Bourbon Reforms: Reshaping the Spanish Colonial Empire
The Bourbon Reforms: Redefining Colonial Ties
The Bourbon reforms attempted to redefine the colonial relationship. Their objectives were to liberalize trade, stimulate the economy to increase Crown revenues, and reorganize the administration of the vast American territories to prevent corruption and smuggling. This policy also aimed to combat the encroachment of other European powers on Spanish possessions.
Economic Reforms
The Bourbons implemented several changes. The galleon system was replaced by registered ships, allowing vessels to trade with America after inspection and registration with the House of Trade. In 1764, a mail ship system was established, with ships arriving four times a year directly from Spain to designated ports to facilitate communication. The most significant reform was the Free Trade Regulation of 1778, which permitted trade between 14 Spanish ports and 19 American ports. However, this measure, while removing the monopoly, maintained the ban on trade with other countries.
This partial trade liberalization had significant consequences for the colonies, including regional prosperity, the growth of a new merchant class, and cheaper imported goods. The Bourbons encouraged American exports of certain commodities scarce in the metropolis, such as hides from the Rio de la Plata and cocoa from Venezuela. However, they discouraged any crop or craft that could compete with Spanish production, such as silk in Mexico and wine in Cuyo.
The Spanish Crown benefited from increased revenue through the new trading system and higher colonial taxation. This policy led to conflicts, which became a backdrop for the eventual breakdown of the colonial system.
Administrative Reforms
To achieve greater centralization and address inefficiency and corruption, Philip V, in the early eighteenth century, conceived of a central body for colonial administration: the Universal Office of the Indies.
In 1739, the Viceroyalty of New Granada was created, encompassing the present-day republics of Colombia, Panama, Ecuador, and Venezuela.
In 1776, the Viceroyalty of the Rio de la Plata was established, with its capital in Buenos Aires. Chile became a captaincy general in 1778, and Cuba in 1795.
In 1782, Charles III established the intendencias (municipalities). These were subdivisions of the viceroyalties intended to streamline administration and tax collection by unifying the powers of various authorities in the person of the intendentes (mayors), officials appointed by the king. Their main functions were to organize tax and duty collection, promote agriculture, livestock, industry, mining, and trade, improve streets, plazas, public buildings, and churches, and control prices and supplies.
This system did not have the favorable consequences intended by the Crown.
The Creation of the Viceroyalty of the Rio de la Plata
In 1776, Charles III created the Viceroyalty of the Rio de la Plata, which included the present-day republics of Argentina, Bolivia, Paraguay, Uruguay, parts of Brazil, and Chile.
In 1785, the Viceroyalty of the Rio de la Plata was subdivided according to the system of intendencias. Its territory was organized into eight intendencias: Buenos Aires, Asunción, Paraguay, Córdoba del Tucumán, Salta, Tucumán, Charcas, Potosí, Cochabamba, and La Paz. Four political and military governments were also organized on the borders with Brazil: Montevideo, Misiones, Moxos, and Chiquitos. To organize the judicial system, the Royal Audiencia of Buenos Aires was created in 1785.
The Opening of the Port of Buenos Aires
The implementation of the Free Trade Regulation in 1778 led to the opening of the port of Buenos Aires and the establishment of a customs house, which significantly contributed to the city’s growth. This growth justified the creation of a Consulate in 1794. This organization served as a commercial court and a board for the protection and promotion of trade, agriculture, and industry. Manuel Belgrano was appointed its first secretary. Within this body, the interests of merchants clashed between those who favored continuing the exclusive trade relationship with Spain (monopolists) and those who advocated for trade with other nations (free traders).
Buenos Aires Society: Changing Habits
The creation of the Viceroyalty of the Rio de la Plata and the opening of the port brought notable changes to Buenos Aires society. By becoming a viceregal capital, Buenos Aires achieved the political status of major American cities. The wealth generated by the port’s intense commercial activity allowed the consolidation of an elite composed of officials, merchants, military officers, and Church dignitaries.
The Buenos Aires elite also included a group of Creole intellectuals, many of them lawyers trained in Europe or at the University of Charcas, whose involvement would be crucial in the process of independence from Spain.