18th Century Spanish Reforms: Monarchy, Administration & Economy
Reforms in the Spanish State (Central Monarchy)
The arrival of Philip V of Spain marked the introduction of absolute monarchy, mirroring the model established by King Louis XIV of France. All powers were concentrated in the monarch, who served as governor, legislator, and judge. The administrative system was unified and centralized.
Central Administration
Spain underwent a reorganization of its central administration to ensure the king held sole political power. All government officials became direct representatives of the monarch. The Councils of the Habsburg era were replaced by Secretariats, typically six in number, though this varied throughout the century. These included the Secretariats of War, Navy, Treasury, Justice, State, and the Indies.
All secretaries were appointed and dismissed by the king, who granted them full authority. The Councils diminished in importance, with some becoming obsolete due to the loss of territories like Flanders and Italy. The only Council that retained significance was the Council of Castile, which absorbed the Council of Aragon. During the 18th century, the Council of Castile served as both a consultative body and the High Court of Justice. Its members, including the president and prosecutors, issued reports on internal governance matters. Its members were prominent figures in the administration or legal field, all appointed by the king.
Parliament and Provincial Administration
The Parliaments of the Crown of Aragon were abolished, with only the Castilian Parliaments convened from 1709 onward, though the Navarrese Parliament was maintained. Its role was limited to discussing the king’s requests and swearing allegiance to the heir to the throne, the Prince of Asturias.
Provincial administration underwent significant changes, leading to political unification and centralization. The kingdoms of Aragon lost their rights, privileges, exemptions, and freedoms. Philip V implemented these measures as punishment for their rebellion against him, the rightful king to whom they had sworn allegiance. The same laws applied in Castile were extended to these territories through the Decrees of New Plant in 1707 for Valencia and Aragon, and 1715-1716 for Mallorca and Catalonia.
However, Navarre retained its rights, customs, and courts due to its loyalty to the king, as did the Basque provinces, which maintained their tax privileges for the same reason. The new authorities established a new provincial division, differing from the present-day structure. Each province was headed by a Captain-General, who commanded the troops and exercised political and administrative powers. They were advised by an Audiencia, which also retained judicial powers, acting as a court of law. To oversee the administration, the French system of Intendants was implemented. Among other roles, they managed the Treasury and served as mayors of the provincial capitals.
Hacienda (Treasury)
Following the administrative reform, a tax reform was carried out. The Decrees of New Plant introduced the Catastro (land tax) in the former Crown of Aragon. Patiño’s work in Catalonia from 1714 onwards led to its implementation in Mallorca, Aragon, and Valencia. An annual quota was established for each province, distributed based on agricultural, commercial, and industrial wealth, without exception. Existing taxes were also transferred to the royal treasury.
The results were so positive that attempts were made to establish the Catastro in Castile. However, the Marquis de la Ensenada’s proposal faced opposition from the privileged classes, who flooded the Secretary with appeals and complaints. To increase state revenue, traditional tax systems were utilized. New monopolies and privileged companies were created, including those for tobacco, mercury, snuff, and salt. The government also began issuing paper money, establishing the Banco de San Carlos in 1782. The lottery was introduced in 1763.
In the latter part of the 18th century, various measures were taken to liberalize the economy:
- In 1765, a decree established price and movement freedom for cereals.
- In 1778, free trade with the Indies was approved for all Spanish ports.
- In 1783, the integrity of all professions was declared.
- In 1790, freedom to practice any profession without guild restrictions was granted.
The Army and Navy
During the 18th century, significant reforms were undertaken in both the army and navy. While Spain may not have held the same level of military dominance as in previous centuries, these reforms allowed it to maintain a respectable position among European powers.
Philip V abolished the Tercios and adopted the French regimental model. However, the most significant reforms were implemented under Charles III with his Royal Ordinances of 1768. These established a professional army based on a mixed system of forced conscription and mercenary regiments composed of foreigners (Walloons, Swiss, or Irish), totaling around 85,000 troops.
The navy underwent a collective effort, with José Patiño playing a key role. Three maritime departments were created: Ferrol, Cartagena, and Cadiz, each with arsenals and shipyards. A fourth department was established in Havana, which built the largest ship of the 18th century, the Santísima Trinidad, a four-decked warship. By the end of the century, the Spanish fleet was among the best in the world. During this period, 262 ships of the line and 200 frigates were built or purchased, along with a total of 904 vessels of all kinds.