Category Archives: Peru

China’s Silver Shortage, 1830s

From Imperial Twilight: The Opium War and the End of China’s Last Golden Age, by Stephen R. Platt (Knopf, 2018), Kindle pp. 304-307:

There was nothing the government could do about the weather, but the root cause of the economic turmoil in the 1830s, and the problem from which many of the others grew, was a human one: China’s monetary system had gone haywire. It was mainly a problem of currency, of which the Qing dynasty had two primary forms: copper for small transactions and silver for large ones. Copper came in minted coins (with holes through the middle so they could be strung on a loop for convenience), while domestic silver—nearly pure and known in English as “sycee”—was unminted, traded by weight in units of measurement called taels that were just under an ounce. In normal times, a tael of silver was worth a thousand copper coins, and, value for value, the excessive difficulty of moving large amounts of copper between provinces meant that silver was the medium through which all long-distance trade was conducted within the empire. Silver was also, significantly, the basis on which tax quotas were assessed. By contrast, copper was the medium of the rural marketplace and menial wages. Nearly all of the income and savings of the lower classes of China—farmers, hired laborers, craftspeople—were in copper coins.

The crisis was that the value of silver had begun to rise sharply, and as it rose the exchange rate between silver and copper skewed out of control. From the ideal rate of 1,000 copper coins per tael of silver in the eighteenth century (even less at times, which was a boon for peasants since it meant their copper money was worth more), it had risen to 1,200 by the time Daoguang came to the throne. By 1830 it reached 1,365 copper coins per tael of silver and showed no signs of stopping. Since taxes were assessed in a fixed amount of silver, which had to be purchased with copper currency, this meant that by the early 1830s the peasants of China had suffered a nearly 40 percent increase in their effective tax burdens for reasons none fully understood. And as with nearly every problem in the empire, the corruption of officials made a bad situation even worse, as tax collectors commonly charged even higher rates of exchange so they could pocket the proceeds. By the late 1830s, some regions were reporting copper–silver exchange rates as high as 1,600 to 1, with tax collectors independently demanding as much as 2,000 copper coins per tael of silver owed. This dramatic decline in the worth of copper currency was disastrous for the general population, piling economic hardship on the poor who could scarcely bear it and sparking widespread tax protests that layered on top of all the other sources of dissent against the government. But although the emperor could occasionally grant tax amnesties to regions afflicted by floods or drought, the government quite desperately needed every tael of revenue it could get and so the exactions continued.

Even with that outflow of sycee silver, however, the inflow of Spanish dollars to purchase tea and silk at Canton should have been able to maintain a relatively steady overall silver supply in China (and in fact, since the late eighteenth century Spanish dollars had been preferred even over native sycee in some of China’s most important domestic markets). But on that count, a range of forces far beyond China’s borders came into play. First, it had been American merchants who brought most of the silver to China in the early nineteenth century (fully one-third of Mexico’s entire silver output between 1805 and 1834 was carried to China by Americans). But a shift in U.S. government monetary policy in 1834 made silver more expensive for American merchants, so they switched abruptly to using bills of exchange—which were acceptable to the Hong merchants but resulted in a decline in the amount of tangible silver entering the country from abroad. With the drop in American imports, China, which for centuries had been the world’s largest net importer of silver, unexpectedly turned into an exporter of the metal.

In the even bigger picture, though, what the Chinese scholars who blamed foreign trade and opium for the scarcity of silver in China did not realize was that it wasn’t just a Chinese problem: by the 1820s, silver was becoming scarce everywhere. Most of the world’s supply at this time had come from mines in Spanish Mexico and Peru (thus the importance of the Spanish dollar), but national revolutions in Latin America that began in the 1810s shut down those mines and choked off the world’s largest fonts of the precious metal. Global production of silver declined by nearly half during the 1810s—the same time its value began to creep upward in China—and it continued to decline during the decade that followed. The ramping up of the opium trade in 1820s China thus coincided fatefully with the onset of a global slump in silver output that would last for the next thirty years.

