Among the most often-asked questions about early Albany relate to the community economy, its business, or how this early American city actually worked! This basic yet complex part of the early Albany story is at the heart of the inquiry of the Colonial Albany Social History Project. We think about the community economy virtually every day! This page begins to address the concept and provides basic access to what we have found and think we understand. It is very much in-progress!

Generally, the community economy is a term of convenience describing how the associated people of a particular place provided for themselves, produced and marketed products to gain access to external goods and services, and made their community an attractive destination for new customers and new community members.

Again for convenience, we can divide the community economy into three basic elements. These are defined as commerce, production, and service. Without much difficulty, most economic activities can be grouped under these three headings.

The Commercial Economy: At the top of the pyramid are the community's buyers and sellers. These business people were called merchants, traders, vendors, and contractors. In control of Albany's municipal government, they were able to structure the flow of goods and services in and out of the community. In the process, they employed members of the production and service economies. In early Albany, these descendants of the fur traders invested profits in land and sold country products and imported items to the settlers of an expanding countryside. Sometimes they owned mills, processing facilities, storehouses, and ships. Some of these businessmen had direct connections to overseas markets and resources. Those who offered manufactured and finely crafted goods from Europe and more exotic spices, foods, and fabrics were often called import merchants. But most Albany merchants were more closely tied to the business community in New York City. It was in their interest to take charge of community development. They were early Albany's city fathers. These elite citizens ranked in the top quarter of the community's wealth with the real power brokers in the top 5%. Merchants included native sons as well as talented and ambitious newcomers.