that he believed this to be the general sense of the Inhabitants above Niagara.

It may perhaps be urged by some as a reason why Specie should not be introduced into circulation, that part of it might be transmitted to the States for Cattle, such an objection, ought not (I conceive) to have much weight, for admitting this was really to be the case for a few years, it would tend so materially to the benefit of every farmer by enabling him to procure a sufficient stock of Cattle, at present very much wanted, that any Specie given in exchange for them would be laid out to very good account and would ultimately tend to the advantage of the Crown by the reduction of the price of provisions, and I submit if it is not a matter of very great importance to Government as well as to the Inhabitants that a sufficient stock of Cattle should be brought into this Colony while Great Britain and the States are at Peace, for should a War unfortunately take place between these two Powers the obtaining of supplies, as has been the case hitherto from Montreal, might not only be difficult and dangerous, but at the same time very precarious. In a situation of this kind would it not be a pleasant circumstance to know that the Colony contained sufficient resources in Cattle, &c., to answer any demand for provisions that might be made for supplies and at a reasonable rate, and that His Majesty's Service would not suffer by the surrender of any one Post on that account, should the usual supplies be not received regularly from Montreal.

Merchants and Traders who have large sums of paper in circulation, (which forms no small part of their Capital and gains), will not be desirous that Specie be brought into circulation, being convinced whenever this takes place, that their paper Notes (which bear a discount of 1212 per cent) will not pass in payment for produce, &c., or indeed any paper not authorized by Law, exclusive of this Consideration there are others, wherein they are interested, such as keeping up the price of flour &c., and allowing the Settler the same price only in Goods at a most extravagant profit and Notes, that the Crown pay to them in Specie or Bills, owing to this cause the Settlers are held in the most disagreeable state of dependence on one particular Merchant from whom they are necessitated to take Goods at his own price, whereas did the Settlers receive Specie for their produce, it would free them from this dependence by putting it in their power to trade with whom they pleased, and wherever they could lay out their money to the best advantage. This would oblige the Merchants and Traders to abate something of their present immoderate charge and be satisfied with a reasonable profit and as Goods become cheaper the wants of the Inhabitants would increase, so that I do not conceive much Specie would be hoarded up, or that any diminution in the consumption of British Manufactures is to be apprehended.

The bringing Specie into circulation by purchasing and paying the Settlers for their produce would be a saving to the Crown because the farmer would charge less for his produce when paid in Specie or Government Bills than if he were to be paid in Goods or Merchants' Notes.

It would enable the Settler to stock his farm with Cattle and to furnish Government either regularly or upon an emergency with any quantity of beef that might be wanted upon much more reasonable terms than the same could be had for at present.

It would add to the safety of the different Garrisons and Posts in case of a War with the States, because supplies could be easily obtained without much risk of their being intercepted by an enemy. It would put a stop to the circulation of paper Notes and bonds, and it would relieve the Inhabitants from their present

disagreeable dependence on any one particular Merchant by putting it in their power to lay out their money wherever they found it most to their advantage; this independence, of political considerations, is earnestly to be wished.

It would also cause a competition between the Merchants and Traders in the sale of their goods, which could not fail to reduce the price to the Settlers and ultimately tend as a saving to the Crown by rendering it no longer necessary to allow a greater price for Flour, Peas, &c., furnished for supplies by the Settlements of Niagara, than what the same article might be obtained for at Kingston, especially as the King's Ships could transport whatever might be wanted across Lake Ontario without any additional expence to Government and a further saving might be made in the transport across the portage from Queenstown landing to the Chippawa for a part of such supplies as might be intended for Detroit, by receiving flour at the Chippawa from the Mills in the vicinity of that Post, all of which is submitted to your Excellency.

JOHN MCGILL.

Commissary for Stores and Provisions
for the Province of Upper Canada.

His Excellency Lieut. Governor Simcoe.
Navy Hall. 10th February, 1794.

REPORT OF CAPTAIN M. ELLIOTT ON HIS RETURN FROM THE GLAISE ON TUESDAY 11TH FEBY. 1794, TO A. McKEE ESQR. D.A.I.A.

