Colonization and Trade in the New World Making Wealthy Countries Wealthier

After the Conquest of the Americas European countries needed to find a way to maintain control their new territories –They began to establish colonies –Europeans needed to solve conflict with surviving Native Americans European monarchs wanted more wealth, and their new territories could help them get rich –Sea trade routes were set up –New trade systems were developed

The Treaty of Tordesillas Treaty between Spain and Portugal to avoid conflict over territories Signed in the very early stages of exploration The two countries drew an imaginary line through the Atlantic Spain would have control over all lands west of the line, Portugal would rule over all lands east of the line Both countries thought this was fair

Portuguese Lands Got the territory of Brazil under Treaty of Tordesillas Brazil was mostly jungle, so Portugal didn’t colonize it immediately When colonists started arriving, they used native laborers to work on large farms

Spain’s Empire in the New World Spain’s king appointed viceroys (officials) to rule large regions in America The Encomienda system was created –A colonist was given a piece of land as well as a number of Native Americans to work for him They would either farm or work in gold & silver mines –The colonists agreed to teach the natives about Christianity in return for the land –System was very profitable

Treatment of the Natives Many Spanish and Portuguese treated natives very harshly Many were worked to death Others died of disease when constantly interacting with Europeans Colonists began to demand stronger and healthier people who could work the land

France and England Claim North America France tries to establish colonies along Mississippi River England has colonies along East Coast The two countries had many conflicts over control of New World territories

French Colonies Formed colonies in New France (Canada), but very few people settled there Wanted to find gold and jewels, but ended up with a huge amount of fish and furs French traders got along well with the Native Americans and they often became allies

English Colonies England wanted to find large gold and silver supplies in the New World The king also wanted to find a passage to Asia that could be protected by English colonies The first colonists faced many struggles, but their settlements endured While English colonists initially got along well with Native Americans, they never developed any lasting relationships with them

How to Make the New World Territories Profitable Work the land –Colonists used Native Americans to work the land when possible, but they died easily –Slaves from Africa became very popular because they were stronger and healthier than the natives Harvest natural resources –All Europeans wanted to find gold and silver, but they began to see the value of other resources, like timber, cotton, and furs Set up a trade system with colonists, African sea ports, and Europeans –Each group could buy and sell goods to one another in a continuous cycle

Triangular Trade Developed to make European countries wealthy and supply colonies with labor Made up pf 3 “legs” 1 - Europe to Africa: trade manufactured goods for slaves 2 - Africa to America: trade slaves for goods 3 – America to Europe: trade goods for manufactured goods

The Middle Passage 2 nd leg of triangular trade system, the slave trade portion American plantations needed a large labor force that they could obtain cheaply Natives kept dying, Europeans were too expensive African prisoners of war were often sold to Europeans by African warlords and chiefs Europeans sometimes kidnapped Africans and forced them onto slave ships As many as 15 million Africans became slaves in the Americas because of the slave trade

Middle Passage Specifics Slave ships were packed with hundreds, sometimes thousands, of Africans who were chained together there usually wasn’t enough room to sit, but the ceiling was too low to stand Conditions were hot and filthy, and disease spread quickly Food and water were scarce, many people starved Journey on a slave ship could last anywhere from 6 weeks to 6 months About 20% of the Africans died during the ordeal

Diagram of Slave Ship

The Columbian Exchange The exchange of plants, animals, diseases, and culture between the Old World and the New World Dramatically improved diets of people worldwide, population began to grow Increased trade because Europeans wanted New World food and resources, colonists wanted Old World goods they could not find in the New World

The Columbian Exchange

New Ideas in Trade and Economics Mercantilism and Capitalism

Mercantilism – Basic Principles A nation’s strength depends on its wealth, measured by gold and silver supplies There is a fixed amount of wealth in the world, and nations must fight for their share of the wealth A favorable balance of trade can help a nation gain wealth Countries should limit imports and maximize exports A country should not be dependent on others, it should have its own supply of raw resources (through colonies) Colonies only exist to make profit for the mother country Colonies should only trade with their mother country, nobody else

How to Make Mercantilism Work Countries used tariffs (taxes) on imports to prevent people from buying them Governments gave subsidies (grants of money) to help people start businesses and industries so they could produce exports Colonists had to follow laws forbidding them from manufacturing goods trading to foreign countries

The Rise of Capitalism Private individuals began to produce goods and trade individually to make a profit, some got very rich They purchased their own trading ships and set up trade with colonists The demand for goods grew as the population increased and certain products became scarce Prices increased as demand went up, which made traders very rich More and more people wanted to get rich from trade, so they invested in businesses by buying stock