Kristina Kohuth

APWH
Due: 4.28.2010

Trade of hot commodities, through world expansion, have influence the way governments have
looked at taxes and foreign affairs. Ming China passed a law that all taxes must be paid in silver,
influenced highly by the amount of silver being given to China in return for silk, gold, perfume, and
porcelain. Throughout the 1570s-1750s, the trade of commodities with intrinsic value, namely silver,
has an impact on social and economic systems from Spain to Ming China.
The map given shows the flow of silver throughout the world during the 15070s-1750s. Most of
the silver is from Spanish America, and would be shipped to Europe or Asia/Eurasia and traded for other
commodities that are in need of trade elsewhere. An interesting observation made on the map is the
amount of trade into Europe, is also sent out again and traded to Asia yet again.
Economic infrastructure shows the strength of an empire throughout history, but takes
importance during world expansion. “High prices ruined Spain as the prices attracted Asian
commodities and the silver currency flowed out (Doc. 1, Line 1-2)” shows how the large powerhouse
country of Spain dropped significantly during the run for silver. In Document 4, it is explained how the
Portuguese benefited greatly from the trade of silver by playing the middle man, and using the necessity
of silver to inflate prices to benefit their own government and financial stability. The price of silver bars,
and again the inflation of prices through a middleman is emphasized even more by document 7 saying
how the ports of the Philippines’ were being used to price gauge. The usage of *****
Document 5, not only expresses the impact of the silver trade on the economic infrastructure of
the fiscal policy world-wide, but also the social structure of the societies changing. Inflation took its toll,
not only on the silver, but also on the price of other grains to allow the economic state to remain as
stable as possible. These other inflation/deflation in prices, as seen in document 3, shows how the
economic shifts gave peasants a way to farm without overextending their budgets. *****