J.H.

Elliott, The Old World and the New, 1492-1650

1992) Ch. 3 and 4
Monday, January 20, 2020 3:48 PM

New frontier
1. Webb: America as the new frontier
• Ratio between land, people, and capital changed
• The first serious attempt since 18th century to assess European history in terms of the
• The stimulating effects of bullion, trade, opportunity

2. Gold and silver

• The influx of a large quantity of precious metals would have considerable consequence
also the character of its economic relationship with the outer world
• Only in the second half of the 16th century the American silver production, outpacing
satisfy a Europe silver-hungry for so long

3. The economic relationship changes

• To buy the Far Eastern luxuries for which Asia insisted on silver in exchange (at least un
with silver from American mines)

4. Price revolution?:
• Based on relating the level of prices to the scarcity or abundance of precious mental
• Concerns: commodities and prices; social and moral consequences of excessive riches;

Q: how much of the silver reaching Seville really entered the Spanish monetary system?
Factors: subject to foreign policies of Spanish Crown; its capacity to meet domestic ne
e.g. an official estimate of 1594 p7

Q: the various causes of the seepage of silver from Spain are known but not the process reco
details
e.g. lack of clear cause-and-effect relationship between movements of America

Q: what proportion of the silver into Asia;

what proportion actually remained in Europe and was used for non-monetary purposes;
the degree of responsibility to be allotted to American bullion in forcing up prices, as against
real causes (poor harvests or population pressure);

5. Inflationary conditions 16th century?

• T1: lag between wages and prices===>inflated the profits of entrepreneurs
Q: What did the profits from the Indies do?
 (1970,

e impact of America

es not only for monetary system but

that of the Tyrolese mines, began to

ntil the 17th century: Asia glutted

; empirical observation;

eeds;

onstructed with any precision of

an silver and price rises in England

t other monetary causes, and against

 real causes (poor harvests or population pressure);

5. Inflationary conditions 16th century?

• T1: lag between wages and prices===>inflated the profits of entrepreneurs
Q: What did the profits from the Indies do?
Much was devoted to improving the status of merchant families and enabling them to live in

Q: difficult to show that Europe at the end of 16th century more distinctively 'bourgeois' in o

The price revolution did not alter the social framework itself (it may ease the entry of new fa
those ranks closed again around them, without any marked alteration in their accustomed m

6. American trade rather than American silver?

• T: opening up a new and expanding American market===>increase in European econo
variety of European commodities)

Pattern of the theory:

• 1504-1550, the first age of European expansion (moving frontier in America, conquest
bullion)
• After 1562: the colonial demand for European goods intensified; Servile trade expands
more becomes available both for the Spanish Crown and European entrepreneurs; mo
in the ships and the cargoes of the expanding Atlantic trade;
• The beginning of 17th century: saturation point, colonial demand reached limits
• From about 1622: Seville's Atlantic trade slumps in value and volume; Europe entered

Q: the relativeness of the Atlantic trade to other branches of European commerce? For it to
fluctuations of the Baltic trade, which exceeded the Servile trade in volume?

Q: the degree to which these changes in the Indies should be held accountable for Europe's

7. Parallel?
• Reciprocal relationship had been established in the 16th century between the old and
• A diminishing demand in the Indies for European goods;
• A diminishing demand in Europe for American silver;
• The economies failed to complement each other as neatly as the earlier years;
• Any definition of the relationship between Europe and America either in terms of silve

8. Motives?
• Might it be said that the discovery of new world created an awareness of new econom
provided a stimulus to change?

Servile: stimulated by the commercial outlook and expertise of important groups in the city o
discovery
n the manner of the aristocracy

outlook than at the beginning of it

amilies into the privileged ranks but

mode of life)

omic activity (growth in quantity and

t, colonization and the first influx of

s, as more treasure flows into Servile,

ore of the treasure has to be invested

depression of mid-17th century

stand out more profoundly than the

troubles

d the new world;

er or trade is not in itself enough;

mic opportunities, which itself

of Seville at the time of America's

8. Motives?
• Might it be said that the discovery of new world created an awareness of new econom
provided a stimulus to change?

