Spain: 19th Century Liberal Economic Policies & Social Shifts

Spain: 19th & Early 20th Century Economic & Social Shifts

Liberal Economic Policies: Spain's Progressive Biennium 1854-56

The Debt Repayment Process Continues

Progressive liberals, as is known, were a political faction focused on fostering economic development and attracting capital investment.

Aside from the 1856 Constitution, which was "non nata" (never enacted), the primary reforms consisted of a series of laws designed to lay the groundwork for the nation's economic modernization.

The Madoz Confiscation Law of 1855

The Madoz Confiscation Law of 1855 was a key component of these reforms. It represented the final component in a mosaic of land structure reforms initiated in the 18th century under Mendizábal and subsequently continued by others. This law mandated the auction sale of all types of rural and urban property belonging to the state, municipalities, and the Church (specifically, those properties still held by them).

Objectives of the Madoz Law

The objectives, similar to those in 1836, were to:

• Settle the national debt.
• Address the Treasury's financial requirements.

Method of Sale under Madoz Law

The method employed was identical, with the sole stipulation that payments had to be made in cash: 10% as an initial down payment, and the balance paid in installments.

Consequences of the Madoz Law

The consequences were far-reaching:

• Disappearance of Communal Property: Communal ownership by municipalities (and the remaining Church properties) was eliminated.
• Impact on Poorest Farmers: This significantly worsened the conditions for the poorest peasant farmers, who had previously relied on these communal lands and resources.
• Strained Vatican Relations: The law led to a rupture in relations with the Vatican due to its violation of the 1851 Concordat.
• Ruin of Municipalities: Municipalities faced financial ruin as they were deprived of these resources, rendering them unable to provide essential charitable, medical, and other public services.

On the other hand, this confiscation did not facilitate the comprehensive land reform that had been advocated by figures such as Flórez Estrada during Mendizábal's era. It did, however, succeed in profoundly unsettling the Spanish countryside, which subsequently experienced frequent and severely repressed peasant uprisings and riots.

Overall, this debt repayment process, including the Madoz Law, unequivocally contributed to Spain's transition towards a bourgeois society. It involved the large-scale transfer of land to new owners and facilitated the amalgamation of the old feudal aristocracy with the urban bourgeoisie, thereby forging a new landed elite.

General Railway Law & Financial Reforms in Spain

Progressive liberals considered the railway an indispensable component for modernizing the Spanish economy. To achieve the construction of a national railway network, they were prepared to mobilize all necessary resources, both domestic and foreign.

The development of railway lines was first regulated in 1844, during the period when moderate liberals held political power.