19th Century Spain: Agriculture, Industry, and Economic Shifts
1. Agricultural Transformation
1.1 Private Land Ownership
Liberal governments of the 19th century introduced new legal concepts of property rights, leading to the consolidation of private land ownership. This involved abolishing feudal dues and confiscating land from the Church and city halls, allowing land to be freely bought and sold.
1.2 Effects of Agrarian Reform
While peasants were freed, their situation improved little. Many became employees or day laborers. Land confiscations and modifications to landed property primarily benefited those who already had resources. Secularization aimed to alleviate the Royal Treasury’s plight and promote railway construction.
1.3 Limits to Agricultural Growth
The most significant consequence was increased land clearing, particularly for cereals, grapes, corn, and potatoes. Sheep and wool production declined. Increased pig farming occurred. Production increased through acreage expansion rather than technique improvement. Slow productivity growth was due to the natural setting and an ownership structure not conducive to innovation (smallholdings and estates).
2. Demographic Trends
2.1 Population Growth
In the 19th century, the growth rate increased due to the disappearance of epidemics, improved diet, and the expansion of maize and potato cultivation. However, Spain’s natality and mortality rates, including infant mortality, remained high above the European average. Bad harvests could cause food shortages.
2.2 Rural Exodus
Urban growth was slow but steady in the 19th century. A rural exodus led to increasing urban populations, particularly in capitals like Madrid and Barcelona. This forced the demolition of medieval walls and urban expansion programs.
2.3 Transoceanic Migrations
At the end of the century, emigration increased due to population growth and limited employment opportunities. People from Galicia, Asturias, and Catalonia migrated to Argentina, Mexico, Cuba, and Brazil.
3. Industrialization’s Beginnings
3.1. The Catalan Textile Industry
Catalonia’s textile manufacturing began in the 13th century, increasing production with mechanical spinning by the mid-19th century. Mechanization started with steam engines due to labor scarcity. Lower prices stimulated demand, and cotton replaced wool.
Limitations of the Textile Industry
- Coal shortage: Industries located near rivers for hydropower.
- Market weakness: Peasants had little purchasing power.
- Steam-powered textile industries required government protectionist measures against foreign textiles.
The cotton industry shifted to non-cotton textiles.
3.2 The Steel Industry
The steel industry developed alongside the textile sector and was closely related to iron and carbon mining.
The First Steel Mills
Andalusian production initially led in Spain but declined due to using charcoal instead of coke. Asturias maintained primacy in the late 19th century as the only area with coal.
The Hegemony of Biscay
The arrival of coking coal to Bilbao from Wales consolidated the Basque Country’s steel industry. Trade between Bilbao and Cardiff (iron ore exported, coal imported) played a leading role in industrialization. Two major Basque companies, Vizcaya and the Iron and Steel Factory in Bilbao, were created.
3.3 Slow Industrial Expansion
The industrial structure focused on textiles and steel. The rest of Spain modernized slowly, with industrial plots emerging across the territory. The food industry, particularly flour milling in Aragon and Zaragoza, and printing and publishing in Madrid, gained relevance. Metallurgical and chemical sectors grew throughout the century.
3.4 Mineral Production
Iron and carbon extraction were the most important mining activities. Steam engines drove the steel industry, especially in Asturias. Spain became Europe’s main iron ore supplier due to non-phosphorus ore exports, suitable for the Bessemer converter.
Secularization of the Subsoil
The Mines Act of 1868 initiated massive exploitation of Spanish deposits due to increased international demand, technological advances, and state indebtedness. Key minerals included lead, copper, mercury, and zinc.
4. Rail and Market
4.1 Building the Railroad
Approval of the general railway law led to several construction stages:
- First major expansion: Significant capital investment and foreign company involvement.
- Financial crisis: Construction paralysis due to low investment returns.
- New construction stage: Completion of the railway network.
Effects of Rail on the Economy
- Radio-network structure.
- Wide rail gauge.
- Construction companies were authorized to import duty-free materials.
4.2 Internal Market Difficulties
In the early 19th century, guilds were abolished, taxes on trade were eliminated, and a transportation system was created to ship goods from producing to consuming areas. The railway was essential for cheap and fast transportation of people and goods. The main problem was lack of demand due to the peasantry’s low purchasing power.
4.3 Increased Foreign Trade
Foreign trade experienced two stages: modest but steady growth, followed by expansion due to international trade. Initially, oil and wine were the main exports. Later, minerals, agricultural products, and cotton fabrics became important. Raw cotton and coal were the primary imports.
4.4 Free Trade and Protectionism
Tariff policy evolved from free trade to protectionism. Sectors pressured governments to protect their products, arguing that free trade hindered economic development. Spain made significant efforts toward trade liberalization.
5. Finance and Debt
In 1845, a tax reform aimed to eliminate preferential rates and increase revenues based on equality. However, the reform had limitations. The state could not increase revenue as expected, leading to a persistent treasury deficit funded by foreign credit.