KEY CONCEPT B SILVER AND FUR TRADE APWH Unit 4 RISE AND FALL OF SPAIN THE EMPIRE OF CHARLES V In 1556, an exhausted Charles gave up his titles and divided his empire. His brother Ferdinand became Holy Roman Emperor, and his son Philip ruled Spain, the Netherlands, and the vast Spanish overseas empire. KING CHARLES V FROM 1519 TO 1556 Ruling two empires involved Charles in constant warfare. As a devout Catholic, he fought to suppress Protestantism in Germany. He faced military threats from the French, from German Protestant princes, and from the Ottoman Empire under Suleiman. Ruling two empires involved Charles in constant warfare. As a devout Catholic, he fought to suppress Protestantism in Germany. He faced military threats from the French, from German Protestant princes, and from the Ottoman Empire under Suleiman. Charles V provided five ships to Ferdinand Magellan, the first to circumnavigate around the world. New Spain was considerably extended by conquistadors like Hernn Corts and Francisco Pizarro. Charles V provided five ships to Ferdinand Magellan, the first to circumnavigate around the world. New Spain was considerably extended by conquistadors like Hernn Corts and Francisco Pizarro. Aztec and Inca location in Mesoamerica REASONS FOR SPANISH CONQUEST OVER THE AZTECS A. Diseases, smallpox, measles, influenza B. Alliances with Aztec enemies, Tlaxcalans helped by translator Dona Marina (Malinche) C. Spanish technology and animals (Guns, canons, horses, dogs) D. Aztecs initially thought Cortez was God Quetzalcoatl E. Spanish Method of warfare Aztecs fought to capture enemy, Spanish killed the enemy We have pounded our hands in despair against the adobe walls, for our inheritance, our city, is lost and dead. - Aztec Warrior SOCIAL HIERARCHY P C M Z, I & A Creoles: People of pure European blood But born in the New World Mestizos: Indian + European blood Mulattos: African + European blood Zambos, Indians and Africans M Peninsulares: Spanish born in Spain Latin American Society North American Society Both Spain conquered major centralized Empires (Aztec, Inca) Mostly settled by men (85%) Spanish/Portuguese men had relations with Native/African miscegenation Led to Mestizos increased population Lived in cities European style - distinct communities mixed marriages Castas system develops Roman Catholic converted natives could be saved Developed societies based on race Used slavery Borrowed cultural elements from Natives and Africans clothing, plants, drums, flags, food, etc. Women more numerous mostly married within own group French fur trading involved with native women Mestis helped build alliances Encountered tribal groups war or trade English looked down at natives and Africans Lived in small farming villages - developed racism and strict boundaries Did not acknowledge mixed races considered them black Protestant others could not be saved COLONIZATION OF THE AMERICAS SPANISH EMPIRE OF KING PHILIP II New Spain controlled by bureaucracy Council of Indies Two Viceroyalties (Mexico City & Lima) Ten Audiencias - Make and enforce Spanish law Local magistrates applied the law, collected taxes, and assigned work required of Indian communities During his 42 years reign, Philip II expanded Spanish influence, strengthened the Catholic Church and claimed absolute power. He conducted the Inquisition to eliminate Protestants, Jews and Muslims. During his 42 years reign, Philip II expanded Spanish influence, strengthened the Catholic Church and claimed absolute power. He conducted the Inquisition to eliminate Protestants, Jews and Muslims. Ruled from Catholic Church dominates Widespread conversion of the Indians by Jesuits Constructed baroque cathedrals Religious schools and universities Catholic Church dominates Widespread conversion of the Indians by Jesuits Constructed baroque cathedrals Religious schools and universities A. Spanish Conquistadors took over existing tributary networks B. Like Indian Ocean, Spanish began to tap into vast commercial systems and exploit the existing indigenous empires C. Unlike Indian Ocean, the New World was not restricted to commercial outposts. It involved the control of large amounts of territory. A. Spanish Conquistadors took over existing tributary networks B. Like Indian Ocean, Spanish began to tap into vast commercial systems and exploit the existing indigenous empires C. Unlike Indian Ocean, the New World was not restricted to commercial outposts. It involved the control of large amounts of territory. Spains Tributary Empire 1. Provinces were ruled by a viceroy, or royal governor, a representative of the king. 2. Plantations called haciendas, grew sugar cane to make sugar, molasses, rum. Needed workers to make plantations profitable. 