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.

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