19th Century Spain: Business and Social Transformations

Posted on Dec 3, 2024 in Geography

BUSINESS CHANGES

1. Economic Shifts

1.1 Confiscation and Agrarian Changes

1.1.1 Background

Criticism of the link between property, land, nobles, the Church, and municipalities began during the reign of Charles III. This link was seen as the primary cause of agricultural stagnation, leading to suggestions of property depreciation and even abolition.

From 1795, Godoy initiated minor confiscations of church property to repay debt and compensate the Church.

During the War of Independence, both the Bonapartist government and the Cortes of Cadiz enacted legislation suppressing convents and religious orders, selling their properties. These laws were revoked with the restoration of absolutism in 1814 but reinstated during the Liberal Triennium (1820-1823).

1.1.2 The Mendizabal Confiscation

From 1833, several factors accelerated the confiscation process:

• The war forced the state to seek resources.
• Anti-clerical sentiment grew due to the clergy’s support for the Carlist pretender.
• Buyers of disentailment properties during the Triennium, expropriated in 1823, pressured the government to return their holdings.

These wealthy individuals formed an influential group crucial to the Cristine side. Thus, liberal governments gradually moved towards confiscation.

In 1836, the Mendizabal law declared the sale of all regular clergy properties, aiming to:

• Reduce debt and streamline taxes.
• Grant property access to the bourgeoisie.
• Create a new landowning social sector linked to the regime and the Cristine side.

From 1841, clergy assets were included. Auctions were suspended in 1844 with the return of the moderates, but General Narvaez’s government recognized completed sales.

Between 1836 and 1844, properties worth approximately 3 billion reales were sold, disentrailing 62% of church properties. Including sales from the Triennium, the State raised about 4.5 billion reales (against a debt of 14 billion).

Consequences of the Confiscation:

• Near-complete dismantling of church property and wealth sources, exacerbated by the abolition of tithes in 1837. A worship and clergy contribution was established in 1845.
• The confiscation mitigated but did not solve the debt problem.
• Agricultural production did not increase as expected. New owners primarily collected rents, replacing tithes or seigneurial rights in lease contracts.
• Landlordism intensified as land and urban property went to existing landowners, large investors, and speculators, forming a new landowning elite who held power during Isabella II’s reign.
• Auctions were often rigged between large investors, excluding farmers who lacked information, bidding knowledge, or funds.
• In cities, the confiscation contributed to the gentry acquiring prime buildings, confining the middle class to older houses and workers to the suburbs.

1.1.3 The Madoz Law: The Second Major Confiscation

Beginning in 1855, the Madoz Law (General Confiscation Act) declared the sale of:

• All state-owned rural and urban properties.
• All church-owned rural and urban properties.
• Vacant land owned by municipalities.

This aimed to supplement Mendizabal’s process. Between 1855 and 1856, over 43,000 rustic and 9,000 urban properties were auctioned, generating nearly 8 billion reales to repay debt and address tax needs after abolishing the consumption tax.

Consequences of the Second Confiscation:

• Elimination of communal and remaining church property.
• Worsening economic situation for the peasantry.
• Strained relations with the Church.

Between 1836 and 1856, ownership of 10 million hectares (20% of the national area) was transferred. The Madoz confiscation remained in effect until 1895, though few auctions occurred after 1856.

The confiscations contributed to the shift towards a bourgeois society, transferring vast land to new owners and merging the old aristocracy with the urban bourgeoisie to create a new landed elite.

The confiscations’ importance is understood in relation to other changes:

• Abolition of primogeniture.
• Abolition of the manorial system.
• Freedom of land enclosure and trade in agricultural products.
• Administrative reorganization of the country in 1833 under Javier de Burgos, centralizing administration and dividing the state into the current provinces.

Despite these attempts, agricultural production grew slowly, hindering the development of other sectors.

1.2 Spain’s Incorporation into the Industrial Revolution

Spain’s economic evolution until 1868 was slow compared to other European countries due to:

• Geographic conditions hindering communication and national market development.
• Scarcity and geographical dispersion of raw materials and energy sources.
• Slow population growth limiting industrial labor and market size.
• Loss of American colonies impacting markets and raw materials.
• Lack of capital for investment in industrial techniques.
• Protectionist government policies favoring agricultural interests.

1.2.1 Infrastructure and Industrial Sector Development

Spain’s industry faced similar challenges to agriculture. Low living standards limited market formation. Low wages due to surplus agricultural labor discouraged migration to cities, and low demand for industrial machinery further hampered growth.

