The Effect Of The 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.

The global flow of silver from the mid-sixteenth century to the early eighteenth century had vast effects both socially and economically around the world. By this time an interregional trade network had been clearly established and world trade was booming. When China, a prominent trade nation, accepted silver as its currency and would only exchange for it, the importance of silver increased. This new rapid scramble for silver proved to be both beneficial and disastrous. While countries which were lucky geographically in their supply of raw silver could now trade prominently with China, demand created an increase of labor and social unrest. Reliance on silver both helped and hindered economies and societies, bringing

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.

In the 1870s, Britain colonized Africa and its coasts for two main interests: gold and slaves. However, gold was limited and therefore, its quantity dried up. Soon enough, palm oil had become the “new gold” and played an immense part in Britain’s growing industrial production. The Gold Coast, in fact, had a long history of merchants and foreigners who seek to extract the many riches the land possessed. Specifically, the British had established its footing on the Gold Coasts through its advancements during the Industrial Revolution and drove out other European competitors. Slowly, Britain had gained control of the Gold Coasts and come to agreements with local rulers to remain independent, but conform to certain rules imposed by the British.

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.

An increase in the flow of silver during the mid-sixteenth century to the early eighteenth century initiated economic and social effects in all areas linked by trade building more economic opportunities and also distinguished social divisions. The documents are written by people from either the British, Chinese, or Spanish all in different social classes. The negative social effects on the lower ranked classes caused an unequal distribution of silver which can be seen in documents 1, 3, 5, and 6. The economic effect of increased prices of traded goods can be seen in documents 2 and 7. Lastly, the economic effect of merchant’s travels caused competition among countries which can be seen in documents 4 and 8. It would have be helpful to read

As stated in Paul Freedman’s, Out of the East: Spices and the Medieval Imagination, “The passion for spices underlies the beginning of the European colonial enterprise, a force that remade the demography, politics, culture, economy, and ecology of the entire globe” (Freedman 3). By the mid- fifteenth century, the Silk Road was deteriorating, leaving the world with the solid grasp on trading, as well as supply and demand. Every country and area had developed their “trade mark” and had adequate understanding on the process of trading. At this time, European’s still had many mysteries they were trying to solve, regarding demography, politics, culture, economy, and ecology, as Freedman mentioned. Spices gave European’s the gateway they needed to unlock many new ideas. This new desired commodity enabled European’s to think “outside the box,” which resulted in a multitude of uses for spices, which made them an even more luxurious item. According to Freedman, “Of all the world’s commodities, spices most dramatically affected history because they launched Europe on the path to eventual overseas conquest, a conquest whose success and failure affects every aspect of contemporary world politics” (3). Freedman exhibits here that spices not only affected Europe, but the whole world as well. Spices intertwined Europe with the rest of the world. Because spices were a undiscovered product by most of the world, it was a mystery on how they should be used, and what they should be used with.

Europeans gain access to new goods and markets, and this creates a demand for things like silk, spices, and ivory.

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 global flow of silver managed to redefine the social structure in many societies, as well as dramatically altered the basis of the economy in many European and Asian countries. Despite the economic change that came from the mass production of silver and its use as a standard currency, the growth of the silver industry brought as much change socially and culturally as it brought economic transformation. Many people viewed the conversion to silver being the standardized currency as a huge hindrance to their daily lives, but the silver industry brought wealth to many societies and became a necessity in trade. On one side of things, the flow of silver throughout the world brought a wave of economic change, as mentioned in documents 3,5,6,

Saffron proved to be an equally important trade because of the high value that was placed on it. Not only did it add intense and wonderful flavor to food, but during a time where there were no refrigerators, saffron helped preserve food. Slaves, another major source of trade, had the strongest influence since they were the most valuable “goods” and they were the most traded/bought goods. Slavery not only played a key factor then, but would do so in centuries to follow as well.

Document 2 strongly states that silver flow began to snowball towards the Asian commodities in Asia, rather than those in Spain. This was due to the fact that prices of Spanish commodities were very high and people turned to the less costly Asian commodities. As an effect, silver flow started to concentrate in Asia and around Asian commodities. Wang Xijue, a Ming dynasty court official, reports to the emperor in document 3 about the scarcity of silver coin and the negative effects it has on the value of grain. Grain was a main cash crop in the Ming dynasty in the late 16th century and when the price of grain dropped, cultivators earned less of a profit. This snowball effect was directly based upon the price of silver because when the government takes the silver and doesn’t distribute it, there is less silver to pay for the grain. As a result, this reduces the amount of food produced and the population of the dynasty is reduced as less land is put into cultivation. Silver’s indirect effect on the amount of food produced affected many societies throughout the globe in the mid-seventeenth century and early eighteenth century. Document 4, 5 and 6 are expressing the constructive economic impact on the global flow of silver. In document 4, the positive economic effect on the global flow of silver is that silver coins are a great use of currency. Portuguese use the Japanese silver coins to their

Silk from China, was of extreme value in Rome, Constantinople, and India. Wool, and precious metals from the West were of extreme value in the East. Jade was not to found in the West, but was worked into art pieces in the East, and transported with items such as rare spices and fine horses not found in the Mediterranean. From the West came exports of cotton, glass, and

Intro The world economy has been linking distant and disparate peoples for thousands of years. Globalization and diversity are by no means the product of modern technologies and economies; instead they have been widespread throughout history. Even if at times most of the wealth was flowing towards Europe, obscure places profoundly influenced the usage of commodities. It was the deep-rooted cultural beliefs of local markets rather than the traditional notion of supply and demand that determined the value of different goods.

North and South Carolina and Virginia all kinds of jewelry was imported in exchange for snuff, rice, etc.