Geoffrion 1
Mr. Geoffrion
Silver DBQ
The global flow of silver from the mid-sixteenth century to the early eighteenth century
increased social distinctions around the world, brought on negative economic consequences in China
and Spain, but also increased trade, specifically in luxury goods from China to Europe.
One effect of silver was an increase in social distinctions. One county official in Ming China
actually proposed limiting wedding expenses as he felt the lower classes could make do with a single bar
of silver and even have some left over, while the rich could have a thousand and still not have enough
(Doc 1). As an official, he probably wants to limit class distinctions to avoid tensions between the social
classes so that they are easier to govern. The rich flaunting their wealth is sure to cause problems in this
area. In England as well, the wealthy were able to enjoy luxury goods unavailable to the lower classes
such as silk. Charles D’Avenant points out that the increased trade brought on spices enjoyed by all, but
silk is reserved for the “better sort.” D’Avenant goes on to say that this trade should continue. Perhaps
he feels this way because he is that “better sort” and enjoys buying expensive silk garments for himself
and his wife (doc 8). Even in the Americas, where much of this silver was coming from, social effects
were felt in the expansion of slavery. The Spaniards used Native Americans as slaves to mine the silver.
One Vazquez de Espinosa referred to these “poor fellows” as if he felt sorry for them. This is likely due
to the fact that he is a priest and sees these people not as property, but as souls worth saving (Doc 6).
An additional source, such as a Japanese peasant, would be helpful in outlining the social effects there
as we know Japan was heavily involved in the silver trade, yet there are no documents from Japan.
The most unforeseen effects of the silver trade, were the unintended economic consequences
silver produced. In Spain, they had so much silver that it caused rampant inflation. Tomas de Mercado,
a scholar, spoke of the high prices ruining Spain (Doc 2). As he his more educated, he is more likely to
realize the cause of this than the average Spaniard. Of course, this did not stop the Spanish from mining
silver in the Americas (Doc 6). China, on the other hand, had the exact opposite problem. The lack of
silver in their economy was causing prices to plummet. Their prices of grain were so cheap that people
quit farming. Wang Xijue, a court official, was so concerned about this that he wrote the emperor (doc
3). If people aren’t farming, others are not eating. It is well established in Chinese history that famine
often precedes loss of the Mandate of Heaven, so Wang is likely trying to protect his job.
Fundamentally, the economy of China was changing. As the demand for silver increased, even simple
transaction of purchasing fabric went from people being able to pay their bill at a later date, using any
“currency” agreed upon, such as chickens or rice, to dye shops demanding silver (doc 5). The source of
this information is Xu Dunqiu, a writer during the Ming Dynasty. Traditionally, Chinese society is based
on Confucian ideals which tend to look back to the past to determine how society should develop.
These progressive changes to everyday society likely did not sit well with Xu. Once again, it seems odd
that a Japanese source, such as that of a government official was not provided as it would give insight to
the effect silver had on the Japanese economy.
Geoffrion 2
Perhaps the greatest effect of silver on the world economy would be the expansion of trade.
Europeans and the Japanese demanded luxury items, and the Chinese wanted silver. Ralph Fitch, a
British merchant observed that the Portuguese were making great profits by transporting luxury goods
from China to the Japanese in exchange for silver (Doc 4). Fitch, as a merchant, would want to get in on
such a deal and could, perhaps, be petitioning his government to broker similar trade agreements.
Apparently these deals were not always advantageous to the Chinese who, at one point, banned foreign
trade. However, by 1630 their desire for silver would get the better of them and some petitioned lifting
the ban in order to sell their luxury goods to foreigners at three times the profit they could achieve
domestically (Doc 7). The source for this information is a Ming dynasty court official who mentions,
“sugar and fruit from my native province, are currently desired by the foreigners (Doc 7).” Perhaps this
official sees an opportunity for his family and friends to become wealthy if the ban is lifted. The
Europeans seemed torn as to their exchanging silver for Luxury goods and spices. Charles D’Avenant felt
that the English only received perishable goods from Asia, but at the same time felt it was inadvisable to
abandon trading for these items (Doc 8). An additional document from a Japanese merchant would
expand the readers knowledge of Japan’s role in this trade, an important bit of information given Japans
role in the flow of silver.
While there could have been some negative social and economic consequences brought on by
the flow of silver, such as growing social distinctions and Inflation, Europeans enjoyed their luxury goods
and the Chinese wanted more silver. The most lasting of these consequences would be the foundation
of globalization as world powers compete for, and exchange resources to this very day.