1. Silver and Fur in Global Commerce

2. silver trade Created a global network of exchange
Even more than the spice trade of Eurasia
Mid-16th century rich silver deposits discovered in Bolivia and Japan
Huge increase in world’s supply of silver
Spanish America produced 85% of the world’s silver
Spanish ships transported silver the Philippines
The first direct and sustained trading link between the Americas and Asia

3. China and Silver China had an insatiable appetite for silver
1570s -- China required all taxes be paid silver
Foreigners with silver flocked to China to buy more silk and porcelain
Most of world’s silver ends up in China
Silver traded in Manilla
Silver floods Europe
Silver pays for slaves and spices

4. The Piece of Eight
Becomes the world’s first international currency Used all around the world The Americas, Europe, Asia, Africa, . . .

5. Potosí
Site of the world’s largest silver-mining operation Native-American men forced to labor in the mines Natives died in alarmingly high numbers African slaves were brought to Potosí

6. The Spanish crown gets rich
Latin America’s silver vastly enriched the Spanish Crown
1500 – 1650: 200 tons of gold & 16,000 tons of silver
Spain became the richest and most powerful nation in 16th century Europe
Spanish rulers used wealth to pursue military & political ambitions in both Europe and the Americas
“New World mines supported the Spanish empire.”

7. Weaknesses in The Spanish Economy
The infusion of wealth did NOT fundamentally transform the Spanish economy
Did NOT fix Spain’s structural problems
Did NOT fix Spain’s aristocracy
Did NOT fix Spain’s religious bigotry
Spain lost its dominance when the value of silver dropped in the 17th century

8. Impact of silver on Europe
American silver had a negative economic, social, and political impact on all of Europe
It drove prices higher -- inflation
It further impoverished many
It caused uprising all over Europe
It led to upheaval and instability in 17th century Europe

9. Impact of silver on Japan
Military rulers – Tokugawa shoguns – used silver-generated profits to unify the country
Japanese leaders invested in their nation and made reforms
Silver to lay the foundations it’s Industrial Revolution.
Spain used silver to build an empire, Japan used silver to build a nation

10. Impact of silver on china
Silver expanded China’s commercial economy
People had to sell something to get silver (to pay their taxes)
Sold their labor or products
Chinese economy becomes more regionally specialized

11. Asia was the center of the world economy
It’s large and prosperous population fueled global commerce
Europeans were essentially middlemen
They funneled American silver to Asia
Competed with one another for a place in the Asian market

12. The Fur Trade
North American & Siberian furs Fur production had serious implications for the human societies Fur production had an important environmental impact By 1500, Europe had killed off most of its fur-bearing animals The Little Ice Age created a created demand for fur Declining supplies push prices higher Europeans seeks furs overseas

13. Fur Trade in North America
Very competitive North: French, British, Dutch traded furs South: English tanned skins Few Europeans hunted and trapped Native Americans trapped Trade involved ceremony Europeans paid for furs with Guns, blankets, metal tools, rum, brandy

14. Enormous quantities of Furs and Deerskin
From North America to Europe Great harm to the environment Beavers almost extinct Wetlands destroyed

15. Impact on Native Americans
Native Americans Benefitted Acquired useful stuff from Europeans ❦ copper pots, metal axes, knives, cloth, firearms, and alcohol Their value as trappers saved them from bad treatment ❦ extermination, enslavement, or displacement
Native Americans Suffered Disease Warfare Alcohol

16. Fur Trade in Russian Empire
Incentivized Russian expansion into Siberia 16th and 17th century “soft gold” = fur Made Russians and the Russian state rich Intersected with silver trade Native Siberians suffer greatly Animals hunted to near extinction