Swedish South Company facts for kids

The Swedish South Company, also known as the Company of New-Sweden (Swedish: Söderkompaniet, Nya Sverige-kompaniet), was a special business from Sweden that started in 1626. Its main job was to help with trade between Sweden and its colony in North America, called New Sweden.

This company was the first big plan for Sweden to trade across the ocean. A man named Willem Usselincx had the idea for it.

New Netherland (magenta) and New Sweden (blue)

Willem Usselincx, who helped start the Swedish South Company

What Was the Swedish South Company?

The Swedish South Company was a type of business called a trading company. These companies were very common in the 1600s. They were set up to manage trade with faraway lands. The Swedish South Company was specifically created to support the new Swedish colony in North America.

Why Was the Company Started?

The idea for the Swedish South Company came from a Dutch merchant named Willem Usselincx. He had a big vision for Sweden to become a powerful trading nation. He wanted Sweden to have its own colonies and trade routes across the Atlantic Ocean.

The company was officially founded in 1626. Its main goal was to organize and protect trade with the new colony of New Sweden. This colony was located along the Delaware River in what is now the United States.

What Did the Company Trade?

The most important product traded by the Swedish South Company was fur. European settlers traded with Native American tribes for valuable furs, like beaver pelts. These furs were then sent back to Europe, where they were used to make hats and warm clothing.

The company also helped transport settlers and supplies to New Sweden. It was responsible for making sure the colony had what it needed to grow.

Changes and Challenges

The Swedish South Company faced many challenges during its time. Running a colony and trading across an ocean was very difficult.

Losing a Special Privilege

In 1641, the King of Sweden gave the Swedish South Company a special right called a "monopoly" on tobacco. A monopoly means that only one company is allowed to sell a certain product. This meant the Swedish South Company was the only one allowed to bring tobacco from New Sweden to Sweden.

However, this monopoly did not last long. In 1649, the company lost this special right. This made it harder for them to make money from their trade.

The End of New Sweden

The colony of New Sweden was located near another, larger Dutch colony called New Netherland. Over time, there were disagreements and conflicts between the Swedish and Dutch settlers.

In 1655, New Netherland took over New Sweden. This meant that Sweden no longer had a colony in North America. With no colony to trade with, the Swedish South Company no longer had a purpose.

Dissolving the Company

After New Sweden was lost, the activities of the Swedish South Company slowly came to an end. The company officially closed down in 1680. This marked the end of Sweden's first big attempt at transoceanic trade and colonization.