Royal Greenland Trading Department
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The Royal Greenland Trading Department (, KGH) was a Danish
state enterprise A state-owned enterprise (SOE) is a business entity created or owned by a national or local government, either through an executive order or legislation. SOEs aim to generate profit for the government, prevent private sector monopolies, provide goo ...
charged with administering the realm's settlements and trade in
Greenland Greenland is an autonomous territory in the Danish Realm, Kingdom of Denmark. It is by far the largest geographically of three constituent parts of the kingdom; the other two are metropolitan Denmark and the Faroe Islands. Citizens of Greenlan ...
. The company managed the government of Greenland from 1774 to 1908 through its Board of Managers in
Copenhagen Copenhagen ( ) is the capital and most populous city of Denmark, with a population of 1.4 million in the Urban area of Copenhagen, urban area. The city is situated on the islands of Zealand and Amager, separated from Malmö, Sweden, by the ...
and a series of Royal Inspectors and
Governors A governor is an politician, administrative leader and head of a polity or Region#Political regions, political region, in some cases, such as governor-general, governors-general, as the head of a state's official representative. Depending on the ...
in Godthaab and Godhavn on Greenland. The company was headquartered at Grønlandske Handels Plads at Christianshavn. Following the introduction of
home rule Home rule is the government of a colony, dependent country, or region by its own citizens. It is thus the power of a part (administrative division) of a state or an external dependent country to exercise such of the state's powers of governan ...
in Greenland in 1979, the company was reformed into several successors, including the KNI conglomerate, the Royal Greenland fishing company, and the Royal Arctic shipping company.


History

The Royal Greenland Trading Department was founded in 1774 as a successor to the failed General Trade Company (') which had previously managed the Dano-Norwegian whaling stations and
Lutheran Lutheranism is a major branch of Protestantism that emerged under the work of Martin Luther, the 16th-century German friar and Protestant Reformers, reformer whose efforts to reform the theology and practices of the Catholic Church launched ...
and Moravian missions in Greenland. At first, it possessed a monopoly on trade near the Danish trading stations and missions but, in 1776, this was expanded to a monopoly on all trade in Greenland whatsoever between the 60th and 73d parallels north.Marquardt, Ole.
Change and Continuity in Denmark's Greenland Policy
in ''The Oldenburg Monarchy: An Underestimated Empire?''. Verlag Ludwig (Kiel), 2006.
The change in protection led to a sharp downturn in new settlements and, after a brief abortive attempt to manage a government-owned Scandinavian whaling fleet, led the company to focus on trade with the local Inuit hunters. The Instruction of 1782 divided the colony into northern and southern halves, forbade senior management from intermarriage with native or racially mixed women and lower-ranking employees from intermarriage with native or European women,Seiding, Inge.
Colonial Categories of Rule – Mixed Marriages and Families in Greenland around 1800
. ''Kontur'', No. 22 (2011).
and banned further attempts to urbanize the Inuit or alter their traditional way of life through improved employment opportunities or sales of luxury items. Large premiums were charged on goods such as sugar and coffee in order to prevent the Inuit from 'softening' and abandoning their demanding work. Repeated attempts to end the department's monopoly on trade were defeated, notably by an impassioned defense of the company's practices by its director Hinrich Rink, but local councils were established in 1857 with authority over one-fifth of each station's profits and the valuable trade in
cryolite Cryolite ( Na3 Al F6, sodium hexafluoroaluminate) is a rare mineral identified with the once-large deposit at Ivittuut on the west coast of Greenland, mined commercially until 1987. It is used in the reduction ("smelting") of aluminium, in pest ...
extracted from Ivigtut was granted to a different company in 1864.Doody, Richard. ''The World at War''.
GREENLAND 1721 - 1953
. Accessed 28 Apr 2012.
In 1908, the
Ministry of the Interior An interior ministry or ministry of the interior (also called ministry of home affairs or ministry of internal affairs) is a government department that is responsible for domestic policy, public security and law enforcement. In some states, the ...
took over general administration and, in 1912, the entire trading operation was brought under its supervision as well.


