A History of Spain / founded on the Historia de España y de la civilización española of Rafael Altamira

by Charles E. Chapman; Rafael Altamira

Medieval character and inconsistencies of mercantile legislation.

The legislation of the period reflected the prevailing economic ideas, such as the exceptional importance attached to precious metals, the insistence that the balance of trade should favor exports (lest imports should result in specie going out of the country), the favor shown toward the policy of protection, and in a measure the continuance of the medieval penchant for government regulation of industry. The state was not consistent, however, varying its laws according as the needs of the treasury or of European diplomacy or of any passing crisis might direct. Thus prohibitions against foreign goods were often maintained, while at other times the greatest freedom of entry was allowed. In the treaties of peace of the sixteenth century care to safeguard the commercial interests of Spain was employed, but in the seventeenth century they were often sacrificed through the indiscretions of ministers or for political reasons. Thus Spain’s need of allies against France occasioned the grant of a right for the free entry of goods into Spain (but not into the colonies) to the Protestant Netherlands, England, Denmark, and Portugal, with reductions in duties. Treaties of 1665 and 1667 with England abolished Spain’s right to inspect English boats or to search the houses of British subjects, amounting to a virtual invitation to smuggling, which was in fact the result. Smuggling in connivance with Spanish officials became so general (not altogether by Englishmen) that it was regarded as a necessary evil. The government displayed a tendency to facilitate internal commerce,—as by the suppression of interior customs lines,—but the protective and regulative spirit of the Middle Ages was too often apparent. Thus prices were fixed and exclusive rights of sale granted. A curious instance of the latter (though not out of keeping with the age) was the permit given to the religious orders of Madrid to open taverns for the sale of beverages accruing from their crops. When certain abuses and some scandal resulted the privilege was withdrawn, but was later renewed subject to certain conditions, one of which was that friars should not serve the wines to customers.

Difficulties over coinage.

Legislation with relation to money was particularly abundant. One grave error of the past was constantly committed from the time of Philip II to the close of the era, the debasement of the coinage with a view to relieving the difficulties of the treasury, but the results were not more favorable than in former years. Despite governmental care in the matter of coinage, diversity of coins was still a problem. In addition to the national moneys there were regional pieces and numerous foreign coins. Attempts were made to fix the relation between them, but without great success. One factor which was not appreciated at the time was that of the cheapening of money through the enormous importation of precious metals from the Americas, resulting in a corresponding advance in prices. The high prices were ascribed to the exportation of precious metals from Spain, and stringent laws were passed to prevent it. It was difficult, however, to keep the gold and silver in the country.

Scant attention to public works.

The national record of the House of Austria in public works cannot be said to have been good. The need for more and better roads was generally recognized, but unless they suited military purposes or were to be made use of in a royal progress, or journey, the state would rarely build them. Municipalities and groups of merchants (especially the consulados) did something, but were hampered by the centralizing spirit of the government. A license from the Consejo Real was required, even though the state were not to pay. There were too few roads, and existing highways were as a general rule in a bad state of repair. Many bridges were constructed by the government in the sixteenth century, but only a few in the century following. Plans were also discussed for deepening the channels of Spain’s great rivers, but that of the Tagus alone received attention, and the work to that end by Philip II was destroyed by the negligence of his successors. In like manner irrigation on a large scale was planned, but scarcely anything was accomplished. On the other hand this period marked the beginning of a mail service as an auxiliary of economic life; it was due to the state only in that the government granted a monopoly of the privilege to a private individual. Between 1580 and 1685 the extension of the service to foreign countries was brought about. Naturally the whole system was as yet defective from the modern standpoint. The government did expend moneys, however, for military objects and state buildings. Forts were built the length and breadth of the Spanish world, although many of them were allowed to decay in the seventeenth century. Royal palaces and houses of recreation and several splendid churches for royal use, all of which added to the glamor of monarchy, were built at state expense. The municipalities also erected public edifices, such as merchants’ exchange buildings and city halls.

Foreigners in Spain and legislation concerning them.

One of the most controversial questions of the era was that of the entry of foreigners into the economic life of the peninsula. This had begun to be a factor (without referring now to the earlier arrival of Moslem and Jewish elements) in the reign of the Catholic Kings, but it was a much more prominent issue in the period of the House of Austria. It was complicated by the fact that certain groups of foreigners might be welcomed (laborers for example), while others (merchants and manufacturers in particular) were not, but all elements would be both wanted and opposed by some class of the Spanish people at any given time. In general, popular opinion whether of rich or poor was adverse to foreigners. At times the kings yielded to the complaints of the people and passed restrictive laws, but at other times, urged on by financial needs and political aims, they took the contrary course. Dependent as they were upon foreign money-lenders the kings could not refuse to grant the privileges and monopolies which their creditors exacted as security. It would seem, however, that by far the greater number of the foreigners were engaged in the less remunerative occupations. A writer of the seventeenth century says that there were 120,000 foreigners in domestic service, and goes on to say that they also engaged in such occupations as street hawking, the keeping of retail shops of all varieties (sellers of meat, wine, cakes, etc.), and the mechanical trades, including even those of porter and vendor of water. In 1680 the French ambassador estimated that there were 77,000 of his countrymen in Spain, many of whom were farm laborers, but there were considerable numbers in various other occupations, ranging from the wealthy merchant down to the lowly shepherd or peddler. Other nationalities were also prominent. Laws were passed limiting the number of trades in which foreigners could engage, but they seem to have been without avail, for both the complaints and the legislation were often repeated. The victory of the foreign element began to be more apparent by the middle of the seventeenth century. Philip IV enacted laws to encourage immigration, because of the scarcity of labor, and permitted a foreigner who had lived for many years in Spain and married a Spanish woman to enjoy privileges little short of those of a native. Similar laws were made in the reign of Charles II.

Statistics of population.

Prevalence of vagabondage.