The fur trade played a central role in the early New England economy. Many English settlers arrived in America deeply in debt, with their voyages financed by English merchants. Supplying furs—especially beaver pelts—became one of the primary ways to repay these debts. In 1600s Maine, beaver was the most valuable fur traded, along with muskrat, fox, marten, mink, and otter. The trade had significant economic, cultural, and environmental impacts for both Europeans and Native Americans.

Beaver pelts were highly prized in Europe. Native Americans hunted beavers for both food and clothing, using their pelts for garments and robes. English settlers traded grain, metal goods, textiles, and blankets for these valuable furs. Once transported to London, pelts were auctioned and crafted into high-quality felt.

The demand was fueled by fashionable high-crowned hats worn by Europe’s elite. Beaver felt was durable, water-resistant, and held its shape exceptionally well, making it the preferred material for luxury hatmakers.

The profitability of beaver pelts pushed English settlers farther inland, encroaching on Wabanaki and other Native territories. This expansion led to tension and conflict between settlers and Native Americans, as well as conflicts with the French. The lucrative trade also contributed to a series of violent struggles known as the “Beaver Wars,” fought primarily between the Iroquois and French-allied tribes.

By the 1690s, approximately 145,000 beaver pelts were shipped yearly from New France (Canada), signaling intense over-harvesting.

The relentless hunting nearly wiped out the beaver population throughout the 1700s. The trade finally collapsed—not from conservation, but from fashion. By the 1830s, silk top hats became popular. They were lighter, cheaper, and produced a shinier finish than beaver felt.

As demand plummeted, trapping beaver was no longer profitable, and the beaver population began to recover.