Global Silver Trade: 16th-18th Century Economic & Social Impacts
Global Silver Trade: 16th-18th Century Impacts
The global flow of silver from the mid-sixteenth century to the early eighteenth century had significant social and economic effects worldwide. Economically, it altered the currency systems of many countries. Socially, it facilitated the exchange of luxury goods across different regions.
Economic Transformations
The rise in global silver flow during the 16th to 18th centuries dramatically changed economies. The Ming Chinese government’s requirement for all domestic taxes and trade fees to be paid in silver led to impoverishment for many farmers. As Wang Xijue, a Ming dynasty court official, noted, “As the price of grain falls, tillers of the soil receive lower returns on their labors, and thus less land is put into cultivation.” (Doc. 3). People who previously used goods like “rice, wheat, soybeans, chickens, or other fowl” for payment now had to obtain silver from moneylenders to pay bills (Doc. 5). International trade also shifted, with countries exchanging goods for silver. He Qiaoyuan observed, “they trade the goods we produce…they only return with silver coins.” (Doc. 7). Charles D’Avenant noted that trade “sends to Asia gold and silver, which is there buried and never returns.” (Doc. 8.)
Social Impacts and Luxury Goods
The global flow of silver also had profound social effects, making luxuries from one country available globally. Ralph Fitch, a British merchant, described how the “Portuguese bring from China gold perfume, silk, copper, porcelain, and other luxury goods.” (Doc. 4)
Perspectives on Trade and Economy
- He Qiaoyuan (D7) advocated for lifting the trade ban due to high prices for Chinese goods, but his motives may be in question since the most profitable goods came from his province. His position on the trade ban, therefore, could reflect his personal profit opportunities.
- Ye Chungji (D1) offered moral guidance on frugality, particularly regarding wedding expenses, suggesting a poor economic climate. As a county official, he would have arrived at his position through the civil service system and been well-versed in Confucian texts, and his words reflect that moral outlook.
Further Analysis
The documents suggest a worsening economic situation for ordinary Chinese peasants. None sheds light on women, however, so it’s impossible to assess whether the flow of silver had the same or different effects on Chinese men and women. It is worth considering if the tougher economy led to a hardening of patriarchy. A government record or court document showing an upswing in crimes against women, for example, might suggest a differential social effect on Chinese women.