3. Encomienda system King granted conquistadors land to settle, including the right to use Native Americans as laborers on it. 1. Provinces were ruled by a viceroy, or royal governor, a representative of the king. 2. Plantations called haciendas, grew sugar cane to make sugar, molasses, rum. Needed workers to make plantations profitable. 3. Encomienda system King granted conquistadors land to settle, including the right to use Native Americans as laborers on it. Spanish Control of New Territory Eventually, the King prevented encomiendas from being hereditary. Once an encomendero died, his land reverted to the crown. Bartolome de las Casas Priest who spoke out against the evils of the encomienda system. Bartolome de las Casas To fill labor shortage, Las Casas urged colonists to get workers from Africa. They would be immune to disease and have useful farming skills. Led to the African Slave Trade in 1502. A. Discovery of Silver in the Americas made Spain powerful B. Mita system developed forced labor in gold, silver, mercury mines. C. Spain used silver to pay long term debts D. Purchased manufactured goods and items from China and Far East A. Discovery of Silver in the Americas made Spain powerful B. Mita system developed forced labor in gold, silver, mercury mines. C. Spain used silver to pay long term debts D. Purchased manufactured goods and items from China and Far East The Silver Trade Silver mine in Potosi E. Spent money funding military, navy, and European wars. Mighty Spanish Armada was able to rule the seas and dominate trade. The Spanish government used its Super Profits - derived from control of silver production - to launch a deadly, multi-front war against the emerging capitalistic states to the north (England and the Netherlands). The northern powers nearly went bankrupt defending themselves against Iberias religion-inspired military fanaticism. - Dennis O. Flynn SPAINS GOLDEN CENTURY The Hapsburgs were patrons of the arts. Among the most famous painters of the period was El Greco. His most famous work was the Burial of the Count of Orgaz. The Hapsburgs were patrons of the arts. Among the most famous painters of the period was El Greco. His most famous work was the Burial of the Count of Orgaz. Spains golden century also produced outstanding writers like Cervantes who wrote Don Quixote (1605), the first modern novel in Europe which makes fun of medieval tales of Chivalry. SILVER TRADES GLOBAL IMPLICATIONS COMMODITIES In economics, a commodity is a substantially fungible marketable item produced to satisfy wants or needs. Fungibility is the property of a good or a commodity whose individual units are capable of mutual substitution. That is, it is the property of essences or goods which are "capable of being substituted in place of one another. One of the characteristics of a commodity good is that its price is determined as a function of its market as a whole. Generally, these are basic resources and agricultural products such as iron ore, sugar, rice. Soft commodities are goods that are grown, while hard commodities are ones that are extracted through mining. SILVER BECOMES THE FIRST COMMODITY USED TO CREATE TRULY GLOBAL TRADE IN THIS UNIT. SILVER AND GLOBAL COMMERCE Silver = 1st major commodity to be exchanged on a truly global scale SILVER AND GLOBAL COMMERCE Mid-1500s = rich silver deposits discovered in Bolivia and Japan Spanish America = produced about 85% of the worlds silver Major link in silver trade = Philippines Silver = mined in Bolivia sent to Acapulco in Mexico where it was loaded onto cargo ships then shipped to the Philippines A. Potosi is a major mining city in modern day Peru. B. In Potos, Spanish administrators initially recruited laborers by adapting the Inca system (MITA) of draft labor to their own needs. C. Workers often died of disease and overwork. Some Indians rebelled. A. Potosi is a major mining city in modern day Peru. B. In Potos, Spanish administrators initially recruited laborers by adapting the Inca system (MITA) of