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In alliance with the Huron, France prevented the penetration of these shores by the Dutch, who were collaborating with the Iroquois. In 1670 the English founded the Hudson Bay Company, which competed with the French trading posts across the Great Lakes to the south. The traditional hostility between indigenous tribes turned into proxy wars, a typical instrument of imperial influence. Between 1675 and 1687, the annual delivery of beaver pelts to Europe doubled. But on the cusp of the eighteenth century the suppliers of fur encountered a new phenomenon: the prices for beaver were falling – silk hats came into fashion. But new markets in Germany, Poland and Russia had started using beaver pelts for making fur coats. The market became specialised and global. White beaver fur went to England, where white hats were in fashion. Dutch firms first combed out the nap to make hats for local consumption and then sent the pelts with the outer fur to Russia to make fur coats. Some beaver pelts were exported to Arkhangelsk, via Amsterdam, for specialised processing; the Russian Pomors, a northern people, had a method of combing out the underhair which wasn’t known in Western Europe. 18

The British, French and Dutch colonies in America tried to limit the supply of pelts and stop the fall in prices. In 1720 New York prohibited trade with the French colonies; in response, the Iroquois started smuggling beaver pelts to English ships, avoiding customs and lowering prices. In the Seven Years’ War France lost its territories to the English. ‘You know that these two nations are at war about a few acres of barren land in the neighbourhood of Canada, and that they have expended much greater sums in the contest than all Canada is worth,’ wrote Voltaire in Candide . As a result of her victory, England obtained a monopoly on beaver fur, but after the American Revolution England lost her trading posts on United States territory though she kept those in Canada. In 1821 the British Hudson Bay Company merged with the Canadian North West Company. Its rival, the American Fur Company, was even more successful; its owner, John Jacob Astor, diversified his business by smuggling opium to China and engaging in New York real estate. For a while he was the richest man in America, but the fur trade was in decline.

The Canadian sociologist Harold Innis, in his pioneering history of the fur trade (1930), showed that the modern borders of Canada coincide with the territory of the beaver. Just as Siberia in its current form was created by the sable, Canada was created by the beaver. As the fur trade flourished, the number of colonists grew, and the number of trappers grew even faster. But the beaver died out in the places populated by men. The white population developed more peaceful relations with the indigenous people in Canada than was the case in the USA or Russia: these relations were based on barter and collaboration between the races and not on competition for land. Innis states that the trade in raw materials divided North America into three zones: the northern zone that produced fur; the southern zone that produced cotton; and the central zone that depended mainly on the labour of its own population, though it also relied on local resources. In his ‘staple theory’, Innis traced how the timber industry replaced the beaver trade. When steamships replaced canoes, it turned out that agriculture was entirely viable, and the export of timber and paper also increased. The sawmills and paper factories used the same water routes as the beaver trading posts had done, and the same agricultural lands provided them with food. But every change of staple created new ecological-economic problems. Tree felling and rafting turned rivers into marshland. Felling activities and sawmills had to be situated further and further upstream. Large cities developed on the sites of the trading posts; where there had once been beaver ponds, there were now power plants. Canals and then railways were constructed to streamline the routes for transporting raw materials, which had formerly followed the bends in the rivers. The Atlantic ports, built for fishing and then for the fur trade, now exported timber, paper and grain to Europe and the USA. As Innis wrote, Canada emerged not in spite of geography but because of it. 19 This is also true of Russia and other resource-dependent countries. The vast expanses of Russia and Canada were equally formed by the fur trade.

The sea otter

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