Answer:
Native Americans traded along the waterways of present-day Minnesota and across the Great Lakes for centuries before the arrival of Europeans in the mid-1600s. For nearly 200 years afterwards, European American traders exchanged manufactured goods with Native people for valuable furs.
The Ojibwe and Dakota held powerful positions, prompting both the French and British to actively court their military and trade allegiance. Trade with Native Americans was so critical to the French and British that many European Americans working in the fur trade adopted Native protocols. The Ojibwe were particularly influential, which led many French and British people to favor Ojibwe customs of bartering, cooperative diplomacy, meeting in councils, and the use of pipes.
Following the American Revolution, the US competed fiercely with Great Britain for control of the North American fur trade. After the War of 1812 there were three main parties involved in the Upper Mississippi fur trade: Native Americans (primarily the Dakota and Ojibwe), the fur trading companies, and the US government. These parties worked together and each had something to gain from a stable trading environment. Both Fort Snelling and the Indian Agency were established by the US government at the junction of the Mississippi and Minnesota rivers to control and maintain the stability of the region's fur trade.
By 1823, the American Fur Company controlled the fur trade across much of present-day Minnesota. The company’s headquarters was at the confluence of the Minnesota and Mississippi rivers, at a post called New Hope, or more commonly called St. Peters. Today it is called Mendota, derived from the word Bdote. The post was managed by Alexis Bailly, who began running a series of trading posts that extended up the Minnesota and Mississippi rivers. Henry Hastings Sibley, who took Bailly’s place in 1834, ran the Western Outfit of the American Fur Company and was responsible for trade with the Dakota.
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