New Amsterdam (Dutch: Nieuw-Amsterdam) was a 17th-century Dutch settlement established at the southern tip of Manhattan Island, which served as the seat of the colonial government in New Netherland territory. The trading post became a settlement outside of Fort Amsterdam on Manhattan Island in the New Netherland in 1614. Situated on the strategic, fortifiable southern tip of the island of Manhattan, the fort was meant to defend the Dutch West India Company's fur trade operations in the North River (Hudson River). It became a provincial extension of the Dutch Republic as of 1624 and was designated the capital of the province in 1625.New Amsterdam was renamed New York on September 8, 1664, in honor of the then Duke of York (later James II of England), in whose name the English had captured it. In 1667 the Dutch gave up their claim to the town and the rest of the colony, in exchange for control of the Spice Islands.