During the 15th Century land was the measure of wealth and power in Europe.

With the discovery of the Americas in 1492 by Christopher Columbus, the Spanish Crown had gained full jurisdiction of all lands there and became the most powerful and wealthiest nation in Europe and thus, tilted the balance of power in the world in her favor. In 1494 by Papal decree, the Treaty of Tordesillias was signed and the New World was divided between Spain and Portugal, in which Spain got all the new territories west of the division line, while the new finds in Africa and India including Brazil which lies to the east of the Tordesillas line fell under Portugals jurisdiction. Throughout the late 15th into the early 16th century Spain planted several colonies in the Caribbean such as Hispaniola, Cuba, Jamaica in (1509), Puerto Rico in (1508) and from these territories they further expanded into the Mainland where they also successfully planted colonies such as Florida (1521) in North America, Mexico (1518) in Central America and Peru (1532) in South America. Likewise in (1500) the Portuguese founded the settlement of Brazil in South America. According to K.G. Davis the encounter of Indians wearing tiny gold nose-plugs had instigated a gold fever that ran high amongst the settlers. 1The attraction of finding more of these deposits i.e. gold and silver had chiefly influenced and maintained Spanish interests in the Americas. However the discovery of the mines with deep deposits in Mexico and Peru in 1545-6 finally satisfied their desires as well as transformed the whole economic situation. Likewise in late 17th century the bandeirantes also discovered gold in the Minas Gerais (General Mines) of Brazil which in return made it the most economically

DAVIES, K.G. The North Atlantic World in the 17th Century (Univ. of Minnesota Press, 1974) p. 7

important region of the Portuguese.2 As a result of these finds Europe greatly benefited since the mining of these precious metals i.e. gold and silver were measures of value (no official currency) and represented a direct and massive way to accumulate real wealth. In addition the larger the amount of bullion it controlled the stronger the nation.3 The accumulation of these metals had never been seen before at such a pace or on such a scale. According to R. Davis the steady influx of American silver made it possible for Spanish taxes to pay for wars on foreign soil which would otherwise they could hardly have done, the purchase of supplies in central Europe, an expansion of the money supply in Europe where there was eight to ten times increases in number of metal coins being circulated as well as for ornaments, communion plates and chalices used by the church. 4 Another way in which Europe benefited from the Americas in the 16th century was that the discovery of a cheap and abundant supply of brazilwood i.e. a hard wood which was valuable for the production of a red crystalline dye from Brazil, had therefore replaced the dyes previously acquired in the East Indies and the Mediterranean. On the other hand other rival European nations such as France, England and Holland, became envious of Spains aggrandizement of wealth in the New World and began to question the Popes authority.For e.g. According to Eric Williams, in 1562, the British Government led by Queen Elizabeth 1, stated that the pope had no right to

Brazil. Microsoft Encarta Encyclopedia 2001. 1993-2000 Microsoft Corporation. All rights reserved. 3 REICH, J. Colonial America (Chicago Univ. Press, 19840) p. 52 4 DAVIS, R. The Rise of Atlantic Economies (Weidenenfeld and Nicholson: London, 1988) p. 69

partition the world, to give and take kingdoms to any one or whoever he please5.

As

a result these rival nations made attempts of establishing their own colonies in order to challenge and destroy Spains monopoly in the Americas. Like the Spanish, these rival European nations in the 16th and 17th centuries also wanted to reap the benefits of the Americas by establishing settlements, setting up trading links, export new agricultural crops for the market abroad, explore the navigational secrets of the new world and extract mineral wealth. However, with the Doctrine of Effective Occupation brought on by the Treaty of London there was an increasing change in the balance of power. It claimed that anyone was free to settle or trade in any part of the world not yet occupied by another European power. Therefore, the English had chiefly used this to their advantage, because they recognized that, if they were to become a world dominant power and benefit from the Americas they would need an Empire. England began colonizing the eastern seaboard of the Americas, where she successfully planted establishments such as Virginia (1606), Maine (1607), Massachusetts (1628), Maryland (1633), Connecticut (1635), Rhode Island (1636), New Haven (1638); and in the Caribbean she acquired, Barbados in (1625) Nevis (1628), Antigua (1632), and in (1655) she successfully attained, the prized possession of Jamaica. Unfortunately, similar attempts were made on Tobago and St. Lucia but failed, due to Carib hostility.6 Although the French were unsuccessful in the 16th century, like the English in the 17th century they also successfully planted colonies on the Mainland such as Quebec

5 6

WILLIAMS, E. The History of Trinidad and Tobago DAVIES, K.G. The North Atlantic World in the 17th Century (Univ. of Minnesota Press, 1974) pp. 3539

