Spanish Confiscations (1798-1924): Economic Impact and Social Consequences
The Confiscations were a long historical and economic process initiated in Spain by Godoy in 1798 and finished in 1924. The Spanish economy of the nineteenth century was characterized by slow growth and lagging behind other European countries. The process began with the sale of church and crown lands via public auction. Properties of the nobility became private property through disengagement and the abolition of primogeniture, but were not expropriated or sold at public auction. The nobility retained, and increased through the purchase of disentailed goods, its economic power. This included the confiscations of Mendizabal, affecting church lands, and Madoz, affecting church, municipal, and community property.
The Discontent caused by the depreciation of assets held by the clergy, nobility, and city councils, plus the growth of public debt, forced Godoy to propose the sale of these properties. The Church was the most affected sector, and the funds were used to finance military campaigns. This continued during the War of Independence until the return of Fernando VII, who returned the property to the Church. During the Liberal Triennium, the confiscation was restored, only to be abolished again by Fernando VII.
The confiscation accelerated after 1833 due to several factors: the Carlist Wars had depleted state resources; the Carlists were supported by the clergy; and there were claims from those who had purchased confiscated property. The upper classes supported the regency of Maria Cristina, leading liberals to accelerate the confiscation of monasteries. Mendizábal pressured the queen to enact an ecclesiastical confiscation in 1836. The assets of the regular clergy (convents and monasteries) and the secular clergy (during Espartero’s reign) were sold. This aimed to finance the First Carlist War, reduce debt through tax reform, and foster a social class of landowners supportive of liberalism and the regency. However, the land was primarily purchased by the nobility and bourgeoisie, failing to create a substantial middle class. The confiscation continued until 1844, selling 62% of Church assets. Paying for property with public debt worsened the situation. Mendizábal’s intention was ultimately to benefit the financial and commercial bourgeoisie.
Nevertheless, the confiscations did reduce debt and increase tax revenue. However, they failed to increase agricultural production; owners continued collecting rents without investing in new techniques or crops. The land quality was poor, and food prices rose. Furthermore, most owners lived far from their land. The existing ownership structure—large estates in Andalusia and smallholdings in the North—persisted.
In 1855, the second confiscation, the “General” confiscation under Pascual Madoz, was enacted. This time, all depreciated assets (state, church, and municipal) were sold. It proved more effective than the previous one, generating twice the revenue. These funds were used to pay down debt and develop a national railway network. This led to the economic ruin of many peasants and a rupture of diplomatic relations with the Church due to non-compliance with the Concordat. This situation lasted until 1895, although most properties were sold by 1856. The result was a transfer of land to new owners and a merging of the old aristocracy with the urban bourgeoisie, creating a new landowning class. Unlike previous confiscations, payments were made in cash, rather than public debt. Finally, José Calvo Sotelo ended the Madoz confiscations in 1924. The consequences included the reinforcement of landlordism by the bourgeoisie, the ruin of many workers, and improved public finances thanks to the 14 billion reales generated. Increased production and acreage resulted from owner investments. The destruction of religious buildings also facilitated the construction of high-rise buildings characteristic of bourgeois urban development.
In Conclusion, the stagnation of agriculture was a major cause of Spain’s economic backwardness in the nineteenth century. The confiscations particularly affected the Church and caused the ruin of many peasants, while empowering the bourgeoisie. Public debt, however, was reduced. The sales established property structures typical of a liberal state, ending the Old Regime. The revenue financed the First Carlist War and the expansion of the railway network.