By 1830, only Barcelona’s textile sector had industrialized, driven by mechanization and protectionist policies. Steam power and mechanization reduced costs and increased sales, but replaced male labor with cheaper women and children. This led to the birth of the Spanish labor movement in Catalonia.

The steel industry developed much slower. Factors included:

• Lack of machining processes in agriculture and most industries.
• Importation of foreign materials for railroads and steamboats.
• Scarcity, low quality, and high cost of Spanish coal.

Spanish Steel Industry Development (19th Century):

• 1830-1860: Andalusian blast furnaces dominate.
• 1860-1880: Asturian blast furnaces dominate.
• 1880 onwards: Biscayan dominance emerges.

Other consumer industries (flour, oil, footwear, ceramics) grew but remained small-scale with low capitalization and artisanal production systems.

In mining, financial problems led the Treasury to hand over mine operation to foreign creditors, who exploited the resources for their own benefit.

2. SOCIAL TRANSFORMATIONS

2.1 Population Growth

Spain’s population grew in the 19th century, but below the European average. High mortality rates (27% mid-century) were attributed to:

• Wars in the first third of the century.
• Cyclical agricultural crises leading to widespread hunger.
• Epidemics like cholera and tuberculosis.

Government efforts to improve hygiene were limited. Population growth was aided by allowing overseas migration in 1853.

2.2 From Stratified Society to Class Society

By the mid-19th century, Spain transitioned to a modern class society. The 1830 law ended the Ancien Régime and estate privileges, though the nobility retained some social influence. Money became the differentiating factor, enabling class mobility.

Three main social groups emerged:

• The Ruling Class
• The Middle Classes
• The Popular Sectors

2.2.1 The Ruling Class

The ruling class comprised:

• The old aristocracy
• High-ranking clergy, military, and administration officials
• The haute bourgeoisie

The old aristocracy retained wealth through land ownership and maintained power through court positions and Senate seats. They merged their interests with the bourgeoisie.

The high command of the Army, church hierarchy, and senior officials maintained the elite’s power, preventing democratization and suppressing subversion.

The haute bourgeoisie included:

• Landowning and rentier bourgeoisie (from confiscations)
• Merchants (shipowners, traders, exporters)
• Financial bourgeoisie (financiers, bankers, lenders)
• Professional bourgeoisie (lawyers, doctors, high-ranking officials)
• Large industrialists (especially Catalan textile)

The ruling class monopolized power centers and enjoyed a high standard of living. They were characterized by leisure spending, endogamy, and focus on education and social position.

2.2.2 The Middle Classes

The middle classes included small landowners, mid-level officials, professionals, small businessmen, and shop owners. They were numerous but had precarious incomes and conservative ideologies, fearing impoverishment. They supported order and property, forming a key base for the ruling class’s power.

2.2.3 Peasants, Artisans, Service Workers

Peasants constituted 80% of the population but experienced declining living standards. They remained largely outside political movements, influenced by conservative and religious mentalities. Local authorities and the Church exerted control, and peasant uprisings were repressed.

Artisans remained a significant group, particularly in sectors resistant to industrialization. They often held conservative views.

Service workers grew in number, both in cities and in administration and domestic service.

2.3 The Labor Movement

In 1860, Spain had around 150,000 factory workers, mostly men, women, and children. They lived in slums with harsh conditions, long workdays, and low wages. Illiteracy was widespread.

Early claims focused on wages, safety, and working hours. Mutual aid societies emerged in 1844 but were banned. The 1848 riots linked worker demands with democratic and republican ideas.

The progressive Biennium saw the labor movement separate from employers. The 1855 Labor Law offered limited improvements, leading to further unrest. The labor movement politicized, supporting Democratic and Republican parties.

The 1868 Glorious Revolution led to the introduction of the IWA (International Workers Association) in Spain. Strikes and protests spread, particularly in Andalusia. The First Congress of the Spanish AIT in 1870 established union objectives.

The IWA was outlawed across Europe in 1871, and Spain followed suit, suppressing labor activities. Marxist and anarchist influences emerged within the labor movement.

The 1873 Republic saw increased demonstrations and strikes. The International was dissolved in 1874.

The Sexenio period fostered political awareness and organization within the labor movement. Anarchism spread in Catalonia, Aragon, Valencia, and Andalusia, while Marxism gained ground in Madrid, Valencia, and Seville.

The Spanish Socialist Workers Party (PSOE) was founded in 1879, aiming for class abolition, social property, and worker control of political power.

In 1888, the UGT (General Union of Workers) was created. The anarchist-leaning CNT (National Confederation of Labor) emerged in 1911, advocating revolutionary action.

The PSOE began participating in elections, gaining municipal councilors in 1891. Opposition to the Cuban War further strengthened their position.