May 24, 1626: Peter Minuit Buys Manhattan

May 24, 1626, 400 years ago: Peter Minuit buys Manhattan Island from the native Indians for $24. Or so the legend says.

The truth is a bit more complicated.

Henry Hudson, an English explorer, had sailed up the Hudson River on September 2, 1609, claiming a large swath of land for the Dutch Republic. The Hudson Valley, up to present-day Albany and Schenectady, in what became the State of New York; Long Island, including what is now the Boroughs of Brooklyn and Queens, and Nassau County, named for the ruling house of the Netherlands; what is now the western half of Connecticut; the entirety of New Jersey; much of southeastern Pennsylvania, including what became Philadelphia; northernmost Delaware; and the northeastern corner of Maryland. This colony became known as New Netherland. Its capital, occupying the southern tip of Manhattan Island, was named New Amsterdam, after the mother country's capital.

"Manhattan" was a word from the language of the Native Americans living there, the Lenape tribe, meaning "the place where we get bows" -- in other words, the wood to make bows for arrows. One of the many legends of early New York that has proven to not be true is that it was originally "Manahatta," meaning "place of many hills," although the island does have many hills.

Peter Minuit was born in Wesel, Germany between 1580 and 1585 into a Calvinist family that had moved from the city of Tournai, presently part of Wallonia in Belgium, then controlled by Spain, in order to avoid Spanish Catholic authorities, who were not favorably disposed toward Protestants. Minuit married Gertrude Raedts in 1613. She was from a wealthy family, and she probably helped him establish himself as a broker.

Minuit joined the Dutch West India Company, and was sent with his family to New Netherland in 1625 to search for tradable goods other than the animal pelts that then were the major product coming from New Netherland. He returned in the same year, and in 1626 was appointed the new director of New Netherland. He sailed to North America and arrived in the colony on May 4, 1626.

He is credited with purchasing the island of Manhattan, from Native Americans in exchange for traded goods valued at 60 guilders. That figure came from a letter by a representative of the Dutch States-General and member of the board of the Dutch West India Company, Pieter Janszoon Schagen, to the States-General in November 1626. In 1844, New York historian John Romeyn Brodhead converted the figure of Fl 60 (or 60 guilders) to US$24. By 2006, 60 guilders in 1626 was worth approximately $1,000 in current dollars, according to the Institute for Social History of Amsterdam.

The original inhabitants of the area were unfamiliar with the European notions and definitions of ownership rights. For the Indians, water, air and land could not be traded; therefore, it is likely that both parties probably went home with totally different interpretations of the sales agreement. The Lenape probably thought they were the ones who got the great deal.

A contemporary purchase of rights in nearby Staten Island, to which Minuit also was party, involved duffel cloth, iron kettles, axe heads, hoes (garden tools -- the prostitutes came later), wampum, drilling awls, "Jew's harps" and "diverse other wares."

In 1632, the Dutch West India Company recalled Governor Minuit, essentially firing him for corruption. So political corruption in New York City goes back that far. He left the Netherlands, and in 1637, having made a deal with Sweden, he sailed up the Delaware River, and established the colony of New Sweden.

The following year, he was at sea, and his ship was lost in a hurricane. Without his guidance, New Sweden never had a chance, as the mother country was losing what became known as the Thirty Years War, ending its status as a European power. In 1655, the Dutch reclaimed New Sweden as part of New Netherland.

In 1664, as part of the Anglo-Dutch War, England conquered New Amsterdam without firing a shot. Although the Netherlands ended up winning the war, England got to keep New Netherland. It renamed both the colony and its capital city New York, after the Duke of York, brother of King Charles II. He later became King James II.