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Events taking place far away from Fort Loudon were to lead to a schism in the relations between the British and the Cherokee. The French continued to work toward stirring up discord. French agents were often in the Cherokee towns talking to whoever would listen. They discouraged many of the Cherokee from accepting any gifts or trade goods from the British. One common theme was that the British were poisoning the goods or infecting them with smallpox.
On General Forbes' Fort Duquense campaign greater conflict arose between the British and the Cherokee that went along to assist them. General Forbes had very little respect for the natives. He did not distinguish between friendly and enemy Indians. The Cherokee could not plead their case because there were to few interpreters. Bands of Cherokee warriors began drifting back to their homes. After finding that the French had abandoned Fort Duquense even Attakullakulla left with his band. General Forbes ordered him arrested for desertion, disarmed and sent back under guard. Other returning warriors felt that they were owed some reward as Forbes had denied them their share of the spoils. They came upon a small herd of horses in the Virginia backcountry and took several. The settlers gave chase and a running battle ensued. There were casualties on both sides. During this battle the settlers took some scalps as the British were paying a bounty for Indian scalps. Soon there were reprisals and counter reprisals on both sides. During one of these raids braves from the village of Settico, led by the Creek chief Mortar took the scalps of 22 settlers. Attakullakulla brought these to Capt. DeMere at Fort Loudon as a way of trying to make amends. The soldiers at Fort Loudon, and many of the Cherokee chiefs worked hard at maintaining a nervous peace. In response to the rising tension Governor Lyttelton ordered the garrison at Fort Loudon reinforced. He further ordered a trade embargo against the Cherokee. This played into the French designs as they were thus able to sway many braves with rifles and other trade goods now being denied by the British. Tensions further increased when Lt. Coytmore and two other officers from Fort Prince George went into one of the Lower Towns and raped some of the women whose husbands were out fighting. The resultant uproar left many settlers dead. Governor Lyttelton called up the militia and was preparing to attack several of the Cherokee towns. Open war between the British and Cherokee was imminent. Hearing of this Cherokee tried once more for peace. They sent thirty-two men under the leadership of the Great chief Ocanastota to Charleston.
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