Champlain did not return to Port Royal, but was employed in another direction. In April, 1608, De Monts sent out Champlain and Pontgravé to establish a colony on the St. Lawrence and traffic with the Indians of that region. Of this expedition Champlain was constituted lieutenant-governor, and he was successful in planting a settlement at Quebec in July, 1608. It was a mere trading-post, and after twenty years it did not number over one hundred persons. But Champlain looked to the time when Canada should be a prosperous province of France, and he was tireless and persistent. Aided by several devout friars of the Franciscan order, he labored hard to Christianize the Indians and visited lakes Champlain, Nipissing, Huron, and Ontario. While he made the fur trade of great value to the merchant company in France, he committed the fatal mistake of mixing up with Indian quarrels. Between the Five Nations of New York and the Hurons and their allies, the Algonquins of the St. Lawrence, perpetual war prevailed, and Champlain by taking sides against the former incurred for the French the lasting hatred of those powerful Indians.

The progress of the colony was not satisfactory to Champlain or to the authorities in France, and in 1627 Cardinal Richelieu dissolved the company which had charge of affairs, and instituted a new one with himself at its head. In the spring of 1628 he despatched to Canada four armed vessels and eighteen transports laden with emigrants, stores, and cannon, but war had broken out between the English and French the year before, and on their way the fleet was intercepted and the ships and goods confiscated.

The English had not recognized the claims of the French to any part of the North American continent, and the very year that the Jesuit station was planted at Mount Desert Island Samuel Argall came twice from Virginia and burned the houses of the intruding French at all of their settlements in Acadia: Mount Desert Island, Isle de Croix, and Port Royal. The French rebuilt Port Royal, and at the death of Poutrincourt's son Biencourt, about the year 1623, his possessions and claims fell to his friend and companion Claude de la Tour.

Meanwhile, in 1621, Sir William Alexander obtained a grant from King James for New Scotland, being that part of Acadia now comprising the provinces of Nova Scotia and New Brunswick;[9 ] and he sent over from time to time a few Scotch emigrants. De la Tour and the French submitted, and English rule seemed firmly established in Acadia when war was declared in 1628. In February, 1629, Alexander received a patent for St. Lawrence River and "fifty leagues of bounds on both sides thereof," and on both sides of its tributary lakes and rivers as far as the Gulf of California.[10 ]

After the failure of the expedition sent by Cardinal Richelieu, Alexander and his partners despatched an English fleet commanded by David Kirke, which appeared before Quebec in July, 1629. Champlain and his small garrison were compelled to surrender, and all New France fell under English power. Unfortunately for Alexander and Kirke, war between the two nations had ceased, and the articles of peace provided that all conquests made subsequent to April 24, 1629, should be restored to the former owner. This insured the loss of Quebec and was the forerunner of other misfortunes. In 1632 a treaty was made at St. Germain by which, despite the protest of Sir William Alexander and a memorial from the Scottish Parliament, King Charles consented "to give up and restore all the places occupied in New France, Acadia, and Canada" by his subjects.[11 ]

In 1632 Champlain returned to his government at Quebec, and with him arrived a number of zealous Jesuit priests, who began that adventurous career of exploration which, after Champlain's death in 1635, connected the fame of their order with the great lakes and the Mississippi. The king of France appointed Chevalier Razilly governor of Acadia, who designated as his lieutenants Claude de la Tour's son Charles, for the portion west of St. Croix; and Charles de Menou, Sieur d'Aulnay Charmisé, for the portion to the east.[12 ] They claimed dominion for France as far as Cape Cod.

Subsequently the two rivals quarrelled, and in 1641 D'Aulnay obtained an order from the king deposing De la Tour, but the latter refused obedience and sent an envoy to Boston in November, 1641, to solicit aid. This envoy was kindly treated, and some of the Puritan merchants despatched a pinnace to trade with De la Tour; but they met with D'Aulnay at Pemaquid, who threatened to make prize of any vessel which he caught engaged in the fur trade in Acadia.[13 ]

The Dutch claim to America was comparatively recent, as it was not until 1597 that voyages were undertaken from Holland to the continent. In 1602 the Dutch East India Company was chartered, and in 1609 sent out Henry Hudson, an Englishman by birth, to seek a way to India by the northeast. After sailing to Nova Zembla, where fogs and fields of ice closed against him the strait of Veigatz, he changed his course for Newfoundland and coasted southward to Chesapeake Bay. Returning on his path he entered the Hudson in September, 1609, and stayed four weeks exploring the river and trafficking with the natives.[14 ]

The reports brought by him to Europe of a newly discovered country abounding in fur-bearing animals created much interest, and in 1612 some merchants in Holland sent Christiansen and Blok to the island of Manhattan, where they built a little fort, which, it is stated, Argall attacked in 1613. Losing his ship by fire, Blok built a yacht of sixteen tons at Manhattan, and with this small craft was the first explorer (1614) of the Connecticut River. He also visited Narragansett Bay, and gave to its shores the name of Roode Eiland (now Rhode Island).

After his return home the merchants obtained from the States-General a charter for three years' monopoly of the trade of New Netherland, as the present New York was now first formally called. It was defined as extending between New France and Virginia, from the fortieth to the forty-fifth degree of north latitude.[15 ] After this New Netherland continued to be resorted to by Dutch traders, though no regular settlement was formed for some years.