The Bourbon Reforms ( es, Reformas Borbónicas) consisted of political and economic changes promulgated by the
Spanish Crown
, coatofarms = File:Coat_of_Arms_of_Spanish_Monarch.svg
, coatofarms_article = Coat of arms of the King of Spain
, image = Felipe_VI_in_2020_(cropped).jpg
, incumbent = Felipe VI
, incumbentsince = 19 Ju ...
under various kings of the
House of Bourbon
The House of Bourbon (, also ; ) is a European dynasty of French origin, a branch of the Capetian dynasty, the royal House of France. Bourbon kings first ruled France and Navarre in the 16th century. By the 18th century, members of the Spanis ...
, since 1700, mainly in the 18th century. The beginning of the new Crown's power with clear lines of authority to officials contrasted to the complex system of government that evolved under the
Habsburg monarchs. For example, the crown pursued state predominance over the
Catholic Church
The Catholic Church, also known as the Roman Catholic Church, is the largest Christian church, with 1.3 billion baptized Catholics worldwide . It is among the world's oldest and largest international institutions, and has played a ...
, pushed economic reforms, and placed power solely into the hands of civil officials.
The reforms resulted in significant restructuring of administrative structure and personnel. The reforms were intended to stimulate manufacturing and technology to modernise Spain. In
Spanish America
Spanish America refers to the Spanish territories in the Americas during the Spanish colonization of the Americas. The term "Spanish America" was specifically used during the territories' imperial era between 15th and 19th centuries. To the en ...
, the reforms were designed to make the administration more efficient and to promote its economic, commercial and fiscal development. When looking at the material effects of how the Bourbon Reforms aimed to change the relationship between the Spanish American colonies and the Crown, it can be said that the reforms functionally aimed to transform juridically semi-autonomous groups into proper colonies. Specifically, the reforms sought to increase commercial agriculture and mining and increase trade. The system was intended to be much more hierarchal, forcing the colonies to become more dependent on Spain and serve as a market for their manufactured goods. The crown ordered these changes in hopes that it would have a positive effect on the economy of Spain.
Furthermore, the Bourbon Reforms were intended to limit the power of
Criollos
In Hispanic America, criollo () is a term used originally to describe people of Spanish descent born in the colonies. In different Latin American countries the word has come to have different meanings, sometimes referring to the local-born majo ...
and re-establish ''
peninsular'' supremacy over the colonies.
The reforms achieved mixed results administratively but succeeded in alienating the local elites of the Americas (who called themselves ''Criollos'') and eventually led to the
independence of all overseas dominions of the Spanish crown. This is not to say that a clean and straight line can be drawn from the Bourbon reforms to the movements for Independence, but rather that the period of unrest that came in the wake of the reforms helped encourage the conditions necessary for local riots, and eventually revolts.
End of Habsburg era
At the end of the 17th century, Spain was an ailing empire, facing declining revenues and the loss of military power, ruled by a weak king,
Charles II, who left no successor. Even before his death in 1700, the European powers were already positioning themselves to see which noble house would succeed in placing someone on the Spanish throne and thereby gain its vast empire.
Louis XIV of France
, house = Bourbon
, father = Louis XIII
, mother = Anne of Austria
, birth_date =
, birth_place = Château de Saint-Germain-en-Laye, Saint-Germain-en-Laye, France
, death_date =
, death_place = Palace of V ...
asked for and received the Pope's consent for his grandson,
Philip of Anjou, a great-nephew of Charles, to take the throne. On his deathbed, Charles willed the crown to the French-born successor, but an international conflict ensued, known as the
War of the Spanish Succession
The War of the Spanish Succession was a European great power conflict that took place from 1701 to 1714. The death of childless Charles II of Spain in November 1700 led to a struggle for control of the Spanish Empire between his heirs, Phili ...
, which lasted from 1702 to 1713 and pitted Portugal, England, and other European countries against the French
House of Bourbon
The House of Bourbon (, also ; ) is a European dynasty of French origin, a branch of the Capetian dynasty, the royal House of France. Bourbon kings first ruled France and Navarre in the 16th century. By the 18th century, members of the Spanis ...
.
