Overview
The Company of Cathay, chartered in 1577 by Queen Elizabeth I, sought to find the Northwest Passage and mine gold ore from Baffin Island. Led by Martin Frobisher, the expeditions focused mainly on mining rather than exploration. Despite large investments and three voyages, the ore proved worthless. Operations cost thousands of pounds, and after five years of failure, the company declared bankruptcy in 1583, with the mined stone ultimately used for paving roads in England.
Essential Facts
- Also Known As: Cathay Company.
- Founded: March 1, 1577.
- Dissolved: 1583.
- Part Of: Age of Exploration, Settlement of the Americas, England in the New World.
Key Details
- The company was chartered by Queen Elizabeth I with a £1000 investment.
- Martin Frobisher was named “General of the whole Company.”
- The initial focus was on mining gold-bearing ore from Baffin Island.
- Frobisher’s Second Voyage (July–September 1577) involved three ships and cost more than £6000. This was the first voyage for the Cathay Company, and it returned with 200 tons of ore, which some believed contained gold.
- Frobisher’s Third Voyage (July–October 1578) used 15 ships and 400 men, including 40 miners.
- Briefly entered the Hudson Strait but turned back to focus on mining.
- Summer 1578 was unusually cold, with ice hazards sinking one ship.
- Returned with 1,350 tons of worthless ore.
- Stones were later used to pave English highways.
- The company declared bankruptcy in 1583.
Significance
The Company of Cathay is important to American History because its explorations contributed to Europeans’ understanding of the New World and inspired further exploration of North America.
History
Formed in London in 1577 under the control of Martin Frobisher and other investors, this joint stock company sought the Northwest Passage to Cathay and planned to mine gold ore reportedly discovered on Baffin Island during Frobisher’s 1576 voyage.
- Chartered in London in 1577 as a joint stock company.
- Controlled by English explorer Martin Frobisher and other prominent investors.
- Aimed to find the Northwest Passage to Cathay (China).
- Planned to mine for gold ore allegedly found on Baffin Island.
- The discovery of the ore occurred during Frobisher’s first voyage to the New World from June to October 1576.
AHC Notes
- Joint Stock Companies — Business ventures where multiple investors pooled capital to fund commercial ventures, particularly exploration and colonization. Each investor purchased shares, limiting their personal financial risk to the amount invested. These companies, such as the Virginia Company, played a key role in financing English colonization of the Americas and laid the foundation for modern corporate structures.
- Northwest Passage — The Northwest Passage was a legendary sea route through northern North America. During the Age of Exploration, it was widely believed that a water route existed that connected the Atlantic Ocean to the Pacific Ocean, allowing Europeans to reach Asia more quickly than traditional overland routes. Explorers sought the passage for more than 200 years, which contributed to the early exploration of North America and territorial claims of European nations along the Atlantic Coast.
Frobisher’s First Voyage
In the mid-16th Century, Martin Frobisher obtained rights from the Muscovy Company to search for the Northwest Passage, leading to voyages in which he explored Baffin Island, mistakenly identified mineral samples as gold-bearing, and narrowly missed discovering the Hudson Strait.
- In 1553 and 1555, English kings granted the Muscovy Company the right to seek a Northeast Passage or a Northwest Passage.
- Martin Frobisher and influential friends gained the rights to the Northwest Passage from the Muscovy Company and its director, Michael Lok, before his first voyage.
- On his first voyage, Frobisher discovered Frobisher Bay on Baffin Island, believing it to be a strait.
- He narrowly missed the Hudson Strait by a few miles, which would have allowed him to travel further north.
- On-shore mineral hunting yielded a small amount of black ore, which some believed included gold.
AHC Notes
- Muscovy Company — Also known as the Russian Company, or the Company of Merchant Adventurers to New Lands, it was an English trading company founded in the 16th Century. It held a monopoly on English trade with Russia and the surrounding regions. The company sought to establish trade routes to Russia and to engage in commerce with the Muscovite tsardom. The Muscovy Company played a crucial role in developing trade between England and Russia, importing goods such as furs, timber, and Russian products. It established important trading posts and helped pave the way for future English-Russian trade relations.
- Martin Frobisher (1539–1594) — An English explorer, privateer, and naval officer who led three Arctic voyages in the 16th Century, seeking the Northwest Passage and gold. Although unsuccessful, his expeditions marked the first recorded European contact with the Inuit and influenced later British exploration efforts. He was knighted by Queen Elizabeth I in 1588 for his efforts in defending England from the Spanish Armada. He was also one of the Queen’s “Sea Dogs.”
- Northeast Passage — The Northeast Passage refers to European efforts in the late 1500s and early 1600s, particularly by Dutch explorer Willem Barents and English navigator Henry Hudson, to find a sea route to Asia by sailing north of Russia through Arctic waters. These voyages expanded geographic knowledge but failed to establish a viable trade route.
The Company of Cathay’s Voyage (1577)
In 1577, Queen Elizabeth I chartered and funded Martin Frobisher’s second expedition, during which he led a three-ship fleet back to Baffin Island in search of gold ore, ultimately returning with worthless minerals and heavy losses but plans for a third voyage.
- The company received a charter from Queen Elizabeth I and a £1000 investment on March 17, 1577.
- Martin Frobisher was named as “General of the whole Company.”
- He departed with a three-ship fleet on July 17, 1577, to return to Frobisher Strait.
- Frobisher focused mainly on mining gold-bearing ore rather than seeking the Northwest Passage.
- He failed to realize that Frobisher Bay was a dead end.
- His fleet returned to England in late September 1577.
- The voyage cost the company more than £6000.
- None of the 200 tons of ore yielded gold, but German assayers predicted profits.
- The company planned another voyage for the following year.
AHC Notes
- Queen Elizabeth I (1533–1603) — One of the most famous monarchs of England. She played an important role in the development of Colonial America by supporting Sir Walter Raleigh’s expeditions, which led to the founding of the Roanoke Island Colony, the first English settlement in North America.
The Company of Cathay’s Voyage (1578–1583)
In 1578, Martin Frobisher commanded a large gold-mining expedition to Baffin Island, briefly entered the Hudson Strait, collected over 1,000 tons of ultimately worthless ore, and returned to England with heavy financial losses that led to the company’s bankruptcy by 1583.
- Frobisher led a fleet of 15 ships and 120 men, including 40 “miners,” in late July 1578.
- The fleet briefly entered the Hudson Strait but turned back due to a priority on gold-seeking.
- The summer of 1578 was unusually cold, with constant ice hazards in the waters.
- Ice sank one of the ships.
- The expedition gathered 1,350 tons of ore from around the bay.
- Frobisher considered leaving two ships and several men for winter work, but decided all should return to England.
- The fleet returned by October 1, 1578, spending more than £9000 on the voyage.
- The ore proved worthless, like earlier expeditions.
- Stones from the ore were eventually used to pave English highways.
- The company declared bankruptcy in 1583.
AP US History Alignment
The Company of Cathay is part of the following units, topics, and chapters in the AP US History curriculum:
