- Describe the theory of mercantilism and the process of commodification
- Analyze the effects of the Columbian Exchange
- Describe changes to Native American life following European settlement
Commerce in the New World
The economic philosophy of mercantilism shaped European perceptions of wealth from the 1500s to the late 1700s. Mercantilism held that only a limited amount of wealth, as measured in gold and silver bullion, existed in the world. In order to gain power, nations had to amass wealth by mining these precious raw materials from their colonial possessions. During the age of European exploration, nations employed conquest, colonization, and trade as ways to increase their share of the bounty of the New World. Mercantilists did not believe in free trade, arguing instead that the nation should control trade to create wealth. In this view, colonies existed to strengthen the colonizing nation. Mercantilists argued against allowing their nations to trade freely with other nations, because that would mean exchanging bullion for goods.
Spain’s mercantilist ideas guided its economic policy. Every year, enslaved individuals or Native workers loaded shipments of gold and silver aboard Spanish treasure fleets that sailed from its American colonies for Spain. These ships groaned under the sheer weight of bullion, for the Spanish had found huge caches of silver and gold in the New World. In South America, for example, Spaniards discovered rich veins of silver ore in a mountain called Potosí and founded a settlement of the same name there. Throughout the sixteenth century, Potosí was a boomtown, attracting settlers from many nations as well as Native people from many different cultures.
Colonial mercantilism, which was basically a set of protectionist policies designed to benefit the nation, relied on several factors: colonies rich in raw materials, cheap labor, colonial loyalty to the home government, and control of the shipping trade. Under this system, the colonies sent their raw materials, harvested by enslaved or Native workers, back to their mother country. The mother country sent back to the colonies finished materials of all sorts: textiles, tools, clothing. The colonists could purchase these goods only from their mother country; trade with other countries was forbidden.
The 1500s and early 1600s also introduced the process of commodification to the New World. American silver, tobacco, and other items, which were used by Native peoples for ritual purposes, became European commodities with a monetary value that could be bought and sold. Before the arrival of the Spanish, for example, the Inca people of the Andes consumed chicha, a corn beer, for ritual purposes only. When the Spanish discovered chicha, they bought and traded for it, turning it into a commodity instead of a ritual substance. Commodification thus recast Native economies and spurred the process of early commercial capitalism. New World resources, from plants to animal pelts, held the promise of wealth for European imperial powers.
The Columbian Exchange
As Europeans traversed the Atlantic, they brought with them plants, animals, and diseases that changed lives and landscapes on both sides of the ocean. These two-way exchanges between the Americas and Europe/Africa are known collectively as the Columbian Exchange.
Sugar and Tobacco
Of all the commodities in the Atlantic World, sugar proved to be the most important. Indeed, sugar carried the same economic importance as oil does today. European rivals raced to create sugar plantations in the Americas and fought wars for control of some of the best sugar production areas. Although refined sugar was available in the Old World, Europe’s harsher climate made sugarcane difficult to grow, and it was not plentiful. Columbus brought sugar to Hispaniola in 1493, and the new crop was growing there by the end of the 1490s. By the first decades of the 1500s, the Spanish were building sugar mills on the island. Over the next century of colonization, Caribbean islands and most other tropical areas became centers of sugar production.
Though of secondary importance to sugar, tobacco achieved great value for Europeans as a cash crop as well. Native peoples had been growing it for medicinal and ritual purposes for centuries before European contact, smoking it in pipes or powdering it to use as snuff. They believed tobacco could improve concentration and enhance wisdom. To some, its use meant achieving an entranced, altered, or divine state—entering a spiritual place.
Tobacco was unknown in Europe before 1492, and it carried a negative stigma at first. The early Spanish explorers considered Natives’ use of tobacco to be proof of their savagery and, because of the fire and smoke produced in the consumption of tobacco, evidence of the Devil’s sway in the New World. Gradually, however, European colonists became accustomed to and even took up the habit of smoking, and they brought it across the Atlantic. As did the Indians, Europeans ascribed medicinal properties to tobacco, claiming that it could cure headaches and skin irritations. Even so, Europeans did not import tobacco in great quantities until the 1590s. At that time, it became the first truly global commodity; English, French, Dutch, Spanish, and Portuguese colonists all grew it for the world market.