draft labor to their own needs. C. Workers often died of disease and overwork. Some Indians rebelled. Mining in Potosi Impact of Silver on Spain Less than 50% of silver remained in Spain At no point did American treasure imports make up more than 25% of Spains national revenue Less than 50% of silver remained in Spain At no point did American treasure imports make up more than 25% of Spains national revenue Silver Production : Spanish America : 325 tons a year (Official) tons a year (Illegal) Japanese: 200 tons a year Silver Production : Spanish America : 325 tons a year (Official) tons a year (Illegal) Japanese: 200 tons a year With such large production numbers, what effect will this have on the value of silver around the world? SILVER AND GLOBAL COMMERCE Most of the worlds silver supply = ended up in China Foreigners could now purchase in-demand Chinese goods with silver Many merchants flocked to Manila (capital of the Philippines) to sell Chinese goods there for silver Furthermore in 1570s = China issued new single tax that all people were required to pay in silver Meant that more goods needed to be sold by them = more silver in China = taxes could be paid Chinese porcelain in Europe THIS ENDS UP RADICALLY IMPACTING. A.The Silverization of China led to the mass import of Silver world wide. China becomes Silver Sink B. Market Value of silver was twice as high in China as in Spain. Europeans now have something to offer China for silks, porcelain and spices. C. High overvalued demand and low costing supply resulted in biggest mining boom in human history. D. Japan produced 30% of worlds silver. Silver profits helped Tokugawa defeat rivals and consolidate power. A.The Silverization of China led to the mass import of Silver world wide. China becomes Silver Sink B. Market Value of silver was twice as high in China as in Spain. Europeans now have something to offer China for silks, porcelain and spices. C. High overvalued demand and low costing supply resulted in biggest mining boom in human history. D. Japan produced 30% of worlds silver. Silver profits helped Tokugawa defeat rivals and consolidate power. CHINA ON THE OTHER SIDE OF THE WORLD MANILA GALLEONS Manilla Galleons were Spanish trading ships that made round-trip sailing voyages once or twice per year across the Pacific Ocean from the port of Acapulco (present-day province of Mexico) to Manila in the Philippines which were both part of the New Spain. SILVER TRADE SOLVED EUROPEAN SPECIFIC PROBLEMS More Profits through Arbitrage Arbitrage is a trade that profits by exploiting price differences of identical or similar financial instruments, on different markets or in different forms. Chinas massive need to silver (demand) lead to an increase in its value. For a long time the market value of silver in China was DOUBLE its value elsewhere. To make money traders could buy silver somewhere else and sell it in China and make huge bucks! IT ALSO FIXED THE IMBALANCE IN TRADE Countries typically want an equal exchange in trade. When your merchants show up somewhere else they want to sell what they have brought for a similar amount of goods from that country. EUROPEAN TRADERS HAD AN ISSUE BECAUSE CHINA REALLY WASNT INTERESTED IN ANY OF THE GOODS THEY HAD FROM EUROPE. This lead to a massive imbalance in trade WHICH IS BAD FOR THE MERCHANTS. Chinas incredible need for Silver finally provided something that Europeans could EXPORT (send) to China. They could easily exchange the silver for GOLD or Chinese goods that were in high demand across the world. SILVER AND GLOBAL COMMERCE Besides Chinese goods, silver was also used to purchase: Spices in Southeast Asia Slaves from Africa Spanish Decline: A. Too much Silver production led to inflation and loss of value. B.Bankers lent money to Spanish crown due to promise of future silver - despite the crowns falling credit and value. C.Spanish government occasionally went bankrupt D. Bought most manufactured goods. Never developed manufacturing of their own A. Too much Silver production led to inflation and loss of value. B.Bankers lent money to Spanish crown due to promise of future silver - despite the crowns falling credit and value. C.Spanish government occasionally went bankrupt D. Bought most manufactured goods. Never developed manufacturing of their own The poverty of Spain resulted from the discovery of the Indies. In the 