To M^r James Byers Junior. The Congress of the United States having made a Provision for carrying on Trade with the Indian Nations on our Borders, and the President having determined to establish as the first Experiments two Trading Posts for the purpose of supplying the Southern Tribes, one in Georgia and the other in the Southwestern Territory, the latter is put under your direction as the Factor, and in conducting the Trade the following Instructions are to be observed. 1. The principle of the Trade is to furnish the Indians with Goods at such moderate prices, that the Sales may simply reimburse to the United States the prime Cost and all Charges; which Cost and Charges so far as they appear under his Agency you will find in the Invoices which will be delivered to you by the Purveyor. The additional Charges in the Transportation of the Goods to the southwestern Territory, you will yourself ascertain. 2. The object of this Trade is by supplying the Indians on such easy terms, to manifest the liberality and friendship of the United States, and thus by the ties of Interest and gratitude to secure their Attachment and lay the foundation of a lasting Peace; 13. To provide against the numerous accidents and losses to which this Trade will be liable, p Cont. Should be added to the prices of the Goods beyond the first Cost and Charges. — This is to be considered as a general Rule. You may find it necessary however to depart from it, by charging some Articles lower and some higher, in order the better to satisfy the Indians in the course of the Trade. But it will be important to fix early on the proper prices and afterwards to adhere to them steadily. The Indians will then know what to depend on, and not have their jealousy excited by the apprehension of unfair dealing, which a fluctuation of prices would be apt to beget. 4. The Goods are to be sold to the Indians either for Money or Peltry. For the Peltry the prices usually given by the Traders will naturally be your rule, and in this respect the habits of the Indians must govern. If these prices are so high that a loss would be incurred in the returns when brought to the Market in Philadelphia, such loss must be counteracted by an addition to the prices of the Goods. A list of the rates at which Peltries are sold in Philadelphia will be furnished by the Purveyor. Philadelphia is contemplated as the proper Market to which your returns in Peltry are to be made as often as the quantity on hand and Conveyance shall present. You will address them to the Purveyor. But before any Peltries are transported, you will enquire and satisfy yourself of the best and cheapest Route and mode of Transportation, and report the information you obtain with your own Ideas thereon, to the Department of War, and wait for Orders from this Office. 5. Governor Blount who is the Superintendent of Indian Affairs in the southwestern Territory will be desired to advertise the Indians of the Establishment of this Factory, and of the benevolent principle on which it is to be conducted, and to invite them to commence trading. On your arrival at Knoxville, you will wait on the Governor and receive his directions as to the place where your trading Post is to be established. The place here Contemplated is Tellico Blockhouse, about a hundred Miles from Knoxville, a Military Post, the Station of one of the Governor's Deputies, and the usual place of resort of the Cherokees and some others of the Southern Tribes for Conferences and Negotiations with the Governor. It will of course be the place of residence of an an Interpreter, who will be indispensibly necessary to you in carrying on the Trade. 6. One of the greatest difficulties to be apprehended is the demand of Goods on Credit, either by the Indians themselves or the Indian Traders residing among them. But such credits are wholly inadmissible; & selling to the Traders with or without credit, would be subversive of the main principle; for such Traders would probably sell at their usual high prices; while the true object of the United States is to supply the Indians at moderate prices; and with these benevolent views of the United States you will on all occasions endeavours to make the Indians acquainted. If difficulties should occur in carrying on the trade, by the refusal of credit to the Indians, and by the total denial of Goods to the Indian Traders, you will make report thereof to the department of War, stating facts, with your opinion thereon, and your Ideas of the best mode of furnishing Supplies to the Indians to effect the salutary objects indicated in these Instructions. 7. The Purveyor will procure for you the necessary information as to the mode of saving and packing the Peltries to ensure their getting to Market in good Order. 8. You will doubtless find it necessary to obtain the Assistance of an honest and industrious Man in the sale and delivery of the Goods and in receiving and packing the Peltries. Great care must be observed in the choice you make, he must be well recommended at first and in his actual Services maintain a Character of perfect Integrity and Sobriety. 9. The commanding Officer of the Troops at the trading post will at all times furnish you with necessary Guards. 10. Goods to the amount five thousand Dollars are annually to be delivered to the Cherokee Nation agreeably to treaty. That Quantity you will now receive; and the same is to be kept separate from the Goods destined for Trade, and delivered to the Cherokees, ac- -cording to the Orders which you shall receive from Governor Blount and in the presence of himself or of one of his Deputies. 11. It is expected that you will find Buildings at the Posts which the Governor shall designate sufficient for the Trade committed to your Management. Any repairs requisite to render them safe and tolerably convenient you will make. For the Materials, other than those to be procured on the Spot, you will apply to Col^o David Henley, the Agent of the War department at Knoxville. 12. You will keep a regular and frequent correspondence with the Purveyor; and in cases which appears to you proper, with the department of War, to which all your dispatches for the Purveyor may be directed. 13. You and your Assistants are to be dieted at the Public Expence; but you will keep an exact account thereof, as well as what shall be drawn from the Contractor as of what you shall purchase; and in both it is expected that rigid economy will be observed. 14. Of the Trade should succeed, the Store may of course be exhausted of some particular kinds of goods. You will from time to time give the earliest notice thereof, making your remittances (which must be the source of further Supplies) in such manner as you shall hereafter be directed by the Secretary of War. 15. It would have been extremely desirable to carry on this Trade with the Indians without the use of Whiskey; but from an apprehension that the habit of the Indians in this respect cannot be controled, [strikethrough: that this luxury may be provided.] Still however you are to use your endeavours, by friendly advice to the Indians to persuade them to let it alone, taking care not to hazard their disgust. But if you find that Whiskey must be sold to them, let it be in such small quantities as may guard them against Drunkenness — during during their continuance at the Post; for which you will give them this reason — "that while trading you desire them to remain sober, that they may know what they do, and be satisfied that the Trade is perfectly fair and honest." When they are ready to depart, such quantities as they desire to carry with them, [undecipherable: in balance due them?] may be delivered. 16. The forms of the accounts and returns you are to render, will be furnished by the Comptroller of the Treasury; but in default of their timely arrival, your knowledge of accounts will enable you to fix on a mode that cannot fail of being satisfactory until you can receive them. 17. I close these Instructions with suggesting to you the necessity of kind and friendly treatment of the Indians who may visit your Station, and of perfect candour in all your dealings with them. Patience in particular will be requisite, and caution when any of them get drunk. To avoid the latter evil you will use your Endeavours with the influential Men among them to draw them off from the Station as soon as their Traffic is over; and until then you will continue as above suggested to make but small issues of Whiskey. Given at the War Office the twenty sixth day of November, one thousand seven hundred & Ninety five. — signed Timothy Pickering.