The first permanent English settlement was set up at Har rodsburg in 1774 by James Harrod, and in October of the same year the Ohio Indians, having been defeated by Virginia troops in the battle of Point Pleasant (in what is now West Virginia), signed a treaty by which they surrendered their claims south of the Ohio river. In March 1775 Richard Henderson and some North Caro lina land speculators met about 1,200 Cherokee Indians in council on the Watauga river and concluded a treaty with them for the purchase of all the territory south of the Ohio river and between the Kentucky and Cumberland rivers. The purchase was named Transylvania. Within less than a month after the treaty was signed, Boone, under the auspices of the land company, founded a settlement at Boonesborough which became the headquarters of the colony. The title was declared void by the Virginia Govern ment in 1778, Henderson and his associates receiving 20o,000ac. in compensation, and all sales made to actual settlers were con firmed.
There was the same political rivalry between the slave-holding farmers of the Blue Grass region and the "poor whites" of the mountain districts that there was in Virginia between the tide water planters and the mountaineers. Between these extremes were the small farmers of the "Barrens" or burned-over lands in Kentucky and of the Piedmont region in Virginia. The aristocratic influences in both States have always been on the Southern and Democratic side ; but while they were strong enough in Virginia to lead the State into secession, they were unable to do so in Kentucky.
At the close of the American Revolution the Kentuckians com plained because the mother State did not protect them against their enemies and did not give them an adequate system of local government. Nine conventions were held at Danville from to I790 to demand separation from Virginia. The Virginia authori ties expressed a willingness to grant the demand provided Congress would admit the new district into the Union as a State. The delay, together with the proposal of John Jay, the secretary for foreign affairs and commissioner, to negotiate a commercial treaty with the Spanish envoy, to surrender navigation rights on the lower Missis sippi for 25 years in order to remove the one obstacle to the nego tiations, aroused so much feeling that Gen. James Wilkinson and a few other leaders began to intrigue, not only for a separation from Virginia, but also from the United States, and for the forma tion of a close alliance with the Spanish at New Orleans. Although most of the settlers were too loyal to be led into such a plot, they generally agreed that it might have a good effect by bringing pressure to bear upon the Federal Government. Congress passed a preliminary act in Feb. 1791, and the State was formally admit ted into the Union on June 1,1792. In the act of 2776 for dividing Fincastle county, Virginia, the ridge of the Cumberland moun tains was named as a part of the east boundary of Kentucky ; and now that this ridge had become a part of the boundary between the States of Virginia and Kentucky they, in 1799, appointed a joint commission to run the boundary line on this ridge. A dispute with Tennessee over the southern boundary was settled in a simi lar manner in 182o. The constitution of 1792 provided for full manhood suffrage first in the nation, and for the election of the governor and of senators by an electoral college. Gen. Isaac Shelby was the first governor.