Fleet

The Royal Greenland Trading Department began with a gift of three ships from the king: the large frigate ''Kongens Gave'' ("King's Gift"), the smaller frigate ''Holsteinsborg'', and the galiot ''Den Gloende''.Fogsgaard.
Dansk hvalfangst i Nordatlanten 1771 - 1789
'. 2003.
In 1776, its fleet consisted of the ''Bernstorff'', the ''Eichsted'', the ''Godthaab'', the ''Holsteinsborg'', the ''Island'', the ''Kongenshaab'', the ''Krag Juul Wind'', the ''Lovisenborg'', the ''Mariakirke'', the ''Sankt Croix'', the ''Sankt Peter'', the ''Schack Rathlau'', the ''Schimmelmann, Skatmester'', the ''Strat Davis'', and the ''Taasinge Slot''. The next year, only 10 vessels returned: the ''Bernstorff'', the ''Eichsted'', the ''Gregers Juul'', the ''Guldberg'', the ''Holsteinsborg'', the ''Kongenshaab'', the ''Krag Juul Wind'', the ''Schack Rathlau'', the ''Schack'', and the ''Schimmelmann, Skatmester''. In 1781, a royal order granted a number of privileges to crew members of the Royal Greenland fleet. They were made exempt from regular military service except for times of utter need. Furthermore, crew members were freed from any civil obligations, which included tax-free trading for personal provisioning before and after a voyage and a deferral of heritage fees for the families of crew members deceased during a voyage. The Department began purchasing its own trading vessels again in 1790. Ships operated by the trading department included the ''Mariane'', ''Tjalfe'', ''Godthaab'', ''Gertrud Rask'', ''Gustav Holm'', and ''Ceres''. From 1792, the armed vessel ''Dorothea'' served as a coastal patrol in northern Greenland in order to prevent illegal trading between the Inuit and foreign ships and to discourage whaling by other nations in the area. The department also operated the commercial whaler s/s ''Sonja'' between 1924 and 1958, with a six-year hiatus during World War II.


Disestablishment

The company's monopoly was finally ended in 1950,Royal Greenland.
Our History
". Accessed 27 August 2010.
as the two halves of Greenland were reunited in preparation for the island's full integration with the Kingdom of Denmark, which occurred in 1953. The Home Rule Government was introduced in 1979 and gained control of the company in 1986,Dahl, Jens.
Saqqaq: An Inuit Hunting Community in the Modern World
'. Univ. of Toronto Press, 2000.
renaming it Kalaallit Niuerfiat ( Kalallisut: "Greenland Trade").Culture Greenland.
Preliminary Studies in KGH's Photo-Archive
". Accessed 2 May 2012.
In 1992, it was reorganized into the KNI conglomerate.KNI.
''Kort historie om KNI''
Short History of KNI. Accessed 28 Apr 2012.
The Royal Greenland fishing company was spun off in 1990, the Royal Arctic Line shipping company in 1993,Royal Arctic Lines.
Royal Arctic Line Ltd.: History
. Accessed 28 Apr 2012.
and the Pisiffik retail chain in 2001.Pisiffik.
Om os
". Accessed 28 Aug 2010.


See also

* Danish colonization of Greenland * List of inspectors of Greenland ** Hinrich Rink * List of trading companies * KNI * Royal Arctic Line


References


External links

* {{authority control Defunct companies of Greenland Defunct companies of Denmark Former monopolies Chartered companies Trading companies Companies established in 1774 Companies disestablished in 1986 Danish overseas colonies Economic history of Denmark History of Greenland 18th century in the Danish colonial empire 18th century in Greenland 19th century in the Danish colonial empire 19th century in Greenland 20th century in the Danish colonial empire 20th century in Greenland 1774 establishments in Denmark 1986 disestablishments in Denmark Trading companies of Denmark Trading companies established in the 18th century Government-owned companies of Denmark