Economy of New France

Mercantilism - this was the important economic theory of the time - they believed the power of the state was related to the amount of gold it possessed - states tried to export more products than they imported to increase their amount of gold - under this system, colonies supplied their mother countries with raw materials and contributed to a positive balance of trade

Triangular Trade - as well as being a source for raw materials, colonies were also a market for finished goods - demand for goods in the colonies would promoted economic growth in the mother country - colonial industries were discouraged, so they would not compete with the mother country http://www.eduplace.com/kids/socsci/books/applications/imaps/maps/g5s_u3/

Industrial Production - Jean Talon, the first intendant, knew that if the colony was to grow, the economy would have to be diversified Jean Talon attempted He was not successful To start ship building Pitch and Tar production Textiles Brewing beer Ships were too expensive to make, Natives preferred woolen clothing imported from France Most French settlers drank wine and not Beer.

- a later intendant, Gilles Hocquart, had more success - he established an iron foundry in Trois Rivieres in 1739, and shipbuilding began to take off - this later shipbuilding was used to transport wheat to Louisbourg and Martinique - it served France’s mercantilist interests as the shipbuilding meant that France had to import less timber from the Baltic region of Europe

Economy of New France continued… The Staples Theory The staples theory, developed by Historian Harold Innis, holds that the exports of staples: fur and fish drove the development of Canada’s economy it also says that Canada has been dependant on foreign trade It does not take into account local markets and the peasant economy

Agriculture - the vast majority of the population participated in agricultural production for home or local use By the 18th Century (1700s) the colony was producing enough agricultural produce to export to the western trading posts and to France’s Caribbean colonies Most people could only produce enough for themselves, leaving 20% for sale at market or export The short growing season meant that damp summers, early or late frosts could have disastrous consequences for the people

Rural families were never self sufficient, they needed to buy cloth, clothing, kitchenware, pots, pans, iron stoves, alcohol etc While wheat was the main crop, peas, oats, apples, pears, carrots and other vegetables were grown for family consumption

Currency playing cards were issued as a method of payment in the 1680s, in addition to the coins introduced in the 1660s the massive drain of wealth from New France to Europe due to mercantilist trade policies made it impossible to back card money with gold bullion. Card money was thus essentially worthless Card money was replaced in the 18th century by a type of promissory note called bons, These were issued by French merchants, who were forced to create their own currency