<P> Fur trading posts </P> <P> Fur trading was one of the main economic activities in Northern America from the late 16th century to the mid-19th century . At the time, demand for fur was surging in Europe as it was used to make cloth and fancy hats . Data collected from England in the 18th century highlights that the years from 1746 to 1763 saw an increase of 12 shillings per pelt . It has been calculated that over 20 million beaver hats were exported from England alone from 1700 to 1770 . Both trading partners, Native Americans and Europeans, provided the other a comparative advantage in the fur trade industry . The opportunity cost of hunting beavers in Europe was extremely high: by the seventeenth and eighteenth centuries, the Eurasian beaver was near extinction in England and France . On the other hand, traders and trappers thought the wildlife in the New World was essentially limitless . Native Americans made use of the trade goods received, particularly knives, axes, and guns . The fur trade provided a stable source of income for many Native Americans until the mid-19th century, when changing fashion trends in Europe and a decline in the beaver population in North America brought about a collapse in demand for fur . </P> <P> Trade with the Spanish Trading between Spanish settlers and Native Americans was rare and occurred in parts of New Mexico and California . The Spanish mainly intended to spread the Christian faith to Indians and to use them as slaves for work . The most significant effect of trading with the Spanish was the introduction of the horse to the Ute in New Mexico . Gradually, horses bred and their use was adopted across the Great Plains, dramatically altering the lifestyles and customs of many Native American tribes . Many Indians switched from a hunter - gatherer economy to a nomadic lifestyle after they began using horses for transportation . They had a greater range for hunting bison and trading with other tribes . </P> <P> Relationship between Europeans and Indians It took time for Europeans and Native Americans to learn the customs of the other side . When Europeans first encountered a tribe, they would often be offered fur, food or other items as gifts . The Europeans did not understand they were supposed to take on an alliance with the natives, including helping them against their enemies . Native American tribes regularly practice gift giving as part of their social relations . Because the Europeans did not (or most of them), they were considered to be rude and crude . </P>

What was the first valuable use of horses for settlers in the new world