Beginning of Bourbon era
Under the terms of the Treaty of Utrecht, which ended the War of Spanish Succession and placed Philip V securely on the Spanish throne, the new Bourbon dynasty was forced to make several concessions to outside powers. This included, in compromise with the Austrian Habsburgs, some of the Spanish Habsburg Empire's European territories, some Caribbean enclaves such as Jamaica, some of the
Balearic islands and the continental stronghold of
Gibraltar. It also included the granting of the ''
asiento de negros
The () was a monopoly contract between the Spanish Crown and various merchants for the right to provide African slaves to colonies in the Spanish Americas. The Spanish Empire rarely engaged in the trans-Atlantic slave trade directly from Af ...
'', a monopoly contract on
African slaves
Slavery has historically been widespread in Africa. Systems of servitude and slavery were common in parts of Africa in ancient times, as they were in much of the rest of the ancient world. When the trans-Saharan slave trade, Indian Ocean sl ...
to
Spanish colonies in the Americas to the
British government
ga, Rialtas a Shoilse gd, Riaghaltas a Mhòrachd
, image = HM Government logo.svg
, image_size = 220px
, image2 = Royal Coat of Arms of the United Kingdom (HM Government).svg
, image_size2 = 180px
, caption = Royal Arms
, date_est ...
.
[Hill: ''Robert Harley'', 162–5; Wolf:''Louis XIV'', 581; Pitt:''The Pacification of Utrecht'', 460; Trevelyan: ''England'', III, 182–5]
Philip V of Spain
Philip V ( es, Felipe; 19 December 1683 – 9 July 1746) was King of Spain from 1 November 1700 to 14 January 1724, and again from 6 September 1724 to his death in 1746. His total reign of 45 years is the longest in the history of the Spanish mon ...
, the first king of the House of Bourbon, took measures intended to counter the decline of Spanish power called the Bourbon Reforms. Even before the war, the state of the empire was precarious. When Charles II died, the military was practically nonexistent, consisting of only one division; the treasury was bankrupt; and there was no state promotion of commerce or industry. Philip V and his ministers needed to act quickly to reconstruct the empire.
French influence
The new Bourbon kings kept close ties with France and used many Frenchmen as advisors. French innovations in politics and social manners never fully replaced Spanish laws and traditions but became an important model in both areas. As a result, there was an influx of French goods, ideas, and books, which helped spread the ideas of the
Enlightenment throughout the Spanish world. In a sense, all things French came into fashion during the subsequent century and gave rise to a new type of person, the ''
afrancesado
''Afrancesado'' (, ; "Francophile" or "turned- French", lit. "Frenchified" or "French-alike") refers to the Spanish and Portuguese partisan of Enlightenment ideas, Liberalism or the French Revolution.
In principle, ''afrancesados'' were upper-a ...
'', who welcomed the new influence. In addition, during the
War of Succession
A war of succession is a war prompted by a succession crisis in which two or more individuals claim the right of successor to a deceased or deposed monarch. The rivals are typically supported by factions within the royal court. Foreign p ...
, the ports in Spanish America were blockaded by British and Dutch fleets. Spain turned to France for help with the export of its goods, which was the first time in Spanish colonial history that legal trade occurred with a foreign nation. Prior to this, trade between Spanish American colonies and other European countries had all occurred on illicit trade circuits. The new commercial relationship stimulated the colonial economy, especially that of
Chile
Chile, officially the Republic of Chile, is a country in the western part of South America. It is the southernmost country in the world, and the closest to Antarctica, occupying a long and narrow strip of land between the Andes to the eas ...
.
In Mainland Spain

The early reforms were aimed at improving the economic and political structure of Spain. They sought to modernize agriculture, construction of ships, and infrastructure to monitor and incite economic integration and development on a regional and national level. The Spanish were caught in an ever tightening noose of imperial rivalry abroad with the British, the French, and the Portuguese. They were all fighting for domination in the Atlantic trade. Spain's issues with its neighbor was the biggest problem, and the Spanish Bourbons made constant short-term adjustments to colonial and increasingly, continental war-making. War was inevitable as the hegemonic powers were pinned against each other in a quest for expansion.
This hindered the
nationalization
Nationalization (nationalisation in British English) is the process of transforming privately-owned assets into public assets by bringing them under the public ownership of a national government or state. Nationalization usually refers to priv ...
of industries and so disrupted the class system. For example,
mercury, a Spanish import, was an essential resource for extracting silver in the mining process, but the French naval blockade dramatically limited imports in Spanish America. As a result, silver plunged downward and mining slumped, which caused revenue to decrease. Ultimately, in 1805, the highland mining districts exploded in revolt. Therefore, it was not the Bourbon reforms that failed, but rather the role of the conflicts at home that resulted in failure.
