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 about a wide array of effects shown through China, England, and Spanish countries (Spain and Portugal).
In China, the rapid flow of silver proved soon to be disastrous. China did not have the raw supply of silver to thoroughly support its masses and found itself completely reliant on trade. The conditions of the working class fell as peasants and farmers found their goods of little value. Due to the “scarcity of the silver coin” (Doc. 3) the government could not afford to reimburse its people in silver what it had taken in taxes. Laborers receive less in return for their work, prices fall, and “less land is put into cultivation” (Doc. 3).
Reports of this in peasant classes was only observed by officials, such as Wing Xijue and Ye Chunji, officials during the Ming dynasty. These officials could afford to simply observe for a time as they were above the social unrest of silver shortages. But as the economy and trade worsened, the attention of such officials was drawn closer. “The frugal man” could survive, whereas “the extravagant man” (Doc. 1) could not. It was growing clear that supply was running out. Chinese writers observed that now bills “must be paid with silver” (Doc. 5) no longer with other goods such as rice, chicken, or soybeans. An economic crisis was beginning to rise which touched even the upper classes of China. As silver became a political issue, officials such as He Qiayougan began to see the benefits the rest of the world was reaping. “Chinese silk yarn worth 100 bars of silver can be sold in the Philippines at a price of 200 to 300 bars of silver” (Doc. 7) and the inequalities did not end there. Officials began to see China’s own failing economy, and how foreign nations were profiting.
The Essay on Owned Enterprises China State Trade
40% which is comparable to the rest of the world. Family income distribution is measured using the Gini index and China's value is 40 which is relatively good compared to the rest of the world but has been a decrease when compared to China's recent history. Official figures put unemployment as being 3. 1% but realistically urban unemployment is estimated to be 10% in 2002, in the rural areas there ...
In Spain and Portugal abundant supplies of raw silver proved an advantage in trade at this time: “The Spanish have silver mountains” (Doc. 7) or so it appeared to the Chinese, who were so reliant on it. Spanish economies boomed for a while as they “use this…silver to their great advantage in China” (Doc. 4).
Silver becomes the single good which can be traded for almost anything in China, and luxury goods flow into Spain and Portugal. But the realization that silver can get them so much caused an increase in interest in mining for silver. Laborers are sent into mines to haul up silver climbing ladders “so trying and distressing that even an empty-handed man can hardly get up them” (Doc. 6).
While the wealth is huge, the turmoil to the people is growing as well. Priests, such as Antonia Vazquez de Espinosa, as they are apart from material wealth begin to see the detriments of this silver trade. Other more objective observers, less reliant on trade and/or luxury goods, such as Tomas de Mercado, see that “high prices ruined Spain” (Doc. 2).
Though silver provided ample trade it also created a substantial market and desire for Chinese luxury goods. The reliance was growing to be 2 way as “silver currency flowed out to pay” for luxury goods (Doc. 2).
The Essay on World Silver Trade DBQ
The global trade of silver had a devastating affect on the Chinese economy because China did not have the supply of silver that was needed to support their economy so they became dependent on the trade that the Europeans brought (1,3,7,8). In Europeans states like Spain and Portugal we see their economies benefiting from the increase of the global silver trade because they controlled silver mines ...
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.
Yet despite any conjectures drawn from accounts of scholars, merchants, officials and priests it is impossible to know the full extent of the economic and social effects of silver without the voice of the common people. It was the commoners, laborers, slaves, farmers and peasants which bore the full brunt of the trade. Their every day lives relied on day to day paychecks, which mandated how they survived. It is the rise and fall of poverty in the peasantry, the social unrest or benefit of the commoners that would reveal the true effect of silver. The majority of all of these nations was the peasant class, and it is only their opinion that can completely analyze the effects of the flow of silver bullion.
The flow of silver from the mid-sixteenth to early eighteenth century had a wide range of social and economic effects.
