Reading Questions
Objective #1 : Explain how rulers employed economic strategies to consolidate and maintain power throughout the period from 1450 to 1750
Commercial Revolution Questions
What was the Commercial Revolution?
What is the joint stock company?
How were joint stock companies during 150 to 1750 different than corporations today?
What was the role of banks during the period of 1450-1750?
What is mercantilism?
How does mercantilism only benefit the rulers?
Commercial Revolution
The Commercial Revolution consisted of the creation of a European economy based on trade using silver and gold. The catalyst for this expansion was Europe's discovery and colonization of the Americas and the extraction of silver, gold as well as other raw materials from the New World. As trade routes grew between the New World colonies and Old World Europe, the European continent was transformed. Although there were many factors that led to this, today we're going to highlight joint stock companies, banks and mercantilism. These new economic strategies facilitated the world trade of slaves, silver and fur.
Joint Stock Companies
Joint Stock Companies: were owned by investors who bought stock (or shares) in them. People invested capital in those companies and shared both the profits and risks. These companies offered limited liability. Limited liability of a joint-stock company meant that an investor could never lose more than what he paid in. With risks thus limited but the potential for profit still high, joint-stock companies attracted thousands of investors willing to put up money, called stock, in these ventures. If limited liability did not exist, in the case of a shipwreck or some other calamity investors would owe more than they put in and could be driven to bankruptcy. Joint Stock Companies were the early forms of what we call corporations. The companies had a goal of creating a monopoly on trade meaning they control a trade item completely.
Unlike modern corporations, the Joint Stock Companies got charters from their respective states and were able to employ armies, wage war, and conquer and govern any conquered people if it helped them further their economic interests.
Unlike modern corporations, the Joint Stock Companies got charters from their respective states and were able to employ armies, wage war, and conquer and govern any conquered people if it helped them further their economic interests.
EIC
In the early 1600s European countries found new methods of financing exploration and business. Since trading ventures were too expensive for most individuals to fund, investors began to pool their resources together into organizations called joint-stock companies. The most famous of these, the British East India Company (EIC), began in 1600 when the British government gave 218 London investors a royal monopoly of all trade east of the Cape of Good Hope. The EIC had less capital and power. As a result, they were unable to push their way into the spice trade. So they settled for trading in India. India still had cotton products and pepper that was all very much in demand all over Europe. The EIC had to get permission from the Mughals to establish trading posts because the Mughals were still powerful. In time, the EIC would employ locals into their army- Sepoy soldiers. Using these local soldiers, they would gradually take control of the country. |
|
VOC
Established about one year later was the Dutch East India Company. known as the VOC. They were initially a much larger and wealthier rival of the EIC, with 10 times the capital resources of its British counterpart. Joint-stock companies proliferated. The Dutch West Indies Company traded in the New World and founded New Amsterdam, today New York City. They also tried to monopolize the spice trade in the Spice Islands. The Dutch presence in the region led to a genocide. The VOC was but one example of the abuse of power by one of these private company armies was the massacre in the Banda Islands. With a force of about 1,600 soldiers and 80 Samurai, the Dutch were able to kill, enslave or left to starve the entire population of the Island. The Dutch replaced the Banda people with Dutch planters using slave labor. Thus they monopolized the nutmeg trade. |
Banks
Banks: The Commercial Revolution created the need for more banks within Europe. These banks provided money-lending services to parties interested in getting in on the blossoming trade. They also began issuing bills of exchange. These worked like our modern-day checking accounts. Rather than lugging around piles of gold, banks allowed merchants to deposit their earnings and receive a bill of exchange. Merchants could then turn these documents in when they needed to withdraw their gold. Not only was this more convenient, it was much safer than carrying gold along trade routes.
Mercantilism
Mercantilism: The economic policy making colonies legally required to send their raw materials and cash crops to the “mother country” in Europe. One of the main objectives of mercantilism was to acquire the most bullion(silver, or gold metals). Artisans turn the raw materials into manufactured goods and merchants sell them to the colonies. Merchants, artisans and the mother countries profit from this trade since colonies were not allowed to trade with foreigners. However, many merchants were unhappy with mercantilism because it limited their ability to make more profits with other countries.
Objective #2: Explain the continuities and changes in networks of exchange from 1450 to 1750.
Global Networks of Exchange: Atlantic Trade Network
What is chattel slavery?
What factors drove the demand for chattel slavery?
What is indentured servitude. Who were typically indentured servants in this time period?
What is the encomienda system?
What were the impacts the trans-Atlantic slave trade on West Africa?
What were the impacts of the trans-Atlantic slave trade on the Americas?
How was the use of slavery in this time period different from slavery in previous periods of history?
What are maroon societies?
Global Networks of Exchange : Pacific Trade Network and Fur trade
What is the mit’a system and how was it exploited by the Spanish empire?
