The effect on the indigenous peoples who received the white man's goods (including firearms and liquor, as well as diseases previously unknown to them) in exchange for the furs was cataclysmic; native cultures were overturned. This process also occurred among the natives of far NE Siberia as Russian traders reached that remote region in the 18th cent. The promyshlenniki [fur traders] pushed even farther across the icy seas and prepared the way for the long Russian occupation of Alaska.
The greatest of the British trading companies, the Hudson's Bay Company, contended after 1670 with the French traders in Canada, and after Canada became British in 1763, with French and Scottish traders based in Montreal. The North West Company was created, and rivalry was bitter until the two companies were combined in 1821, taking the name Hudson's Bay Company. The largest of the companies in the United States was John Jacob Astor's American Fur Company, which also came into conflict with the North West Company, notably in 1812-13 at the Pacific coast establishment of Astoria. By that time the Canadian traders had set up posts across the continent (first crossed in the north by Sir Alexander Mackenzie) and had neared the Russian posts in Alaska.
A U.S. law in 1816 excluded British traders from the United States, and many British fur traders who had helped to build the Old Northwest were compelled to become U.S. citizens and were reluctant to comply. The trade in the United States was now pushing west ahead of the advancing line of settlement, and the rich fur territories of the upper Missouri River, which had been tapped earlier by such traders as Manuel Lisa and Andrew Henry, attracted attention. After the first expedition of William Henry Ashley in 1823, the now celebrated mountain men (chief among them Kit Carson, Jedediah Smith, James Bridger, and Thomas Fitzpatrick), who were trappers more than they were traders, made the Rocky Mt. West known.
The popularity of the beaver hat had helped to create an enormous demand for beaver, which was the staple article of the American fur trade, but fashion changed, and the fur trade declined accordingly. An equally important factor in the decline of fur trade was the advance of settlement, for the trade in wild furs could not flourish on a large scale near farms. Finally, there was the depletion of the stock of beaver and other fur-bearing animals, hunted relentlessly for centuries; the square miles of beaver country were shrinking to acres. The era of the fur traders ended in the 1840s in the United States and S Canada, but only after the traders had contributed vast amounts of geographic knowledge and lore learned from the Native Americans to the benefit of both nations.
There are innumerable studies of the history of the fur trade, many of them monographs on particular areas or particular traders. For a detailed bibliography see P. C. Phillips, The Fur Trade (2 vol., 1961). Other general works include H. M. Chittenden, The American Fur Trade in the Far West (1902, repr. 1954); K. Kelsey, Young Men So Daring: Fur Traders Who Carried the Frontier West (1956); M. Sandoz, The Beaver Men (1964); L. O. Saum, The Fur Trader and the Indian (1965); J. E. Sunder, The Fur Trade on the Upper Missouri 1840-1865 (1965); E. E. Rich, The Fur Trade and the Northwest to 1857 (1967); A. MacKenzie, Exploring the Northwest Territory, (ed. by T. H. McDonald, 1967); G. Simpson, Fur Trade and Empire: George Simpson's Journal (rev. ed. 1968).
The fur trade is a worldwide industry dealing in the acquisition and sale of animal fur.
In 1613 Henry Christiansen and Adriaen Block headed expeditions to establish fur trade relationships with the Mohawks and Mohicans. By 1614 the Dutch were sending vessels to Manhattan to secure large returns from fur trading.
Radisson and Groseilliers, bitter with the rejection of their first big unlicenced fur haul, pulled the British into the trade in 1668. They convinced businessmen in Boston, Massachusetts and Charles II that there was a tremendous amount of money to be made in the best fur country north of New France. This was the spark that would become the first commercial corporation in North America and largest fur trading company in the world, The Hudson's Bay Company.
Meanwhile, in the English southern colonies (established around 1670), the deerskin trade was established based on the export hub of Charleston, South Carolina. Word spread amongst Native hunters that the Europeans would exchange pelts for European-manufactured goods that were highly desired in native communities. Axe heads, knives, awls, fish hooks, cloth of various type and color, woolen blankets, linen shirts, kettles, jewelry, glass beads, muskets, ammunition and powder were some of the major items exchanged on a 'per pelt' basis.
The trading posts also introduced many types of alcohol (especially brandy and rum) for trade. European traders flocked to the continent and made huge profits off the exchange. A metal axe head, for example, was exchanged for one beaver pelt (also called a 'beaver blanket'). The same pelt could fetch enough to buy dozens of axe heads in England, making the fur trade extremely profitable for the European nations. The one iron axe head replaced a stone axe head that Native would have had to make by hand, so it was very profitable for the Natives also.
The fur trade came to a close as game was depleted by overhunting. John Jacob Astor (who controlled the largest American fur trading company) recognized that all fur-bearing animals were becoming scarce and retired in 1834. Expanding European settlement displaced native communities from the best hunting grounds, and demand for furs subsided as European fashion trends shifted. The Native American's lifestyle was forever altered by the trade, in order to continue obtaining European goods on which they had become dependent and to pay off their debts, they often resorted to selling land to the European settlers, which caused resentment on the side of the Native American aboriginals that would help ignite future wars.
After the United States became independent, trading with Native Americans in the U.S. was nominally regulated by the Indian Intercourse Act, first passed on July 22, 1790. The Bureau of Indian Affairs issued licenses to trade in the Indian Territory, which in 1834 consisted of most of the United States west of the Mississippi River, where mountain men and traders from Mexico freely operated.
Early exploration parties were often fur trading expeditions, many of which mark the first recorded instance of Europeans reaching particular regions of North America. For example, Abraham Wood sent fur trading parties on exploring expeditions into the southern Appalachian Mountains, discovering the New River in the process. Simon Fraser was a fur trader who explored much of the Fraser River