Native peoples also introduced Europeans to chocolate, made from cacao seeds and used by the Aztec in Mesoamerica as currency. Mesoamerican Indians consumed unsweetened chocolate in a drink with chili peppers, vanilla, and a spice called achiote. This chocolate drink—xocolatl—was part of ritual ceremonies like marriage and an everyday item for those who could afford it. Chocolate contains theobromine, a stimulant, which may be why Native people believed it brought them closer to the sacred world.
Spaniards in the New World considered drinking chocolate a vile practice; one called chocolate “the Devil’s vomit.” In time, however, they introduced the beverage to Spain. At first, chocolate was available only in the Spanish court, where the elite mixed it with sugar and other spices. Later, as its availability spread, chocolate gained a reputation as a love potion.
The crossing of the Atlantic by plants like cacao and tobacco illustrates the ways in which the discovery of the New World changed the habits and behaviors of Europeans. Europeans changed the New World in turn, not least by bringing Old World animals to the Americas. On his second voyage, Christopher Columbus brought pigs, horses, cows, and chickens to the islands of the Caribbean. Later explorers followed suit, introducing new animals or reintroducing ones that had died out (like horses). With less vulnerability to disease, these animals often fared better than humans in their new home, thriving both in the wild and in domestication.
Plants and Medicines
Just as pharmaceutical companies today scour the natural world for new drugs, Europeans traveled to America to discover new medicines. The task of cataloging the new plants found there helped give birth to the science of botany. Early botanists included the English naturalist Sir Hans Sloane, who traveled to Jamaica in 1687 and there recorded hundreds of new plants. Sloane also helped popularize the drinking of chocolate, made from the cacao bean, in England.
Indians, who possessed a vast understanding of local New World plants and their properties, would have been a rich source of information for those European botanists seeking to find and catalog potentially useful plants. Enslaved Africans, who had a tradition of the use of medicinal plants in their Native land, adapted to their new surroundings by learning the use of New World plants through experimentation or from the Native inhabitants. Native peoples and Africans employed their knowledge effectively within their own communities. One notable example was the use of the peacock flower to induce abortions: Indian and enslaved African women living in oppressive colonial regimes are said to have used this herb to prevent the birth of children into slavery. Europeans distrusted medical knowledge that came from African or Native sources, however, and thus lost the benefit of this source of information.
Europeans encountered New World animals as well. Because European Christians understood the world as a place of warfare between God and Satan, many believed the Americas, which lacked Christianity, were home to the Devil and his minions. The exotic, sometimes bizarre, appearances and habits of animals in the Americas that were previously unknown to Europeans, such as manatees, sloths, and poisonous snakes, confirmed this association. Over time, however, they began to rely more on observation of the natural world than solely on scripture. This shift—from seeing the Bible as the source of all received wisdom to trusting observation or empiricism—is one of the major outcomes of the era of early globalization.
The Introduction of Disease
Perhaps European colonization’s single greatest impact on the North American environment was the introduction of disease. Microbes to which Indigenous inhabitants had no immunity led to death everywhere Europeans settled. Along the New England coast between 1616 and 1618, epidemics claimed the lives of 75 percent of the Native people. In the 1630s, half the Huron and Iroquois around the Great Lakes died of smallpox. As is often the case with disease, the very young and the very old were the most vulnerable and had the highest mortality rates. The loss of the older generation meant the loss of knowledge and tradition, while the death of children only compounded the trauma, creating devastating implications for future generations.
In eastern North America, some Indigenous peoples interpreted death from disease as a hostile act. Some groups, including the Iroquois, engaged in raids or “mourning wars,” taking enemy prisoners in order to assuage their grief and replace the departed. In a special ritual, the prisoners were “requickened”—assigned the identity of a dead person—and adopted by the bereaved family to take the place of their dead. As the toll from disease rose, mourning wars intensified and expanded.
This video explains the significance of the Colombian Exchange.
You can view the transcript for “Columbian Exchange” here (opens in new window).
Changes to Native American Life
While the Americas remained firmly under the control of Native peoples in the first decades of European settlement, conflict increased as colonization spread and Europeans placed greater demands upon the Native populations, including expecting them to convert to Christianity (either Catholicism or Protestantism). Throughout the seventeenth century, the still-powerful Native peoples and confederacies that retained control of the land waged war against the invading Europeans, achieving a degree of success in their effort to drive the newcomers from the continent.
