Prof. Macqueen
youvis1201
silver_and_global_commerce.pptxSilver and Global Commerce
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Silver and Global Commerce
The silver trade was even more important than the spice trade in creating a global exchange network.
Silver and Global Commerce
enormous silver deposits were discovered in Bolivia, Peru, and Japan in the mid-sixteenth century
in the early modern period, Spanish America produced around 85 percent of the world’s silver
Silver and Global Commerce
China’s economy was huge and had a growing demand for silver.
1570s: the Chinese government consolidated taxes into a single tax to be paid in silver
a value of silver skyrocketed
foreigners with silver could purchase more Chinese products than before
Silver and Global Commerce
Silver was central to world trade.
“silver drain” to Asia: bulk of the world’s silver supply ended up in China (most of the rest reached other parts of Asia)
Spanish silver brought to Europe was used to buy Asian goods
Silver and Global Commerce
silver bought African slaves and Asian spices
the Spanish “piece of eight” was widely used for international exchange
“Pieces of Eight”
Potosi, Bolivia
the largest city in the Americas (population: 160,000) because it was at the world’s largest silver mine
Potosi, Bolivia
the city’s wealthy European elite lived in luxury
Potosi, Bolivia
Native American miners lived in horrid conditions
Silver and Spain
Silver vastly enriched the Spanish monarchy.
caused inflation, not real economic growth in Spain
Spanish economy was too rigid
Spanish aristocrats were against economic enterprise (Mercantilism)
Silver and Spain
Spain lost its dominance when the value of silver fell ca. 1600
Silver and Japan
Japanese government profited more from silver production than did Spain.
Tokugawa shoguns used silver revenues to defeat rivals and unify the country
Japanese Silver Mine
Silver and Japan
worked with the merchant class to develop a market-
based economy
Silver and Japan
heavy investment in agriculture and industry
averted ecological crisis, limited population growth
Silver and China
Taxes paid in silver—all
Chinese needed silver
Silver and China
economy became more regionally specialized
deforestation was a growing problem; wasn’t addressed as it was in Japan
China and deforestation
