1. AP World History POD #11 – Transatlantic Slave Trade Slave Trade Economics

2. Class Discussion Notes Bulliet – “Creating the Atlantic Economy”, pp. 515-520

3. Historical Context “At once archaic in their cruel system of slavery and oddly modern in their specialization in a single product for export, the West Indian plantation colonies were the bittersweet fruits of a new Atlantic trading system. In the sixteenth century Spanish treasure fleets laden with silver and gold bullion had dominated Atlantic trade. In the late seventeenth and eighteenth centuries the Atlantic trade was dominated by sugar ships returning to Europe from the West Indies and Brazil and by slave ships transporting an average of 250 African captives each to the Americas.” (Bulliet, p. 515) “At once archaic in their cruel system of slavery and oddly modern in their specialization in a single product for export, the West Indian plantation colonies were the bittersweet fruits of a new Atlantic trading system. In the sixteenth century Spanish treasure fleets laden with silver and gold bullion had dominated Atlantic trade. In the late seventeenth and eighteenth centuries the Atlantic trade was dominated by sugar ships returning to Europe from the West Indies and Brazil and by slave ships transporting an average of 250 African captives each to the Americas.” (Bulliet, p. 515)

4. Fueling the Atlantic Trade Plantation System – cash crops are produced making the land owners very wealthy Plantation System – cash crops are produced making the land owners very wealthy New Economic Systems – mercantilism & capitalism New Economic Systems – mercantilism & capitalism New Partnerships between Business & Government New Partnerships between Business & Government New working relationships between European and African merchants New working relationships between European and African merchants

5. Monopolies (a failed experiment) Early Spanish & Portuguese voyages were sponsored and supported by the government, with both governments attempting to restrict trade with the overseas colonies through the use of royal monopolies Early Spanish & Portuguese voyages were sponsored and supported by the government, with both governments attempting to restrict trade with the overseas colonies through the use of royal monopolies Royal monopolies were expensive and inefficient Royal monopolies were expensive and inefficient The introduction of private enterprises in the trade routes made the process both more efficient and more profitable The introduction of private enterprises in the trade routes made the process both more efficient and more profitable

6. Capitalism This system was based on the expansion of credit and the development of large financial institutions (banks, stock exchanges, and chartered trading companies) This system was based on the expansion of credit and the development of large financial institutions (banks, stock exchanges, and chartered trading companies) These institutions allowed merchants and investors to conduct business operations around the world These institutions allowed merchants and investors to conduct business operations around the world Risk decreased & Profits increased Risk decreased & Profits increased While this system was developed in Europe it was used by many profit seeking investors in their colonial import & export operations While this system was developed in Europe it was used by many profit seeking investors in their colonial import & export operations

7. Banking By the 17 th century Dutch banks had gained a reputation for financial security and consequently became the holder of large sums of money from both governments and private investors By the 17 th century Dutch banks had gained a reputation for financial security and consequently became the holder of large sums of money from both governments and private investors To make a profit, banks invested their holdings in real estate, industries, loans to governments and overseas trade To make a profit, banks invested their holdings in real estate, industries, loans to governments and overseas trade

8. Joint-Stock Companies These ventures allowed investors to earn higher profits than a bank could offer These ventures allowed investors to earn higher profits than a bank could offer These were the precursors to modern corporations These were the precursors to modern corporations Shares of a company could be bought and sold in specialized financial markets called stock exchanges Shares of a company could be bought and sold in specialized financial markets called stock exchanges Stock was an ownership stake in a company and the investors would share in both the risks and the profits of the operation Stock was an ownership stake in a company and the investors would share in both the risks and the profits of the operation Insurance was also developed and purchased by merchants and trading companies involved in overseas trading as a way to protect the ships and cargo should potential loses occur Insurance was also developed and purchased by merchants and trading companies involved in overseas trading as a way to protect the ships and cargo should potential loses occur

9. Mercantilism “European states sought to monopolize the profits produced in their colonial empires by controlling trade and accumulating capital in the form of gold and silver. This system was called mercantilism. Mercantilist policies strongly discouraged citizens from trading with foreign merchants and used armed force when necessary to secure exclusive relations.” (Bulliet, p. 516) “European states sought to monopolize the profits produced in their colonial empires by controlling trade and accumulating capital in the form of gold and silver. This system was called mercantilism. Mercantilist policies strongly discouraged citizens from trading with foreign merchants and used armed force when necessary to secure exclusive relations.” (Bulliet, p. 516) The British will protect their trade through a series of laws known as the Navigation Acts The British will protect their trade through a series of laws known as the Navigation Acts The French will do the same with the Exclusif The French will do the same with the Exclusif These laws enacted high tariffs (taxes on imports and restrictions on foreign trade), as well as to protect national manufacturing and agricultural interests from the competition of their colonies These laws enacted high tariffs (taxes on imports and restrictions on foreign trade), as well as to protect national manufacturing and agricultural interests from the competition of their colonies Colonies exist for the financial benefit of the mother country Colonies exist for the financial benefit of the mother country

