“I may add a double motive. At no very distant date, Russia will probably cede her American possessions to the Government of the United States. [*1] When this cession has taken place, the Company will find access to the Pacific Ocean extremely difficult, unless the North-west passage discovered by Mc’Clure be practicable. [*1 Captain Craventy’s prophecy has since been realised.] Fresh explorations will decide this, for the Admiralty is about to send a vessel which will coast along the North American continent, from Behring Strait to Coronation Gulf, on the eastern side of which the new-Art is to be established. If the enterprise succeed, this point will become an important factory, the centre of the northern fur trade. The transport of furs across the Indian territories involves a vast expenditure of time and money, whereas, if the new route be available, steamers will take them from the new fort to the Pacific Ocean in a few days.” “That would indeed be an important result of the enterprise, if this North-west passage can really be used,” replied Mrs Paulina Barnett; “but I think you spoke of a double motive.” “I did, madam,” said the Captain, “and I alluded to a matter of vital interest to the Company. But I must beg of you to allow me to explain to you in a few words how the present state of things came about, how it is in fact that the very source of the trade of this once flourishing Company is in danger of destruction.” The Captain then proceeded to give a brief sketch of the history of the famous Hudson’s Bay Company. In the earliest times men employed the skins and furs of animals as clothing. The fur trade is therefore of very great antiquity. Luxury in dress increased to such an extent, that sumptuary laws were enacted to control too great extravagance, especially in furs, for which there was a positive passion. Vair and the furs of Siberian squirrels were prohibited at the middle of the 12th century. In 1553 Russia founded several establishments in the northern steppes, and England lost no time in following her example. The trade in sables, ermines, and beavers, was carried on through the agency of the Samoiedes; but during the reign of Elizabeth, a royal decree restricted the use of costly furs to such an extent, that for several years this branch of industry was completely paralysed. On the 2nd May, 1670, a licence to trade in furs in the Hudson’s Bay Territory was granted to the Company, which numbered several men of high rank amongst its shareholders : the Duke of York, the Duke of Albemarle, the Earl of Shaftesbury, &c. Its capital was then only £8420. Private companies were formidable rivals to its success; and French agents, making Canada their headquarters, ventured on hazardous but most lucrative expeditions. The active competition of these bold hunters threatened the very existence of the infant Company.