Bourbon Dynasty Reforms and the Reign of Charles III in Spain
Reforms in the State Organization: The Centralist Monarchy
The new Bourbon dynasty consolidated absolute monarchy, reinforcing its power through major legislative and administrative reforms based on two principles: centralization of power and legislative uniformity.
The Decrees of New Plant (Valencia and Aragon in 1707; Mallorca in 1715; and Catalonia in 1716) were the main instruments of these measures. They suppressed the charters, institutions, and positions of the Crown of Aragon territories, imposing Castilian laws and institutions. Only the Basque and Navarre regions, supporters of Philip V in the War of Succession, retained their privileges.
The Courts of the various territories were also suppressed by the New Plant Decrees and integrated into the Courts of Spain. Territorial councils were reduced to two: the Council of Castile, which became the advisory body for the entire country, and the Council of the Indies for the American colonies.
The government was reorganized with the creation of Secretaries of State, responsible for major political activities: Treasury, State, Justice, War, Navy, and the Indies.
Territorial administration was reformed with the division into provinces, headed by a king-appointed mayor to control economic, administrative, and public policy. Each province had a captain-general with military and administrative powers, and a hearing for the administration of justice.
Reforms were also made in the army and navy to modernize and improve their effectiveness. The thirds were replaced by regiments, and military service was established based on a quota system (one-fifth). The navy’s recovery was boosted by establishing shipyards in Ferrol, Cartagena, and Cadiz. Academies for officers were founded under Charles III.
Enlightened Despotism in Practice: Charles III
King Charles III (1759-1788) is the prime example of enlightened despotism. His government included prominent reformist politicians like the Marquis de Squillace, Count of Floridablanca, and Campomanes. His reform program aimed to modernize the country and boost its development.
Early reforms (recovery of estates for the crown) caused unrest among the privileged. This, combined with poor harvests and price increases (liberalization of the wheat trade in 1765), led to the Esquilache Riots (1766). The riots combined popular discontent with the privileged’s resistance to measures limiting their power. Starting in Madrid and spreading to other provinces, the riots targeted Esquilache, who represented the most unpopular reforms. The consequences were Esquilache’s dismissal and falling prices for basic commodities. After 1766, reforms slowed, avoiding radical changes.
Charles III prioritized maintaining a political gift, establishing royal sovereignty over certain religious matters to harness the Church’s power without questioning faith or morals. He claimed the right to appoint ecclesiastical offices and control the Inquisition. This policy explains the expulsion of the Jesuits (1767) due to their immense power, direct obedience to the Pope, and suspected instigation of the Esquilache Riots.
Economic Reforms
Significant economic steps included:
- Agriculture: Analysts’ reports highlighted the need to expand land ownership. Despite opposition from the privileged, steps included colonizing new lands in the Sierra Morena, protecting tenants of council lands, increasing cultivated areas, and limiting the Mesta’s privileges.
- Industry: Liberalizing production outside the guild system was a key goal. Factories with private capital were established in Catalonia (cotton) and Valencia (silk). Royal factories promoted domestic industry, including shipyards in Cartagena and Ferrol, munitions factories, and luxury goods production (Royal Tapestry Factory of Santa Barbara, San Ildefonso crystal, and Buen Retiro porcelain).
- Trade: Establishing free trade with all Spanish colonial ports stimulated trade with America and improved the trade balance.
- Treasury: The tax system remained unchanged. To alleviate public debt, royal notes (redeemable debt certificates) were issued, and the National Bank of San Carlos (1782) was established to finance and manage these vouchers.