The failure of reform measures became evident when Spain, under
Charles III
Charles III (Charles Philip Arthur George; born 14 November 1948) is King of the United Kingdom and the 14 other Commonwealth realms. He was the longest-serving heir apparent and Prince of Wales and, at age 73, became the oldest person to ...
, lost the
Seven Years' War
The Seven Years' War (1756–1763) was a global conflict that involved most of the European Great Powers, and was fought primarily in Europe, the Americas, and Asia-Pacific. Other concurrent conflicts include the French and Indian War (1754– ...
with Great Britain (1756–1763). Charles III's counselors sought more detailed reports of Spain's overseas territories/and now understood the need to take them fully into account. The new wave of reforms included larger exploitation of resources in the colonies, increased taxes, the opening of new ports allowed to trade only with Spain, and the establishment of several state
monopolies
A monopoly (from Greek el, μόνος, mónos, single, alone, label=none and el, πωλεῖν, pōleîn, to sell, label=none), as described by Irving Fisher, is a market with the "absence of competition", creating a situation where a spec ...
.
In Spanish America
In Spanish America,
José del Campillo y Cosío's ''Nuevo Sistema de gobierno económico para la América'' (New System of Economic Government for America) (1743) was a key text that shaped the reforms. He compared the colonial systems of Britain and France with that of Spain, as the first two nations reaped far greater benefits than Spain. He advocated reforming Spain's economic relations with its overseas territories to a system more like the
mercantilism of France's
Jean-Baptiste Colbert
Jean-Baptiste Colbert (; 29 August 1619 – 6 September 1683) was a French statesman who served as First Minister of State from 1661 until his death in 1683 under the rule of King Louis XIV. His lasting impact on the organization of the countr ...
(1619–1683).
The Bourbon reforms have been termed "a revolution in government" for their sweeping changes in the structure of administration that sought to strengthen the power of the Spanish state, decrease the power of local elites in favor of office holders from the Iberian peninsula, and increase revenues for the crown.
Government
The bulk of the changes in Spanish America came in the second half of the 18th century following the ''visita general'' (general inspection) of
New Spain
New Spain, officially the Viceroyalty of New Spain ( es, Virreinato de Nueva España, ), or Kingdom of New Spain, was an integral territorial entity of the Spanish Empire, established by Habsburg Spain during the Spanish colonization of the Am ...
(1765–1771) by
José de Gálvez
José is a predominantly Spanish and Portuguese form of the given name Joseph. While spelled alike, this name is pronounced differently in each language: Spanish ; Portuguese (or ).
In French, the name ''José'', pronounced , is an old vernacu ...
, who was later named Minister of the Indies. Upon his inspection, he found the viceroyalty in shambles and then reorganized the tax collection system, rewarded loyal Spanish merchants, jailed corrupt tax collectors, and steered the local economy towards mining. The reforms attempted in New Spain were implemented elsewhere in Spanish America subsequently. There had been one earlier reform in the creation of the new
Viceroyalty of New Granada
The Viceroyalty of New Granada ( es, Virreinato de Nueva Granada, links=no ) also called Viceroyalty of the New Kingdom of Granada or Viceroyalty of Santafé was the name given on 27 May 1717, to the jurisdiction of the Spanish Empire in norther ...
(1717), carved out from the
Viceroyalty of Peru
The Viceroyalty of Peru ( es, Virreinato del Perú, links=no) was a Spanish imperial provincial administrative district, created in 1542, that originally contained modern-day Peru and most of the Spanish Empire in South America, governed fro ...
to improve the administration of the overseas possessions. The new viceroyalty was created initially in 1717, suppressed just six years later, and then permanently established in 1739, still earlier than the reforms of the late 18th century. It was an administrative change that reflected the recognition (as early as the 16th century) that the northern area of South America had certain challenges of distance from Peru. There had been earlier creations of captaincies general in Guatemala and Venezuela, marking an increase in their importance. The addition of the viceroyalties in order to compensate for challenges of distance between northern South America and Peru also came about as a result of the need to protect the vital trade routes that existed between these regions. In 1776, a second jurisdiction, the
Viceroyalty of Rio de la Plata
A viceroyalty was an entity headed by a viceroy. It dates back to the Spanish conquest of the Americas in the sixteenth century.
