Etxebarria’s Speech: Protectionism and Basque Industry in 19th Century Spain

Location

This text is an informative speech with political and economic content, originating from a historical primary source. It was written at the time of the events it describes.

The author is Federico Etxebarria, then president of the Basque Producers League, a significant business association in the steel and metallurgical industry. He was also the owner of the Etxebarria company in Begoña, the first to install a Siemens steel furnace, and a member of the Liberal Party.

In this speech, Federico Etxebarria advocates for the continuation of the government’s commercial policy during the regency of Maria Cristina in the Restoration period. The text is public, addressed to society, the government, and business leaders.

Analysis

During the 19th century, two economic theories, protectionism and free trade, were in conflict. While free trade gained ground mid-century, protectionism became more prominent towards the end, particularly after the Great Depression of 1873 in Europe.

The main protectionist sectors, including Castilian cereals, Catalan textiles, and Basque steel, supported the 1891 tariff of the Cánovas government. This policy allowed these sectors to recover the Spanish domestic market, fostering growth in other Basque industries like chemicals and naval.

The central argument of the text is the defense of protectionist tariffs, which benefited the Basque steel industry.

Secondary ideas include:

• The potential harm to Basque companies from changes in protectionist legislation due to an agreement with Germany.
• The risk of halting pending investments due to new tariffs.
• The negative impact on other Spanish productions, such as Castilian cereal and Catalan textiles.

Conclusion

This document reflects the concern of a major industrial sector regarding the possible implementation of a free trade policy. The steel industry recognized its inability to compete with more advanced, cheaper, and higher-quality European production. Therefore, it was heavily reliant on the national government’s policies.

In essence, the text presents the arguments of the protectionist sectors that dominated the Spanish economy at the beginning of the 20th century.

Other factors contributed to industrialization, such as the Bessemer converter, the transfer of customs, the decline of traditional ironworks leading to modern metallurgical works, the construction of the Triano railway (1865) for iron transport from Somorrostro mines, and the economic agreements of 1878 after the abolition of the Fueros. These agreements allowed Basque Diputaciones to collect taxes, contribute to the state, and invest the remainder.

However, industrialization in the Basque Country from 1887 to 1920 had significant demographic, social, and cultural consequences. Bizkaia’s population grew by almost 30%, with around 60,000 immigrants. By 1902, over half of the employees at Altos Hornos de Vizcaya were from within 150 km, including 20% from Vizcaya and 30% from neighboring provinces. Over 90% of population growth concentrated in cities. The influx of immigrants also caused…