page_title: History of Tuvalu
section_title: Trading firms & traders
hierarchical_section_title: History of Tuvalu / Trading firms & traders
caption_attribution_description: CIA map of en:Tuvalu
context_page_description: The first inhabitants of Tuvalu were the Polynesians, so the origins of the people of Tuvalu can be traced to the spread of humans out of Southeast Asia, from Taiwan, via Melanesia and across the Pacific islands of Polynesia.
  Various names were given to individual islands by the captains and chartmakers on visiting European ships. In 1819 the island of Funafuti, was named Ellice's Island; the name Ellice was applied to all nine islands, after the work of English hydrographer Alexander George Findlay. The Ellice Islands came under Great Britain's sphere of influence in the late 19th century as the result of a treaty between Great Britain and Germany relating to the demarcation of the spheres of influence in the Pacific Ocean. Each of the Ellice Islands was declared a British Protectorate by Captain Gibson of HMS Curacoa, between 9 and 16 October 1892. The Ellice Islands were administered as British protectorate by a Resident Commissioner from 1892 to 1916 as part of the British Western Pacific Territories, and then as part of the Gilbert and Ellice Islands Colony from 1916 to 1976.
context_section_description: John (also known as Jack) O'Brien was the first European to settle in Tuvalu, he became a trader on Funafuti in the 1850s. He married Salai, the daughter of the paramount chief of Funafuti. The Sydney firms of Robert Towns and Company, J. C. Malcolm and Company, and Macdonald, Smith and Company, pioneered the coconut-oil trade in Tuvalu. The German firm of J.C. Godeffroy und Sohn of Hamburg established operations in Apia, Samoa. In 1865 a trading captain acting on behalf of J.C. Godeffroy und Sohn obtained a 25-year lease to the eastern islet of Niuoko of Nukulaelae atoll.
  For many years the islanders and the Germans argued over the lease, including its terms and the importation of labourers, however the Germans remained until the lease expired in 1890. By the 1870s J. C. Godeffroy und Sohn began to dominate the Tuvalu copra trade, which company was in 1879 taken over by Handels-und Plantagen-Gesellschaft der Südsee-Inseln zu Hamburg (DHPG). Competition came from Ruge, Hedemann & Co, established in 1875, which was succeeded by H. M. Ruge and Company, and from Henderson and Macfarlane of Auckland, New Zealand.
  These trading companies engaged palagi traders who lived on the islands, some islands would have competing traders with dryer islands only have a single trader. Louis Becke, who later found success as a writer, was a trader on Nanumanga, working with the Liverpool firm of John S. de Wolf and Co., from April 1880 until the trading-station was destroyed later that year in a cyclone. He then became a trader on Nukufetau. George Westbrook and Alfred Restieaux operated trade stores on Funafuti, which were destroyed in a cyclone that struck in 1883.
  H. M. Ruge and Company, a German trading firm that operated from Apia, Samoa, caused controversy when it threatened to seize the entire island of Vaitupu unless a debt of $13,000 was repaid. The debt was the result of the failed operations of the Vaitupu Company, which had been established by Thomas William Williams, with part of the debt relating to the attempts to operate the trading schooner Vaitupulemele. The Vaitupuans continue to celebrate Te Aso Fiafia (Happy Day) on 25 November of each year. Te Aso Fiafia commemorates 25 November 1887 which was the date on which the final instalment of the debt of $13,000 was repaid.
  From the late 1880s changes occurred with steamships replacing sailing vessels. Over time the number of competing trading companies diminished, beginning with Ruge's bankruptcy in 1888 followed by the withdrawal of the DHPG from trading in Tuvalu in 1889/90. In 1892 Captain Davis of HMS Royalist, reported on trading activities and traders on each of the islands visited. Captain Davis identified the following traders in the Ellice Group: Edmund Duffy (Nanumea); Jack Buckland (Niutao); Harry Nitz (Vaitupu); John (also known as Jack) O'Brien (Funafuti); Alfred Restieaux and Emile Fenisot (Nukufetau); and Martin Kleis (Nui). This was the time at which the greatest number of palagi traders lived on the atolls. In 1892 the traders either acted as agent for Henderson and Macfarlane, or traded on their own account.
  From around 1900 Henderson and Macfarlane dominated the copra trade, operating their vessel SS Archer in the South Pacific with a trading route to Fiji and the Gilbert and Ellice Islands. New competition came from Burns Philp, operating from what is now Kiribati, with competition from Levers Pacific Plantations from 1903 and from Captain E. F. H. Allen of the Samoa Shipping and Trading Company from 1911. Structural changes also occurred in the operation of the trading companies, which moved from a practice of having traders resident on each island to trade with the islanders to a business operation where the supercargo (the cargo manager of a trading ship) would deal directly with the islanders when a ship would visit an island; by 1909 there were no resident palagi traders representing the trading firms. Tuvaluans became responsible for operating trading stores on each island.
  The last of the traders were Martin Kleis on Nui, Fred Whibley on Niutao and
caption: A map of Tuvalu.
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