France
* Viceroyalty of New France
Portuguese Empire
In the scope of the Portuguese Empire, the term "Viceroyalty ...
was also carved out of the Viceroyalty of Peru in 1776 as part of José de Gálvez's comprehensive administrative reform. In the same year, an autonomous captaincy general was also established in
Venezuela
Venezuela (; ), officially the Bolivarian Republic of Venezuela ( es, link=no, República Bolivariana de Venezuela), is a country on the northern coast of South America, consisting of a continental landmass and many islands and islets in ...
. Even after his time in the colonies, José de Gálvez joined the Council of the Indies and eventually rose to the top of that, effectively becoming the most influential figure in the legislation of colonial Americas.
Establishment of new viceroyalties also revealed a new revelation on the part of the Spanish crown: that there are huge circuits of illicit trade in Spanish America, and that it is in the best interest of the crown to incorporate these circuits of trade into the existing infrastructure. This way, the crown was now able to collect tax revenues from those circuits of trade that had previously eluded it. Although some analyze the Bourbon reforms by arguing that the purpose of the reform was to eliminate contraband trade and other illicit circuits of trade, a closer analysis of the material evidence available indicates that many of these circuits did not disappear, but were simply incorporated.
Additionally, in the wake of the implementation of comercio libre (free internal trade) by Jose de Galvez, merchants in Spanish America petitioned the crown for new consulados. These consulados would be institutions that resolved commercial disputes and developed the infrastructure of the colony. Moreover, the consulados would be in charge of trying to implement innovative economic projects. The consulados demonstrated an effort on the part of Spain that, unlike other Atlantic empires, seemed to make a real effort to integrate its American colonies as essential parts of not just Spain's colonial empire, but also as provinces of the monarchy and not simply far away lands. Just as in many of the other changes made by the crown, the consulados also functioned to shift power away from the creole elite and into the hands of peninsular Spaniards. As the consulados controlled internal economic circuits, when the Creoles lost control of these roles in government they also lost much of their control of trade and economic systems, further destabilizing their established power in the colonies.
Another part of the Bourbon reforms targeted the set-up of the municipio itself. Specifically, the main plaza was a central figure in Hispanic colonial urbanism. In Spanish America, cities were planned around a central public square, and much of colonial life emanated from or was planned around that center. During the period of the Bourbon reforms, the Spanish crown wanted to switch from the Plaza Mayor model, in which the plaza was a central square that was a daily market and a space for public festivities, to the Plaza de Armas model, in which the plaza space would be cleared and devoted to martial activities. These reforms were characterized by a mixture of construction projects, relocations, and unfinished or unsuccessful projects. Although they were only partially applied, some aspects of these reform projects actually spilled over from colonial to republican times, post- independence. In fact, in both Mexico and Peru, the independent regimes assumed features of the Bourbon reform program in terms of the use and understanding of the plaza.
Under Charles III, colonial matters were concentrated in a single ministry, which took powers away from the
Council of the Indies
The Council of the Indies ( es, Consejo de las Indias), officially the Royal and Supreme Council of the Indies ( es, Real y Supremo Consejo de las Indias, link=no, ), was the most important administrative organ of the Spanish Empire for the Am ...
. Furthermore, the advances Americans (''
Criollos
In Hispanic America, criollo () is a term used originally to describe people of Spanish descent born in the colonies. In different Latin American countries the word has come to have different meanings, sometimes referring to the local-born majo ...
'') had made in the local bureaucracy in the past century and a half, usually through the sale of offices, were checked by the direct appointment of (supposedly more qualified and disinterested) Spanish officials.
Charles III and Charles IV also reversed the advances that Criollos had made in the high courts (''
audiencias''). Under the Habsburgs, the Crown had sold ''audiencia'' positions to Criollos. The Bourbon kings ended this policy. By 1807, “only twelve out of ninety-nine
'audiencia''judges were creoles.”
Trade and the economy
The War of Succession's main objective was to determine which European powers would dominate over the Atlantic trade.
In 1713, the war ended with the Treaty of Utrecht which had significant impact on Spain's economic holdings. Spain lost some of its primary European possessions to the Austrian Habsburgs
in addition to losing other territories such as the fortress of Sacramento, which brought the Portuguese in close proximity to Buenos Aires.
