Economy Under the French
Regime
1608-1760
Vocabulary
 Mercantilism – An economic theory that bases a
nation’s prosperity on the accumulation of gold and
silver
 Trading post colony – A post set up in a territory
with the aim of exploiting its resources
 Concession – A contract that gave an individual or a
company the exclusive control of a resource in a
territory belonging to the state.
Economic Development and Territorial
Expansion
 French Mercantilism meant that New France
provided resources to France so they could turn
them into finished products for export.
 New France at first was just a trading post colony
run by trading companies that were given
monopolies over resources like fur.
 Permanent settlements at Port Royal (1604) and
Quebec City (1608) were made to help increase the
fur trade.
Economic Development and Territorial
Expansion (cont)
 In 1663, King Louis XIV got rid of the company held
monopolies and put control of the economic
development of New France under the Intendant as
part of the Royal Government.
 From 1663-1755, France explores further into North
America and expands its territory (Ex: Great Lakes,
Ohio Valley, Louisiana)
 The French make political and trade alliance with
Aboriginals in order to obtain furs.
Economic Development and Territorial
Expansion (cont)
 The English, France’s main competitor in the fur
trade, established the Hudson’s Bay Company in
1670 to trade for furs with Aboriginals.
The colony’s main commercial activities
 Fishing was profitable during the entire French
regime but the fur trade was the main “economic
engine” of New France
 In the 1690’s, overproduction resulted in a crisis for
the fur trade.
 In the 18th century, intendants (Jean Talon) tried to
diversify the economy (create new industries)
The Colony’s main commercial activities
 Agriculture was at first just a subsistence (survival)
activity, but began to produce surpluses in the 18th
century.
 Merchants distributed the agricultural surpluses in
the cities and provided products to the rural areas.
They exported furs and imported finished products
from the mother country
 In the 18th century, triangular trade developed in the
French colonial empire between France, New France,
Antilles.
Trade Network
New France
(colony)
France
(mother country)
St. Anne de
Beaupre
(rural)
Agriculture
surplus
Furniture
(products)
Montreal
(city)
Furs from
Aboriginals
Trading post
Marseille
(small city)
Fur clothing
and Hats
Furs
Paris
(big city)
Furniture
(Finished products)
Map of the Antilles