Regardless of where the specific blame lay, it was a devastating confluence of economic forces for China: the loss of sycee through the opium smuggling trade, the global scarcity of silver after the Latin American revolutions, and the drying up of American silver imports into China together helped cause a catastrophic decline in the empire’s supply of the metal. And it was a vicious cycle, for as silver became more valuable in China, wealthy families and businessmen would hoard it, removing even more from circulation and making the problem worse.

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Filed under China, democracy, economics, labor, Mexico, nationalism, opium, Peru, U.S., war

Similarities of Native American and Iberian Empires

From The Penguin History Of Latin America, by Edwin Williamson (Penguin, 2003), Kindle pp. 75-76:

What occurred in the sixteenth century was not so much the discovery of a New World as the meeting of two branches of humanity which had previously been unknown to each other. For the Indians of America, who had lived a completely isolated existence, the encounter with aliens was inherently traumatic. The European invasions brought much that was radically new in the realm of ideas and values, in agricultural methods, including new crops and animals, in technology, with the introduction of the wheel, iron, guns, ships, tools, and in the economy, where the use of money, profit-making and trade were far more developed than in Indian societies. All these innovations would change and also disrupt the Indian world.

Even so, in the imperial areas of Middle America and the Andes the break with tradition was not total. In the first place, Indians and Iberians had comparable ideas of political sovereignty: the Catholic monarchs of the Iberian kingdoms derived their legitimacy and absolute authority from a divine source, as did the rulers of the Aztecs and the Incas. In both the European and the Amerindian imperial states the religious establishment was closely involved in the business of government; a priestly caste or a Church hierarchy buttressed the state and received numerous privileges, land and tribute from the people. Both kinds of society were seigneurial: Indian nobles, like their Iberian counterparts, owned large estates worked by tribute-paying peasants; they also headed large households composed of extended families or kinship groups, as well as numerous dependants and servants. Relations within these households and between noble clans replicated the reciprocal relationship between the monarch and his people, based as it was on patriarchy and patronage – a man of power would bestow favours in return for the loyalty of his clients and subordinates. Aristocrats valued honour and glory derived from military exploits, for in America as in Iberia there was long experience of conquering and subjugating alien kingdoms. Indeed, James Lockhart and Stuart Schwartz have remarked on the extent to which the expectations of indigenous Americans ‘matched those of the Iberians, whose conquest lore also included notions of tribute imposition, change of religion and allegiance, and manipulation of local rulers, together with at least provisional local autonomy.’

These two worlds – Renaissance Europe and Indian America – met and clashed in the sixteenth century. The consequences of that encounter were manifold and extremely diverse, and, for reasons not wholly attributable to the Iberians, they were destructive for large numbers of Indians. Nevertheless, it has become clear that there existed sufficient political and social similarities between the two worlds, at least in Middle America and in the central Andes, for there to have occurred a fairly rapid process of restructuring and hybridization after the conquest had been completed.

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The Inca Vertical Archipelago

From The Penguin History Of Latin America, by Edwin Williamson (Penguin, 2003), Kindle pp. 48-49, 50-51:

In less than a hundred years the Incas had built the most formidable empire in the Western Hemisphere. Like that of the Aztecs, their dominion was characterized essentially by the levying of tribute from scores of subject kingdoms and tribes. But the Incas went much further than the Aztecs in developing a centralized bureaucratic state at the service of a supreme ruling class. In this the physical peculiarities of the Andean region were directly influential.

