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C O U R S E 
A History of the World since 1300
Jeremy Adelman, Princeton University
C O U R S E   L E C T U R E 
17th Century Interdependence of Trade and Investment
Notes taken on December 10, 2013 by Edward Tanguay
increasing distinction between
1. merchantilist regimes
government relies on social classes to generate pools of wealth and capital that will sustain it (merchants provide revenue to state and buys state bonds which enable the state to build up its military, which protects merchants' monopolies)
2. agrarian regimes
Mughal India
to some extent the Hapsburg Dynasties
rely on feudal structures to deliver revenue through tax collectors from villages to be sent to the center of power
the 18th and 19th century, these two kinds of systems clashed
organizations of market places
markets don't just pop up spontaneously
you don't get your cup of coffee because someone in Kenya felt like harvesting and drying out beans one day
1611 Amsterdam Stock Exchange - first stock exchange
one way to recirculate the pool of capital that has been created in the relationship between the state of capitalist merchants was to create the stock market
stock market starts in Amsterdam and in London
in a stock market, the companies themselves are bought and sold in the market place
with the purchase of these shares, more capital flows into the market place
created a cycle of creating capital
insurance companies insured long-distance trade, against storms, pirates, and other dangers
the stock market was a place where societies' savings could be make disposable for investment to reconcile the supply and demand of capital
some people began to make money simply off the trading of these shares
an important injection into this system were the large amount of precious metals that came from the Americas
gold mines in Brazil
in all of the three centuries that would follow from 1500 onward, half of the silver and gold flowed out in the 18th century alone
attracted swindlers and speculators
South Sea Bubble
the effect of a series of speculations that occurred as the result of the South Sea companies carrying goods from Africa to South America
the merchants kept buying more and more shares in the government that was promising them more monopoly rights
by 1719, 25% of British national debt was owed by one company called the South Sea company
the bubble burst and created a fiscal crisis for the state