In addition to its lost territory, Spain granted the ''
asiento de negros
The () was a monopoly contract between the Spanish Crown and various merchants for the right to provide African slaves to colonies in the Spanish Americas. The Spanish Empire rarely engaged in the trans-Atlantic slave trade directly from Af ...
'', a monopoly contract on
African slaves
Slavery has historically been widespread in Africa. Systems of servitude and slavery were common in parts of Africa in ancient times, as they were in much of the rest of the ancient world. When the trans-Saharan slave trade, Indian Ocean sl ...
to
Spanish colonies in the Americas to the
British government
ga, Rialtas a Shoilse gd, Riaghaltas a Mhòrachd
, image = HM Government logo.svg
, image_size = 220px
, image2 = Royal Coat of Arms of the United Kingdom (HM Government).svg
, image_size2 = 180px
, caption = Royal Arms
, date_est ...
. Granting the ''asiento'' not only led to a significant loss of revenue for the Spanish Crown, it also provided channels through which British merchants could deal in contraband trade. With these losses, Spain relied primarily on its American colonies to maintain its position as a European power.
The Bourbon Reforms transitioned Spain's economic policy to be increasingly
mercantilist
Mercantilism is an economic policy that is designed to maximize the exports and minimize the imports for an economy. It promotes imperialism, colonialism, tariffs and subsidies on traded goods to achieve that goal. The policy aims to reduce a ...
,
an economic policy in which countries maximize their exports and minimize their imports to secure greater portion of wealth from a fixed amount in the world. This wealth was measured in the quantity that ended up in imperial treasuries.
An important goal of the Bourbon Reforms was to increase legal, registered trade with Spanish America in order to collect more tax revenue for the Crown, an aim that was frequently undercut both by the prevalence of contraband and the increasing presence of foreign merchants.
One strategy to diminish this trade in contraband was the relocation in 1717 of the Casa de la Contratación. This was the House of Trade which oversaw Spanish trade with its colonies, and was moved from Seville, where traders frequently dealt in contraband, to Cádiz. However, this effort did not prove highly effective, as the trade of contraband simply moved with the Casa de la Contratación to Cádiz.
Then in 1778, the Free Trade Decree (Reglamento para el comercio libre) was passed. The crown believed that free and protected trade between Spain and the Americas was the best way to restore all sectors of the Spanish dominion to their former glory. Traditionally, many identify this act and this principle to be one of the cornerstone principles of the Bourbon reforms. The Free Trade decree opened all ports in the colonies to trade with Spanish controlled ports the colonies or Spain. This act in tandem with the crucial decision preceding it to open the islands of the Spanish Caribbean to all nine peninsular Spanish ports in 1765 helped establish the notion that the special privilege of trade that only a few ports had enjoyed earlier was to be no more. It is important to understand that the ‘free’ trade that was established by the Free Trade Decree was only free in a limited sense. There were geographic limitations both in Spain and in the Americas, most notably being the exclusion of Venezuela and New Spain.
A key reason for freeing trade was that King Charles wanted to remove the monopoly of Cádiz, a Spanish port, over trade with the Americas. Cádiz could not supply for the large demand in the Americas. He also wanted to end the Spanish Crown's financial dependence on this monopoly. Free trade was largely supported, notably by important ministers like Gálvez, a Spanish Visitador general, who argued for more commercial deregulation and the end of the monopoly of Cádiz in his paper entitled “Discurso y reflexiones de un vasallo sobre la decadencia de nuestras Indias españoles”. Another supporter of free trade was Esquilache's commercial policy commission, which on February 14, 1765, submitted a report advocating imperial free trade to replace the
Cádiz
Cádiz (, , ) is a city and port in southwestern Spain. It is the capital of the Province of Cádiz, one of eight that make up the autonomous community of Andalusia.
Cádiz, one of the oldest continuously inhabited cities in Western Europe, ...
monopoly.
Another goal was to more efficiently extract raw materials from Spanish America and create a captive Spanish American market for Spanish goods. The Bourbons, with the help of administrator José Patiño, implemented several new strategies aimed at streamlining the production and importation of Spanish American goods to Spain.
One such strategy that proved highly profitable was the establishment of royal monopolies and trading companies as early as 1717 that controlled the production of export crops such as tobacco
and sugar in Cuba and cacao in Venezuela.
