Bourbon Reforms in 18th-Century Spain and America

18th-Century Spain: Reform of State Organization. Centralist Monarchy

Although at first Felipe V (1700-1946) accepted the laws and institutions of the different Spanish kingdoms, after the War of Succession and the uprising against the Crown of Aragon, he moved towards unification through the Decrees of Nueva Planta, assimilating the laws and institutions of all the kingdoms of Castile (1707-1716), except in the cases of Navarra and the Basque Country. These regions maintained their privileges for having remained faithful to Felipe V during the war. Las Cortes de Aragón joined those of Castile and lost their legislative powers and their role in monitoring the laws and customs of the country against the king’s authority. The dynastic unification of the Catholic Monarchs had now become political and administrative. Spain would be governed centrally from Madrid.

The Salic law, the French tradition that women could not reign, was introduced, replacing traditional laws that allowed women to reign but gave prominence to the male line.

The Bourbon monarchs behaved like absolute kings. They established a single court and dispensed with councils, some of which disappeared due to the loss of territories (Flanders and Italy) or unification (Aragon). The remaining councils lost influence. Their functions were assumed by the Secretaries of State, whose numbers and powers varied over time. At the forefront were the clerks, men of confidence of the king, who came to power as validos in the 17th century. Esquilache, Floridablanca, and Aranda under Carlos III are examples. The territory was administratively divided into municipalities, following the French model.

On the other hand, the new dynasty achieved a relative improvement in public finances due to the implementation of certain reforms and the elimination of expenses in European territories that had been owned by the Habsburgs.

Opposite the church, there was a political attempt to control it, which in practice was reduced to the expulsion of the Jesuits.

Although both the Church and the nobility continued to exert great influence, with the Bourbons in Spain, the undisputed authority of the king was recognized.

18th-Century Spain: The Practice of Enlightened Despotism: Carlos III

Enlightened despotism was a political practice that sought to introduce reforms designed to strengthen state power through a more rational, efficient, and centralized administration with the aim of improving people’s living conditions. Carlos III and his ministers, Floridablanca, Campomanes, and Aranda, were the best examples of enlightened despotism in Spain. The most prominent reforms were:

  • Free direct trade with Latin America was allowed, removing the monopoly of Cadiz. This was a great encouragement to industry and commerce, particularly in Catalonia.
  • The creation of trading companies in the style of the British and Dutch.
  • Industry was stimulated by the creation of royal manufacturers of luxury goods (carpets, porcelain, clocks) to prevent the import of these expensive products.
  • For agriculture, Jovellanos directed “The Report on Agrarian Law” on the agricultural situation, problems, and possible solutions, in which the emphasis was on the poor distribution of land and the problem of amortization or “dead hands.” However, when the report was published, the French Revolution had broken out, and the report was ignored. The economic development of Societies of Friends of the Country was used to improve the agricultural practices of the peasantry.
  • Opposite the church, there was an attempt to control it, which in practice was reduced to the expulsion of the Jesuits, although they retained their property and social influence.

Education and science were encouraged, considered by the learned as the engine of progress. Royal Academies were created (History, Arts, Language), museums (Prado), and research institutions (Botanical Garden, Astronomical Observatory, Paseo del Prado in Madrid).

Even after the outbreak of the French Revolution, when the Enlightenment movement was shelved, many of these reforms were maintained and continued into the 19th century.

18th-Century Spain: Evolution of Foreign Policy in Europe

The change of dynasty brought a total shift in Spanish foreign policy. After the Peace of Utrecht, Spain lost its European territories (the Netherlands and Italy), which meant that its focus would shift to the Atlantic. There was also a rapprochement with France, the eternal enemy, both because the same dynasty ruled in both countries and because they had Britain as a rival, seeking colonial expansion at the expense of France and Spain. This alliance was reflected in the Family Pacts, signed in 1733, 1743, and 1761, respectively, by which Spain participated in the conflict between Britain and its American colonies in support of the latter. The outbreak of the French Revolution represented a break in the alliance with France, as Spain took part in the Coalition Wars of 1793-1795 (a coalition of various European countries to end the French Revolution and return the throne to the Bourbons). After the Peace of Basel, Spain returned to its old policy of alliance with France, now under the control of Napoleon Bonaparte (First Treaty of San Ildefonso, 1796, and Second Treaty of San Ildefonso, 1800) and against Britain. The result was the disaster of Trafalgar (1805) and the destruction of the Franco-Spanish fleet by the British, which ended the rest of Spanish sea power. This had two important consequences: on the one hand, Spain could not control the American trade monopoly, with Britain initiating large-scale smuggling; on the other hand, Napoleon, with no fleet, could not hope to defeat Britain at sea and adopted the Continental System. To carry out this policy, he decided to intervene in Spain, and in 1807, he signed the Treaty of Fontainebleau, by which Spain joined the blockade and allowed the entry of French troops into Spain for the occupation of Portugal, an ally of Britain.

18th-Century Spain: Bourbon Politics in America

The Bourbon dynasty imposed administrative changes in America in order to control the colonies more effectively and obtain better economic performance from them.

The Council of the Indies lost powers to the secretaries, and the relevant House of Recruitment was dissolved in 1790. To the two existing viceroyalties of New Spain and Peru, two others were added, segregated from Peru: Nueva Granada and Río de la Plata.

A regular army was established, and American municipalities were created, with the same powers as those on the mainland.

Economic measures were also taken throughout the century:

  • At first, commercial companies were created in the style of the British and Dutch, such as the Guipuzcoana Company of Caracas.
  • In 1735, the traditional system of fleets and galleons (goods were shipped to America all together once a year in fleets escorted by war galleons) was abolished in favor of the registration system, in which individuals could carry their goods on licensed vessels (records) that left when they wanted from Cadiz. The decrees of 1765 and 1778 authorized direct free trade, abolishing the monopoly of Cadiz. This was a great encouragement to industry and commerce, particularly in Catalonia.

Although American trade increased as a result of these measures, the market was overpriced for peninsular industry, so most of the articles sent to America were foreign, and the volume of contraband exceeded legal trade.