Fort Osage

Fort Osage was one of 28 government-supervised, military trading posts built as part of what was called a "factory system." A "factor" was someone who bought and sold on behalf of someone else; in this case it was the U.S. government. The "factory system" originates from English common law. President George Washington established the U.S. factory system in 1796 and President Thomas Jefferson later expanded it into the Louisiana Territory, which the U.S. bought from France in 1803.

As stated above, the system's purpose was to establish good trade relationships with Native Americans with the goal of pushing out private American and European traders. Ultimately, the government wanted to forge alliances with native tribes to increase its control in the territory.

Indian agent George Sibley was the first factor at Fort Osage, serving from 1808 to 1822 (the fort was abandoned during the War of 1812). His responsibilities included bookkeeping, managing the trade activity, stocking trade goods, and processing furs. 

Congress terminated the factory system in 1822 as a result of a number of factors including: increased competition from rival trade interests (private traders could go directly to Indian villages and Europeans traded in remote areas), the lack of factors knowledgeable about Indian trade, government regulations and budget restrictions. As for Fort Osage, it was officially abandoned in 1827 after Fort Leavenworth was built just northeast of Kansas City in the town of Leavenworth, Kansas.