Servile: stimulated by the commercial outlook and expertise of important groups in the city o
discovery
• Cosmopolitan atmosphere: a city which had already established itself as international
openness to new ideas and sharp eye for profit
• Great social mobility: even tempting to the social sections which were not professiona
enterprise
• Geographical mobility: attracting merchants from outside
• Population influx
• Emigration

9. The importance of new world:

• Promoted movement of wealth, people and ideas
• Opportunities for people with enterprise, ability, and the willingness to run risks
• A new confidence from the achievement of creating new enterprise of nothing

Q: why this should have been?

• Was Europe's necessity in early 16th century sufficient of itself to new fields of enterp
• Had European society already evolved certain characteristics which enabled it to creat
opportunities?
• If both is not accepted, the frontier theory by itself cannot be sufficient to explain the
closely at conditions in the metropolis as well as on the frontier

The Atlantic world

To isolate changes directly attributable to the impact of America from those which were alre

1. Habsburg:
Charles's empire remained a European empire
• The sources of its strength were overwhelmingly European
e.g. between 1521-1544 the mines in the Hapsburg hereditary lands produced
the whole of America; only between 1545-late 1550s these figures were reverse
• To maintain a sense of proportion about the over-all contribution made by America to
production increased
• The sustaining role of new world for the empire: Increasing dependence on the resour
the last traumatic years of Charles's reign indicates that it was about this time that the
continuation of his empire

Philip ii's empire to be maritime and global In the second half of 16th century
• Around the axis of Seville: royal credit fluctuated with the remittances of American silv
Seville's transatlantic trade
• While not grasped by Philip ii himself
mic opportunities, which itself

of Seville at the time of America's

port and trading-centre===>

ally dedicated to commercial

prise?
te, and make the most of new

changes in Europe, but to look

eady incipient in Europe

almost four times as much silver as

ed
o Charles's revenues as silver

rces of Spain and the indies during

e new world became decisive for the

ver and more general movements of

 continuation of his empire

Philip ii's empire to be maritime and global In the second half of 16th century
• Around the axis of Seville: royal credit fluctuated with the remittances of American silv
Seville's transatlantic trade
• While not grasped by Philip ii himself
e.g. the indies accounted for between a fifth and a quarter of the crown's incom

2. France:
• During the 1550s various lines of interest began to converge onto the central theme o
Spanish power
• During the first half of 16th century, the idea was only gradually transformed into a br

3. The new world

European conflict in new world?
• Slowly and with uncertainty
• New opportunities for international relation were constantly created
• Aggravated by national mythologies: the chosen race; world-power and civilization fro

Incidents of new world and national rivalry

• Books of Spanish conduct in the Indies at the time when the conflict between Spain an
Rome and Geneva was approaching the climax
• Propaganda warfare: ammunition of the enemies of Spain

Spanish attitude
• Increasing Spaniard doubt about the value of the Indies
• Complaints of The nature and the use of wealth: saw little of American silver

Decline
Between 1642-1644 Spanish Atlantic empire towards collapse
• 1620s and 1630s: new world drawn into European struggle, Transatlantic extension of
Triangular relationship between Castile, Portugal, the Dutch

• 1639-1640: the interaction of events in the old and the new world reached the climax
Pressure on Castile's resources due to War with France
By 1639 Olivares' fiscal Interference led Trade with Indies to be paralyzed
Naval defeats in 1639, 1640 led to the lost of command of the seas
1640 Portugal claimed independence, disintegration of Spanish power

Justification
• Vast traces of America which Spain left alone
• Inability of Spain in the 17th century to sustain its claim to exclusive dominion gradual
occupation as sufficient title of overseas possession
• Justification of papal donation undermined by Spanish themselves (scholars' rejection
power)
ver and more general movements of

me during the final years of the reign

of the Indies and their relationship to

road strategic design

om east to west;

nd northern powers, and between

f European conflicts

lly led to the acceptance of effective

of the doctrine of direct papal

Justification
• Vast traces of America which Spain left alone
• Inability of Spain in the 17th century to sustain its claim to exclusive dominion gradual
occupation as sufficient title of overseas possession
• Justification of papal donation undermined by Spanish themselves (scholars' rejection
power)
• New world to be integrated into the diplomatic, economic, and political system of Euro
• Overseas possession as adjuncts of Europe, enhancing the military and economic powe
lly led to the acceptance of effective

of the doctrine of direct papal

ope
er of rival nation states