SILVER AND FUR IN GLOBAL COMMERCE SILVER TRADE

SILVER AND FUR IN GLOBAL COMMERCE

SILVER TRADE CREATED A GLOBAL NETWORK OF EXCHANGE Ø Even more than the spice trade of Eurasia Ø Mid-16 th century rich silver deposits discovered in Bolivia and Japan Ø Huge silver increase in world’s supply of Ø Spanish America produced 85% of the world’s silver Ø Spanish ships transported silver the Philippines Ø The first direct and sustained trading link between the Americas and Asia

CHINA AND SILVER Ø China silver had an insatiable appetite for Ø 1570 s -- China required all taxes be paid silver Ø Foreigners with silver flocked to China to buy more silk and porcelain Ø Most of world’s silver ends up in China Ø Silver traded in Manilla Ø Silver floods Europe Ø Silver pays for slaves and spices •

THE PIECE OF EIGHT Becomes the world’s first international currency Used all around the world The Americas, Europe, Asia, Africa, . . .

POTOSÍ Site of the world’s largest silver-mining operation Native-American men forced to labor in the mines Natives died in alarmingly high numbers African slaves were brought to Potosí

THE SPANISH CROWN GETS RICH Ø Latin America’s silver vastly enriched the Spanish Crown Ø 1500 – 1650: 200 tons of gold & 16, 000 tons of silver Ø Spain became the richest and most powerful nation in 16 th century Europe Ø Spanish rulers used wealth to pursue military & political ambitions in both Europe and the Americas Ø “New World mines supported the Spanish empire. ”

WEAKNESSES IN THE SPANISH ECONOMY Ø The infusion of wealth did NOT fundamentally transform the Spanish economy Ø Did NOT fix Spain’s structural problems Ø Did NOT fix Spain’s aristocracy Ø Did NOT fix Spain’s religious bigotry Ø Spain lost its dominance when the value of silver dropped in the 17 th century

IMPACT OF SILVER ON EUROPE • American silver had a negative economic, social, and political impact on all of Europe Ø It drove prices higher -- inflation Ø It further impoverished many Ø It caused uprising all over Europe Ø It led to upheaval and instability in 17 th century Europe

IMPACT OF SILVER ON JAPAN Ø Military rulers – Tokugawa shoguns – used silver-generated profits to unify the country Ø Japanese leaders invested in their nation and made reforms Ø Silver to lay the foundations it’s Industrial Revolution. Ø Spain used silver to build an empire, Japan used silver to build a nation

IMPACT OF SILVER ON CHINA Ø Silver expanded China’s commercial economy Ø People had to sell something to get silver (to pay their taxes) Ø Sold their labor or products Ø Chinese economy becomes more regionally specialized

ASIA WAS THE CENTER OF THE WORLD ECONOMY It’s large and prosperous population fueled global commerce Europeans were essentially middlemen v. They funneled American silver to Asia v. Competed with one another for a place in the Asian market

THE FUR TRADE North American & Siberian furs Fur production had serious implications for the human societies Fur production had an important environmental impact By 1500, Europe had killed off most of its fur-bearing animals The Little Ice Age created a created demand for fur Declining supplies push prices higher Europeans seeks furs overseas

FUR TRADE IN NORTH AMERICA Very competitive North: French, British, Dutch traded furs South: English tanned skins Few Europeans hunted and trapped Native Americans trapped Trade involved ceremony Europeans paid for furs with. . . Guns, blankets, metal tools, rum, brandy

ENORMOUS QUANTITIES OF FURS AND DEERSKIN From North America to Europe Great harm to the environment Beavers almost extinct Wetlands destroyed

IMPACT ON NATIVE AMERICANS Native Americans Benefitted Native Americans Suffered Acquired useful stuff from Europeans Disease ❦ copper pots, metal axes, knives, cloth, firearms, and alcohol Warfare Their value as trappers saved them from bad treatment ❦ extermination, enslavement, or displacement Alcohol

FUR TRADE IN RUSSIAN EMPIRE Incentivized Russian expansion into Siberia 16 th and 17 th century “soft gold” = fur Made Russians and the Russian state rich Intersected with silver trade Native Siberians suffer greatly Animals hunted to near extinction