ECONOMY

1
ECONOMY

• The First Occupants and European Contact
• Circa 1500

2
Introduction First Occupants

• For thousands of years the first occupants of
  North America used the resources of their
  territory to ensure their subsistence (what they
  did to meet their basic needs and ensure their
  survival)
• They were not completely self-sufficient though
  and often relied on exchanges with each other in
  order to survive - trade

3
First Occupants in Quebec

• Quebec was occupied by 3 aboriginal groups
• Iroquoain, Algonquian, and Inuit

• Their way of life was adapted to their
  environment
• Their houses, food sources, clothing...were all
  determined by where they lived and thus made
  these 3 groups very different.

4
The Algonquians

• Settled in the subarctic climate zone (Canadian
  Shield)
• Their resources were obtained by hunting, fishing
  and gathering
• They ate caribou, moose, porcupine, hare, loons,
  geese...
• They also ate fish such as salmon and northern
  pike
• They used the fur from other animals such as
  beaver, fox, bear, muskrat, and wolf to make
  clothing
• Since the availability of these resources
  depended on the seasons, the Algonquians had to
  remain mobile they were nomadic

5
The Iroquois

• Settled in the humid continental zone (Saint
  Lawrence River Valley)
• Though fishing, hunting and gathering were
  important, the mild climate and good soil made
  agriculture possible
• This lead them to remain in one place for longer
  periods of time (moved only when soil was
  depleted)
• Villages of longhouses developed as well as a
  more complex social structure
• Men spent most of their time hunting and women
  were responsible for agriculture, which gave them
  a more important role within the society
• Since the Iroquois lived in a climate that
  allowed for agriculture, they became sedentary
  farmers

6
The Inuit

• Settled in the Arctic climate zone
• The harsh climate made it difficult to find all
  the resources they needed so they were
  continually moving around
• They hunted and fished in order to feed and
  clothe themselves
• Near the sea they hunted marine mammals like
  whale, seal, walrus and beluga
• Inland they hunted mainly caribou
• Because of their tough living conditions, the
  Inuit made the most of what they had and used
  almost every part of the animals they killed
  (meat, clothing, tents, tools from bone...)

7
Trade Networks

• Since the territories and ways of life differed
  so greatly between each group, they relied on
  trade with each other to obtain the resources
  they did not have in their region
• The used what was called the barter system
• Iroquois traded their agricultural surplus to the
  Algonquians for caribou hides and meat
• Complex trade networks developed and some ran as
  far south as the Gulf of Mexico
• This system served to mutually satisfy the basic
  needs
• of all parties involved they had no desire to
  make a
• profit. Their focus was on sharing what they had.

8
Early European Contact

• In the 15th century, Europeans were seeking a
  route to Asia
• Christopher Columbus (Spain) arrived in N.A. in
  1492
• John Cabot (England) reached NFLD in 1497
• These and other explorers realized that the
  waters off the coast of North America were filled
  of fish
• Since European demand for fish was very high,
  many came to take advantage of this resource

9
The Fisheries

• Throughout the 16th century Spanish, Portuguese,
  English and French fishing boats travelled to
  North America
• In order to keep the fish fresh for the voyage
  back to Europe, they were either dried or
  preserved in salt
• This was done on shore and allowed for the first
  contact between natives and Europeans

10
Trade with Europens

• Increased contact between natives and Europeans
  created more trade networks
• European objects (metal tools, beads, mirrors,
  glass, jewellery, fabrics) were gradually
  introduced to natives and were of high value to
  them
• In exchange, Europeans got furs from the natives
  which could easily be sold for a large profit in
  Europe

11
Economic Potential

• North Americas economic potential fuelled the
  colonialist plans of the European countries
  (expansion and domination of more territory)
• Much capital (goods/money) was invested in
  sending ships to North America to take possession
  of the territories that the natives were already
  occupying
• Jacques Cartier (1534-35, 1541) was sent to claim
  land for France and to find riches.
• He was not successful in finding riches, but did
  plant a cross at Gaspe claiming the territory for
  France

12
Economic Potential

• In the late 16th century, the French realised
  that the beaver pelts fishers had been obtaining
  from natives had a much higher value in Europe
• They saw the fur trade as a new way to get rich
• The French state allowed merchants to invest
  money into developing a strong trading network
  and trade colony in North America
• Competition began and monopolies were given to
  develop the fur trade
• First trading post at Tadoussac in 1600

13
Effects of Increased Contact

• Contact with Europeans had severe consequences
  for aboriginal peoples
• Trade favoured some native groups and not others
  which created conflicts
• Rivalries between native nations were intensified
  and wars broke out
• Natives contracted infectious diseases causing a
  sharp decrease in native population

