Page 23 - Chinese SIlver By Adrien Von Ferscht

The first silver dollar came into being in 1598 as a result of monetary reform in Spain in the
shape of the 8 Reales coin [peso de ocho or ‘pieces of eight’], the term peso becoming the
basis of currencies in most of the former Spanish colonies. One of the main purposes of
this coin was to correlate with the German Thaler, a term derived from the word thal or
‘valley’; Joachimsthal being the valley in the Czech Republic [the then Holy Roman
Empire] where silver ore was mined. The word thal passed into Scandinavian countries as
daler and into English as dollar.

Holy Roman Empire 1549 Thaler silver coin
showing the head of Emperor Ferdinand I, the House of Hapsburg and son of the Spanish King
Philip I of Castile

Ferdinand's full titulature, rarely used, went as follows: Ferdinand, by the grace of God elected
Holy Roman Emperor, forever August, King in Germany, of Hungary, Bohemia, Dalmatia, Croatia,
Slavonia, Rama, Serbia, Galicia, Lodomeria, Rumania and Bulgaria, etc. Prince-Infante in Spain,
Archduke of Austria, Duke of Burgundy, Brabant, Styria, Carinthia, Carniola, Margrave of Moravia,
Duke of Luxembourg, the Upper and Lower Silesia, Württemberg and Teck, Prince of Swabia,
Princely Count of Habsburg, Tyrol, Ferrette, Kyburg, Gorizia, Landgrave of Alsace, Margrave of the
Holy Roman Empire, Enns, Burgau, the Upper and Lower Lusatia, Lord of the Wendish March,
Pordenone and Salins, etc.

The dynamic created by China’s long-term acquisition of silver from Central and South
America made for a complex series of phenomena that at times presented serious
consequences to different areas of Europe and in fact to world trade as we know it today.

In the 16th century, Spain was quick to understand the vast economic potential of Peru
where in the highlands [alti plano] of Upper Peru Potosi sat upon the largest concentration
of silver deposits in what was then considered to be the Western World. While some of the
deposits were to be found on the surface, the vast majority of deposits were within the
mountains. After an initial high-yield period of 15 years, production soon fell when the
realisation hit that this was going to be a long-term project that would depend on a high
level and consistency of manpower. Deep mining also required new technology to make it
feasible. As a result, Toledo had to impose new laws on its colony that were tantamount to
a form of “national service” that compelled males to “serve” as miners every six years in
strict rotation. The indigenous Indian population was ‘organised’ to optimise the the
production of corn, wheat and coca leaves as well as silver. The absolute control of the
Spanish colonial rule demanded a substantial ‘tribute’ payment from the Indians that went