Potosí–Manila Silver Flow

Timeline

1. 1545–1570Potosí, Upper Peru · PotosíIn 1545 the Spanish discovered the Cerro Rico silver mine at Potosí, whose output quickly surpassed all other mines in the world. The mita forced-labor system drove large-scale extraction, and the refined silver was minted into pesos and exported globally through Pacific ports on South America's coast, laying the supply-side foundation for trans-Pacific silver trade.
2. 1565–1571Manila, Philippines · ManilaIn 1565 Andrés de Urdaneta discovered the return route using the North Pacific Kuroshio current, enabling galleons to sail from the Philippines back to New Spain (Mexico). In 1571 Spain captured Manila and built it into a Pacific transshipment hub; Chinese merchants (especially from southern Fujian) annually delivered large quantities of silk and porcelain in exchange for American silver.
3. 1600–1680Manila–southeastern China coastal trade circle · Southeast coastIn the early 17th century silver imports peaked, with scholars estimating over 150 tons of American silver flowing into China annually. The Ming Single Whip Reform converted taxes into silver, institutionalizing silver demand; the massive silver influx caused silver to depreciate and prices to rise domestically, and the fiscal system gradually became structurally dependent on external silver supply. After the 1640s, declining Potosí output and disrupted Sino-Japanese trade reduced silver inflows, which some scholars view as one cause of the late Ming fiscal collapse.
4. 1680–1815Pacific and Asian trade networks · East AsiaAfter the Qing dynasty was established, silver trade recovered and the Manila galleons continued regular voyages, but Potosí output gradually declined as veins were exhausted, and by the late 18th century Mexican silver output surpassed Potosí as the main supply source. In 1815 the independence movements of Spanish colonies dismantled the galleon system, marking the end of this trans-Pacific silver circulation system.