Transcript Joint Stock Co - Kenston Local Schools

Unit 1 Exploration
Chapter 6: Economic and Social
change 1450-1648
Economic Expansion and Innovation
• Emphasis on Humanism and Individualism
created desire to expand trade and eventually
explore new lands.
• In 1350 Europeans knew only what they had
known about the world for 1000 years- by 1650
it is all different
• A true “global” economy transformed the social
order.
Commercial Revolution
• Europe has been an agricultural economy from
fall of Rome- during this time focus will begin to
turn first to trade, then to business- which will
begin to create the modern economy
• Invent modern business practices like
bookkeeping, banking and investment (stocks)
Hanseatic League
• Group of German states who formed a trade
federation during the middle ages.
• Early example of capitalism and business
planning.
Population Increases, Food Prices,
Urban Growth
• After downturn of Black Death, population began
to grow again in the 1400s- pop. Rose 50%
between 1470-1620. Cities grew correspondingly
(London went from 50-200k)
• Food prices rose b/c agriculture didn’t grow as fast
as population ($$ to be made farming)
• Enclosures: Began in England. To make more $$,
landowners enclosed “common” lands so farming
would be more efficient. Pushed peasants off land,
moved to cities and became laborers
Portuguese
• Chased Muslims across straight of Gibraltar and
attacked Morocco in early 1400s. Saw wealth of
Sahara trade- wanted in.
• Prince Henry the Navigator- founded
navigation/sailing school, and funded
exploration of W. African coast.
• Bartholomew Dias 1488- rounded Cape
• Vasco di Gama 1497- reached India
Price Revolution
• Between 1500-1700 there was a long slow period of
inflation (prices and wages) encouraged people to get
into business, and for countries to get into trade
• Overall- standard of living in Western Europe increases
• Putting Out System: Guilds often controlled trades in
towns. To get around them, entrepreneurs had
products made (in stages) at worker’s homes- they
were paid by piece.
Capitalism/Mercantilism
• Capitalism: Econ system based on
private ownership of property and
business that produces goods to
be sold in a free market w/o gov’t
intervention. Defined by Adam
Smith
• Mercantilism: Responsibility of
gov’t to create the best econ, they
should protect domestic business
through tariffs
• Joint Stock Co: Companies formed
by groups to minimize risk (pop.
For exploring) Often used in
Eng/Holland, where gov’t
encourage private exploration and
business (as opposed to Sp/Fr
which were absolutist)
•
Bullionism: a country should have as much gold on
reserve as possible
•
Countries wanted a favorable balance of trade
(selling more than they buy) Colonies will become
important for this as sources of raw materials and
markets for finished goods
Technological Advances
• Before they could exploreneeded to improve sailing
techniques.
• Adapted foreign
inventions- like Compass
and Astrolabe.
• Redesigned ships (flat
bottom from Med.) to go
in deeper waters and to
carry cannon
• New Mercator projection
allowed more accurate
mapping
• Used Cross staff and
Quadrant to measure
latitude (as well as
astrolabe)
• Portuguese invented
Caravel: deep hulled ship
with both Lateen and
Square sails- good for
many types of waters. Has
a Axial (side) rudder
Expansion Overseas
• Europe has been interested in trade with Asia since Middle Ages
(Crusades, Marco Polo) but Ottomans control Silk Road (and
Italy controls Med. Trade with Ottoman) so they work on a Sea
Route to Asia. (never been done)
• Iberians 1st involved- they had issues with Islam, were close to
Atlantic- and all fired up from Reconquista and unification of
their country
Glory, God and Gold
• Motivations for
exploration. Believed
in the power of man,
had strong religious
fervor (esp. Spain) and
knew there was $$ to
be had from treasure,
and in the long run
from successful trade
Spanish
• Columbus says it’s faster
to go west to reach Asia.
Made 3 voyages- claimed
to have found Asia (died
thinking he had)
• Exploration a huge blow
to Italian economy
(cheaper to go straight to
sources) Econ/Political
decline of Italy begins
• Europeans assumed all
other civilizations were
inferior.
• Portuguese came to trade
(and go home) Spanish
came to claim and
conquer.
• Success came from
“Guns, Germs, and Steel”
Amerigo Vespucci
• 1st to realize (out loud)
that Euro had found a
new world- NOT Asia.
Explored in Brazil
• Continent named for him
b/c he told German
Cartographer he was first
to reach South America.
(actually Pedro Cabral
1500)
Bartholomew de la Casas
Vasco De Balboa
• 1552 wrote “brief
account of the
the destruction
of the Indies”
which criticized
European
colonialism and
Columbus
• 1513 First
European to see
Pacific ocean
(which he
named) Claimed
central America
for Spain
Treaty of Tordesillas
 1493
 Spain and Portugal fear bumping into each other during
exploration- go to Pope for mediation.
 Pope draws an imaginary line down a map of the world (adjusted
a few years later)
 Spain gets everything to the west: N/S America (except Brazilthe adjustment) Orients them towards the Americas- where they
take over and introduce profound change
 Portugal gets everything to east- Africa/India (and Brazil) Did get
to “claim all land” like Spain- but est. trade routes were there.
Less domination, more joining in the party.
Spanish Empire
 Had clear-cut “enemies”
civilizations to defeat and
dominate to control
territory.
 Cortez: Aztecs 1519 fast
defeat
 Pissarro: Inca 1532 fairly
slow to defeat
 Use treasure to buy
manufactured goods rather
than develop industry, puts
them behind
 Actually more like
imperialism of 1800s –
conquer and subjugate
established civilizations.
 Colonies existed to serve
mother country
(mercantilism) in Spain’s
case- to produce treasure.
25% of kings income came
from mines of Peru.
 Divided territory into 4
“viceroyalties” New Spain,
Peru, La Plata, Columbia
Portuguese Empire
• No specific civilizations to defeat of conquer.
• Trade along Swahili coast, India, and Malaysia.
• Establish trade “forts’ (fortifications) to trade
slaves, gold, and other products
• Stay on coast- don’t go far inland.
• Less missionary (though they did try- Francis
Xavier in Asia) b/c it wasn’t generally effective
with Muslims and Hindus
Spanish Colonial Economy
• Native population decimated by European disease.
• Encomienda: Europeans claimed land, and the people
who lived on it as their serfs (but they die) Begin to
import slaves from Africa (works better)- and becomes
basis of agricultural econ in Caribbean, Brazil
et…(sugar)
• Peru was where the silver mines were- so a mining
econ there (still slave labor, but more native than
African) Mixed blessing- gave $$ caused inflationmade their ships targets for pirates
Society in Colonial Latin America
• Social division by Race (new thing for Europeans)
Sociodad de la Castas. Brought Patriarchal society and
imposed in on Americas
• Europeans- either peninsulare or Creole
• Mestizo (euro/native)
• Mulatto (Euro/African)
• Indian
• Slave (African)
Dutch, English and French
Colonialization
• Econs already trade based
(esp. Dutch/Eng) but
protestant work ethic
drove them to work hard.
• Dutch followed
Portuguese into long
distance sea tradeMuslims liked them,
Calvinists aren’t
missionary- but they used
their guns to make
advantageous trade deals
• Excited by Iberian success
(especially treasurethough other Euros never
really hit that jackpot)
• Set up forts at “pinch
points” to control trade
routes. (focus on pacific
trade)
• Built Capetown in S. Africa
as a stopping point
Joint Stock Company
• Kings didn’t finance as
much for this 2nd wave
(France exception) done
more through private
enterprise.
• Dutch East/West India
Co
• British East/West India
Co
• Trade corporationsbecame virtually law
unto themselves b/c
they had so much
power