The trade with China was an important economic support for the Span-ish colonies in Central and South America. By the late 18th century, Chinese commodities like silk, porcelain still accounted for 63% of the gross import value of Mexico. In order to balance the trade, they had to find accepted commodities for Chinese for barter and the large quantity of silver from America right met the demand. It was estimated that during 157L to 1821, the silver dollars transported from Mexico to Manila totaled 400 million pe-sos, at least one fOUfth of which flowed into China and a large percentage were imported through Guangzhou port. The estimation had not taken those imported from Central and South America via Spain into account. The im-portation of silver dollars in large quantities from Mexico and the West in-creased their currency in Chinese market, exerting a far-reaching influence on Chinese economy. Cantonese who got in touch with silver dollars earliest used them widely in daily lives. We can see from some Cantonese inscrip-tions that the unit of donations wa.s yuan instead of tael, which reflected the acceptance of the foreign currency by local people. In some places silver dollars had become hard currency the same as the traditional sycee. In the
late Qing Dynasty, even in the areas to the south of the Yangtse River sdver dollars began to be widely used as the medium of exchange, evidently prov-ing their enormous quantity in circulation. There were various sources of sil-ver dollars such as Mexico, Chile and European countries. Guangzhou mer-chants classified them into different ranks according to the quality. Those from Mexico were best in quality while those from other European countries were of inferior quality. According to the common standards agreed on by both Chinese and foreign merchants, transactions with silver dollars were granted discount for inferior coins, which never happened in the previous barter. The flood of imported silver from America changed the financial sys-tem in Guangzhou port, which was also a significant change after the estab-lishment of the economic and trading relation with America.
Apart from silver, Central and South America also supplied some im-portant materials for Guangzhou. Most of them were native products, like Brazil wood, a wood yielding a red dye. Spanish once wantonly squeezed the woods from Brazil for European market. A portion were shipped to Manila by galleons and then supplied for Chinese market as well. In modern times, the development of the Chinese silk and cotton textile industries all had a certain relation with the introduction and use of the exotic dvestuff.
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