1820 James Monroe - Bureau of Indian Affairs

At the end of James Monroe's first term as President, he indirectly urges Congress to consider establishing the Bureau of Indian Affairs.  The Bureau was first proposed by Secretary of War John C. Calhoun in 1818, established in 1824 by Calhoun and authorized by Congress under John Quincy Adams in 1829.

When the London Convention in 1818 established the 49th Parallel as the northern boundary between the United States and British, trade with the Indians in these areas, now were exclusive to the Untied States. Congress had already established, a Superintendent of Indian trade within the War Department.  This Superintendent, also known as the "Office of Indian Trade" was in charge of maintaining a factory of trading networks with the Indians.   But with the expansion of Indian Trade, by 1820, President James Monroe reached out to Congress to consider changes to current system of trade with the Indians.   He shared very little detail of what he was looking for, but his words can give us a clue.  In this short section is a summary from the Secretary of War John C. Calhoun's opening section of his report on the Indian Trade.  Monroe shared Calhoun's remarks that the Indian tribes had become completely dependent on trade with the United States, and that if left to themselves, they would destroy each other.  Left to themselves their "extirpation" or total destruction would be inevitable.

"With the Indians peace has been preserved and a progress made in carrying into effect the act of Congress making an appropriation for their civilization, with the prospect of favorable results. As connected equally with both these objects, our trade with those tribes is thought to merit the attention of Congress.

In their original state game is their sustenance and war their occupation, and if they find no employment from civilized powers they destroy each other. Left to themselves their extirpation is inevitable."

This was almost two  years after Secretary of War, John C. Calhoun delivered the War Department's report on the Indian Trade.  There is no doubt that members of Congress were familiar with this report.  In this report, he advocated for the abolishment of the "factory" system, and a return to an open trading system between the Indian tribes and U.S. citizens administered by the War Department.  Calhoun also proposed, that the War Department take a more active role in all Indian affairs to protect them from themselves and "the most cunning and vicious of the trader".  

Calhoun's report started out with the following findings.

1. The nations of Indians who inhabited the continent before us were at first discovery, in a state of "perfect commercial independence".   Their knowledge of use of useful were equal to their wants and desires, but no more.  They lived a scanty life off the forest.
2. A major change has taken place, which appears to be inevitable when the savage meets a civilized people.  They have lost their independence, and have become helpless.   Their wants have greatly increased, but the knowledge of useful arts has not.  They lack the skills to use contemporary tools such as the axe and the hoe, and are unable to meet their needs from hunting with guns and ammunition.  Without fresh supplies, they will be reduced to extreme want.
3. They have become wholly dependent on Trade.   
4. The United States has the exclusive right to trade with the Indians within our limits from the Atlantic coast to the Mississippi and the Missouri, and down to the Gulf of Mexico.   
5. It is time now, for the United States to take complete control over the Indians, exclusively providing for their needs through a judicious system of fair trade.

Calhoun then proposed  that the current "factory" system be abolished and replaced with a system of granting trading licenses to U.S. citizens of good moral character.  Calhoun explained that since 1773, the United States had worked through Congress to establish laws to foster trade with the Indians.  The system of trade established has become fully under the jurisdiction of the federal government, and significant capital was distributed among eight trading houses or factories along the Mississippi, Missouri and in towns like Green Bay and Chicago.   The trade polices were done out of prudence and humanity, and while they may not have been fully realized, they were no doubt beneficial.   But the report by the War department, was now proposing to abolish this approach, and replace it with open trade.  To avoid considerable loss, this needs to be done gradually.  The report suggests that the best way to establish laws for open trade, was to start with the provisions in the ordinance of 1786, and make appropriate modifications or additions.    Licenses for trade should be granted to U.S. citizens of good moral character for a sum of no more than $500 and no less than $100.  These licenses should be managed by a superintendent under the Secretary of War.   Anyone caught trading without a license would be subject to a fine not to exceed $1000.  All liquor sales should be strictly prohibited.   Any trading houses established would require a separate license, and subject to the inspection of the Indian agent appointed by the superintendent.  The remainder of the report discussed the benefits and dangers of such a system, as well as specific threats among the current tribes.   According to the report, strict control over Indian rivalries must be managed by the War department.  The report concluded with, "The Indians themselves are not proper judges of their own interests, and so far from retraining the effects of such rivalry, they would become instruments of the most cunning and vicious of the traders, to wreak their vengeance on such as might stand in the way of their profits."

The "Office of Indian Trade" was abolished in 1822 by Secretary of War John C. Calhoun and replaced with the Bureau of Indian Affairs in 1824 without authorization from Congress.   This abolished the "factory" trading system and replaced it  with the "Office of Indian Affairs".  It wasn't until 1829, that Congress finally passed a bill to give the president authority to appoint a Commission of Indian Affairs to serve under the Secretary of War.   This secretary had jurisdiction over not only trade, but all Indian affairs and all matters rising from Indian relations.  Thus, it was in 1820 at the end of Monroe's first term as President that he first urged Congress to consider establishing the Bureau of Indian Affairs.

In 1824, President Monroe gave an update on the activities of the Bureau.  Early results were quite promising, and through the "means of appropriation",  Congress was bring about a "desirable result".  Already in 1824, there were established "32 schools, containing 916 scholars, who are well instructed in several branches of literature, and likewise in agriculture and the ordinary arts of life."

"With the exception of the tribes referred to, our relations with all the others are on the same friendly footing, and it affords me great satisfaction to add that they are making steady advances in civilization and the improvement of their condition. Many of the tribes have already made great progress in the arts of civilized life. This desirable result has been brought about by the humane and persevering policy of the government, and particularly by means of the appropriation for the civilization of the Indians. There have been established under the provisions of this act 32 schools, containing 916 scholars, who are well instructed in several branches of literature, and likewise in agriculture and the ordinary arts of life".

http://www.presidency.ucsb.edu/ws/index.php?pid=29462
http://www.presidency.ucsb.edu/ws/index.php?pid=29466Niles' Weekly Register, Volume 15 (1819) pgs. 25-29
https://en.wikipedia.org/wiki/Bureau_of_Indian_Affairs
http://www.americansc.org.uk/Online/indians.htm
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