The 1855 Spanish Railroad Act: Development and Impact
Introduction to the 1855 Railroad Law
This document provides a fragment of a legal text for citizens, explaining the construction of the railroad following the acceptance of the corresponding law. It also highlights advantages for investors. Drafted by the Cortes with the support of Queen Isabella II on June 3, 1855, the law was officially published in the Gaceta de Madrid three days later.
Spain’s Political Landscape Under Isabella II
Upon Isabella II’s ascension to the throne, the Spanish government embarked on establishing a liberal state, fulfilling the vision of her father, Ferdinand VII. Within the liberal movement, two distinct parties emerged: the Moderates and the Progressives. Significant differences separated them, such as:
- Suffrage: Progressives advocated for wider suffrage, while Moderates preferred a more restricted system.
- Military Service: Moderates favored compulsory military service.
- Authority Election: Moderates believed authorities should be elected in Madrid, whereas Progressives preferred local elections.
- Legislative Power: Moderates defended a bicameral Cortes (Congress and Senate), while Progressives argued for a unicameral Congress of Deputies.
Despite these divergences, they shared common ground on other aspects, such as their mutual defense of a constitutional monarchy.
Economic Challenges in Mid-19th Century Spain
Although economic freedoms were expanding, Spain at this time remained an agricultural country with limited resources. Citizens were heavily reliant on agriculture, which saw little improvement and struggled to fulfill the nation’s needs. This widespread poverty hindered new developments, leading to industrial backwardness (with exceptions in Catalonia and the Basque Country) and significant communication difficulties. These factors collectively impeded economic growth, exacerbated by Spain’s mountainous terrain, the lack of modern roads, and the pressing need for funds to improve infrastructure. Another major challenge was the exploitation of mineral resources primarily by foreign entities, resulting in Spain losing significant revenue.
Incentivizing Railroad Investment in Spain
Foreign investors, keen on improving communication, found a favorable environment in this law, which was also designed to bolster the national economy. Given Spain’s insufficient funds due to past conflicts, the government enacted this legislation to encourage companies and private individuals to invest in railroad construction. The state offered various benefits and grants to investors, including land for railway lines and financial subsidies. Furthermore, imported materials essential for construction were exempt from taxes.
Unique Features of the Spanish Railroad Gauge
This text also defined the technical characteristics of the railroad, notably its gauge. The Spanish railroad featured a wider gauge than those in the rest of Europe, primarily due to the country’s mountainous terrain. This unique feature proved detrimental for international trade, as Spanish trains, adapted to the wide gauge, required goods to be transferred to different trains upon reaching the border.
Economic and Political Ramifications of the Law
The creation of this law was made possible by the substantial funds the Spanish government obtained through Mendizábal’s and Madoz’s disentailment laws. While particularly beneficial for foreign investors, who imported materials without customs duties and gained easier access to new mineral resources, Spanish industry did not benefit proportionally. Nevertheless, the law had a significant impact by improving communication, as the railroad became a new vital means to transport materials and people within Spain.
Impact on State, Bourgeoisie, and Church
The state itself benefited from the land sales, generating substantial revenue to address contemporary issues. The bourgeoisie, in turn, acquired lands, aligning them more closely with the nobility. Politically, the Church felt upset with the liberal government because, prior to this law, they had enjoyed a privileged status. Consequently, the Church began to support the Carlists (absolutists), and the Carlists benefited significantly from the Church’s considerable influence over citizens. As a result, relations between the Church and the state deteriorated.