The Economic Transformation of 19th Century Spain
Modernizing Agriculture in Catalonia
Efforts were also made to modernize agriculture. Unlike other regions of Spain, Catalonia did not have large estates (desmortitzacions) dominated by absentee landlords. Farmers (eufemites) held long-term leases, providing stability and incentives for improvement.
1832-1833: The Steam Engine Arrives
The Bonaplata brothers, pioneers in industrialization, established a partnership and built the first steam-powered factory in Spain. They repurposed old stables in Barcelona and, with the support of Joan Güell, created a textile manufacturing center that was the largest and most modern of its time. This marked the beginning of Catalonia’s industrial heritage.
The Industrial Colony Model
The textile industry initially followed the English model, relying heavily on coal. However, due to the high cost of coal, from 1860 onward, industries began utilizing waterfalls and river currents to power turbines. This led to the creation of numerous industrial colonies.
Protectionism and Technological Renewal
Contrary to common assumptions, protectionism in Catalonia did not hinder technological advancement, particularly between 1830 and 1855. During this period, the machining industry gradually modernized. A prime example is the invention of the Berguedana, a Catalan version of the spinning jenny. Another innovation was the introduction of self-acting machines, which automated the spinning process.
Economic Phases
The textile industry experienced several economic phases marked by fluctuations in production and prices. These fluctuations were influenced by factors such as political events, wars, and variations in demand.
3.3 The Steel Industry in the Basque Country
The Basque Country possessed abundant iron ore reserves. Initially, factories exported iron to the rest of Spain and its American colonies. However, with the independence of these colonies, the iron industry faced a crisis. Basque traders seized this opportunity to establish new industries.
Elimination of Protectionist Jurisdictions
Capitalizing on the elimination of protectionist policies, which allowed free trade within Spain, Basque traders thrived. This policy shift was a key reason for the commercial bourgeoisie in San Sebastian and Bilbao supporting the liberal state and opposing the Carlist cause, which advocated for the reinstatement of traditional charters.
Iron Mining and Export to Britain
From 1860 onward, iron mining and its subsequent export to Britain became a significant source of wealth for Basque traders. They constructed substantial docks in the Bilbao estuary for ore extraction and later established blast furnaces. Numerous metallurgical companies emerged to process steel.
Basque Economic Growth
The Basque Country’s economic boom was driven by two main factors: protectionist policies and the expansion of the steel industry.
3.4 Other Industrial and Mining Activities
Other notable industrial and mining activities included:
- Food industry: Flour mills played a prominent role.
- Chemicals: Production of dyes and bleaches gained traction.
- Mechanical industry: The Bonaplata brothers’ steam engine manufacturing paved the way.
- Mining: Progress in this sector was largely due to significant foreign investment.
4 The Creation of the Common Market
Spain embarked on a journey to establish a common market. This process was facilitated by the modernization of trade and transport networks, the implementation of a new commercial law, and the unification of the financial and tax systems.
Communication
King Charles IV had initiated the construction of six royal roads (Caminos Reales). In 1850, the postal service was established, followed by the telegraph service in 1852. During the Biennium Progresista (1854-1856), railway construction gained momentum.
4.2 A New Commercial Legislation
Spain had a complex web of trade regulations, with various governments enacting legislation throughout the 19th century. The system of regular stock companies (SA) was established, and the last customs barrier was abolished in 1841. Regarding import and export laws, two periods stand out:
- 1841-1875: This period was relatively liberal, with certain products protected, but the door remained open to imports.
- 1854-1856: This period was characterized by strong tariff protectionism, culminating in 1892.
4.3 The Unification of the Monetary System
Currencies circulating in Spain had different values in each region. The government aimed to create a unified currency with a single value. Finance Minister Alejandro Mon, with input from Catalan experts, established the peseta as the single currency, pegged to the value of gold and silver. Subsequently, banknotes and bank checks were introduced.
4.4 The Unification of the Tax System
Another challenge in creating a single market was the inconsistent taxation of products across Spain. Taxes were disorganized, with each region paying different amounts. The government needed to streamline the system. In 1845, a significant reform was implemented. The reform simplified the tax system, reducing the number of taxes and creating five main categories: buildings, crops and livestock, industrial and commercial activity, consumption, and rents and mortgages.
5 The Catalan Economy in the 19th Century
Catalonia experienced substantial population growth during the 19th century. People migrated from rural areas to cities to work in factories and industries.
5.2 The Agricultural Transformation
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