From the mid-16th century to the early 18th century, the Spanish ruled Americas and Tokugawa Japan became a major producer of silver. All taxes and trade fees were ordered to be paid only in silver by the Ming Dynasty. Silver flowed into China while goods such as silk and spices flowed out. Trade on silver created a large impact on global trade, affecting the Europeans, the Americans, and the Ming Dynasty.
The economy of Europe and China was both impacted. A Spanish scholar named Tomas de Mercado wrote the Manuel of Deals and Contracts in 1571 explaining the trade from China to the Philippines. The Spanish sold silver to the Chinese in exchange for silk. The demand of silver of the Chinese government was so high. The Chinese would be willing to sell granite cobblestones in order to get silver (Doc 2). Ralph Fitch, a British merchant, described the trade between Macao and Japan controlled by the Portuguese. He explained that the Portuguese benefited from the silver trade and got many goods in return such as gold, porcelain, and silk (Doc 4). He Qiaoyuan, a Ming dynasty court official, explained that China could have earned more money if they traded overseas, but because of the ban of foreign trade they were not able to make as much as they could have. Instead of making 300 bars of silver overseas, China would only get a price of 100 bars locally (Doc 7). Charles D’ Avenant, an English scholar, stated that the British controlled the East- India trade and the government is debating on whether they should ban trade of Indian textiles. He suggested that the British would lose money if Parliament restricts West India’s textile from exporting. (Doc 8).
The silver trade also caused social change in the Europeans, Chinese, and the Americas. Ye Chunji, a county official, explained that a poor man with only one bar of silver will use the money wisely and not spend it all at once. Unlike a rich man with thousands of silver would spend all of it and ask for more (Doc 1)....