Dave Wilton at Wordorigins.org has a Big List post on the state name Illinois featuring the overturning of a false etymology that was accepted for centuries:
The Illinois people were an informal confederation of a dozen or so Algonquian tribes who lived in the Mississippi Valley, stretching from present-day Michigan to Arkansas, including what is now the state of Illinois. The tribes included the Cahokia, Kaskaskia, Michigamea, Peoria, and Tamaroa, among others. Their name for themselves is irenweewa (he who speaks normally). In Ojibwa, that name is rendered as ilinwe, or in the plural ilenwek.
The French, who in the late seventeenth century made contact with the Ojibwa, rendered the -we ending as ‑ois, using the conventions of seventeenth-century French spelling to make it Illinois. Subsequent to European contact, the Illinois people were decimated by disease, war, and forced relocation. Today, the primary organization of the people is the Peoria Tribe of Indians of Oklahoma.
The name Illinois appears in English by the end of the seventeenth century. This translation of an anonymous account of René-Robert Cavelier, Sieur de La Salle’s expeditions is from 1698 and mentions the Illinois people:
[…] He sent likewise fifteen Men further into the Country, with orders to endeavour to find out the Illinois, and left his Fort of Niagara, and fifteen Men under my command. One of the Recollects contineud [sic] with us.
And Louis Hennepin’s A New Discovery of a Vast Country in America gives an incorrect etymology for the name Illinois, claiming it meant “accomplished men.” This etymology has been thoroughly discounted, but it was accepted as correct for several centuries, and one will often still see it on websites and in popular press accounts of the word’s origin.
See the link for more, including a quote from Hennepin and the full version of the first quote. I myself am curious about how the word irenweewa ‘he who speaks normally’ works morphologically, if anyone knows.
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