Causes of the 1868 Revolution in Spain
Causes of the 1868 Revolution
The Economic Crisis
The financial crisis originated following the crisis of the railways. The construction of the railway network brought a large capital investment in the stock market, but once the operation of the lines began, their economic performance was lower than expected. The limited Spanish industrial development was insufficient because the transportation of passengers and merchandise did not generate strong demand, and the value of the shares plummeted. Investors demanded government subsidies, but the government did not have funds and could not resort to borrowing because the value of public debt had sunk. The crisis affected many financial institutions, which canceled loans and spread alarm among individuals and businesses.
The financial crisis coincided with an industrial crisis, especially in Catalonia. The textile industry largely imported cotton from the United States, but the American Civil War made it expensive and caused a period of “cotton famine.” Many small industries in the cotton sector could not cope with price rises at a time when demand for textile products declined due to the general economic crisis and the sharp rise in food prices caused by the subsistence crisis. The subsistence crisis began as a result of a series of bad harvests, which resulted in a shortage of wheat. Immediately, prices began to climb. The cost of bread and other food commodities also increased. The combination of both crises, agricultural and industrial, worsened the situation.
- In the countryside, hunger led to a strong climate of social violence.
- In cities, the result was a wave of unemployment, causing a decline in the living standards of the working classes.
The Political Damage
Much of the Spanish population had grounds for discontent against the Isabelline system. Big merchants demanded the government take action to save their stock investments, industrialists demanded protectionism, and the workers and peasants denounced their misery. After the revolt of the sergeants of the San Gil barracks and the strong repression that followed, O’Donnell was removed from government by the queen, but subsequent Moderate Party governments continued acting by decree. The Courts were closed and remained deaf to the country’s problems.
Given the impossibility of accessing power through constitutional mechanisms, the Progressive Party, led by Prim, practiced a “policy of withdrawal”: it refused to participate in the elections and defended conspiracy as the only way to govern. The Democratic Party stood in the same position, so both parties signed the Pact of Ostend in this Belgian city, aiming to unify their actions to end the moderate government in power. The compromise proposed to end the Elizabethan monarchy and left the decision on the new form of government (monarchy or republic) in the hands of a constituent Cortes, which would be elected by universal suffrage once the insurgency movement had triumphed. After the death of O’Donnell, the Unionists joined the pact. This membership was essential for the triumph of the revolution and to define its character.