Hudson's Bay Company and North West Company History and Impact

Hudson's Bay Company and North West Company History

Key Timeline

• NWC Founded - 1783
• Thomas Scott died - 1870
• HBC Founded - 1670
• HBC + NWC - 1821
• Selkirk Settlement - 1812
• Red River Rebellion - 1869
• Manitoba federation - 1870
• Pemmican Proclamation - 1814

Rupert's Land

Rupert's Land included all lands drained by rivers flowing into Hudson Bay; it was named after Prince Rupert. It was the area claimed around Hudson Bay.

HBC Grant

The HBC grant consisted of Rupert's Land, the drainage basin of Hudson Bay.

Northwest Territory and Peoples

The Northwest Territory was dominated by the Canadian Shield and was covered by boreal forests. Closer to Hudson Bay the trees were small and the ground was often covered by lichen.

Major Indigenous groups included the Ojibwa, Assiniboine, Cree, and Chipewyan. By 1800 many Indigenous people were involved in the fur trade. Chipewyans supplied a significant amount of fur. Contact with Europeans exposed Indigenous communities to diseases such as smallpox and measles. Ojibwa acted as early middlemen in parts of the trade.

HBC Trade Policy

Rather than risk sending traders inland, the Hudson's Bay Company (HBC) built trading posts at the mouths of rivers emptying into Hudson Bay. It encouraged the four major First Nations of the Northwest to bring their furs to the posts. The policy was called "Stay by the Bay", and they followed it for the next century. Beaver pelts were the most prized and often functioned as a form of currency.

Hudson's Bay Company (HBC)

HBC was founded in 1670. The company had strict standards of trade and little room for bargaining, and it maintained a rigid hierarchy. Company directors ran the corporation from London. Local bosses were known as Factors. The HBC shipped goods from England every summer. Hudson Bay is typically ice-free from July to mid-September.

North West Company (NWC)

The North West Company (NWC) was a rival to the HBC and was established in 1783. The French-Canadian fur trade had moved deeper inland because the HBC policy made coastal posts less accessible to interior traders. After the fall of New France, French-Canadian merchants in Montreal expanded into the interior and continued to employ English-Canadian workers. The NWC was vigorous and aggressive, based on partnerships and was less rigid compared to the HBC.

Company Differences

• The HBC forbade its employees to marry and enforced celibacy among certain staff; the NWC encouraged marriage to strengthen ties and loyalty with Indigenous families.
• HBC maintained a rigid hierarchy centered on London directors; the NWC was more partnership-based and aggressive.
• Geographically, the NWC operated inland while the HBC maintained posts by the bay.

Hivernants

Hivernants were wintering partners of the NWC who stayed in the interior during the winter season.

Canots du Nord

Canots du Nord were the smaller north canoes used on smaller lakes and rivers to bring furs to Grand Portage or Fort William from the interior for voyages starting on Lake Superior.

Canots de maître

Canots de maître were the larger canoes used on the route between Montreal and Lake Superior. They could transport up to 90 pieces of 40 kilos and carry 8 to 12 men.

Negative Effects on Indigenous Peoples

The fur trade had negative effects on Indigenous communities. Many people became dependent on trade goods and the trade economy disrupted traditional ways of life. Contact with Europeans also exposed Indigenous peoples to diseases that devastated populations.

HBC + NWC =

HBC + NWC = 1821 — The two companies merged in 1821, consolidating trade in the region under the HBC name.