The geography of the area covered by the Inca empire is marked by great contrasts of climate and terrain. Ascending from the rainless deserts of the coast to the snow-capped peaks of the Andes, one passes through sharply varying ecological environments. On the coast, agriculture is possible only in the vicinity of rivers or on land under irrigation; fishing has therefore always been important. In the highlands, altitude determines the kind of crops that can be produced; for instance, maize will grow well up to 11,000 feet, while at higher levels tubers and grains can be cultivated. In the cold, windswept puna – steppe-like grasslands just below the snow-line – no agriculture is possible, though pasture is available for the llamas, vicuñas and other ruminants that provide meat and wool. Each level forms an ‘ecological tier’ yielding a particular range of produce, and yet there is not enough fertile land on any one tier to sustain a large population. Over the centuries Andean societies developed a way of overcoming this problem by sending out settlers to cultivate crops at different altitudes in order to complement the produce of their native territories. Andean societies were not therefore territorially integrated units, but took rather the form of ‘vertical archipelagos’ comprising the ancestral homeland – which provided the core of tribal identity – and outlying agrarian settlements on a number of ecological tiers specializing in various types of produce for distribution and exchange among the dispersed branches of the tribe. Geography thus produced a unique economic structure, which, in turn, determined social values and practices. Where fertile land, being scarce, needed to be so carefully husbanded, it is little wonder that its distribution had to be closely regulated by the community and that a spirit of co-operation should be so highly prized among members of the tribe. As a result, the two ruling principles of Andean tribal society were redistribution and reciprocity.

As a direct descendant of the Sun God, the supreme Inca was an absolute ruler possessed of an awesome majesty. Just as the sun sustained all living things in the natural world, so the Inca was responsible for the well-being of the social order. In return for his dispensation of justice, his subjects would offer up to him their tribute and labour services. The Inca state, in effect, drew upon elementary tribal relations of reciprocity and mutual aid, and converted them into a sophisticated system of ideological control based upon a relationship between the royal patron and his clients which was not essentially different from that which existed between a contemporary European monarch and his subjects. What many modern writers have seen as unique ‘socialist’ or ‘welfare state’ features of the Inca empire were in reality manifestations of royal patronage. Thus, for instance, the Inca would allow his peasants to graze their animals on common lands as a reward for their labour services on his personal estates. The bulk of the tribute-goods collected from the peasants would go towards provisioning the army, the bureaucracy and other branches of the imperial state, but a portion was kept back in storehouses and released in times of famine by the generosity of the Inca in order to relieve the hunger of the masses. Similarly, the Inca would redistribute some of the tribute to provide for the old and the sick. In the view of Nathan Wachtel, ‘the peasants felt therefore that they shared in the consumption of the produce they delivered as tribute’, though it may be as well to recall that this form of reciprocity rested on the ideological exploitation of peasant labour. Certainly, there was a sharp divide between the hard grind of a peasant’s life in the villages and the leisured circumstances of the Inca nobility and of the curacas (tribal lords) who had been co-opted into the imperial ruling class. These aristocrats – called orejones or ‘big ears’ by the Spaniards because of their custom of distending their ear-lobes with gold discs – possessed private estates and material wealth which they would display as a sign of their power. In addition to the finery of their costume and the delicacy of their diet, they were allowed to practise polygamy and concubinage, and to chew the narcotic coca leaf. These special liberties were strictly forbidden to commoners, for, like all aristocratic societies, the Incas were obsessed with status, and perhaps more than most, the Incas succeeded in using religion to justify social privilege.

Inca religion was very much a family affair, since the supreme Inca and his kin possessed the sacred aura of divine descent. This was another example of the Incas’ conversion of tribal customs into the tools of imperialism.

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Fratricide at Ayacucho, 1827

From Bolivar: American Liberator, by Marie Arana (Simon & Schuster, 2013), Kindle pp. 334-335:

At eight o’clock, as the sun warmed the morning air, one of the Spanish generals, Juan Antonio Monet, a tall, sturdy man with a russet beard, approached the patriot lines and called out to General José María Córdova, whom he knew from former days. Monet told Córdova that in the royalist ranks, as in the patriot, there were soldiers with relatives on the opposite side: would he allow them to greet each other before hostilities began? When General Córdova consulted with Sucre, the general in chief agreed immediately. And so it was that fifty men of opposing sides met on the slopes of Cundurcunca, among them a number of brothers, to embrace and weep—as one chronicler put it—in a heartbreaking display of farewell. Indeed, for Peruvians as for Venezuelans and Colombians before them, revolution meant fratricide, and men who spoke the same language, held the same religion, even shared flesh and blood, would now set upon one another in defense of an idea. Seeing the heart-wrenching scenes, General Monet asked Córdova if there wasn’t some way to come to terms and avoid the bloodshed. Córdova answered: Only if you recognize American independence and return peacefully to Spain. Monet was taken aback and said as much: Didn’t the young patriot general realize that the Spanish army was vastly superior? Córdova responded that combat would determine whether that was true. Monet walked away shaking his head. There was no turning back.

