17th Century Spanish Decline & Olivares’ Centralizing Policy
Short Questions
Causes of the Spanish Decline in the 17th Century
The Spanish Crown’s decline during the 17th-century European crisis was particularly rapid, especially in Castile. The main causes include:
- Policy: The Habsburg empire’s policies were financed by Castilian resources and American precious metals. Constant wars led to tax increases in an already overburdened Castile and increased borrowing. From 1621, the flow of American silver decreased due to depleted mines and piracy, forcing the Crown to manipulate currency, which crippled the economy.
- Population: Population declined, especially in the Plateau and Extremadura, due to emigration to America, the expulsion of the Moors, and epidemics.
- Economic: Agriculture suffered from rural depopulation and increased taxes imposed by both the Crown and lords. The Mesta declined due to increased aridity and loss of competitiveness of Spanish wool. Industry and handicrafts suffered a severe depression due to loss of markets to foreign production, a consequence of the price revolution caused by the influx of American gold and silver in the 16th century and declining consumption. Trade declined due to lower consumption, increased taxes, and the ruin of major commercial centers (like Medina del Campo) caused by the Crown’s bankruptcy.
Causes and Consequences of the Expulsion of the Moors
Philip III decreed the expulsion of the Moors (1609-1614), who were considered false converts resistant to Christianization attempts. Justifications included their growing population, suspected contacts with pirates, and adherence to their customs. These factors fueled hatred and likely motivated the expulsion to appease social unrest. The expulsion severely impacted the agricultural economies of Valencia and Aragon (losing 35% and 20% of their populations, respectively). The loss of a skilled workforce during a demographic crisis significantly harmed landowners. As compensation, they were allowed to impose harsh conditions on new settlers.
The Great Memorial of the Count-Duke of Olivares to Philip IV (1624)
Summary
The Count-Duke advised Philip IV to secretly unify the kingdoms of the monarchy under Castilian law, where the King held the most power. This aimed to strengthen royal power and obtain financial resources from other kingdoms, as further increasing taxes in Castile was impossible. The goal was to maintain Habsburg hegemony in Europe. Olivares proposed three methods: intermarriage between the kingdoms’ natives; negotiating with each kingdom from a position of strength (with a large fleet and unemployed populace), concealing his true intentions; and instigating “great popular tumult” within each kingdom, allowing the King to use his armed forces to impose Castilian law by right of conquest.
The Role of the Valido
The valido, a powerful courtier, assisted the monarch in governing and held his confidence. This unofficial role, with sweeping powers delegated by the king, often wielded absolute power within the kingdom, acting as a universal minister. The valido reached its peak during the 17th century under the Habsburg monarchy, starting with Philip III. The position lacked legal definition and depended on royal favor. Its institutional legitimacy came from accumulating positions and responsibilities, bypassing traditional control mechanisms like hearings or the Chancery.
Reactions to Olivares’ Centralizing Policy
Olivares aimed to transform the monarchy from independent kingdoms with a shared king into a single state with uniform laws and institutions, based on the Castilian model due to its lesser resistance to royal power. However, the Count-Duke’s attempts faced opposition from outlying kingdoms unwilling to lose their political rights and participate in an imperial enterprise that had led Castile into a crisis. The 1640s saw internal revolts (Catalan, Portuguese, Andalusian, and Aragonese), exposing the monarchy’s internal weakness. These revolts demonstrated Portugal and Catalonia’s determination to preserve their institutions and privileges, while more dynamic peripheral regions sought separation from a weakened Castile. The result was Portugal’s independence, aided by French and English support and the royal army’s inability to suppress the Catalan and Portuguese rebellions. Catalonia was subdued after a thirteen-year war against the Spanish monarchy, ending with Barcelona’s surrender in 1652. Philip IV granted a general pardon and promised to respect Catalan laws, institutions, and privileges.
Precious Metals
Evolution of Precious Metal Imports
The graph reveals irregular imports of precious metals (e.g., the decrease from 1586 to 1590). Annual variations were due to wars, piracy, and storms. Overall, imports showed an upward trend until 1620, both for private individuals and the royal fifth. Amounts increased significantly after 1551 with the discovery of silver mines in Mexico and Peru (Potosí), and further after 1560 with the implementation of mercury amalgamation in mines. The establishment of the Spanish treasure fleet system in 1561, with ships departing for America in March and September, meeting in Havana after three months, and returning to Seville under warship escort, also contributed to this increase. Imports declined significantly after 1630 due to increased trade within America, between America and the Philippines (Manila galleon), and rising smuggling. This reduced trade with Spain and, consequently, the arrival of precious metals in Seville.
Importance of American Treasure
Upon his election, Emperor Charles V faced numerous financial commitments: war with France, conflict with the Ottomans, and later the conflict in Germany. While these required significant funding, the graph shows that American precious metal imports remained insignificant until Philip II’s reign, particularly after 1576. Therefore, the financial burden of the early Habsburg Empire primarily fell on European territories (especially Castile).