In 1814, at the end of the Peninsular War (known in Spain as the “War of Independence”), which was followed by the restoration of the absolute monarchy under King Ferdinand VII, the Spanish economy was in ruins. Lack of capital and the general misery severely restricted the country’s purchasing power. Spain could find few markets in which to place its wares, a problem intensified by the fact that its American colonies, invaded by the English and French, had rebelled in order to become independent. Despite all this, in 1830, Catalonia, with a population of 1,200,000 and average income of 225 reales per inhabitant, was the fourth most powerful trading center in the world.
Two concepts of trade
After the death of Ferdinand VII in 1833, the first Carlist War (1833-1840) broke out in Spain between the defenders of absolutism on the one hand and liberalism on the other. In 1835, a revolutionary process aimed at accelerating reforms to dismantle the old order, including the tax system, was unleashed. During this process, the Barcelona bourgeoisie called for the abolition of accumulated taxes, since the result of adding modern and medieval taxes together resulted in a figure that represented two-thirds of overall production. Reform to this end was not introduced until 1845.
Bombs in response to economic revolt
With liberalism installed in power, a struggle between two economic movements became clear. These were, one the one hand, protectionism, whose supporters wanted restrictions on imports, and, on the other, the free trade movement, which opposed state intervention in international trade. Catalan industrialists were, in general, in favour of protectionism. However, the centralist policies of General Baldomero Espartero, appointed regent until Queen Isabella II came of age, entailed opening up Spanish borders to British products, direct competitors to those made in Catalonia.
The Catalan cotton industry was the sector most seriously threatened and, in November 1842, the bourgeoisie and workers in Barcelona rebelled against Espartero, who responded by bombing the city. This violent reaction had the effect of increasing opposition throughout the State to Espartero, who resigned and fled to Great Britain the following year.
Count Güell takes on the Madrid press
In the mid-19th century, the debate between protectionists and free traders began to affect relations between Catalonia and Spain and the cliché of Catalan lack of solidarity raised its head once more. The pro-free-trade Madrid press attacked industrialists, mostly located in Catalonia, and the story spread that Catalonia was becoming rich by exporting its manufactured products to the other Spanish provinces, which were becoming poorer and poorer. However, the Catalan industrialist and economist Joan Güell spoke out against this, in 1853 refuting the argument by providing customs figures which showed that Catalonia’s balance of trade with Spain was never favourable to the former.
Figures that speak for themselves
It was possible to quantify the ill-feeling that divided the industrial bourgeoisie from the government. Figures on industrial and trade taxes for the 1888-1890 period show that each Catalan paid 4.78 pesetas, more than double the average for Spain, which stood at 2.08 pesetas per person. According to another statistic, devoted to foreign trade, the Catalans handed over five times more than the rest of the population in taxes to the State. In short, Catalonia paid over 8.8 million pesetas per year in taxes, whilst the rest of the State combined contributed 32.7 million. And this, at a time when the Principality had a population of 1.8 million compared to the 17.5 million inhabitants of Spain as a whole. Consequently, whilst accounting for 10% of total Spanish population, Catalonia contributed 27% of total taxes. The tax burden on the country was disproportionate in the extreme.
Civil disobedience
The loss of Spain’s last remaining colonies in 1898 led to a complete breakdown in relations between the bourgeoisie and the system. This situation worsened in 1899. The previous year’s defeat had resulted in a deficit, which the government sought to balance by raising taxes. The response by the guilds of Barcelona was to close commercial and industrial establishments so as to avoid paying tax without breaking the law. The consequences of this unusual strike, which spread to many medium-sized towns in Catalonia, was the suspension of constitutional guarantees, embargoes and arrests of taxpayers and the resignation of the mayor of Barcelona, who disobeyed orders from Madrid by refusing to embargo the assets of those who refused to pay.
1900 balance
The century ended in this heated atmosphere. According to the official figures for 1900, the province of Barcelona paid a tax bill that was as high as the whole of Andalusia, more than Old Castile, Aragon and Valencia together, and almost as much as New Castile (including Madrid), Galicia, Leon, Extremadura and Murcia, combined. The Catalan province contributed 174 million pesetas to the State, whilst Madrid paid less than 143 million. Barcelona paid even more than Cuba had when a Spanish colony, and complained about being forced to pay 24 million pesos, which were then distributed on the island itself.
