Lou wrote:

>The
>reality in Latin America is that pre-existing feudal societies were crushed
>and their inhabitants turned into laborers. Throughout the 16th century,
>there were steady evolutions in the form that this labor was expressed. In
>the first 3rd of the century you had encomiendas, which were an
>unsuccessful attempt to transplant Spanish forms. This was replaced by the
>repartamento, (equivalent to the 'mita', an Indian word) in the
>mid-century. But by the end of the century most Indians were WAGE LABORERS.
>Throughout the entire century, however, Indians did the same thing no
>matter how they were paid. They dug silver, which was transported on ships
>to Europe. Nowhere else in history do you have the same kind of
>socio-economic transformation. On the cusp of the capitalist dawn of
>history, you find 90 percent of the indigenous peoples (those that were not
>exterminated or killed by smallpox, etc.) turned into laborers.

The reviewer's of the following book urges a more nuanced 
understanding of proletarianization ("A clear free-labor versus 
forced-labor dichotomy does not correspond to reality") in the 
centuries under discussion:

*****   Journal of World History 10.2 (1999) 468-473

Book Review

Mines of Silver and Gold in the Americas

Mines of Silver and Gold in the Americas. Edited by Peter Bakewell. 
An Expanding World: The European Impact on World History, 1450-1800, 
vol. 19. Series edited by A. J. R. Russell-Wood. Brookfield, Vt.: 
Ashgate/Variorum, 1997. Pp. xxiv + 396. $124.95 (cloth).

...The most important gold and silver mining areas in the world 
throughout the early modern period were located in Spanish America 
(although Japan was a mining powerhouse, too). Bakewell's volume 
provides an excellent panorama of the evolution of Spanish American 
mining and the history of technology, including two essays by Robert 
C. West on precontact and early Spanish mining practices in Peru and 
Mexico, but our comments will focus only on general mining trends and 
certain issues surrounding new technologies and labor markets. This 
permits us to concentrate attention on the international (indeed, 
global) context of American mining.

An essay by Richard L. Garner provides a broad overview of Peruvian 
and Mexican mining throughout the colonial period. Taking Spanish 
America as a whole, silver production rates tripled during the second 
half of the sixteenth century, dropped by a third during the 
seventeenth century, then tripled again during the eighteenth 
century. There is no doubt that Peru--really Potosí--dominated 
American mine production from the mid-sixteenth century through 1620. 
Peruvian output plummeted during the remainder of the seventeenth 
century, while Mexican production grew. By the last quarter of the 
seventeenth century, Mexico became and remained the chief silver 
producer in the world. Peruvian silver production, most of which by 
that time exited via Buenos Aires, surged in the late eighteenth 
century (Fisher, p. 298), but Mexican silver production was vastly 
greater by this time, reaching the staggering annual average of 21-24 
million pesos by the end of the eighteenth century (Coatsworth, p. 
266). Attempts to understand the reasons for the rise of Mexican 
mining (and Peru's decline) lead to broad implications for the 
general, multi-century evolution of Latin American society and its 
trading partners. The literature states that Peruvian mines played 
out (that is, Peruvian ore quality was poor compared with Mexican 
ore), while Peru suffered higher mercury prices and state taxes than 
did Mexico. The ore-quality argument is sound, but the latter two 
arguments are less convincing (high taxes and high mercury prices 
also prevailed during Peru's heyday, so why did not these negative 
factors kill off silver production during the earlier period?).

Several essays focus on differing labor-supply systems in Mexico and 
Peru. In an essay on Mexican mining in the 1590s, Bakewell argues 
that "a surprising conclusion about the mining force also emerges: 
free Indian wage labourers comprised almost 70% of it [the labor 
force]. This finding goes far towards contradicting past assumptions 
that mining labour in colonial Mexico was forced labour" (p. 172). 
The Mexican mining industry is therefore characterized as having been 
different from that of Peru in that Mexico presumably faced higher 
labor costs (because Mexican miners had to pay free-labor wages). But 
was the situation so straightforward?

The Spanish government is said to have been forced into the famous 
mita draft-labor system in Peru because European diseases wiped out 
the indigenous labor pool and because the mines were concentrated in 
an extremely remote region; without the forced-labor mita "many mines 
would not have shown any profit, even after the crown cut silver 
taxes and mercury prices in the 18th century, and the treasury would 
have lost revenue" (Garner, p. 250). Yet this issue becomes more 
complex when Garner states on the same page that "Peru's draft-labor 
system (mita) remained in effect at both Potosí and Huancavelica 
until the end of the colonial period, although the majority of Peru's 
workers were hired rather than drafted" (emphasis added). Moreover, 
with "mine labor frequently in short supply, Potosían miners quickly 
learned how to buy, sell, lease, and swap labor despite the state's 
persistent efforts to regulate and allocate the supply. Potosí's 
labor market became a hybrid. It was shaped but not dominated by 
either coercive or the voluntary system" (Garner, p. 251).

