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The Rise and Decline of the Spanish Empire Period 4: 1450-1750

Silver and Latin America

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Page 1: Silver and Latin America

The Rise and Decline of the Spanish EmpirePeriod 4: 1450-1750

Page 2: Silver and Latin America

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.

Page 3: Silver and Latin America

The Empire of Charles V (Hapsburgs)

•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.

•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.

Page 4: Silver and Latin America

•Charles V provided five ships to Ferdinand Magellan, the first to circumnavigate around the world.

•New Spain was considerably extended by conquistadors like Hernán Cortés 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 Hernán Cortés and Francisco Pizarro.

Page 5: Silver and Latin America

Aztec and Inca location

in Mesoamerica

Page 6: Silver and Latin America

Reasons for Spanish Conquest over the

AztecsA. 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

Page 7: Silver and Latin America

SOCIAL HIERARCHY

P

C

M

Z, I & A

Creoles:People of pureEuropean bloodBut born in theNew World

Mestizos: Indian +European blood

Mulattos:African +European blood

Zambos, Indians and AfricansCAUSES

M

Film Clip

Peninsulares: Spanish born in Spain

Page 8: Silver and Latin America

Latin American Society North American SocietyBoth

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

Page 9: Silver and Latin America

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

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

•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 1556-1598

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A. Spanish Conquistadors took over existing tributary networksB. Like Indian Ocean, Spanish began to tap into vast commercial systems and exploit the existing indigenous empiresC. 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 networksB. Like Indian Ocean, Spanish began to tap into vast commercial systems and exploit the existing indigenous empiresC. Unlike Indian Ocean, the New World was not restricted to commercial outposts. It involved the control of large amounts of territory.

Spain’s Tributary Empire

Page 11: Silver and Latin America

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.

Eventually, the King prevented encomiendas from being hereditary. Once an encomendero died, his land reverted to the crown.

Page 12: Silver and Latin America

Bartolome de las Casas – Priest who spoke out against the evils of

the encomienda system.

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.

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.

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Mercantilism - Government (Monarch) stresses the creation of a favorable balance of trade for their nation.

A) Promote internal economy1. Limit imports - keep profits from enemy or rival states2. Set Tariffs on imported goods3. Encouraged and funded merchant fleets and trading companies

Mercantilism - Government (Monarch) stresses the creation of a favorable balance of trade for their nation.

A) Promote internal economy1. Limit imports - keep profits from enemy or rival states2. Set Tariffs on imported goods3. Encouraged and funded merchant fleets and trading companies

Page 14: Silver and Latin America

Colonialism and Mercantilism

B) Need for Colonies1. Provided raw materials and labor source2. Encouraged industry at home - manufactured goods3. Colonies used as a guaranteed new market

B) Need for Colonies1. Provided raw materials and labor source2. Encouraged industry at home - manufactured goods3. Colonies used as a guaranteed new market

ColonyMother Country

Resources

Manufactured goods

Profits

Page 15: Silver and Latin America

What were the major products exported from the Americas

by the Spanish?

How is this an example of

mercantilism?

Page 16: Silver and Latin America

“Global trade emerged when all important populated continents began to exchange products continuously. It is true

that there was an important intercontinental trade before 1571, but there was no direct link between America and Asia, so the world market was not fully coherent or complete. The singular product most responsible for the birth of world trade

was… Silver.”

- Dennis O. Flynn, Born with a Silver Spoon

“Global trade emerged when all important populated continents began to exchange products continuously. It is true

that there was an important intercontinental trade before 1571, but there was no direct link between America and Asia, so the world market was not fully coherent or complete. The singular product most responsible for the birth of world trade

was… Silver.”

- Dennis O. Flynn, Born with a Silver Spoon

How do you think silver became the first global product?

How did the Spanish discovery of Silver in Americas impact the world?

Page 17: Silver and Latin America

A. Discovery of Silver in the Americas made Spain powerfulB. 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 powerfulB. 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 PotosiSilver mine in Potosi

Page 18: Silver and Latin America

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 Iberia’s religion-inspired military fanaticism.”

- Dennis O. Flynn

“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 Iberia’s religion-inspired military fanaticism.”

- Dennis O. Flynn

Page 19: Silver and Latin America

A. Potosi is a major mining city in modern day Peru.

B. In Potosí, Spanish administrators initially recruited laborers by adapting the Inca system 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 Potosí, Spanish administrators initially recruited laborers by adapting the Inca system of draft labor to their own needs.

C. Workers often died of disease and overwork. Some Indians rebelled.

Mining in Potosi

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Silver Trade Impacts the World

Where does most of the Silver seem to come from, and where does it end up?

Page 21: Silver and Latin America

A. The “Silverization” of China in 1430s 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 world’s silver. Silver profits helped Tokugawa defeat rivals and consolidate power.

A. The “Silverization” of China in 1430s 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 world’s silver. Silver profits helped Tokugawa defeat rivals and consolidate power.

Silver Trade Impacts the World

Page 22: Silver and Latin America

Spain’s 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.

Spain’s 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.

Spain’s 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.

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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 Spain’s national revenue

• Less than 50% of silver remained in Spain

• At no point did American treasure imports make up more than 25% of Spain’s national revenue

Silver Production:

Spanish America: 325 tons a year (Official)

325-450 tons a year (Illegal)

Japanese: 200 tons a year

Silver Production:

Spanish America: 325 tons a year (Official)

325-450 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?

With such large production numbers, what effect will this have on the value of silver around the world?

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Spanish Decline: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 crown’s falling credit and value.C.Spanish government occasionally went bankruptD. 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 crown’s falling credit and value.C.Spanish government occasionally went bankruptD. Bought most manufactured goods. Never developed manufacturing of their own

“The poverty of Spain resulted from the discovery of the Indies.”

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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 1588.

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 1588.

By the time the last surviving ships reached

Spain, half of the original Armada was lost and some 15,000 men had perished.

Page 26: Silver and Latin America