HISTORY OF
THE FUR TRADE
The fur trade was one of the earliest and most important
industries in North America. The fur trading industry
played a major role in the development of the United
States and Canada for more than 300 years.
The fur trade began in the 1500's as an exchange
between Indians and Europeans. The Indians traded
furs for such goods as tools and weapons. Beaver fur,
which was used in Europe to make felt hats, became the
most valuable of these furs. The fur trade prospered
until the mid-1800's, when fur-bearing animals became
scarce and silk hats became more popular than felt hats
made with beaver.
The earliest fur traders in North America were French
explorers who arrived in what is now Eastern Canada
during the early 1500's. Trade started after the French
offered the Indians kettles, knives, and other gifts as a
means to establish friendly relations. The Indians, in
turn, gave pelts to the French. By the late 1500's, a
great demand for fur had developed in Europe. The
demand for beaver increased rapidly in the early 1600's,
when fashionable European men began to wear felt hats
made from beaver fur.
In 1608, the French expanded their trading activities
along the St. Lawrence River and around the Great
Lakes. They eventually controlled most of the early fur
trade in what became Canada. The French traders
obtained furs from the Huron Indians and, later, from
the Ottawa. These tribes were not trappers, but they
acquired the furs from other Indians. The French also
developed the fur trade along the Mississippi River.
European business companies handled a large number
of the furs shipped from North America during the
1600's and 1700's. The most famous of these firms, the
Hudson's Bay Company, was established in 1670. It
was founded by a group of English merchants, with the
help of two French fur traders. The English government
gave the company sole trading rights in what is now the
Hudson Bay region.
During the 1700's, French and British fur traders
competed bitterly over trading rights in the region
between the Allegheny Mountains and the Mississippi
River. This competition, plus other conflicts between the
two nations, led to the French and Indian war in 1754.
Great Britain won the war in 1763 and took over
France's colonial empire in North America.
In 1783, British merchants in Montreal founded the
North West Company to compete with the Hudson's Bay
Company. The traders of the new firm were called
"Nor-Westers." They led many daring expeditions in
search of fur in far western Canada. However, the
company failed financially and, in 1821, merged with
the Hudson's Bay Company.
Many Indians of the West had little interest in
trapping, and so the fur-trading companies hired white
frontiersmen to obtain pelts. These trappers became
known as "mountain men" because they roamed through
wild areas of the Rocky Mountains in search of fur.
Ashley, the head of the Rocky Mountain Fur Company,
began to hold an annual trappers' gathering, called a
rendezvous, trappers sold their furs and bought supplies
for the next year. The rendezvous saved the men the time
and trouble of traveling long distances to various
trading posts.
The fur trade started to decline in the Eastern United
States by the late 1700's. The decline resulted chiefly
from the clearing of large areas for settlement. As more
and more land was cleared, fur-bearing animals became
increasingly scarce. Over trapping of fur-bearing
animals hurt the fur trade in the Western United
States and Western Canada. In addition, the value of
beaver fur dropped sharply in the 1830's, when European
hat manufacturers began to use silk instead of felt. By
1870, most fur-trading activity had ended.
Traders and trappers explored much of North America in
search of fur. They built trading posts in the wilderness
and settlements grew up around many of these posts.
Some of these settlements later became such major cities
as Detroit, New Orleans, and St. Lewis in the United
States.
The fur trade promoted friendly relations between the
Indians and white traders. However, it also brought
Indian hostility toward white settlers because the
clearing of land threatened the supply of fur-bearing
animals.