By charging higher prices for Spanish imports and paying lower prices for exports from Spanish America, these companies used their monopolies to generate rents that disproportionately benefited the Spanish mainland over its Spanish American colonies. For example, during the 1750s, the royal monopoly on Cuban tobacco generated a profit of more than 500 million pesos.
One of the testing grounds for this reformation of trade was in Venezuela. Starting in the 1730s, the monopoly on Venezuelan trade was held by the
Royal Guipuzcoana company of Caracas. Frustrations with this company's monopoly were felt among the majority of Venezuela's population and culminated in a revolt against the company in 1749, led by Juan Francisco de León.
The revolt created a temporary alliance between elite creoles,
Canarians
Canary Islanders, or Canarians ( es, canarios), are a Romance people and ethnic group. They reside on the Canary Islands, an autonomous community of Spain near the coast of northwest Africa, and descend from a mixture of European settlers and abor ...
, ''pardos,'' natives, and free blacks. While these efforts were quickly extinguished by Spanish forces, the Bourbons did put limits on the power of the Guipuzcoana company following the revolt. However, these limits primarily benefited the
Mantuano
''Mantuano'' is a denomination assigned, first in Caracas and later in the rest of Venezuela, to the ''blancos criollos'' (white creole) belonging to the local aristocracy. The term was in use from the 18th century until well into the 19th cent ...
elites who were creoles that profited highly from the cacao trade.
In addition to changes to production, the nature of trade under the Bourbons, especially after 1740, also shifted – away from the Habsburg fleet system for shipping, which had many inefficiencies and was vulnerable to attack, and towards a single-ship system, which was more competitive with foreign merchants and opened up more Spanish American ports to transatlantic trade.
Tobacco
Tobacco is the common name of several plants in the genus '' Nicotiana'' of the family Solanaceae, and the general term for any product prepared from the cured leaves of these plants. More than 70 species of tobacco are known, but the ch ...
proved to be a successful crop after state monopolies were expanded. Also, many of the colonies began to produce an abundance of resources, which became vital to many European powers and the British colonies in North America and the Caribbean despite the fact that most of this trade was considered contraband since it was not carried on Spanish ships. Most of the Bourbon kings tried to outlaw this trade through various programs like increasing the customs receipts, with little avail.
An examination of Bourbon intervention in the Peruvian tobacco industry from the mid-18th century to the beginning of the 19th century helps reveal a little more about the nature of the Bourbon administration and its relationship to monopoly policies. Although it is widely accepted that Bourbon officials were effective in the extraction of rents, these conclusions are largely based analysis of fiscal results without a direct connection drawn between monopoly policies and the outcomes of those policies. The overall evolution of monopoly policies suggests that the Bourbons were, in fact, quite aware of organizational problems that plague hierarchies, and that they had a solid understanding of the importance of transaction costs for the sustenance of bureaucracy. This is evidenced in the design of the factory system, which helped vertically integrate much of the market and also helped reduce costs associated with controlling illegal markets. The closing of tobacco factories and similarly perceived ‘failures’ at the end of the 18th century should be read with an understanding of the limitations of the political economy of colonialism and in light of policy changes in Madrid that happened in the context of a tumultuous Europe. Monopoly policies were relaxed in areas where the most conflict arose in response to such policies.
Merchants in Cadiz benefited enormously as a result of these changes. Much wealth accumulated in the hands of the already wealthy peninsular Spaniards. Creole merchants, on the other hand, saw much of their profit decrease with the demolition of monopolies. However, these criollo merchants did not necessarily lose out. Many of them simply shifted their investments to mining, especially in New Spain.
Within New Spain, economic reforms aimed to not just increase revenue, but also to make the Crown essential in the local economy.
José de Gálvez
José is a predominantly Spanish and Portuguese form of the given name Joseph. While spelled alike, this name is pronounced differently in each language: Spanish ; Portuguese (or ).
In French, the name ''José'', pronounced , is an old vernacu ...
, the ''visitador'' ''generál'' in New Spain and later Minister of the Indies, implemented labor regulation through his "Regulation on Wage and Peonage" (1769). This decree specified wages for free labor workers and set conditions for contract fulfillment and circumstances such as debt repayment. Under the Bourbons, the further systematization of wages impacted the lower economic classes directly and created the organization within society that the Spanish needed for greater economic success and control.
Buenos Aires
Buenos Aires provided the perfect opportunity to integrate the products of the New World into peninsular Spain.
