Document Based Question: Global Flow of Silver

Between the mid-sixteenth century to the early eighteenth century, silver production or the increased flow of silver had an effect in the society and economy(both good and bad) throughout the world. While the Spanish colonial America and Tokugawa Japan were leading the world in silver production, the government of Ming China were making all domestic taxes and trade fees be paid in silver.

Europe seemed to remain the most neutral in this desperate silver trade, choosing to remain only involved enough to observe. British merchants were not entirely reliant on trade to or from the Asian worlds so merely recorded how China received “nothing but silver” (Doc. 4) and the Portuguese use this to “their good advantage in China”. However, England could not remain completely unaffected as scholars such as Charles D’Avenant observed. Luxury goods especially spices and silks have become prominent in European culture. While Europe draws from Asia “nothing on solid use” it has “tasted of this luxury” (Doc. 8) and it is not advisable for England to pull out of this silver trade. England could afford to remain more objective, but it could not pull out entirely. It had roots planted early on, and it would cause severe social disturbance to tear them up.

The increased flow of silver altered the worldwide global trading both socially and economically. The global flow of silver from the mid-sixteenth century to the early eighteenth century caused social and economic issues by creating social impact in China, changing the economic purpose for trading, and the overall exchange between the Chinese and European nations.

On the 31st of December in the year 1600, ‘The Governor and Company of Merchants of London Trading into the East Indies’ received a Royal Charter to be England’s trading representative in India. By they early part of the 17th Century, Britain had already eclipsed Portuguese interests in India. The company bought in cotton, silk, indigo, opium, saltpeter and tea mainly in exchange for silver bullion. These were valuable commodities in Britain at that time. By 1720, 15% of British imports were from India.

The wealthy were able to obtain more silver than the lower class causing an unequal distribution of silver. China has issued a new policy to limit wedding expenses. They are requiring the payment in silver which explains their way of limit wedding expenses. The frugal man would have something left over because he is able to save and use limited resources. While the other extravagant man would spend much more than is needed. These men are from two different social classes. Ye Chunji was a county official during the Ming Dynasty and must have earned the position he is in so he is able and has the authority to limit the wedding expenses of a frugal and extravagant man to what he feels is right. (Doc 1). China’s policy of silver being paid as taxes has affected grain prices and has mainly affected poor peasant farmers. This expresses dominance the government has over the farmers which is causing them troubles. Wang Xijue, a Ming dynasty court official reported this problem to the emperor. In the report he criticized the national government’s new silver policy about the farmer’s lack of silver. He personally could have been a farmer himself and rose to more power which is affecting his view. (Doc 3). In China, the dye shops have changed the way they charge their customers for service. They went from not using money to a currency way of paying. This made the form of

Ogedei laid the foundation of prosperity and brought master craftsmen of various fields from China (Doc.4). By bringing in skilled artisans from China, Ogedei increased the amount and quality of goods for both regional and foreign trade. Francis Balducci Pegolotti explains how the lord of Cathay would purchase silver from foreign merchants and give them paper money in exchange. Merchants were then able to use this currency to buy silk and other goods (Doc.7). As we know from Marco Polo, Cathay was being controlled by the Mongols during this time (Doc.2). Being an Italian businessman, Francis Balducci Pegolotti’s description of this trading process accurately represents foreign trade with Mongols. This system of paper money created by the Mongols facilitated trade and allowed the merchants to easily purchase items at a fixed price as well as not having to carry a burden. Despite these benefits, paper money contributed to the fall of the Yuan Empire because the value of notes were doubted. Similar to the trading cities established by Latin Europe, economy was entirely dependent on local and long-distance trade. Both these trading cities and the Mongol Empire relied on trade to fuel their

Like Lopez there were a lot of Spaniards that never worked with silver or were important persons, but in Potosi they became strongly important been silver traders. This opportunity was very attractive to any person in the old world; it was the main reason why Spaniards were moving to Potosi. Into the functions of the silver traders was also to provide credit for miners and refiners. These credits were like cash loans to supply materials, tools and other goods needed to make silver. Credits were given, of course, at interest .

The author also mentions that China-based their economy on the exchange of silver. Another important thing in this chapter was the role of the Chinese voyages in the history of China and the entire world. The voyages that were created around the 1400s were used for three reasons,

Silver production in the mid-sixteenth century to the early eighteenth century increased substantially due to Spaniards gaining control of Potosí. This led to them creating mines in the area, which was rich in silver. By doing this, they substantially increased the silver in the hands of the Spaniards, which they mainly used to pay for luxury goods and products from Asia. The silver trade had long reaching effects on the social and economic state of empires and countries worldwide from the time period of the mid-sixteenth century to the early eighteenth century. Socially, the silver trade affected the Chinese social mindset and structure and caused them to change. Economically, the silver trade negatively affected the economy of Europe overall.

