HISTORY OF SOUTHEAST MISSOURI 83 never to recognize the validity of an Indian transfer. In the view of the government, the Indians had no power or authority to alienate any lands. This invalidated Morgan's claims and he became practically penniless. He ap- plied to the congress of the United States for redress, but this was denied him. He then conceived the plan of founding a settlement within Si^anish territory. He seems to have been moved by a desire for wealth, and partly by a desire to revenge himself on the United States by helping to build up the power of Spain. He came into correspond- ence with Don Diego Gardoqui the Spanish minister at Washington. He pointed out to the minister the immense importance to Spain of colonizing her territory west of the IMissis- sippi river and of inducing settlers from America to emigrate there. His familiarity with the West and his real ability caught the fancy of Gardoqui who entered into his scheme. Under the arrangement entered into between these persons, iforgan was to receive a grant of land reaching from the Cincjue Homme to the mouth of the St. Francois river, a distance of about three hundred miles. The grant was to extend some twelve or fifteen miles westward from the river and thus to include between twelve and fifteen million acres of land. Jlorgan pointed out to the minister that if Americans were to be induced to settle on these lands certain things must be granted to them. It was accordingly agreed that Americans should be exempt from taxation and that they should have the right to self-government. In addition to these in- ducements Mr. Morgan held out to prospec- tive colonists cheap land for he expected to sell parts of his enormous holdings for ver.y small sums. It was a part of Morgan 's scheme to induce Indians from east of the river to settle in Spanish territory. This was to be done, iu part, on account of trading with the Indians, and, in part, so that they might serve as a protection for the Spanish territory, espe- cially against the Osage Indians who lived on the Alissouri river. He promised Gar- doqui that if the grant should be made on the terms agreed upon between them that within a very few years the population of the dis- trict should be at least one thousand pei-sons. Morgan seems to have been deceived as to the authority of the minister to make the graait; he undoubtedly believed that he had secured from the Spanish government the grant of the lands mentioned. In the winter of 1789, he descended the Ohio river with a numerous party consisting of Americans and of Indians and selected for the site of his town the place now known as New Madrid. He was led to do this by the beauty of the situation and the probabilities that it would be a most desirable place for a prosperous trading village. Here he left a large part of the expedition while he, himself, in company with some other members of the party, made his way up the river to St. Louis to meet the lieutenant-governor of the district who resided there. The lieutenant-governor re- ceived him with great favor and entered into all of his schemes. He then returned and proceeded to carry out his plans for the set- tlement of the country. IMorgan's hope of wealth was founded on the expectation that a considerable trade would soon be developed at his post, which he named New IMadrid, and that he would be able to dispose of large bodies of land. He evidently expected, also, to engage in the cul- tivation of the soil and in addition to this he had received a promise that if his scheme turned out siiccessfully the Spanish govern- ment would grant him a pension in reward