14
Mercantilism

• Mercantilism is the idea that a countrys power
  is measured by how much wealth it has
• A countrys exports has to be greater than its
  imports
• Colonies were useful for this because they would
  send the raw materials to the mother country
  where they would be made into products and sold
  back to the colonies and other countries.
• It is the theory of mercantilism that led to the
• development of New France as a fur trade colony

15
Mercantilism and the Fur Trade

• For example, beavers were hunted in New France
  for their furs.
• The Furs would be sent back to France where they
  would be turned into hats
• These hats would be sold to other countries for a
  much higher price than they cost to make

16
ECONOMY

• The French Regime
• 1608 - 1760

17
Development of a Colony

• French had taken possession of New France in
  1534
• Jacques Cartier plants a cross at Gaspe
• Colonization abandoned due to conflicts with
  Iroquois
• By the late 16th century colonial interest
  resurfaced
• The fur trade
• Alliances with aboriginal groups were created

18
Mercantilism

• European countries based the development of their
  economy on the theory of Mercantilism
• Theory that a nations power is based on its
  wealth
• European nations competed with each other to
  build empires that would make them more wealthy
• Best way to become more wealthy is to export more
  than you import
• Mother countries relied on their colonies for raw
  materials to turn into manufactured goods (ie
  Beaver Hats)

19
Mercantilism and the Fur Trade

• Beavers were hunted in New France for their furs.
  
• The Furs would be sent back to France where they
  would be turned into hats
• These hats would be sold to other countries for a
  much higher price than they cost to make

20
New France - A Trading Colony

• The development of New France was based on the
  exploitation of its resources
• Merchants, ship owners, traders and explorers all
  came to participate in the fur trade
• They competed to make alliances with natives and
  trade their furs back to France for the best
  price.
• The King decides to end this competition by
  granting trade monopolies
• Permanent trading posts were created
• Tadoussac in 1600
• Quebec City in 1608

21
Monopoly
22
Chartered Companies

• From 1601-1627 chartered companies that were
  granted trade monopolies were responsible for
  governing the colony
• In exchange for the monopoly they were
  responsible for bringing immigrants to New France
• The Company of 100 Associates
• Did not honour its commitment
• In 1663, King Louis XIV dissolved the Company of
  100 Associates and created Royal Government

23
Territorial Expansion

• Expansion was closely linked to the fur trade
• Explorers ventured further west and south
• Followed the system of rivers
• Built trading posts and forts along these
  waterways
• Increased trade between the French and native
  peoples
• French territory eventually reached from Lake
  Winnipeg to the Gulf of Mexico

24
New France 1663-1775
25
Diversification of Economy
26
Other Economic Activities Fishing

• Fishing was also an important economic activity
• Main food source for colonizers
• Some fish was brought back to Europe (mainly Cod)
• Whale and seal oil was an important export

27
Other Economic Activities Farming

• Agriculture was originally a subsistence activity
  in New France (population was too low)
• With the arrival of les Filles du Roi, les
  engages, and soldiers the population increased
  drastically, making agriculture an important
  economic activity

28
The Seigneurial System

• Division of territory was based on the French
  system the seigneurial system
• Strips of land were divided and given to
  individuals
• Usually officers, merchants, nobles, religious
  orders
• These owners were then responsible for dividing
  their land into smaller seigneuries for colonists
  who wished to settle there.
• Settlers had to pay cens (rent) and rentes
  (taxes)

29
Other Economic Activities Farming

• Agricultural products included
• Wheat
• Oats
• Peas, beans
• Carrots
• Corn
• Onions
• Squash

• Surplus was collected and sold by merchants to
  fishers, those living in cities, or other French
  colonies (Louisbourg, Antilles)
• Little of the surplus was sent back to France

30
Other Economic Activities Iron

• Shipbuilding and ironworks industries were
  created to diversify the economy of New France
• Shipyards were created to build ships for the
  French Navy
• Led to the creation of other industries related
  to shipbuilding (tar, rope, barrels...)
• Ironworks industries were established in the
  Saint Maurice region
• Created parts for ships, wood stoves, cooking
  pots, ploughs...)

31
Triangular Trade

• According to the principles of mercantilism,
  colonies could not trade with other empires (New
  France could only trade with other French
  colonies)
• Merchants who organized trips between two
  colonies and the mother country created a
  triangular trade system.

32
Triangular Trade
33
The Conquest - 1760

• Though New France was able to diversify its
  economy, the small population and European
  warfare, contributed to the defeat of the French
  by the British in 1760
• The colony would now be under British Rule and
  become part of their trading system