The Northwest in the 1800s

Horizons p. 130-134

The Hudson’s Bay CompanyFounded in 1670 by Radisson and de

GroseillersIf King Charles II (GB) would back their fur

trading business, they would help GB control the fur trade

Charles agreed and claimed the area around Hudson’s Bay

He named it “Rupert’s Land” after his cousinHBC then had the exclusive trading rights to

the area

The HBC built trading posts at the mouths of rivers emptying into Hudson’s Bay

The HBC encouraged native fur traders to bring their furs to the posts to exchange them for trade goodsThis policy was called “stay at the bay”

Beaver pelts were so valuable that they were used as currencyFurs were assessed in terms of their relative

value to a “made beaver” peltWhen the value of the pelt was set, traders

could purchase goods at the Post’s storeTrading standard was strict – no bargaining!

The HBC had a rigid hierarchy:Company directors ran the company from

London and they got all the profitsLocal Post bosses were called “Factors”Posts were called “Factories”Everyone was British and a salaried employeeFurs were shipped directly to England every

summer when the Posts received their trade goods for the year.

The Northwest CompanyEstablished in 1783 and “tested” the HBC’s

control and policiesWhen New France fell in 1763, the French

fur trade was seized by a group of English merchants – “the Montrealers” – who expanded their network into the NWC by 1783

The NWC began to build posts inland, closer to native traders

Their major trading post was Fort William

The structure of the company was based on partnerships:

Montreal partners bought trade goods from England and arranged for the sale and shipping of furs to GB

The hivernants – “wintering partners” – remained in the NW and did the actual fur trading

The voyageurs paddled the cargo canoes on the journeys from Fort William to Montreal and back Canots du Nord – 7 m, 1500 kilos, 6 men Canots du Maitre – 11 m, 4000 kilos, 12 men

The NWC actively sought out new trade routes and built new posts

They were willing to bargain with native fur traders and also traded alcohol for furs

By 1800, their network extended as far west as BC and as far north as Great Slave LakeSee map in Horizons p. 133