<P> The fur trade itself was based on a commodity of small bulk but yet high value . Because of this it managed to attract increased attention and / or input capital that would otherwise be intended for other areas of the economy . The Montreal area witnessed a stagnant agricultural sector; it remained for the most part subsistence orientated with little or no trade purposes outside of the French colony . This was a prime example of the handicapping effect the fur trade had on its neighbouring areas of the economy . </P> <P> Nonetheless, by the beginning of the 1700s the economic prosperity the fur trade stimulated slowly transformed Montreal . Economically, it was no longer a town of small traders or of fur fairs but rather a city of merchants and of bright lights . The primary sector of the fur trade, the act of acquiring and the selling of the furs, quickly promoted the growth of complementary second and tertiary sectors of the economy . For instance a small number of tanneries was established in Montreal as well as a larger number of inns, taverns and markets that would support the growing number of inhabitants whose livelihood depended on the fur trade . Already by 1683 there were well over 140 families and there may have been as many as 900 people living in Montreal . </P> <P> The founding of the Compagnie des Indes in 1718, once again highlighted the economic importance of the fur trade . This merchant association, like its predecessor the Compagnie des Cent Associes, regulated the fur trade to the best of its abilities imposing price points, supporting government sale taxes and combating black market practices . However, by the middle half of the 18th century the fur trade was in a slow decline . </P> <P> The natural abundance of furs had passed and it could no longer meet market demand . This eventually resulted in the repeal of the 25 percent sales tax that had previously aimed at curbing the administrative costs New France had accumulated . In addition, dwindling supply increased black market trading . A greater number of natives and fur traders began circumventing Montreal and New France altogether; many began trading with either British or Dutch merchants to the south . </P>

Where was new france and what did the settlers of new france do