10. Chartered Companies These were companies who were given a monopoly over the trade of a specific region or colony These were companies who were given a monopoly over the trade of a specific region or colony Private investors would buy shares of these companies as a means to making large profits Private investors would buy shares of these companies as a means to making large profits The success of these companies resulted in each nation establishing their own The success of these companies resulted in each nation establishing their own Royal African Company (RAC) controlled all British trade with West Africa Royal African Company (RAC) controlled all British trade with West Africa

11. Atlantic Circuit (Triangular Trade) Europe to Africa – European manufactured goods (metals, hardware, guns, cotton textiles) were exchanged for Slaves (also West African gold, ivory and timber) Europe to Africa – European manufactured goods (metals, hardware, guns, cotton textiles) were exchanged for Slaves (also West African gold, ivory and timber) Africa to America (Middle Passage) – Slaves were transported across the Atlantic and sold to plantation owners (remember smallpox had wiped out the Amerindian labor force) Africa to America (Middle Passage) – Slaves were transported across the Atlantic and sold to plantation owners (remember smallpox had wiped out the Amerindian labor force) America to Europe – plantation goods (sugar cane, cotton, tobacco etc.) were sent to the mother country in Europe America to Europe – plantation goods (sugar cane, cotton, tobacco etc.) were sent to the mother country in Europe Profits – in theory it should have been profitable as goods were sent from areas they were abundant to areas in which they were scarce, however, shipwrecks, deaths and piracy could result in financial loss Profits – in theory it should have been profitable as goods were sent from areas they were abundant to areas in which they were scarce, however, shipwrecks, deaths and piracy could result in financial loss

12. African Slave Trade Plantation economics and profits were dependent on the slave trade Plantation economics and profits were dependent on the slave trade African slaves were used to replace the Amerindian ecomienda laborers who died from the smallpox outbreak and epidemic African slaves were used to replace the Amerindian ecomienda laborers who died from the smallpox outbreak and epidemic In the 150 years after the arrival of the Europeans in the New World nearly 800,000 Africans were transported across the Atlantic against their will In the 150 years after the arrival of the Europeans in the New World nearly 800,000 Africans were transported across the Atlantic against their will During the Sugar Boom years of 1650 to 1800 there were over 7,500,000 slaves transported During the Sugar Boom years of 1650 to 1800 there were over 7,500,000 slaves transported The West Indies (including Cuba) accounted for almost 50% of these slaves, while Brazil took nearly 33% and North America roughly 5% with the rest going to the Spanish colonial mainlands The West Indies (including Cuba) accounted for almost 50% of these slaves, while Brazil took nearly 33% and North America roughly 5% with the rest going to the Spanish colonial mainlands

13. Middle Passage Conditions “While the volume and duration of the slave trade indicate that it was profitable, the relative value of European goods and African slaves as well as slave prices in American ports determined the profit of individual voyages. Slave traders also had to deliver as many healthy slaves as possible for sale in the plantation colonies, but the terrible conditions on slave ships and a long and treacherous voyage lasting from six to ten weeks led to high mortalities. Some ships arrived with all of their slaves alive, but large, even catastrophic, losses of life were common. On average, however, slave traders succeeded in lowering mortality during the Middle Passage from about 23 percent on voyages before 1700 to half that in the last half of the eighteenth century.” (Bulliet, pp. 518-519) “While the volume and duration of the slave trade indicate that it was profitable, the relative value of European goods and African slaves as well as slave prices in American ports determined the profit of individual voyages. Slave traders also had to deliver as many healthy slaves as possible for sale in the plantation colonies, but the terrible conditions on slave ships and a long and treacherous voyage lasting from six to ten weeks led to high mortalities. Some ships arrived with all of their slaves alive, but large, even catastrophic, losses of life were common. On average, however, slave traders succeeded in lowering mortality during the Middle Passage from about 23 percent on voyages before 1700 to half that in the last half of the eighteenth century.” (Bulliet, pp. 518-519)

14. Factors Influencing Mortality Rates Along the Middle Passage Failed escapes & Mutinies (especially among male slaves who would attempt to overpower their captors and were therefore, often kept chained together below deck) Failed escapes & Mutinies (especially among male slaves who would attempt to overpower their captors and were therefore, often kept chained together below deck) Suicide - according to traditional Animist beliefs, the spirit would return home upon bodily death Suicide - according to traditional Animist beliefs, the spirit would return home upon bodily death Mistreatment – although it was in the best financial interest of the captain and crew to keep the slaves alive and in good condition, whippings, beatings, and even executions were used to keep order and control Mistreatment – although it was in the best financial interest of the captain and crew to keep the slaves alive and in good condition, whippings, beatings, and even executions were used to keep order and control Fixed Melancholy – many slaves suffered from severe depression and refused to eat, leading some crews to attempt to force feed these slaves Fixed Melancholy – many slaves suffered from severe depression and refused to eat, leading some crews to attempt to force feed these slaves Because work on slave ships was difficult and dangerous most sailors did not seek employment on these voyages, consequently less moral and ethical crews and captains were in control of these vessels and slaves Because work on slave ships was difficult and dangerous most sailors did not seek employment on these voyages, consequently less moral and ethical crews and captains were in control of these vessels and slaves