Flow of Silver Essay Example

The Chinese national government uses silver as tax payment and contributes very little back into the Chinese economy. As a result, Chinese citizens are cautious with their limited funds. Additionally, China not only imported silver from Spain but also from Japan, although in smaller quantities. Japan mines silver from South Japan and ships it to China, India, and mainly Portugal. Instead of shipping directly to Portugal, Portuguese trading ships first sail to Macao, China carrying silk, gold, perfume, and porcelain. They then proceed to Japan and return to Portugal with a surprised six-hundred thousand coins worth of Japanese silver. The Portuguese cleverly utilize this in China.

Japan obtains resources from China by exchanging silver. The silver is then taken to China to acquire resources and luxury goods. Portugal brings the luxury goods back, while Japan brings the resources over. This trade network centers around China, specifically the Ming dynasty. During this dynasty, customers at dye shops could have cloth and silk dyed before determining the payment. Previously, rice, wheat, soybeans, or fowl were used as payment, but during the dynasty, silver coins became the preferred currency for all transactions. Chinese officials became aware of the vast amount of silver that the Spanish possessed in comparison to their trade activities. As a test, China sent trading ships to Luzon in the Philippines and Spain with equal amounts of goods. Surprisingly, they received almost three times the amount they usually obtained from trading with Spain when returning from the Philippines. Moreover, China is willing to accept various native Chinese fruits, porcelain pottery, and sugar as part of their trade.

Europe also trades with Asia, but

they do not receive anything useful in return. Instead, they pay with valuables like gold and silver, which never come back. The Europeans have become addicted to the luxury of Asian spices, considering them a necessary ingredient. The pleasure that Asian products bring to Europe, including the colonies and the Spaniards in America, makes England unwilling to interrupt the trade.