The battle was fierce, short. The royalists clambered down Cundurcunca in their red, gold, and blue regalia, laboring mightily under the banners, their helmets glinting in the sun. Republicans in dark, somber overcoats lined up to meet them. Cries went up as they watched the enemy troops descend: “Horsemen! Lancers! What you see are hardly warriors! They are not your equals! To freedom!”—and so on, up and down the lines. Before the battle officially began, a young Spanish brigadier was first to attack and first to fall; even so, the royalists took immediate control of the action. General Valdés and his men descended on the republicans like a horde of punishing angels, splitting their formation so wide that it gaped, momentarily helpless. But patriot morale was strong and the setback spurred them to higher resolve. When Córdova cried out, “Soldiers! Man your arms! Move on to victory!” his battalion scrambled to mount a fierce retaliation and soon the course of battle changed. The patriots bayoneted royalists left and right, snatching their silver helmets as trophies. By one in the afternoon, they had taken the heights. By mid-afternoon the field was littered with the fallen. Before sundown, Canterac offered Sucre his unconditional surrender.

Almost three thousand royalists were taken prisoner, surrendering in the face of a daunting republican fervor. Perhaps it was the exhaustion after so many weeks of forced marches; or a terror of Bolívar’s famed barbarian hordes; or the dizzying altitude, which, at thirteen thousand feet, can steal the very breath from a man. Or perhaps what prevailed in the end was Sucre’s brilliant strategy to make the soldiers of the king work harder, climb higher, march longer; and then strike them with a virulent force. The white-haired viceroy La Serna, fighting bravely to the last, had to be carried off the field with injuries; General Miller, who found him by chance in one of the huts where the wounded were nursed, offered the gallant old soldier tea from his saddlebag and insisted that medics attend to him promptly. The dead amounted to 1,800 for Spain; only 300 for the republicans.

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San Martin’s Plans for Peru, 1822

From Bolivar: American Liberator, by Marie Arana (Simon & Schuster, 2013), Kindle pp. 299-300:

When they finally spoke about the political system San Martín had in mind for Peru, Bolívar’s suspicions were confirmed. The Protector laid out his plan for establishing a monarchy with a European prince in rule. Bolívar had heard rumors about this, but hoped they weren’t true. A year before, he had sent one of his aides, Diego Ibarra, to Lima, with a letter of congratulations for San Martín and instructions for Ibarra to learn what he could. Was San Martín considering a monarchical plan and, if so, how deeply was he committed to it? “Sound out the general’s spirit,” he ordered Ibarra, “and persuade him, if you can, against any project of erecting a throne in Peru, which would be nothing short of scandalous.” Now he was hearing about a Peruvian king from the Protector himself. San Martín explained to Bolívar that he had spoken about his plan to both viceroys; that he had sent a delegation of diplomats to England months before to discuss just such a throne and which prince or duke might fill it. If England weren’t willing, his delegates would look for qualified candidates in Belgium, France, Russia, Holland, or—even—Spain. It was the reason he had stalled in forming a Peruvian congress or drawing up a Peruvian constitution. As far as San Martín was concerned, the nation was not ready for democracy—education was in a shambles; ignorance abounded; the pillars upon which democracy could depend did not exist. Bolívar might have agreed on this last point, but he was viscerally opposed to royalty, to kings and queens, to that old, musty European system that had required so much American blood to purge. He would not hear of it. Bolívar left the meeting as somber and impenetrable as a sphinx. San Martín left it deeply mortified.

