The Industrial Revolution: Capitalism's Rise and Societal Shifts in 19th Century Spain

The Triumph of Capitalism: The Industrial Revolution

Capitalism emerged as a new economic system, built upon economic liberalism and private ownership. Its most important proponent was Adam Smith.

Capitalism: An economic system where industry and business are privately owned and operated for profit.

The Growth of Finance

Industrialization spurred the development of finance. Banks were created to facilitate payments and relations between companies, suppliers, and consumers. Public limited companies, also known as joint-stock companies, emerged, allowing for multiple owners.

Competing Ideologies

Marxism (1864)

Leaders: Karl Marx and Friedrich Engels. A radical form of socialism advocating for a revolution to overthrow capitalism.

Anarchism (1864)

Leaders: Mikhail Bakunin and Peter Kropotkin. A doctrine based on individual freedom, social solidarity, collective ownership, and the rejection of all authority.

Industry in 19th Century Spain

The Catalan Cotton Textile Industry

• Raw Materials: Spun cotton from colonies.
• Mechanization: Utilized spinning machines.
• Location: Near the port of Barcelona for coal imports.
• Market: Weak domestic market.
• Quality & Price: Good quality and price, cotton preferred over wood.

The Basque Iron and Steel Industry

• Resources: Blast furnaces utilized coal from Asturias.
• Locations:
  • 1830/1860: Málaga (expensive).
  • 1860: Ironworks in Asturias (coal-moving area).
  • 1880: Estuary of Bilbao (iron and steel).

Other Key Industries

Mining

• 1868: Ley de Minas (Mining Law) enacted.
• The state sold mines to foreign companies.
• Locations:
  • Iron: Málaga, Cantabria, and Biscay.
  • Lead: Cartagena.
  • Coal and Zinc: Asturias.
  • Copper and Pyrite: Huelva.
• Most mineral resources were exploited.

Banking and Finance

• Public Banking: Bank of Spain established.
• Currency: The peseta introduced as the official currency.
• Private Banks: New private banks like Banco de Santander emerged.
• Stock Exchanges: Established in Barcelona and Madrid.

Social Change and Its Limitations: A Class Society

Society was increasingly defined by wealth. The primary social divisions included:

Social Strata

• Nobility, Senior Military, and Church Authorities: Continued to hold significant societal and political influence, and owned land.
• The Bourgeoisie: An important group in industrial areas.
  • High Bourgeoisie: Owned factories, corporations, and banks.
  • Petty and Middle Bourgeoisie: Small industrialists, businessmen, lawyers, doctors, etc.
• Peasants: Constituted two-thirds of the Spanish population.
• Industrial Proletariat: Worked in factories.
• Artisans: Skilled workers, tradesmen, and domestic workers.
• Working-Class Women: Also worked outside their homes.