In obedience to your orders to me on the 2d of February, I proceeded to the Glaise where I arrived on the 4th. And was informed by the Chiefs of the Shawanese and Miamies, that they had agreed with the Delawares some time ago, to send two prisoners to General Wayne, to exchange for the two women who had been taken. But they had neither sent nor authorized any speech or message to the General respecting peace; That since the return of Wilson & the three Delawares, the Chiefs of the Shawanese & Miamies, & the other nations had been desired to meet the Delawares to hear what Gen. Wayne had said to the messengers they had sent; But none of them would go, or have any thing to say in Council on such business.

These Chiefs informed me also, that a very inconsiderable number of the Delawares are concerned in sending to General Wayne. During my stay at the Glaise, a party of Delawares came in & brought a prisoner & some horses which they had taken from waggons loaded with corn.

I was likewise informed that the greatest part of all the nations were gone out to observe any movements of the American Army, & to attack any parties of Troops or Convoys, they should fall in with.

I was informed also that it was intended by the same party of Delawares who had already sent to General Wayne to send again & that Wilson was to go on a second message, but I could not learn the purport thereof.

The other messengers whom you sent to the Glaise, remain there, until intelligence of importance (should there be any) shall require their return to you.

Endorsed:-Report of Capt. Elliott, 11th Feby. 1794.

M. ELLIOTT.

Dear Sir:

FROM ROBERT HAMILTON TO E. B. LITTLEHALES.

You do me the honor of requesting my sentiments on the advantage or disadvantage of opening the Indian trade and on the effects of gold and silver being locked up from the purposes of Agriculture and commerce by the Inhabitants of Detroit.

Perhaps a short detail of the changes which have taken place in both these subjects within my observation may best account for and explain my sentiments respecting them.

The Fur trade of the Province of Canada during the time of the French was a complete Monopoly, sometimes in the name of an India Company and sometimes in the hands of their Government.

That the French understood the method of conciliating the love and affection of the Indians better than any of their neighbours is universally allowed, but this certainly did not arise from the manner they managed the trade. It can be better accounted for by the influence their priests acquired, whose disinterested benevolence and unwearied zeal made the strongest impression on the yet undebauched minds of the Natives, and from the ease with which the French in general assimilated with them, adopting their manners and forming personal alliances sometimes by marriages and sometimes by slighter ties, all tending to the same and so effectually as not to be soon effaced. In my earlier intercourse with these people I often heard the oldest of the Missassaguas lament in very warm terms the loss of their ancient friends, but the methods they employed in carrying on the commerce neither tended to conciliate the minds of the Natives nor to increase the trade.

The Commanding Officers at the different posts were the Merchants, The Coureurs du Bois, persons sent by them into the Indian Villages. The capricious restriction of Military command and the pernicious consequences of interested monopoly made the trade languish. Many instances occurred of Indians passing by the posts of Cataraquie and Niagara to carry their peltry to the English or Dutch Traders at Oswego.

At the Conquest of the Country the monopoly was done away, but the evils of Military interference still continued. To trade in this Country passes from the Governor were required for many years and at last became more an object of pecuniary emolument to the Secretary than of regulation or restriction. Like other evils that originate at the head, it spread through all the branches. The Commanding Officers of the different Posts, careful of their prerogative must be consulted and must give their sanction to every outfit or speculation in this line. The prevention of improper persons going among the Indians was the reason assigned, but it was alleged that sometimes other motives than the disinterested good of Government had influence in the grant of passes or the choice of Posts for supply by Government at their own expence with what notes might be wanted. If they would go a little further and establish a branch or branches in this Province ready to give bills of exchange for these notes and amply supplying the Country with the necessary small change for internal intercourse I should apprehend that the validity and convenience of these notes would soon supersede all others and thus do away without violence, an evil daily increasing and whose limits are not yet seen.

When beginning this letter I had no idea that my subject could have extended to such a length. You will impute it to my wish to give every information in my power and believe me. Your very humble servant. R. HAMILTON. QUEENSTON, Feb. 14, 1794.

Major Littlehales, Navy Hall.

Copy No. 6.

Sir:

FROM LORD DORCHESTER TO J. G. SIMCOE.

QUEBEC, 17th February, 1794.