1600s, Spanish power slowly declined. Even though it ruled a huge colonial empire in the Americas, its strength slipped away. E. Spent money fighting wars with Northern capitalistic competitors. The British defeated the Spanish Armada in By the time the last surviving ships reached Spain, half of the original Armada was lost and some 15,000 men had perished. E. Spent money fighting wars with Northern capitalistic competitors. The British defeated the Spanish Armada in By the time the last surviving ships reached Spain, half of the original Armada was lost and some 15,000 men had perished. SILVER: IMPACT ON SPAIN Positives Brought wealth and power to Spain Rulers could now pursue military and political ambitions in Spain and the Americas Supported the Spanish Empire Negatives Over time too much silver flowed into Spain caused inflation = value of silver went down and prices went up When the value of silver dropped worldwide (early 1600s), Spain began to weaken and lose power SILVER AND JAPAN Japan put its silver-generated profits to good use: Shoguns used it to defeat rival feudal lords and unify Japan Shoguns worked with merchant class to develop a market- based economy Invested in agricultural and industrial enterprises Protected and renewed Japans dwindling forests Procession of Japanese shoguns in 17 th century SILVER AND JAPAN Simultaneously = millions of families (in 18th century) took steps to have fewer children Results for Japan = slowing of population growth; prevention of ecological crisis; bustling, commercialized economy Laid the groundwork for Japans Industrial Revolution in the 19th century SILVER AND CHINA Impact of silver on Chinas economy: Led to more commercialization In order to pay silver tax, people had to sell something led to economic specialization Ex: Selling just rice or just silk Impact on Chinas environment: More land = used to grow cash crops Result = loss of about of Chinas forests Chinese women making silk First World Trade System! FUR TRADE FUR IN GLOBAL COMMERCE By 1500 = diminished supply of fur-bearing animals in Europe due to population growth and agricultural expansion Little Ice Age = period of cooling temperatures and harsh winters at the time Result of these conditions = high demand for furs Result of this demand = pushed prices for furs higher = incentive for traders to sells it FUR TRADE IN NORTH AMERICA Fur trade = very competitive French = in St. Lawrence Valley, around Great Lakes, and along Mississippi River British = Hudson Bay region and along Atlantic coast Dutch = along Hudson River (present-day New York) FUR TRADE IN NORTH AMERICA Actual hunting, trapping, processing, and transporting of animals/furs = done by Native Americans Brought them to European coastal settlements or trading posts Europeans then sold the furs abroad In return for the furs, Europeans gave Native Americans: guns, blankets, metal tools, rum, and brandy FUR TRADE IN NORTH AMERICA: IMPACT ON NATIVE AMERICANS Positives Received items of real value (ex: copper pots, metal axes, etc.) Strengthened their relationships with neighboring peoples Enhance authority of chiefs could give their followers gifts Protected them (for a while) from enslavement, extermination, or displacement Negatives Exposure to European diseases Competition between tribes for furs = resulted in conflict and warfare Often got caught up in European rivalries/conflicts Became dependent on European goods; never learned to make them themselves Alcohol-related problems resulting from influx of rum and brandy SIBERIAN FUR TRADE Siberia (in Russia) = major source of furs for Western Europe and the Ottoman Empire Brought wealth to the Russian state and many private merchants, trappers, and hunters Transporting furs across Siberia SIBERIAN FUR TRADE Consequences for native Siberians: Exposure to new diseases Became dependent on Russian goods Settlers encroached on their native lands Depletion of many species of fur-bearing animals A Russian Sable FUR TRADE NORTH AMERICA VS. SIBERIA North America Several European nations competing Obtained furs using negotiations and trade with Native Americans Siberia Only Russians and native Siberians getting furs Obtaining furs themselves; no middlemen Russian authorities imposed a tax (payable in furs) on all Siberian men between 18 and 50 took hostages (who were sometimes executed) if taxes not paid