The crisis was now passed; and the colony began for the first time really to flourish.

The people on the south side of the Kentucky River universally accepted proprietary rule for the time being.

But the seeds of dissension were soon to be sown among those who settled north of the river, as well as among men of the stamp of James Harrod, who, having preceded Henderson in the establishment of a settlement in Kentucky, naturally resented holding lands under the Transylvania Company.
The great liberality of this organization toward incoming settlers had resulted in immense quantities of land being taken up through their land-office.

The ranging, hunting, and road-building were paid for by the company; and the entire settlement was furnished with powder, lead, and supplies, wholly on credit, for this and the succeeding year.

"Five hundred and sixty thousand acres of land are now entered," reports Floyd on December 1st, "and most of the people waiting to have it run out." After Dunmore, having lost his hold upon the situation, escaped to the protection of a British vessel, the Fowey, Colonel Preston continued to prevent surveys for officers' grants within the Transylvania territory; and his original hostility to Judge Henderson gave place to friendship and support.