At the same time, European goods had begun to change Indian life radically. In the 1500s, some of the earliest objects Europeans introduced to Indians were glass beads, copper kettles, and metal utensils. Native people often adapted these items for their own use. For example, some cut up copper kettles and refashioned the metal for other uses, including jewelry that conferred status on the wearer, who was seen as connected to the new European source of raw materials.
European Goods in Native Communities
As European settlements grew throughout the 1600s, European goods flooded Native communities. Soon Native people were using these items for the same purposes as the Europeans. For example, many Native inhabitants abandoned their animal-skin clothing in favor of European textiles. Similarly, clay cookware gave way to metal cooking implements, and Indians found that European flint and steel made starting fires much easier.
The abundance of European goods gave rise to new artistic objects. For example, iron awls made the creation of shell beads among the Native people of the Eastern Woodlands much easier, and the result was an astonishing increase in the production of wampum, shell beads used in ceremonies and as jewelry and currency. Native peoples had always placed goods in the graves of their departed, and this practice escalated with the arrival of European goods. Archaeologists have found enormous caches of European trade goods in the graves of Indians on the East Coast.
Native weapons changed dramatically as well, creating an arms race among the peoples living in European colonization zones. Indians refashioned European brassware into arrow points and turned axes used for chopping wood into weapons. The most prized piece of European weaponry to obtain was a musket, or light, long-barreled European gun. In order to trade with Europeans for these, Native peoples intensified their harvesting of beaver, commercializing their traditional practice.
The influx of European materials made warfare more lethal and changed traditional patterns of authority among tribes. Formerly weaker groups, if they had access to European metal and weapons, suddenly gained the upper hand against once-dominant groups. The Algonquian, for instance, traded with the French for muskets and gained power against their enemies, the Iroquois. Eventually, Native peoples also used their new weapons against the European colonizers who had provided them.
The European presence in America spurred countless changes in the environment, setting into motion chains of events that affected native people as well as animals. The popularity of beaver-trimmed hats in Europe, coupled with Indians’ desire for European weapons, led to the overhunting of beaver in the Northeast. Soon, beavers were extinct in New England, New York, and other areas. With their loss came the loss of beaver ponds, which had served as habitats for fish as well as water sources for deer, moose, and other animals. Furthermore, Europeans introduced pigs, which they allowed to forage in forests and other wildlands. Pigs consumed the foods on which deer and other indigenous species depended, resulting in scarcity of the game Native peoples had traditionally hunted.
European ideas about owning land as private property clashed with Natives tribes’ understanding of land use. Indigenous peoples did not believe in private ownership of land; instead, they viewed land as a resource to be held in common for the benefit of the group. The European idea of usufruct—the right to common land use and enjoyment—comes close to the Native understanding, but colonists did not practice usufruct widely in America. Colonizers established fields, fences, and other means of demarcating private property. Native peoples who moved seasonally to take advantage of natural resources now found areas off limits, claimed by colonizers because of their insistence on private-property rights.
- How did European muskets change life for Native peoples in the Americas?
Show AnswerEuropean guns started an arms race among Indian groups. Tribes with ties to Europeans had a distinct advantage in wars with other tribes because muskets were so much more effective than bows and arrows. Guns changed the balance of power among different groups and tribes and made combat more deadly.
- Compare and contrast European and Indian views on property.
Show AnswerIndians didn’t have any concept of owning personal property and believed that land should be held in common, for use by a group. They used land as they needed, often moving from area to area to follow food sources at different times of year. Europeans saw land as something individuals could own, and they used fences and other markers to define their property.
Columbian Exchange: the movement of plants, animals, and diseases across the Atlantic due to European exploration of the Americas
commodification: the transformation of something—for example, an item of ritual significance—into a commodity with monetary value
mercantilism: the protectionist economic principle that nations should control trade with their colonies to ensure a favorable balance of trade
mourning wars: raids or wars that tribes waged in eastern North America in order to replace members lost to smallpox and other diseases
musket: a light, long-barreled European gun
smallpox: a disease that Europeans accidentally brought to the New World, killing millions of Indians, who had no immunity to the disease
sugarcane: one of the primary crops of the Americas, which required a tremendous amount of labor to cultivate
usufruct: a European right to common land use and enjoyment that was not widely practiced in the Americas