Philippines. From 1570 to 1815, every spring, one or more large Spanish ships (called the Manila Galleon in the Philippines and the China Ship in Mexico) set sail from Acapulco to brave the Pacific Ocean and arrive in Manila laden with silver. And every spring, 30 or 40 junks arrived in Manila from China, loaded with all sorts of goods needed to exchange for that silver, which China needed given the ineffectiveness of its own currency system. The Spanish voyage across the Pacific was very risky: two to three months on the outward journey, and even longer on the return. Between 1570 and 1815, fifteen galleons, overflowing with silver, sank on the westward journey, while twenty-five galleons sank on the more difficult return to Acapulco. Scurvy, on the other hand, loomed large and killed hundreds of sailors. The amount of silver officially leaving Acapulco each year increased from 3 tons per year at the end of the 16th century to 1,000 tons per year. Up to 20 tons/year in the first half of the 17th century, then dropping to 9-10 tons/year. In the first half of the 17th century alone, the Spanish exported 750 tons of silver to China via Manila. If you also include the “unofficial” clandestine exports, the total at least doubles. Not all the silver reached Fujian through Spanish hands: a large portion was diverted to Macao by Portuguese hands. Also in the first half of the 17th century, China imported 5,000 tons of silver, half from Japan and half from South American mines (via Spanish, Portuguese, or other sources). The amount of silver reaching China each year during this period was so high that in China it was believed that the silver supply was inexhaustible, and that Westerners could buy anything with as much silver as they wanted. The reality is that silver is not inexhaustible, and that every kilogram of silver costs effort, blood, and money.
