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In 1661 Jean Baptiste Colbert, probably the greatest of French ministers, had attained to a dominant position in the council of the king. Colbert had plans for the development of French resources at home and abroad which he now proceeded to put in execution. In respect to Canada, however, he repeated the mistake of Richelieu by once more placing the country under the control of a great commercial monopoly—the West India Company^[1]—to which a charter was granted in 1664. Colbert thought that this new company, because of its wealth and power, would accomplish what every other company had failed to do, namely, build up a strong colony in Canada and provide the means for its administration, in return for the feudal control of the country and a monopoly of its trade. The company, having power over all the French colonies in America, was required as a primary obligation to promote the glory of God and of the French king. Its charter stipulated that the company should take out priests and ecclesiastics and build and support churches. In framing the charter Colbert evidently had in mind certain trading companies of other European states, particularly of Holland. But these companies were trading corporations only, and not colonization companies with religious, social and political duties. The needs and objects of colonists might or might not coincide with the interests of those companies, and where they did not, the companies were not expected to sacrifice their interests to those of the colonists.

The West India Company was not only granted the most complete proprietary and feudal rights over Canada, but also over any future extensions of the colony through discovery or war. Notwithstanding the provisions already made for the composition of the Sovereign Council, the company was given the right to nominate the governor and members of the council, subject, of course, to the sanction of the king. It might even dismiss members of the council and have others appointed in their places. It was given the right to appoint judges and magistrates, and had jurisdiction in all matters of police and commerce. Its trade monopoly was granted for forty years, but its feudal rights were unlimited. In actual practice many of its powers were never exercised, but the colonial policy which the charter expressed showed how completely the able and enlightened minister failed to realize the requirements of a colony of Frenchmen beyond the seas.

The expenditures of the company in the colony did much to revive trade, and together with the government outlay, incident to the sending of regular troops to the country, contributed largely to the restoration of confidence, the promotion of immigration, the cultivation of the lands, and the establishment of industries. Nevertheless, the fate of the company was sealed. It completely failed within ten years after its establishment.

Early in the career of the West India Company Colbert realized his error in granting it such extensive powers over Canada. The medium through which he was enlightened as to the folly of his course was the occupant of the new position of intendant, Jean Talon.