Federico Etxebarria’s Speech: Spain, Germany, and Iron Industries in 1893
Federico Etxebarria’s Speech on Spain and Germany (1893)
This text is a transcription of a speech made to complain about a possible agreement between Spain and Germany. The speaker, Federico Etxebarria, was a Biscayan industrialist in the iron industry. The speech was delivered in December 1893 and published in 1894, making it a primary source document.
Historical Context: The Restoration Settlement
The speech occurred during the Restoration period, a politically challenging time. Spain was a monarchy with a moderate constitution, governed by two dynastic parties: the conservatives and the liberals. However, the system was facing increasing criticism and attempts to change the country’s situation.
Economically, agriculture remained Spain’s primary sector. Industries were limited and concentrated in specific regions, such as the textile industry in Catalonia and the iron industry in the Basque Country. These industries relied on protectionist measures to avoid competition, as they were unable to compete with foreign countries. Protectionism involved tariffs or customs duties on imported goods, increasing their prices and making them less competitive with locally produced goods. This benefited local producers in the short term.
However, protectionism also had a negative impact. Without the pressure of competition, there was less incentive to innovate and reduce production costs. While some advancements were made, they were not as significant as they could have been.
Etxebarria’s Concerns: The Proposed Treaty
Federico Etxebarria’s speech addresses a potential treaty between Spain and Germany that would allow German products to enter Spain without tariffs. This would make German products cheaper than Spanish products, leading to increased competition. This prospect caused considerable concern, particularly within the iron industry, as Germany was a major iron producer. Competing with Germany would have been difficult.
Etxebarria’s demands to the government were clear: avoid the agreement and maintain the existing tariffs (protectionist measures). He emphasized that many industries had been built or modernized with the understanding that protectionist measures would remain in place.
Outcome and Long-Term Effects
Ultimately, the agreement was not implemented, which was beneficial for the Basque Country’s industries. However, the lack of competition fostered complacency. Over time, improvements were introduced to prepare for future challenges. Furthermore, new industries were established, and existing ones were modernized.