In the governorship of Dongan of New York, as has been noted, the English were endeavoring to secure the trade of the Northwest. As early as 1685, English traders had reached Michillimackinac, the depot of supplies for the coureur de bois, where they were cordially received by the Indians, owing to their cheaper goods[111]. At the same time the English on Hudson Bay were drawing trade to their posts in that region. The French were thoroughly alarmed. They saw the necessity of holding the Indians by trading posts in their midst, lest they should go to the English, for as Begon declared, the savages "always take the part of those with whom they trade."[112] It is at this time that the French occupation of the Northwest begins to assume a new phase. Stockaded trading posts were established at such key-points as a strait, a portage, a river-mouth, or an important lake, where also were Indian villages. In 1685 the celebrated Nicholas Perrot was given command of Green Bay and its dependencies[113]. He had trading posts near Trempealeau and at Fort St. Antoine on the Wisconsin side of Lake Pepin where he traded with the Sioux, and for a time he had a post and worked the lead-mines above the Des Moines river. Both these and Fort St. Nicholas at the mouth of the Wisconsin[114] were dependencies of Green Bay. Du Lhut probably established Fort St. Croix at the portage between the Bois BrulÉ river and the St. Croix.[115] In 1695 Le Sueur built a fort on the largest island above Lake Pepin, and he also asked the command of the post of Chequamegon.[116]

These official posts were supported by the profits of Indian commerce,[117] and were designed to keep the northwestern tribes at peace, and to prevent the English and Iroquois influence from getting the fur trade.