But the supply of the precious metals
and of Indian commodities increasing at the same time, Europe, by means of
America, was enabled to reap all possible advantage from the Portuguese
discoveries. The gold and silver of Mexico and Peru traversed the world, in
spite of all obstacles, and reached that part of it where it was most
wanted, and purchased the productions of China and Hindostan.
Yet, notwithstanding the effectual demand for East India commodities was
necessarily increased by the increased supply of the precious metals, yet
the supply of these commodities being increased in a much greater
proportion, their price was much lowered. This lowering of price naturally
arose from two circumstances: after the passage to India by the Cape, the
productions and manufactures of the East were purchased immediately from
the natives; and they were brought to Europe directly, and all the way, by
sea. Whereas, before the discovery of the Cape, they were purchased and
repurchased frequently; consequently, repeated additions were made to their
original price; and these additions were made, in almost every instance, by
persons who had the monopoly of them. Their conveyance to Europe was long,
tedious, and mostly by land carriage, and consequently very expensive.
There are no data by which it can be ascertained in what proportion the
Portuguese lowered the price of Indian commodities; but Dr.
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