Why did the Ming change from paper currency to silver?
Where did most silver come from? Where did it end up?
What did Asian artisans continue to produce? be specific.
Why did the demand for fur trade increase during the period of 14500-1750
What were the positives and negatives of world wide fur trade on North American Natives.
Make a list of the existing labor systems.
Make a list of the new labor systems.
Global Networks of Exchange: Atlantic Trade Network
What is chattel slavery?
What factors drove the demand for chattel slavery?
What is indentured servitude. Who were typically indentured servants in this time period?
What is the encomienda system?
What were the impacts the trans-Atlantic slave trade on West Africa?
What were the impacts of the trans-Atlantic slave trade on the Americas?
How was the use of slavery in this time period different from slavery in previous periods of history?
What are maroon societies?
Global Networks of Exchange : Pacific Trade Network and Fur trade
What is the mit’a system and how was it exploited by the Spanish empire?
Why did the Ming change from paper currency to silver?
Where did most silver come from? Where did it end up?
What did Asian artisans continue to produce? be specific.
Why did the demand for fur trade increase during the period of 14500-1750
What were the positives and negatives of world wide fur trade on North American Natives.
Make a list of the existing labor systems.
Make a list of the new labor systems.
Global Networks of Exchange
Although the world’s productive systems continued to be heavily centered on agricultural production throughout this period, major changes occurred in agricultural production, labor systems and locations of manufacturing. Economic growth also depended on new forms of manufacturing and new commercial patterns, especially in long-distance trade focused on cash crops like tobacco, cotton, and sugar leading to increased slave trade. World wide trade also depended on natural resources centered around the fur trade. The world trade is facilitated by the first world-wide coin in Spanish silver.
Peasant and artisan labor continued and intensified in many regions as the demand for food and consumer goods increased.
Peasant and artisan labor continued and intensified in many regions as the demand for food and consumer goods increased.
Atlantic Trade Network: Slave Trade
Triangular Trade: Europeans' desire for labor in plantations led to one of the saddest chapters in World History. An estimated 12 million human beings were transported from Africa to the Americas. Slaves were taken from villages by both African kings who exchanged the captives for weapons and other manufactured products. The slaves worked the colonies' plantations providing raw materials to the mother country who would turn them manufactured products. This process was called the triangular trade.
|
West African Kingdoms: For centuries, Arabs sold Africans across the Sahara. By the 1400s, European merchants started buying African slaves from West African kingdoms in exchange for guns, rum, textiles, and other manufactured goods. African slave trading kingdoms became economically dependent on Europe. To gain more slaves for the trade, West African kings waged war on neighboring tribes. Africans were captured during slave raids and forced to march to the coast on Death Marches (25% of those captured died). Africans were then sold to European slave traders. Kingdoms like the Dahomey and the Oyo became richer due to the slave trade. Additionally, since these kingdoms were able to get gunpowder weapons, they were able to invade weaker neighboring kingdoms to keep the slave trade profits.
Since the majority of the slaves traded were male slaves, a gender imbalance was created by the slave trade. Women began to take more responsibility in the labor duties working more in the farms. Because there were many more women then men, the practice of having multiple wives increased. Many other women married wealthy white merchants. Those women, known as signares, sometimes created their own trading empires. Furthermore, many women became important political leaders. One example of these women leaders is Queen Nzinga who rebelled against Portuguese Imperialism. |
The Middle Passage: The journey from Africa to the Americas took several months. To increase profits, slave traders overcrowded the ship’s cargo hold with African slaves. Male Africans were chained together with very little space to move or sleep. Diseases ran rapid on slave ships due to the heat and lack of sanitation. European slavers would torture Africans to keep them from rebelling. Revolts on slave ship did occur but were usually failed to defeat the Europeans. Some Africans committed suicide to avoid life in servitude. About 15% of captured Africans died in the Middle Passage. |
Sugar Plantations: With the decline of native populations due to diseases, male Africans slaves were sold to sugar plantations in Brazil and the Caribbean. The British had plantations in Barbados and Jamaica. The French had Haiti. The Dutch had Aruba Bonaire and Curacao. The hot tropical climate was needed to grow sugar. Slaves worked all day in the sugar fields and boiling rooms in grueling conditions. Since they were greatly outnumbered, Europeans terrorized the Africans to create obedience. Sometimes, African slaves organized revolts that were usually crushed by Europeans. About 5-10% of the African slave population was killed each year, requiring Europeans to buy more slaves.
|
Cotton and Tobacco Plantations: In the American South, cotton and Tabaco plantation became economically important. They would established to export those cash crops for consumption in Europe. Due to increased demand, a new labor systems developed. Initially, black and white indentured servants would be brought to work in the colonies. An indentured servant works for a determined period of time (5-7 years) in exchange for a paid passage to the Americas. Chattel slavery also developed. Unlike previous types of slavery, Chattel slavery means that one person has total ownership of another. There are two basic forms of chattel, domestic chattel, with menial household duties and productive chattel, working in the fields or mines. These labor systems allowed plantations to continue to make profits. Below is a video about the Transatlantic Slave Trade you can watch but are not required.
