The Commercial The Commercial RevolutionRevolution

Trade, Mercantilism, and WarTrade, Mercantilism, and War

DefinitionDefinition• A rapid increase in global trade occurring A rapid increase in global trade occurring

in the seventeenth and eighteenth in the seventeenth and eighteenth centuries involving new goods, new centuries involving new goods, new techniques, and new institutions.techniques, and new institutions.

MercantilismMercantilism• 1. Real wealth is specie (i.e., 1. Real wealth is specie (i.e.,

hard money, gold and silver)hard money, gold and silver)• 2. There is a natural scarcity 2. There is a natural scarcity

of resources in the world.of resources in the world.• 3. Nations must maximize 3. Nations must maximize

their exports and minimize their exports and minimize their imports.their imports.– Acquire coloniesAcquire colonies– Set up trade monopoliesSet up trade monopolies– Build navies/merchant marineBuild navies/merchant marine– Fight trade and colonial warsFight trade and colonial wars– Erect high tariffsErect high tariffs– Build roads, canals, and Build roads, canals, and

subsidize key industriessubsidize key industries

The Rise of the Dutch The Rise of the Dutch

• GeographicGeographic—ideal location, center of —ideal location, center of textiles, protection from attack (dikes).textiles, protection from attack (dikes).

• EconomicEconomic—scientific agriculture, —scientific agriculture, institutions (Bank of Amster., joint-stock institutions (Bank of Amster., joint-stock comps., comps., entrepotentrepot system), financial system), financial leaders, leaders, fluytsfluyts, rejected mercantilism, rejected mercantilism

• SocialSocial—mercantile elite, bourgeois —mercantile elite, bourgeois influence, tolerant, Calvinist frugalityinfluence, tolerant, Calvinist frugality

• PoliticalPolitical—decentralized authority, —decentralized authority, representative institutions (Estates-representative institutions (Estates-General) General)

““An Embarrassment of Riches”: An Embarrassment of Riches”: New Goods New Goods

• Cloth—silks, Cloth—silks, cotton, calicoescotton, calicoes

• Spices—pepper, Spices—pepper, mace, nutmeg, mace, nutmeg, cinnamon, saffron, cinnamon, saffron, etc.etc.

• Foods—sugar, tea, Foods—sugar, tea, coffee, rum, coffee, rum, molassesmolasses

““The Inhuman Trade”The Inhuman Trade”• Begun by Begun by

Portuguese in Portuguese in 1515thth century century

• Taken over by Taken over by DutchDutch

• Most went to Most went to New WorldNew World

• ““Middle Passage”Middle Passage”

• Sugar plantationsSugar plantations

• Mixing of Mixing of culturescultures

• RacismRacism

““The Tasty and Bitter Fruits”The Tasty and Bitter Fruits”

• Improved diet, standard of living, life expectancyImproved diet, standard of living, life expectancy• Increase in size and power of middle classIncrease in size and power of middle class• More resources for state in power driveMore resources for state in power drive• Rise of global economy and geopolitics, European Rise of global economy and geopolitics, European

exploitation/dominanceexploitation/dominance• Constant but limited warfare, 1600-1763Constant but limited warfare, 1600-1763• Shift in balance of power to those nations that most Shift in balance of power to those nations that most

efficiently organized resourcesefficiently organized resources

Commercial Wars, 1600-Commercial Wars, 1600-17631763

• Anglo-Dutch Naval Anglo-Dutch Naval Wars, 1652-74Wars, 1652-74

• Louis’s Dutch Wars, Louis’s Dutch Wars, 1667-791667-79

• Nine Years War Nine Years War (League of Augsburg), (League of Augsburg), 1688-971688-97– Treaty of RyswickTreaty of Ryswick– Role of William IIIRole of William III

• War of Spanish War of Spanish Succession, 1701-14Succession, 1701-14

• War of Jenkins Ear, War of Jenkins Ear, 1739-441739-44