The accounts received by Lieut. Colonel England, of Mr. Wayne's intention to close us up at Detroit; I think the more probable from the Conduct I find has been pursued for the two last Summers on the side of Lake Champlain where the King's Sovereignty has been completely overturned within the Posts; and they now impudently tell the Commandant that his Jurisdiction extends no further than his Guns; Even this, I expect, in a short time they will not allow.

Self defence therefore requires we should prevent similar Evils from extending further, and that for our own security at the Detroit, we should occupy nearly the same Posts on the Miamis River which we demolished after the Peace.

This, I think, would cover Detroit and our Communication with that Settlement from Lake Erie; but if given up the Post I apprehend cannot be maintained.

At the same time that all necessary Measures for our defence are taken on the Land side, the Lakes must not be neglected: it may for this purpose be necessary to arm the Ships and Vessels completely, in order to preserve our Command on the water also; and if you find this expedient you will order it accordingly.

Your own experience & local knowledge will point out to you the Force proper to occupy the Miamis, as well as the most advantageous Positions without confining yourself to the Spots we occupied in 1783.

You will therefore order such Force from Detroit to the Miamis River as you may judge sufficient for that Service, as soon as the Season & other Circumstances will permit; observing only the general direction to preserve Detroit from being straitened either by Land or Water.

At the same time that you order a portion of Troops from Detroit with the Artillery requisite for that Service, it may not be amiss to consider what Reinforcements you may draw from other Parts within your Command, without exposing any to insult, and what Assistance you may have from the Militia; also whether by collecting all the Force in your power to assemble you would be in a condition to resist Wayne's attack should he attempt by Force to take possession of the Country. I inclose a Copy of my Answer to a Message from the Indians of the Upper Nations which will sufficiently explain itself.

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Endorsed:-C. In Lord Dorchester's No. 18 to Mr. Dundas of the 24th Feby.

Dear Sir:

FROM JOSEPH CHEW TO THOMAS ASTON COFFIN.

MONTREAL, 20th Feby, 1794.

No Communications from the Upper Country have been Received by me for many months, Except Colonel McKee's letters of the 15th of Novr. & 13th of Decr. with John Watkins' information who had deserted from Mr. Wayne's Army, Copy of which was forwarded to you the day after they came to hand.

It has been the Constant Custom to Enter the Proceedings of all councils held with the Indians in the Superintendt. General's Office which was the case with what passed at Quebec in 1791 with the Western Deputation at the Time Lord Dorchester was going to England. I believe the above mentioned Letters from Colonel McKee was brought to Town by the Indians who went to Quebec, but as he made no mention of them and as I did not see them I am not sure of it, the Letters having been Left in the Evening when I happened to be at home.

I have heard that the Indians who went to Niagara have been dissatisfied with the presents delivered to them, but this is in a Way I cannot intirely depend upon. I am at a Loss for Colonel Butler's not sending me the Proceedings of the Councils at Buffaloe Creek in October, or a return of the Presents he Issued last year. I have wrote to him and pointedly desired this may be done.

The Quantity of Goods sent as Presents to the several Posts last Season were fully sufficient to satisfy the Indians had they been properly Issued, those at the Bay De Quinte are Very thankfull for what they had.

His Lordship may be assured that I have and shall Constantly forward Every Intelligence I may Receive Respecting Indian Affairs by the Earliest Opportunity.

I am, &c.
JOSEPH CHEW.

Letters were Received in Town yesterday from Capt. Porter at Kingston the 9th Inst. in which he says it was reported that there had been an Engagement between the Indians & Mr. Wayne's Army in Which the Americans had lost Eight hundred men, if a matter of this sort has taken Place we shall soon have the particulars.

Thos. Aston Coffin, Esqr.

FROM JOSEPH BRANT TO JOSEPH CHEW.

Extract of a Letter from Capt. Brant to Joseph Chew, Sec'y of Indian Affairs, not dated but from one Rec'd at the Same Time on his Private Business suppose it was Wrote the 20th Feby, 1794.

"I am not able to send you my Journal I Promised but you shall have it by a Party which I shall send down.

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I cannot Close this without giving some news Respecting the Indians. Parted from the Council last Summer seemingly divided Some insisting on the Old line, the rest of us wishing to have the Line that we laid before Lord Dorchester some time ago.

Last fall we met the American Agent at Buffaloe Creek and requested to have a positive answer. Since we have received half an Answer. They wish us to meet

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