The Federal Constitution of 1788 deemed it important that the Central Government should have exclusive power over intercourse with Indian tribes. The Supreme Court of the United States later amplified this to include everything that may arise out of our relations with the Indians. Congress in 1789 appropriated the first moneys to defray expenses of negotiating and treating with the Indians. While the Commissioners were referred to as “agents,” their authorities did not extend beyond treating with the native. George Washington, in a letter dated August 29, 1789, instructed Messrs. Benjamin Lincoln, Cyrus Griffin, and David Humphrey as “commissioners plenipotentiary for negotiating and concluding treaties of peace with the independent tribes or nations of Indians within the limits of the United States south of the Ohio River.” This commission made a report to the Secretary of War, and from its suggestions grew the licensed-trader system, although the first traders acted as factors, and to some extent as agents, for the tribes with which they were affiliated. Congress in 1790 provided a method for trading with the Indian tribes under license, but no Indian Agents would appear to have been authorized, as such, by law prior to 1796, when were established the trading-houses on the western and southern frontiers, or in the Indian country, and the appointment of men to manage them under the direction of the President. The factors were the first real Agents for routine Indian business. This was the first experiment. The law limited it to two years, but its life was extended from time to time until 1822, when the system of Government trading-houses was abolished. Acts of 1800, 1802, and 1806 provided for other experiments; and after 1806 there were actually four types of Indian officials: 1. Governors of the various Territories, who were ex-officio superintendents of Indian Affairs within their jurisdictions. 2. Certain Agents who were primarily under the direction of these Governors. 3. A Superintendent of Indian Trade. 4. The Factors under his direction. When in 1819 and 1820 Congress provided for the employment of persons to educate the Indians, the appointment of Agents to specific tribes began. When the trading-house system expired in 1822, the factors disappeared. Indian trade is conducted to-day by licensed traders, who are under bond, and expected to live within Indian country. In 1824 the Secretary of War, without authority, organized a Bureau of Indian Affairs, probably to ease his main office of details; and eight years later the President was authorized by Congress to appoint a Commissioner of Indian Affairs.