There had been no question that at every point of discussion, San Martín had been the supplicant, Bolívar the khan. The Liberator had everything the Protector needed: a winning army, the acclaim of his people, the luster of success, the recognition of a major world power. But Bolívar had given nothing; instead he had walked away deeply apprehensive of San Martín’s motives.

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Okinawan Emigration Destinations

From Liminality of the Japanese Empire: Border Crossings from Okinawa to Colonial Taiwan, by Hiroko Matsuda (U. Hawaii Press, 2018), Kindle loc. ~840:

Before migration to the US mainland became popular in Okinawa, anti-Japanese sentiment spread across the West Coast, where the Japanese population had increased rapidly at the turn of the twentieth century. After the enactment of the Gentlemen’s Agreement in 1908, Okinawans were unable to enter the United States as migrant laborers. Thus, very few Okinawans followed the thousands of Japanese who had migrated to the US mainland. The few who did so during this period were youths pursuing higher education. Some went to the US mainland via Hawai‘i, Canada, and Mexico; a few traveled directly from Okinawa. As the Gentlemen’s Agreement allowed only families of migrants to enter for the purpose of reuniting with husbands and fathers, some female Okinawans arranged to immigrate and join their grooms in the United States as picture brides.

Elderly Okinawans have a saying that best sums up these migration trends: “The richest people were able to immigrate to South America; people with some money migrated to the Philippines; and the poorest worked on mainland Japan.” Indeed, when it proved too difficult to enter the United States as migrant workers, the Japanese turned to South America—especially Brazil—and the Philippines as alternative destinations. Later, the South Sea Islands [Micronesia] became popular as the South Seas Development Company (Nan’yō Kōhatsu) targeted and recruited Okinawan laborers for its sugar industry. While Brazil, the Philippines, and the South Sea Islands were under different governments and Okinawan immigrants there worked in different industries, there are some commonalities among them. First, the initial immigrants in these countries worked in manufacturing and commercial crop industries such as coffee (Brazil), abaca [aka “manila hemp”]  (the Philippines), and sugarcane (the South Sea Islands). Second, Okinawan immigrants accounted for the majority of Japanese immigrant communities in these countries despite their treatment as “second-class Japanese” and “the other Japanese.”

Japan sent the first indentured migrant farmworkers to Brazil in 1908. Okinawans accounted for more than 40 percent, 325 of the 781 immigrants, of that inaugural group of economic immigrants to Brazil. In fact, many of the first Okinawan immigrants left the plantations to which they were allocated shortly after their arrival. This gave a negative impression to both the Japanese and Brazilian governments. In 1913, the Japanese government refused to accept Okinawans wishing to travel to Brazil as indentured laborers, citing their propensity to leave the plantations and their cultural difference from Japanese workers from the other prefectures, but when migration agencies were unable to recruit enough laborers from the other prefectures, Okinawans were once again permitted to go to Brazil as indentured migrant workers. However, as was the case in the United States, Okinawan migration to Brazil was prohibited in 1919, and only immigrants who were currently in Brazil were allowed to send for their families.

In addition to Brazil, Okinawa sent a significant number of immigrants to other Latin American countries. For instance, Peru quickly became one of the most popular destinations for Okinawan migrant workers after the first group of Okinawan immigrants arrived there in 1899. Between 1899 and 1941, Okinawa sent 11,461 immigrants to Peru, accounting for nearly 30 percent of the total number of Japanese immigrants. Although the immigrants were initially employed on plantation farms, many later moved to urban areas, where they became grocery store or restaurant owners.

Similarly, most Japanese immigrants to Argentina were Okinawans. This is despite the fact that Japanese immigrants had been arriving in Argentina since 1910. There were 1,831 Okinawans in Argentina in 1940, accounting for approximately 45 percent of the Japanese population in the country. Not all Okinawans in Argentina had migrated directly from Okinawa; in actuality, many ended up in Argentina after traveling to Brazil and Peru. In Argentina, many Okinawans initially found work as factory laborers or porters. A sizeable number eventually set up small businesses such as coffee shops and laundries.

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