Loyalists and Fur Trade in Early Canada

The Loyalists

• American colonists who stayed loyal to Britain during the American Revolution (1775–1783).
• After the United States won independence, many were forced to flee.
• Approximately 40,000 Loyalists relocated to British North America, especially to Upper Canada (Ontario), Nova Scotia, and New Brunswick.
• They brought British customs, loyalty to the Crown, and new farming knowledge to Canada.

Loyalist Impact on Canada

• The Loyalists helped increase the English-speaking population in Canada.
• They encouraged the expansion of settlements and shaped political structures in the colonies.
• Their arrival spurred the development of new roads, towns, and schools.
• New treaties were signed to open up land for Loyalist settlements, causing the displacement of Indigenous peoples.

The Fur Trade

• It formed a central part of early Canada’s economy.
• European traders exchanged goods with Indigenous peoples for furs, especially beaver pelts.
• The fur trade encouraged exploration of the interior and established trading partnerships.
• Economic benefits were provided, but Indigenous ways of life and territories were disrupted.

Hudson’s Bay Company & North West Company

• Founded in 1670, the Hudson’s Bay Company (HBC) controlled much of the fur trade from posts around Hudson Bay.
• Founded in 1779 in Montreal, the North West Company (NWC) became a strong rival.
• The NWC sent traders deep into the interior using canoe routes.
• In 1821, the two companies merged.
• Their competition and expansion helped shape Canada’s map and economy.

Treaties with Indigenous Peoples

• The British signed treaties (peacefully or forcefully) to acquire land as settlers arrived.
• The Treaty of Fort Niagara (1764) confirmed alliances with many Indigenous nations.
• The Haldimand Proclamation (1784) gave land along the Grand River to the Mohawks as thanks for their loyalty.
• Jay’s Treaty (1794) improved trade between the U.S. and British colonies but didn’t involve Indigenous peoples, causing tensions.

Upper and Lower Canada

• In 1791, the Constitutional Act divided the Province of Quebec into Upper Canada (mostly English-speaking Loyalists) and Lower Canada (mostly French-speaking Canadiens).
• Upper Canada used British laws and land-owning systems.
• Lower Canada kept French civil law and culture.
• The separation helped reduce conflicts between the two language groups but also created political challenges.

The Constitutional Act of 1791

• Each colony was given its own government and elected assembly, allowing settlers to participate more in politics.
• Britain hoped this would keep peace, avoid rebellion, and attract more British settlers.
• The Act was an early step toward responsible government in Canada, though real democratic control took many more years to develop.

Key Figures in Early Canada

• John Graves Simcoe was the first Lieutenant Governor of Upper Canada.
• He founded York (now Toronto), improved roads, supported education.
• In 1793, he passed a law to limit and eventually end slavery.
• Marie-Marguerite d’Youville was a Catholic woman who founded the Grey Nuns, a religious order that helped the sick and poor in New France.
• Pontiac was a respected Indigenous leader who led a rebellion (1763–1766) to resist British expansion after the Seven Years’ War.

Legacy of This Era

• This era helped shape modern Canada’s population, politics, and geography.
• This era also included the displacement of Indigenous peoples and the start of systems that would later be challenged by calls for equality and Indigenous rights.
• The period between 1713–1800 laid the foundation for Canada’s growth as a British colony with its own identity.