Resistance to State Power
Maroon Societies Required to watch
Pacific Trade Network: Silver Trade
Potosi: This mountain is the world’s largest deposit of silver. By using and already existing labor system -the Inca mit’a system, the Spanish forced male natives to mine silver in large quantities. Mining in Potosi was incredibly dangerous for the natives. Thousands died while working in the mines. Making silver includes mixing ore with mercury. As a result, many natives died of mercury poisoning. The Spanish minted millions of coins called pesos or pieces of eight. Spanish ships transported millions of silver coins across the Pacific to Manila in the Philippines. Chinese, Portuguese and Dutch merchants traveled to Manila to buy Spanish silver.
|
Guangzhou: The Ming Dynasty had troubles with paper currency and switched to silver coins. European merchants used Spanish silver to buy porcelain and silk. However, China allowed foreign merchants to trade at one port, Guangzhou. Foreign merchants can only trade with Chinese state officials and must leave China immediately after trading.
Local artisans and merchants continued to flourish as the demand for Chinese luxury goods increased. Below is an interesting animated documentary on Potosi. Similarly, Indian artisans and merchants continued to provide cotton textiles for the European market at a higher rate. It is required that you watch it. |
Fur Trade
North American Fur Trade
By the 16th century the supply of fur-bearing animals in Europe diminished due to population growth and agricultural expansion. When the Little Ice Age hit, the world temperatures cooled resulting in a high demand for furs. This demand pushed prices for furs higher giving incentive for traders to sells it
By the 16th century the supply of fur-bearing animals in Europe diminished due to population growth and agricultural expansion. When the Little Ice Age hit, the world temperatures cooled resulting in a high demand for furs. This demand pushed prices for furs higher giving incentive for traders to sells it
The actual hunting, trapping, processing, and transporting of animals/furs was done by Native Americans Natives took the furs to European coastal settlements or trading posts then Europeans then sold the furs abroad. In return for the furs, Europeans gave Native Americans: guns, blankets, metal tools, rum, and brandy.
|
On the positive side, Natives received items of real value (ex: copper pots, metal axes, etc.). Trade strengthened their relationships with neighboring peoples. It also enhanced authority of chiefs because they could give their followers gifts. Finally trade protected natives (for a while) from enslavement, extermination, or displacement.
On the negative end, exposure to European diseases killed many natives. Competition between tribes for furs resulted in conflict and warfare. Often Natives got caught up in European rivalries/conflicts like in the Seven Year War. Many Natives became dependent on European goods; never learned to make them themselves. Most tragically, alcohol related problems began to plague Native communities form the influx of rum and brandy. Additionally, Native women lost political power in their communities. Prior to European arrival the First People were a matriarchal society. Once the fur trade took hold, because men were the ones that trapped, they became more important resulting in more patriarchy.
On the negative end, exposure to European diseases killed many natives. Competition between tribes for furs resulted in conflict and warfare. Often Natives got caught up in European rivalries/conflicts like in the Seven Year War. Many Natives became dependent on European goods; never learned to make them themselves. Most tragically, alcohol related problems began to plague Native communities form the influx of rum and brandy. Additionally, Native women lost political power in their communities. Prior to European arrival the First People were a matriarchal society. Once the fur trade took hold, because men were the ones that trapped, they became more important resulting in more patriarchy.
Although the world's productive systems continued to be heavily centered on agriculture, major changes occurred in agricultural labor, the systems and locations of manufacturing, gender and social structures, and environmental processes.
Look familiar? This is info from the LAST period (POST CLASSICAL 1200-1450), but the College Board is saying traditional labor systems intensified… So, here are the main ones from the previous period…
- The demand for labor intensified as a result of the growing global demand for raw materials and finished products. Traditional peasant agriculture increased and changed in nature, plantations expanded, and the Atlantic slave trade developed and intensified.
- Peasant and artisan labor continued and intensified (Frontier settlements in Siberia Russia, Cotton textiles in India, Silk production in China) in many regions as the demand for food and consumer goods increased.
- Enslavement in Africa continued in its traditional forms, including incorporation of enslaved persons into households and the export of enslaved persons to the Mediterranean and the Indian Ocean regions.
- The growth of the plantation economy increased the demand for enslaved labor in the Americas, leading to significant demographic, social, and cultural changes.
- Newly developed colonial economies in the Americas largely depended on agriculture, utilized existing labor systems, including the Incan mit’a, and introduced new labor systems including chattel slavery, indentured servitude, and encomienda and hacienda systems.