Heydey of Dutch Wampum Trade

From Indigenous Continent: The Epic Contest for North America, by Pekka Hämäläinen (Liveright, 2022), Kindle pp. 74-76:

IMPERIAL RIVALRIES among the European powers exacerbated the tense situation in New England. More quietly than the Spanish, French, and English, the Dutch had entered the contest for North America in 1609, when Henry Hudson, having failed to find a sea route to China through North America, came to a river that still bears his name. When Dutch merchants arrived in the Hudson Valley in the 1610s, they realized it was a place of vast advantages. The Hudson was navigable for 160 miles into the interior, allowing access to bustling Native markets along the Saint Lawrence Valley and in the Great Lakes. Uninterested in converting and “civilizing” the Indians, the business-minded Dutch treated Indians as customers and trading partners.

The Dutch Indian policy was persistently practical. Dutch merchants quickly determined where the power lay and acted accordingly, forging close ties with the Mahican Nation, which dominated the interior trade. The Dutch built Fort Nassau in 1614 on the Hudson and, through the Mahicans, sold guns, powder, and iron tools across an enormous hinterland. In return, Fort Nassau was flooded with beaver pelts, North America’s most coveted commodity, making a fortune for the Dutch. The fort had only about four dozen employees, half of them traders and the other half soldiers. This kind of light colonialism was not exactly by design—Dutch imperial ambitions in Asia drew most of the available resources—but the relative modesty of their operations in North America would serve the Dutch well.

Dutch commercial prowess alarmed the English, triggering an unexpected imperial contest centered on processed clamshells. Clamshells were the raw material for wampum beads, which were sacred to many eastern Indians. They painted them with various colors and strung them into belts that were used in religious ceremonies, to proclaim social status, to stabilize border relations, and as mnemonic devices in relating traditional stories. Wampum also served as currency, and there the entrepreneurial Dutch merchants spotted an opportunity. They began to supply the coastal Indians with metal lathes that enabled them to manufacture wampum on an industrial scale. Native women could produce five to ten feet of wampum belt a day, and soon some three million monetized wampum beads were circulating in the Northeast, fueling an expanding exchange economy. Europeans had accepted a currency that a moment earlier meant next to nothing to them.

Struggling to enter into the lucrative wampum trade and to pay their European debts—building colonies was extremely expensive—the still fragile Puritan colonies approached the Wabanakis, who were expert mariners and trappers equally capable of producing great quantities of prime beaver pelts, swordfish, cod, or right whales. Living far to the north of the main clamshell-farming area, Wabanakis were eager for access to wampum; the Puritans began to demand it from their Native neighbors to buy Wabanaki furs. Their methods were harsh, ranging from naked extortion to thinly disguised tribute payments. New Englanders and the Dutch began using wampum belts as currency in their internal trade. In 1637, the Massachusetts General Court declared wampum legal tender, exchangeable for shillings and pennies. Weetamoo, a saunkskwa—female sachem—of the Pocasset people of the Wampanoag Confederacy, relied almost exclusively on wampum in her expansive diplomacy with colonists. It was a precarious dynamic, and the Wabanakis began to carefully consider the extent to which they should engage with the Indians in the interior. For them the interior was a terrifying place where the contest over territory unbalanced the world. The amphibious Mi’kmaqs, not the English, were their most dangerous neighbors. Mi’kmaqs traded with Europeans, accumulating guns and powder and projecting their power deep into the interior and far out into the sea, securing a near monopoly on fisheries and other maritime resources around the Saint Lawrence Bay. They became the foremost maritime power along the Northeast Coast. In their slipstream, the Wabanakis extended their operations in the Saint Lawrence Valley and New France, unnerving New England traders and officials.