The fruitless campaigns of 1544 and 1550 demanded an estimated 3.5 million pounds, the reciprocal yield from domestic taxation of the same period amounting to a fraction of that cost at 976,000. (Matusiak, 2005) Disastrously Henry VIII addressed this deficiency by administrating a series of debasements continued by his successors until by 1551the silver content in coins had decreased to 25% of what it had been in 1542. This "economic maelstrom" (Matusiak, 2005, p.33) was further exacerbated by the collapse of the wool trade; exports plummeting by 35% in 1552, paralleled in the forthcoming years by the depredation of the agricultural industry as a repercussion of the 1554-1556 harvest failures (caused by the inundating of heavy rain), agricultural laborers’ wages dropped around 60% and the cost of necessary commodities (food, drink, housing) cost the lower classes 80% (Jones, 1973, p. 78) of their reduced incomes as demonstrated by the 1551 imploration of Bishop Hooper (addressing Secretary

This document is reliable as it is a scholar whose primary purpose should be to observe and record. The Portuguese also took advantage of this Silver Trade integration. Ralph Fitch was aware of this stance of the Portuguese by recording in his account of travels in the East Indies during the year 1599. He claims, “…more than 600,000 cons of Japanese Silver… the Portuguese bring from China gold, perfume, silk, copper, porcelain, and many other luxury goods.” (Document 4) This quote by Fitch reveals that the Europeans, or in this case the Portuguese, were frequently trading with China for goods that they did not frequently obtain before this time. Antonio Vazquez de Espinosa, a Spanish priest in the 1620’s exclaimed, “…silver taken secretly from these mines to Spain, paying no 20 percent tax or registry fee, and to other countries outside Spain including the Philippines and China.” (Document 6) This quote means that there was silver that was being spread throughout the

Documents 3,5,6, 7 and 8 all mention how the economy changed dramatically due to the arrival and growth of silver as a currency. In document 3, a Ming dynasty court official writes about how the silver coin is hard to come by because the government is hoarding all of it. They take silver for taxes but do not redistribute it to the people. He is writing this because he is trying to convince the emperor to distribute the silver more appropriately to the people, and because his family is obviously not doing well financially. He is a court official who most likely has small influence in the government and writes in hopes of getting the emperor to consider spreading the wealth to the lower classes of China, to save his family, and other families like his. Document 5 expresses a different, but somewhat related view about how silver has become a hindrance to regular business interactions, because customers can no longer trade items of their own to purchase goods, they have to go through a lengthy process to pay everything in silver. Document 6 shows a counter point of view about the wealth that the mining of silver has brought to Spain. Document 7 is a report written to convince the emperor of China that there is much wealth to be found in foreign trade, because of how much silver some countries will pay for Chinese goods. Finally, document 8 examines how European countries are able to purchase Asian commodities freely because of their immense supply

DBQ: Analyze connections between regional issues and European struggles for global power in the mid-eighteenth century. Identify an additional type of document and explain how it would help your analysis of these connections.

The combination of increasing unemployment rate and food price created severe poverty across the nation (Goldfinger par. 1-3). The currencies in China, too, went through a lot of changes to accommodate the increasing trade. At first, the silver Spanish dollars became rare and increased in value so much that it was outlawed as a usable currency. However, at the same time, the Chinese copper currency were also being used less due to the fact that the metal was becoming rare and the administration of the currency was extremely poor. The Mexican dollar was introduced but the problem was not solved until paper money were used in 1853 (Goldfinger par. 2). To make the economy worse, during the First Opium War, China had to pay six million silver dollars to ransom Canton, and an additional nine million dollars were paid to foreigner traders for their loss. Later, twelve million taels of silver were paid to Britain and France under the treaties negotiated after the Second Opium War. All of those factors weakened the Chinese economy in the 1800s (Allingham par.5-9). However, the Opium Wars’ impact is everlasting, for “the Chinese have embarked on a long and arduous struggle to expunge the humiliations which they suffered during and since the Opium War…Foreign industrialists may continue to dream of the supposedly unlimited China market, but the Chinese…are determined to keep the 'open door' sufficiently ajar to import vital technologies, while keeping all unwanted

The exploitation and pillage of the West Indies and the Americas, and that of Africa by means of the slave trade, and finally, the discovery by Europeans of the sea route to the Far East and India, led to a rapid growth in world trade by the 16th century. The vital role of India and the Far East in generating the system of British industrial capitalism and capital accumulation in Britain is undeniable. In that role, were great monopolistic chartered trading corporations that emerged in England during 16th and 17th century, such as the Baltic Company and the Levant Company? The greatest of which was the East India Company, which conquered and had rule over India.