Spain’s Economic and Political Restoration (1875-1898)
The Creation of a Common Market
The creation of a common market in Spain began in 1837 and was consolidated by 1892. This unification of the economic system created a single market, which was possible thanks to the organization of trade and transport networks, the establishment of legislation, and the unification of the commercial, financial, and tax systems.
Roads were improved, and the postal service was created in 1850, followed by the telegraph service in 1852. The construction of the railway, driven during the 1854-56 period, allowed for the construction of a basic communications network in Spain. All internal customs and laws were abolished, making export and import easier. This can be divided into two periods:
- 1841 to 1875: Free trade predominated, although some Spanish products were protected, leaving the door open to imports. The progressive period (1854-56) and the revolutionary administration (1868-1874) were free trade stages.
- 1875-98: This coincided with the first phase of the Restoration and was a phase of strong protectionism, culminating in the Tariff of 1892, which protected the Basque, Catalan textile, and steel industries. Landowners and industrialists forced governments to raise tariffs to prevent foreign competition.
Regarding the monetary system, the early 19th century was chaotic due to various currencies and accounting systems. To modernize and standardize the price of goods, it was essential to create a single currency throughout the country. This currency was the peseta, with its value in gold and silver. It was also necessary to modernize the tax system and organize it in a functional way, which modernized the fiscal system and remained relatively stable throughout the 19th century.
Restoration: The Political Landscape (1875-1898)
The period from 1875 to 1898 is known as the Restoration, involving two phases separated by the crisis of 1898 (loss of Cuba and the Philippines). On December 29, 1874, General Arsenio Martínez Campos led an uprising in Sagunto and proclaimed Alfonso XII, son of Isabel II, King of Spain. In Madrid, a provisional government was formed by Antonio Canovas del Castillo.
The new head of government already enjoyed the confidence of Alfonso XII, who had written the Manifesto of Sandhurst, made public in early December of the same year. On January 9, 1875, the young king went to Spain, arriving in Madrid on the 14th. The Bourbon dynasty had just been restored.
Bipartisanship
The Restoration was marked by the construction of two major political parties representing the right and left within the liberal framework. Cánovas led the Conservative Liberal Party, later called the Conservative Party, consisting of figures from the old Moderate Party, the union of liberal and progressive parties, and also took early adhesion from the episcopate and much of fundamentalist Catholicism. Práxedes Mateo Sagasta led the Liberal Fusionist Party, later called the Liberal Party, formed by people from all sectors of the democratic, radical, and moderate Republicanism.
He received the influence and support of liberal professionals, merchants, bankers, soldiers, and officials. The occasion that allowed the historical practice of the new political parties was the meeting of the Constituent Assembly in February 1876. From the approval of the Constitution of 1876, the country’s political life was based on the peaceful alternation of major parties in power management.
The bipartisanship was consolidated with the death of King Alfonso XII in 1885, without male succession and a pregnant queen.
Foreign Policy
The new regime was quickly recognized by foreign powers, which could be interpreted as a clear legitimacy of the new monarchy and the new political regime to the public opinion sectors of Spanish Catholics. The new regime succeeded in pacifying Cuba, where unrest had started shortly after the revolution of 1868 in Spain, ending a war that had lasted ten years and which had begun with the so-called Grito de Yara. General Martínez Campos was sent to the Caribbean colony to fight the rebels and negotiate. The Zanjón Peace, an agreement signed on February 12, 1878, brought momentary peace to the island.