The Fur Trade

In 1827, the American Fur Company (AFC) achieved a monopoly on the fur trade in what is now Minnesota. The Company suddenly increased its prices by 300 percent; American Indians, returning from the hunt with expectations of trading for their yearly supplies, found themselves cast into a debt cycle that would increase in the decades ahead. American Indians would receive virtually unlimited credit as long as they maintained the most precious collateral: land.


American Fur Company Buildings at Fond du Lac, ca. 1827

As game was overhunted and demands for furs changed, the system collapsed under a burden of debt. In 1834, AFC departments were sold to partners who included the Chouteaus, Henry Sibley, and Hercules Dousman. The business strategy of the reorganized companies changed from fur trading to treaty making. In 1837, economically stressed Dakota and Ojibwe people began selling land in what became Minnesota. Fur traders, through their political connections, were able to divert government payments for American Indian land into their own pockets. In effect, land cession treaties became a vast government bailout of fur trade corporations.


Animal Tracks, Pike Island