Final Exam Review Notes French Regime: ​
Economy and Development
1. Organization of the Economy of New France ❏ France used an economic system called ​
Mercantilism​
to organize the economy of its colonies. ❏ Mercantilism was a system that used raw materials from the ​
colonies​
(New France, French West Indies) to enrich the ​
Mother Country​
(France). ❏ Under Mercantilism, the colonies would send raw materials to the Mother Country. The Mother Country would then make products with these raw materials and then sell them back to the colonies. ❏ It was not a good system for the development of the colony’s economy. ❏ France used a ​
Triangular Trading​
Network to make Mercantilism function. ❏ The triangle was formed between ​
France, New France and the French West Indies also called the ​
Antilles​
). Triangular Trade ❏
2. An Economy Based on Fur ❏ Although fishing was the first economic activity for the French in North America, once the fur trade began it quickly took over as the main economic activity and main export for New France. ❏ Main people involved in the fur trade: ❏ Amerindians​
­ Hunted animals (beaver) and processed the pelts ❏ Coureurs de Bois and Voyageurs​
(mainly Canadiens) ­ brought the animals pelts to the fur trading posts ❏ Merchant Traders​
(mainly Canadien) ­ traded the pelts with the French Companies ❏ French Companies​
­ shipped furs to France and sold them for profit ❏ In order to obtain furs, the French had to make an alliance with the ​
Huron​
. ❏ The French would trade European tools and products with the Huron for furs. ❏ The fur trade and Mercantilism had several effects on New France: ❏ The colony did not grow very fast; not many people (especially women) were needed to work in the fur trade. ❏ Many trading posts were established and therefore the territory of New France grew very large (difficult to manage and defend!) ❏ The fur trade also had an effect on the relationship between New France and the British 13 Colonies to the South. ❏ The 13 Colonies and New France were rivals in the fur trade and competed to fur trading territory. ❏ The competition for territory lead to wars between France (New France) and Britain (13 Colonies) 3. Agriculture ❏ After 1663 (Royal Government), the population of New France was growing. Despite the continued success of the fur trade, most new inhabitants of New France became farmers, not fur traders. ❏ Most agricultural products (ex. wheat) were sent to local markets, cities or to France. ❏ There were other economic activities that were related to processing agricultural products: ❏ brewing beer ❏ grinding grain ❏ making canvas and rigging (ropes for ships) ❏ Agricultural activities had an effect on the territory of New France: ❏ the size of agricultural lands grew ❏ construction of mills ❏ creation of public markets 4. Craft Activities (skilled jobs): ❏ There were some craft activities that developed in the colony: ❏ Wig­making ❏ Construction of casks (for beer) and metal objects ❏ Carpentry ❏ Masonry (stone, brick laying) ❏ Hat making ❏ Craft activities also had an effect on the territory of New France: ❏ Cities grew in size ❏ Creation of workshops and boutiques (shops) 5. Attempts at Economic Diversification: ❏ After 1663, Jean Talon (the first intendant of New France) began a process of trying to diversify the economy of New France so that they would be stronger and less dependant on the fur trade. Some of his ideas were: ❏ growing flax, hemp, and hops (for beer) instead of the same agricultural products each season ❏ raise livestock (animals) ❏ Later Intendants such as Gilles Hocquart continued Talon’s efforts: ❏ encouraged iron mining and building an ironworks in Mauricie to create metals tools ❏ established the King’s naval shipyard in Quebec City to build ships ❏ However, diversifying the economy did not follow the concept or theory of Mercantilism. Under Mercantilism the colony is not supposed to diversify or produce anything; that was the job of the Mother Country. ❏ Therefore, diversifying the economy of New France had several obstacles: ❏ economy was based on the fur trade (hard to change things) ❏ lack of skilled labor ❏ lack of capital (money to start businesses) ❏ Diversifying the economy went against the rules of Mercantilism!!