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Trade

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Early trade

Early trading ties between Europeans and the Aboriginals of northern America were limited to sporadic encounters on the continent's coasts. As furs gained in popularity and value, a more formal system developed, along with a standardized currency for trading goods: the plus, equivalent to the value of one high-grade beaver pelt.

The pioneers of trade

Samuel de Champlain trades goods with the Natives

Samuel de Champlain trades goods with the Natives

Between 1608 and 1696, numerous French explorers charted and established trading links the territory that would one day be western Canada. Among them were Samuel de Champlain (1608), Radisson et Des Groseillers (1659), Marquette et Joliette (1679) and La Salle (1682). Wars between France and England often interrupted business.

Canada's first joint stock company

Thanks to early explorers, who brought furs home and contributed to their increasing popularity, the fur industry underwent enormous growth in New France. After the British took control of Quebec in 1760, commercial rights and privileges passed into the hands of the English and the Scots. In 1778-79, several merchants, among them Simon McTavish and Peter Pond , formed a partnership that would be known as the North West Company, Canada's first joint stock company.

Differing business cultures

From then on, the two main trading companies in the North West were the North West Company (NWC) and the Hudson's Bay Company (HBC). Trading practices of the two competitors differed greatly, largely because of transportation issues.

Hudson's Bay Company

North West Company coat of arms

North West Company coat of arms

The HBC originally traded its goods on the shores of Hudson Bay. The Cree acted as middlemen, extending the reach of European goods into the interior. Natives had to travel to HBC posts to barter their furs. As Montreal-based traders pushed farther into the interior, the HBC felt that these Quebeckers were encroaching on their trade. In order to compete, the HBC followed suit and established its own inland posts. Over time these outposts became permanent, such as Cumberland House, built in 1774.

At first, the HBC traded only in essential goods. The company stopped dealing in alcohol due to harmful effects on the population. However, it eventually resumed this activity in order to face fierce competition coming from the Montreal traders.

Hudson's Bay Company coat of arms

Hudson's Bay Company coat of arms

North West Company

A great advantage that the NWC had over its rival was that the its hommes du nord (north men) established close ties, often through marriage, with Native peoples. Mixed marriages sealed strong alliances between the company and the voyageurs' aboriginal in-laws, becoming a key factor in the NWC's success.

On the downside, the voyageurs had to transport their goods overland. Geography and climate limited the quantities they could carry. To ease this constraint on its bottom line, the NWC established inland posts close to its customers. While the HBC traded only in essential goods, the NWC offered sought-after luxuries such as alcohol and tobacco.

A historic merger

The British government lamented the cutthroat competition between the two main trading companies. This rivalry was extremely costly, hurting trade and colonial expansion. It also instilled a culture of violence and harmed Native society. As a result, the British promoted a merger of the companies. Officials from both sides signed the agreement on March 26, 1821.

View of two amalgamated HBC forts, Red River, 1822.

View of two amalgamated HBC forts, Red River, 1822.

Members of the former NWC acquired shares in the combined business. They also continued playing a major role in the North West trade. In order to retain its original charter of 1670, the new entity kept the name Hudson's Bay Company. Power would now be based in London, with merchant shipping following the sea-lanes between Hudson Bay and England. Montreal lost its central role in the fur trade.



Did you know?

Natives were sophisticated customers looking for quality trade goods. In exchange for furs, they could choose among a variety of articles.

  • Blankets
  • Textiles
  • Tobacco and alcohol
  • Muskets and ammunition
  • Copper and brass kettles
  • Mirrors and ornaments

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