(1608), Montreal (1642), and Louisiana (1699); and in the Caribbean Martinique and Guadeloupe in (1635) as well as many offshoots such as Grenada and St. Lucia. 7 According to, K.G. Davis The Dutch planted not permanent colonies, but factories to have trade depots in the Americas, since the colonies they took were in most cases, unfit for planting and of insignificant size. For e.g. they founded Aruba, Curacao, St. Marteen; but, the Dutch were the more successful in planting permanent settlements in the Guianas. For e.g. their biggest endeavor was in Brazil where they seized Pernambucco from the Portuguese and founded Essequibo in (1616) and Berbice in (1624). In North America they also successfully planted the colony of New Netherlands at the mouth of the Hudson River in (1609) as well as in (1623) they acquired the Is. of Manhattan where they founded New Amsterdam (present day New York). 8 Furthermore, the planting of all these colonies had suited the economic policies of all f colonial European powers since they were almost identical. According to Reich all were dictated by the tenets of mercantilism, which required that all colonial products and natural resources be sold only to the mother country. In other words, the colonies would supply the raw materials that the mother country could not produce at home and in return the colonies would serve as markets for the ever-increasing volume of manufactured goods produced in the mother country. As a result the development of plantation agriculture in the Americas had tremendously benefited Europe during the 17th century.9

ECCLES, W. J. The Canadian Frontier 1534-1760 (Holt, Rinehart and Winston, Inc. U.S.A.) pp. 2224 8 DAVIES, K.G. The North Atlantic World in the 17th Century (Univ. of Minnesota Press, 1974) p.44 9 REICH, J. Colonial America (Chicago Univ. Press, 1984) p.53

One of the ways was that it changed the consumption patterns of Western Europe, where it brought in many new commodities within the reach of the citizens. Firstly, according to K.G. Davis the development of the fishing industry by English colonists along the settlements of Nova Scotia, New England and Newfoundland had impressed them since it contained both salt and fresh fishes. For e.g. cod and catfish were new and startling. In return these finds had helped the English sailors who had relied on the Baltic to supply the fishing market abroad; it served as a major contribution to keeping Europes poor alive, possessed great nutritional value and the whales captured chiefly provided oil used in making soap, in lamps, for oiling cloth in textile manufacture, and generally as a lubricant 10 Another way was that the developments of fur tapping activities, especially in the French colonies of the St. Lawrence Valley Canada made furs cheaply available and easily acquired since in the middle Ages it were for public display worn by nobles, officials and academic dignitaries. In return, this trade produced high profits since it required no huge investments or special skills. It also provided a market in Europe during the winter (cold) seasons. For e.g. according to Eccles the fur of the beaver seemed limitless.beaver hats sold for over thirty livres and fashion decreed that all gentlemen wear them.11 Likewise the cultivation of tobacco in the early 17th century by the English colonists in the North American colonies of Virginia and Maryland and sugar production in the Caribbean Islands and Brazil by the Dutch in South America had

10

DAVIES, K.G. The North Atlantic World in the 17th Century (Univ. of Minnesota Press, 1974) pp.1115 11 ECCLES, W. J. The Canadian Frontier 1534-1760 (Holt, Rinehart and Winston, Inc. U.S.A.) pp.1822

tremendously benefited Europe. These enterprises accumulated huge profits from the colonies which underlined European interests in preserving her colonial empires. As a result of the mass accumulation of wealth, it led to an expansion of the market economy where many of the richest merchants began to invest their profits to generate further wealth. This in turn further stimulated the rise of mercantile capitalism in the 17th century. For e.g. These Europeans powers with the support of their home government established trading companies to monopolize on the overseas markets such as the Virginia Company of London, Massachusetts Bay Company, English West India Company and the Dutch West India Company 12 In addition the export of these goods between the mother country and the colonies led to an increase and development of seaports along the Atlantic seaboard such as Nantes, Lisbon, Liverpool, Bristol and Amsterdam. In return Europe was thereby able to improve her shipping and ship-building industry, enlarge the merchant marine, provide employment for countless of seamen and enhance their royal treasuries because of the taxes that the government levied on all goods coming to and from the colonies.13 On the other hand, the wave of immigrants to the Americas in the 17th century had worked to Europes advantage. Europe, in particular England was able to rid her society of religious and political dissidents. For e.g. Large numbers of Puritans felt that the Elizabethan religious settlement had not gone far enough in the direction of Protestantism.14Secondly many Europe nations also wanted to dispose of its undesirables such as prisoners, prostitutes, vagrants. For e.g. New England had
12

LANG, J. Conquest and Commerce, Spain and England in the Americas (Academic Press New York, 1975) p.110-112 13 REICH, J. Colonial America (Chicago Univ. Press, 1984) p.53 14 DAVIS, R. The Rise of Atlantic Economies (Weidenenfeld and Nicholson: London, 1988) pp. 128130

established many Penal settlements and finally the colonies in the Americas would solve the problems of over-population and those who faced economic hardships. For e.g. Peasants were deskilled due to the implementation of labour saving devices on farms such as Mills and Waterworks. In conclusion the vast amounts of resources, development of industries and the establishment of colonies in the Americas during both the 16th and 17th centuries by the following European nations such as the Spanish, Portuguese, French, English and Dutch nations had therefore benefited them greatly since they were able to increase their market economy, the money supply, improve overpopulation and the consumptions patterns in the various societies.