How And Why Did The Northwest Company Come Into Existence?

1) How and why did the Northwest Co. come into existence? Where was it based out of? Who operated it? How did they compete with the HBC?
The Northwest company started because some people in Canada had been uncomfortable with how strong a hold the Hudson’s Bay Company had on the fur-trading business, so the company had been started to oppose that hold and hopefully loosen it. It was based out of Montreal, just a few Montreal merchants in a loose association. A few years later it became a more permanent business, and was officially created in 1783-84. It was being lead by Benjamin Frobisher, his brother Joseph, Simon McTavish, Robert Grant, Nicholas Montour, Patrick Small, William Holmes and George McBeath. HBC competed with NWC in getting good fur and lands, as well as getting good customers.

2) How was the Northwest Company different from the HBC in how they operated and existed? Determine what approaches / operations were advantageous for each the HBC and the NWC. Explain them.

HBC: The Hudson’s Bay Company had set up around the bay, forts on the water and rivers.

The HBC company was limited to the area of the Hudson’s Bay drainage area, and did not go beyond that. To trade Natives or fur hunters were expected to come to the forts around the area to trade. The amounts of each pelts were a very set price, using coinage you could not bargain for a different price. Though the HBC was restricted to a certain area, the region was very advantageous for their business. The collection of the furs, and travel to England, only took around 5 months, and counting the payment and return to North America, the full cycle would take around 14

months.
NWC: While the HBC was set in one area, the NWC was known for travelling to obtain their furs. The NWC travelled beyond the Rockies and into the north. They would go to villages to trade for furs, and would not have a set price, but would instead bargain for the price, offering to trade things other than coins. While the NWC was able to travel to different areas for furs as well as meet with and gain support of the First Nations, the total time of one cycle for fur trading ultimately took too long. When you count everything in, a full cycle was around 3 years. This was the ultimate downfall of the NWC, as the couldn't afford to keep running with such a long trade cycle.

3) Who were the hivernants? How did they benefit the operations of the NWC?
Hivernants = “Wintering partners” They were one of the reasons NWC was so different to HBC. While HBC would have forts to bring trade to, some hivernants would go to trade in the interior. The were well experienced men who knew the business they worked in, who had a stake in the company, and are active in the business. They were mostly Scots.

4) a) Who was Thomas Douglas, Lord Selkirk? What did he do to upset and disrupt business for the NWC?
Thomas Douglas, 5th Earl of Selkirk, was a rich English businessman who helped bring over displaced Scottish highlanders to first P.E.I. then to settle the Red River Colony. HBC had sold over 74 million acres to him, as a majority shareholder. The settlements was right on the already established NWC trading route, but as well as several towns of NWC’s. This angered the area, added to the settlement itself. Because of this angered against the settlers the Metis and local people became allies with the NWC against the HBC.

b) What group, new to the scene in the area of today's Manitoba, became involved in the tension? Who were they and why were their concerns significant in the rising struggle?
The Metis, a recognized aboriginal group, was involved in the fighting between the NWC and the HBC. The Metis were descendants of First Nations women and European men, who had married before and born children who were labeled Metis. The NWC traded with the Metis and became allies with the company. When the red River Colony settled in and start prohibiting their lifestyle, the Metis had had enough and had allied with the NWC to fight the HBC. The Metis lived by selling pemmican to the NWC and hunting buffalo. The Red River Colony prohibited both of these acts, and that made the Metis mad. The Metis were big customers for the fur trade, and were important to the NWC.

5) Discuss the rise of tensions into the Battle of Seven Oaks. Who was involved and why? How did it lead to the end of the Northwest Company?
When the Battle of Seven Oaks occurred it was between the people of the Red River Colony (HBC followers), and the Metis (NWC followers). They fought because tensions had been rising between the settlers and the Metis. The colony had settled on Metis land, very important land which had already belonged to them and also a trading route for the NWC. When the colony had got there they did not respect the Metis, and just before the battle had even banned the export of pemmican and the hunting of the buffalo. The Metis survived by selling pemmican to the NWC and hunting buffalo to eat. This law had been the climax of the tensions and had resulted in the Battle of Seven Oaks. After the battle the NWC and the HBC lost almost all sight of trade and instead competed for superiority. In the end the NWC hadn’t been stable enough, and to survive they had to merge.

6) How did the Northwest Company come to an end? What happened with it?
Like I had said before after the Battle of Seven Oaks instead of competing because of trade they competed because of superiority. After that crises kept hitting kept hitting the company, like the over-harvesting of animals. After the battle several NWC leaders were arrested, seizing some property and charging them with the death of the 21 men at the battle. After that some of the wealthiest and most capable partners left the company, and the company was losing coinage. The British government was also pressing to stop the fighting and merge which helped convince the HBC. After all that the company agreed to a merger with the Hudson’s Bay Company under the HBC’s name.The one company now seized control of almost all fur trade in Canada. The NWC’s name disappeared for 40 years were it finally reappeared after a HBC outpost was sold and it was named the North West Company.