In investment, too, the contrast was shocking. Public works were practically non-existent in Catalonia, whilst one-third of the State General Budget remained in Madrid. Just the one hundred million pesetas invested in the Lozoya Canal, which brought water to the Spanish capital, a project that had begun in 1851 and was still unfinished, was more than was spent on works in Catalonia in the whole century.
Two concepts of trade
After the death of Ferdinand VII in 1833, the first Carlist War (1833-1840) broke out in Spain between the defenders of absolutism on the one hand and liberalism on the other. In 1835, a revolutionary process aimed at accelerating reforms to dismantle the old order, including the tax system, was unleashed. During this process, the Barcelona bourgeoisie called for the abolition of accumulated taxes, since the result of adding modern and medieval taxes together resulted in a figure that represented two-thirds of overall production. Reform to this end was not introduced until 1845.
Bombs in response to economic revolt
With liberalism installed in power, a struggle between two economic movements became clear. These were, one the one hand, protectionism, whose supporters wanted restrictions on imports, and, on the other, the free trade movement, which opposed state intervention in international trade. Catalan industrialists were, in general, in favour of protectionism. However, the centralist policies of General Baldomero Espartero, appointed regent until Queen Isabella II came of age, entailed opening up Spanish borders to British products, direct competitors to those made in Catalonia.
The Catalan cotton industry was the sector most seriously threatened and, in November 1842, the bourgeoisie and workers in Barcelona rebelled against Espartero, who responded by bombing the city. This violent reaction had the effect of increasing opposition throughout the State to Espartero, who resigned and fled to Great Britain the following year.
Count Güell takes on the Madrid press
In the mid-19th century, the debate between protectionists and free traders began to affect relations between Catalonia and Spain and the cliché of Catalan lack of solidarity raised its head once more. The pro-free-trade Madrid press attacked industrialists, mostly located in Catalonia, and the story spread that Catalonia was becoming rich by exporting its manufactured products to the other Spanish provinces, which were becoming poorer and poorer. However, the Catalan industrialist and economist Joan Güell spoke out against this, in 1853 refuting the argument by providing customs figures which showed that Catalonia’s balance of trade with Spain was never favourable to the former.
Figures that speak for themselves
It was possible to quantify the ill-feeling that divided the industrial bourgeoisie from the government. Figures on industrial and trade taxes for the 1888-1890 period show that each Catalan paid 4.78 pesetas, more than double the average for Spain, which stood at 2.08 pesetas per person. According to another statistic, devoted to foreign trade, the Catalans handed over five times more than the rest of the population in taxes to the State. In short, Catalonia paid over 8.8 million pesetas per year in taxes, whilst the rest of the State combined contributed 32.7 million. And this, at a time when the Principality had a population of 1.8 million compared to the 17.5 million inhabitants of Spain as a whole. Consequently, whilst accounting for 10% of total Spanish population, Catalonia contributed 27% of total taxes. The tax burden on the country was disproportionate in the extreme.
Civil disobedience
The loss of Spain’s last remaining colonies in 1898 led to a complete breakdown in relations between the bourgeoisie and the system. This situation worsened in 1899. The previous year’s defeat had resulted in a deficit, which the government sought to balance by raising taxes. The response by the guilds of Barcelona was to close commercial and industrial establishments so as to avoid paying tax without breaking the law. The consequences of this unusual strike, which spread to many medium-sized towns in Catalonia, was the suspension of constitutional guarantees, embargoes and arrests of taxpayers and the resignation of the mayor of Barcelona, who disobeyed orders from Madrid by refusing to embargo the assets of those who refused to pay.
1900 balance
The century ended in this heated atmosphere. According to the official figures for 1900, the province of Barcelona paid a tax bill that was as high as the whole of Andalusia, more than Old Castile, Aragon and Valencia together, and almost as much as New Castile (including Madrid), Galicia, Leon, Extremadura and Murcia, combined. The Catalan province contributed 174 million pesetas to the State, whilst Madrid paid less than 143 million. Barcelona paid even more than Cuba had when a Spanish colony, and complained about being forced to pay 24 million pesos, which were then distributed on the island itself.
In investment, too, the contrast was shocking. Public works were practically non-existent in Catalonia, whilst one-third of the State General Budget remained in Madrid. Just the one hundred million pesetas invested in the Lozoya Canal, which brought water to the Spanish capital, a project that had begun in 1851 and was still unfinished, was more than was spent on works in Catalonia in the whole century.
Jordi Mata (Text)
Agustí Alcoberro, Francesc Cabana, Josep Maria Solé i Sabaté (Advisory) Alan Moore (Translation)
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