Ann Zulawski's article on silver mine labor between 1607 and 1720 in 
Oruro (Peru's second most important mining center, behind neighboring 
Potosí) also paints a complex labor picture. As in the Mexican case, 
mine owners in Oruro depended upon voluntary workers; inhabitants 
paid tribute to the Spanish government, but there was no forced-labor 
mita system, as there was in Potosí. Indian mine workers were paid 
twice as much as mitayos in Potosí earned, plus workers were allowed 
to take a piece of ore with them when they left the mines. Moreover, 
independent miners worked mines owned by others on the weekends, 
while paying Indian workers triple their normal wage before the 
middle of the seventeenth century. According to Garner (p. 256), 
periodic "labor shortages and the absence of a large-scale, state-run 
labor system notwithstanding, wages for Mexican men and refinery 
workers do not appear to have been as high as or higher than wages 
for voluntary labourers in Peru."

Many essays focus to a greater or lesser extent upon implementation 
of the revolutionary mercury-amalgam mining process in Spanish 
America. Alan Probert's essay deals with Bartolomé de Medina's 
introduction of mercury-amalgam technology in Mexico, where it was 
developed on an industrial scale by the 1550s, while Bakewell's 
article covers Francisco de Toledo's wildly successful implementation 
of amalgam technology at Potosí in the 1570s. These important 
cost-reducing innovations yielded immense profits for crown and 
private entrepreneurs alike, of course, but the ensuing explosion of 
mine output slowly depressed silver's world price again, and thus 
mine profits. After the reforms of Viceroy Toledo, technological 
innovation again came to the rescue when construction of a series of 
expensive reservoirs above Potosí--to drive water mills throughout 
the dry winter and spring seasons--lowered mining costs. Peruvian 
silver production accordingly reached its zenith in the 1590s.

Given the importance of mercury-amalgam technology, maintenance of 
reliable supplies of mercury was crucial to silver mining, the 
financial backbone of both Spanish America's economy and imperial 
Spain's global hegemonic ambitions. In principle, European mines in 
Almadén and Idria were to satisfy the mercury requirements of Mexico, 
while Peru's Huancavelica was to satisfy South American needs. In 
reality, the crown diverted European mercury from Mexico to Peru up 
to the 1660s, a peculiar trend during a time of declining Peruvian 
silver output and rising production in Mexico. In the late 
seventeenth century the government even authorized the shipment of 
mercury from Peru to Mexico, "although only a few thousand quintales 
of Peruvian mercury were actually delivered" (Garner, p. 246). During 
the mining boom of the eighteenth century, "Almaden (and Idria) 
became the chief source of mercury for both Mexico and Peru" (Garner, 
p. 248), as Huancavelica could supply less than half of the Andean 
requirements. Again, a point worth emphasizing is that a crucial 
mining input (mercury) was transported internationally throughout the 
early modern period.

The Bakewell volume offers direct and indirect evidence of 
significant market influences on the American mining industry, even 
in areas heavily committed to forced-labor systems. We have focused 
on two general market forces. First, new technologies continually 
battled a falling world price of silver (at least up to 1640 and 
again through the eighteenth century); essays by John Coatsworth (pp. 
263-282) and D. A. Brading (pp. 303-19) are the volume's strongest in 
emphasizing how mine profits were squeezed between rising production 
costs and a falling market value of silver (although no one in the 
literature seems to recognize the crucial role of China's dramatic 
expansion of demand for silver during the eighteenth century). When 
the price of silver descended toward its cost of production, miners 
always scrambled to reduce costs in one way or another. New 
technologies sometimes did the trick. Sometimes the crown stimulated 
output by reducing mercury prices or taxes; modern-sounding proposals 
to increase total government revenues by reducing tax rates were 
familiar in Habsburg Spain. Second, the government had no choice but 
to recognize market realities with respect to labor markets, even 
among draft laborers working under the mita system. Enrique Tandeter 
tells of Indians voting with their feet, which caused a "continuous 
emigration of the tax-paying Indians (tributarios) from the villages 
which were compelled to carry out the tasks of the mita towards other 
villages which were exempt from this obligation" (p. 135). He refers 
to "records... full of references to flights and absenteeism which 
suggests that in fact it was not difficult to leave the production 
unit, or even the city" (p. 158). Tandeter also writes of the 
practice known as "kajcheo," "based on the free access to the mines 
during the weekends in order to collect ores without any control . . 
. [which] originated at the end of the seventeenth century as a means 
of attracting free labor to the mines of Potosí." Indian pick-men 
leaders reserved particularly rich veins discovered earlier for their 
own versions of weekend entrepreneurship: "the ores processed in the 
[primitive] trapiches contained ten times more pure silver than those 
refined in the larger works" (p. 168). The point is that although 
Spaniards indeed exploited indigenous workers as much as possible, 
marketplace realities forced miners to grant more or fewer 
concessions to indigenous laborers, depending upon conditions at a 
particular time. A clear free-labor versus forced-labor dichotomy 
does not correspond to reality....

Dennis O. Flynn and Arturo Giráldez
 
University of the Pacific

<http://muse.jhu.edu/demo/jwh/10.2flynn.html>   *****

Yoshie

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