User:Russell D. Jones/Fur trade

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One of the principal economic activities of the North American colonies during the seventeenth century. Eventually dying out with the depletion of fur-bearing animals.

The fur trade was of particular importance to New France.

Fur Trade under British Regulation

Following the French and Indian War, France lost nearly all of its colonies in North America and Great Britain took over the fur trade. Beginning in 1756 (before the conclusion of the war) the Board of Trade divided the fur trade into northern and southern departments, each headed by a imperial agent. William Johnson was appointed Northern agent and Captain John Stuart was appointed southern agent. Each agent appointed administrators called commissaries who were to control prices, prevent the cheating of Indians, and enforce the rules of trade. The commissaries were to cooperate with various post commandants. Johnson attempted to regulate his traders as the French under Colbert had done, but this policy did not receive official sanction. Little other official policy came forward as the British government seemed to have left the area alone for the most part with the exception of the Quebec Act.

After the War of 1812

During the war, Astor lost his connections with the British traders at Mackinac Island once the British captured the island. Following the war, a return to the pre-war status was not in the offing. While the Treaty of Ghent did not specifically address fur trading rights, especially those rights granted British traders by the Jay Treaty, Congress in 1816 forbade licensing any traders dealing with the Native Americans who were not United States citizens (exceptions could be granted, however). This gave Astor's American Fur Company a competitive advantage because he could trade whereas his British competitors could not. He bought out the facilities and goods of South West Company, his joint venture with the Canadian traders, in 1817.

In 1822, after hiring Thomas Hart Benton as its attorney, the American Fur Company got favorable legislation closing the government factories. Astor continued to use his political influence to get his Canadian traders exempted under the law while lobbying to void similar exemptions for his competitors. Also, through the practice of cross-subsidization, Astor sent his best traders to compete with the independents. By offering extremely good terms for pelts (losses which the AFC offset through profits in other regions), the AFC was able to drive out the competition in one area after another.