Potosí (1545- ), formerly of Peru, now of Bolivia, was one of the largest and richest cities in the world in 1650. By 1573 it was already bigger than Paris or Rome. Now a poor city with old baroque churches and palaces, it is a UNESCO World Heritage Site.
Potosi lies at the foot of Cerro de Potosi, a reddish mountain 4,000 metres up in the high Andes. In 1500 it had twice as much silver as all of Europe.
The silver is gone, though it still has some tin and zinc. At its height in the late 1500s and early 1600s, it produced most of the world’s silver. In “Don Quixote” (1605) they say that something is “worth a Potosi”.
The silver:
- In Europe, fed wars and banks.
- In East Asia, fed the growth of trade and cities (along with silver from Japan).
- In South America, meant a living hell for Natives.
Over 11 million Natives were marched to its mines, men, women and children, some forced to walk for hundreds of miles – not unlike the 15.5 million Africans marched to slave ships (30,000 of whom were sent to Potosi). Of these 8 million never made it back home. They died of pneumonia in the high mountain cold, of mercury poisoning (mercury was used to separate the silver) and other diseases. They were given coca leaves to chew (what cocaine comes from) so that they kept working despite hunger, despite being worn out. They were paid not in silver but in cloth. Only a few widows and orphans ever made it back home.
Spain did pass laws to protect Natives, but Potosi did not uphold them.
The Incas knew about the silver before the Spanish arrived but, the story goes, when they tried to mine it a voice like thunder said in Quechua:
“This is not for you; God is keeping these riches for those who come from afar.”
They used silver for artwork, not money.
The silver was suppose to all go to Spain, but
- At least 20% went to China by way of the Manila galleons.
- Some was lost to French and English pirates.
- Some was secretly taken down the River Plate, the “River of Silver”, to Argentina (the river was already named that).
Of the silver that reached Spain, little stayed. Spain was deep in debt, from past wars against the Moors, from new wars to build a land empire in Europe under the Habsburgs. So the silver flowed into the banks of Italy and the Netherlands and elsewhere. Since silver was needed for long-distance trade, some of it went on to Russia, Iran, India, Egypt, Syria, China and the Spice Islands (Indonesia).
China in those days required taxes to be paid in silver. That pushed up silver prices, making China a silver magnet.
Vampire economics: Nearly all of the wealth of Potosi flowed overseas. What little remained benefited only a few at the top. Ordinary people saw little of it. That is not just the story of Potosi, that is the story of Latin America.
See also:
- Welcome to Hispanic Heritage Month 2014
- The Spanish
- Manila galleons
- democide
- The diseased host model of American society
- Kilwa – another UNESCO Heritage Site
- coolies – Asian contract labourers, some of whom were sent to Peru
- American dollar – grew out of the Spanish silver dollar, as did many other currencies in the Americas and western Pacific
- Hugo Chávez – and his answer to vampire economics
[…] Potosí (1545- ), formerly of Peru, now of Bolivia, was one of the largest and richest cities in the world in 1650. By 1573 it was already bigger than Paris or Rome. Now a poor city with old baroque churches and palaces, it is a UNESCO World Heritage Site.Potosi lies at the foot of Cerro de Potosi, a reddish mountain 4,000 metres up in the high Andes. In 1500 it had twice as much silver as all of Europe.The silver is gone, though it still has some tin and zinc. At its height in the late 1500s and early 1600s, it produced most of the world’s silver. In “Don Quixote” (1605) they say that something is “worth a Potosi”.- Click through for more – […]
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“Vampire economics: Nearly all of the wealth of Potosi flowed overseas. What little remained benefited only a few at the top. Ordinary people saw little of it. That is not just the story of Potosi, that is the story of Latin America.”
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Isn’t this also the story of Africa (now and before) as well as Latin America?
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[…] Potosí (1545- ), formerly of Peru, now of Bolivia, was one of the largest and richest cities in the world in 1650. By 1573 it was already bigger than Paris or Rome. Now a poor city with old baroque churches and palaces, it is a UNESCO World Heritage Site.Potosi lies at the foot of Cerro de Potosi, a reddish mountain 4,000 metres up in the high Andes. In 1500 it had twice as much silver as all of Europe.The silver is gone, though it still has some tin and zinc. At its height in the late 1500s and early 1600s, it produced most of the world’s silver. In “Don Quixote” (1605) they say that something is “worth a Potosi”.- Click through for more – […]
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This is more or less the story with any extractive industry. Modern unionized environments may dilute the cruelty a bit in the developed nations, but it becomes a difference of degree, not character. See “Matewan”, etc.
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@ Abagond
I am curious about this account:
Does mean that God was looking after the interests of the Spaniards first?
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@ Kwamla
“the story goes” – probably a Spanish retelling, at the least. Incas were polytheistic for one thing. It also sounds too much like how God meant Wyoming for Anglo-Saxons in the Manifest Destiny post. But it could be one of those (coincidental) prophecies.
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@ Just Me
Right, Africa too. I would add Black America too.
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“In Europe, fed wars and banks.”
I think that doesn’t grasp the impact the influx of the American silver had on Europe. The Spanish Habsburgs certainly benefited in the short run, had more money and could spend it on their hegemonial plans. But more importantly it caused inflation and contributed to the economic boom of the 16th century.
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[…] Potosí (1545- ), formerly of Peru, now of Bolivia, was one of the largest and richest cities in the world in 1650. By 1573 it was already bigger than Paris or Rome. Now a poor city with old baroque churches and palaces, it is a UNESCO World Heritage Site.Potosi lies at the foot of Cerro de Potosi, a reddish mountain 4,000 metres up in the high Andes. In 1500 it had twice as much silver as all of Europe.The silver is gone, though it still has some tin and zinc. At its height in the late 1500s and early 1600s, it produced most of the world’s silver. In “Don Quixote” (1605) they say that something is “worth a Potosi”. – Click through for more – […]
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[…] Source: abagond.wordpress.com […]
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[…] Potosí (1545- ), formerly of Peru, now of Bolivia, was one of the largest and richest cities in the world in 1650. By 1573 it was already bigger than Paris or Rome. Now a poor city with old baroque churches and palaces, it is a UNESCO World Heritage Site.Potosi lies at the foot of Cerro de Potosi, a reddish mountain 4,000 metres up in the high Andes. In 1500 it had twice as much silver as all of Europe.The silver is gone, though it still has some tin and zinc. At its height in the late 1500s and early 1600s, it produced most of the world’s silver. In “Don Quixote” (1605) they say that something is “worth a Potosi”. – Click through for more – […]
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Enslaved Africans were also at Potosi, no?
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@ talibmensah
There were about 30,000 African slaves at Potosi, as noted in the post.
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@abagond
Oh, I see now. Thank you, I apologize for missing that, and for commenting all over your blog. You are prolific and your blog has a lot of fascinating posts.
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