19th Century Spanish Land Reform: Mendizábal and Madoz
The Mendizábal Disentailment (1836–1844)
The confiscation initiated by Juan Álvarez Mendizábal in 1836 involved the sale of property belonging to the regular clergy. The main objectives of this seizure were multifaceted:
Primary Objectives of the 1836 Confiscation
- Financial Improvement: Reducing the substantial public debt and improving state finances.
- Economic Access: Granting access to property sectors for the rising bourgeoisie.
- Political Support: Creating a social sector that would actively support the liberal cause.
Expansion and Sales
Starting in 1841, during the regency of Espartero, the assets of the secular clergy were also put up for sale. Between 1836 and 1844, expropriated property valued at 910 million [currency unit implied] was sold.
Land Sales and Payment Structure
The land was sold in lots of different sizes. Although some lots were theoretically affordable to lower social groups, acquisition was often impossible because the bourgeoisie possessed greater liquidity and effectively controlled the auctions.
The payment structure for these purchases was established as follows:
- Down Payment: 20% paid in cash (government bonds were also accepted for this portion).
- Remainder: Paid in installments, for which payment using government bonds was admitted.
Financial Outcomes and Consequences
The financial benefits of the confiscation were limited. The State raised 4.5 billion [currency unit] while the state debt stood at 14 billion [currency unit].
This process brought numerous consequences for the country. The most notable was that the Church ceased to be among the economically privileged classes, although it maintained significant influence over the attitudes and education of the time.
The Madoz Disentailment (1855)
Later, during the Progressive Biennium, the confiscation led by Pascual Madoz was undertaken in 1855. This process, unlike the previous one, aimed to expropriate all types of amortized properties, effectively completing the destruction of property held in “dead hands.”
Scope of Expropriation
The Madoz law targeted a comprehensive range of assets, including:
- Remaining Church property.
- Rural and urban state-owned properties.
- Properties belonging to municipalities (both common and public lands).
Sales, Funding, and Consequences
Between 1855 and 1856, lands valued at 8,000 million reales were auctioned. Crucially, unlike the Mendizábal law, payment for these purchases could only be made in cash.
Allocation of Funds
The money generated from the land sales was allocated primarily to two areas:
- Reduction of public debt.
- Addressing the needs of the Treasury, which was no longer receiving consumption tax revenue.
Social and Political Impact
The consequences of this second confiscation were profound:
- The near-total elimination of communal property.
- The final expropriation of remaining Church assets.
- The situation of the peasantry was complex: while some sectors improved, others worsened significantly.
- A severe breakdown in relations between the State and the Church.