The port city was essential to the process of extraction due to its proximity to the mining empire that was Potosí. Silver would be easily dispatched to the peninsula. Buenos Aires was not solely a beneficial port for the Spanish as it was often the center of illicit contraband along the Atlantic.
Buenos Aires housed Jesuits seeking travel to Cordoba or Paraguay and the port could also be described as a "back-door" to the Andes.
Regardless of Buenos Aires having a positive correlation with the Bourbon reforms due its heavy reliance on the flow of silver and Spain's commerce, its reign eventually fell victim to Spain's peninsular conflicts, particularly France.
Taxation
Cartographical pushes resulted in massive output with extremely specific indications on maps in a manner that was extremely modern. In tandem with this were data-gathering expeditions that were sponsored and sent out to develop a deeper understanding of the colonies. Quantitative and qualitative data were gathered so that systems of taxation could be modified to maximize tax revenue for the crown.
Moreover, the practice of tax-farming ended. Prior to the Bourbon reforms, the practice of tax-farming allowed people, specifically members of the Creole elite, to purchase the right of tax collection from the crown. These people would then pay the crown ahead of time what the expected tax revenue would be, and then they collect taxes themselves afterwards. However, with the elimination of this practice and the transition to direct tax collection, tax rates were thus higher and were also now set at an unnegotiable and inflexible rate. Changes like this were part and parcel of the move on behalf of the Crown to try to regain control of administrative power in the American colonies. Administrative powers had, in the mind of the Crown, previously been too porous for Creoles via mechanisms such as the sale of office and tax-farming.
With regards to the economy, collection of taxes was more efficient under the intendancy system. In 1778, Charles III established the "Decree of Free Trade," which allowed the Spanish American ports to trade directly with one another and most ports in Spain. Therefore, "commerce would no longer be restricted to four colonial ports (Veracruz, Cartagena, Lima/Callao, and Panama)." Tax reductions were given to the
silver
Silver is a chemical element with the Symbol (chemistry), symbol Ag (from the Latin ', derived from the Proto-Indo-European wikt:Reconstruction:Proto-Indo-European/h₂erǵ-, ''h₂erǵ'': "shiny" or "white") and atomic number 47. A soft, whi ...
mining industry as part of the Crown's attempts to stimulate silver production, which had plummeted throughout Spanish America at the beginning of the 1700s. Spain relied heavily on the silver industry for tax revenue, particularly on the mines at Potosí in the Andes. In 1736, the Crown reduced the tax on silver from one-fifth to one-tenth in order to encourage silver production to be reported.
Over the course of the 18th century, the market for silver led the port city of Buenos Aires to prominence,
and between 1776 and 1783, 80% of the exports leaving the port at Buenos Aires were shipments of silver.
Charles III also initiated the difficult process of changing the complex administrative system practiced under the former ruling family, the
House of Habsburg
The House of Habsburg (), alternatively spelled Hapsburg in Englishgerman: Haus Habsburg, ; es, Casa de Habsburgo; hu, Habsburg család, it, Casa di Asburgo, nl, Huis van Habsburg, pl, dom Habsburgów, pt, Casa de Habsburgo, la, Domus Hab ...
. ''
Corregidores'' were to be replaced with a French institution, the
intendant
An intendant (; pt, intendente ; es, intendente ) was, and sometimes still is, a public official, especially in France, Spain, Portugal, and Latin America. The intendancy system was a centralizing administrative system developed in France. In ...
. The intendancies had the intended effect of further decentralizing the administration at the expense of viceroys, captains general and governors, since intendants were directly responsible to the Crown and were granted large powers in economic and political matters. The intendancy system proved to be efficient in most areas and led to an increase in revenue collection. Intendency seats were mainly based in large cities and successful mining centers. Almost all of the new intendants were
Peninsulares
In the context of the Spanish Empire, a ''peninsular'' (, pl. ''peninsulares'') was a Spaniard born in Spain residing in the New World, Spanish East Indies, or Spanish Guinea. Nowadays, the word ''peninsulares'' makes reference to Peninsul ...
, people who were born in Spain, exacerbating the conflict between Peninsulares and
Criollos
In Hispanic America, criollo () is a term used originally to describe people of Spanish descent born in the colonies. In different Latin American countries the word has come to have different meanings, sometimes referring to the local-born majo ...
, who wished to retain some control of local administration. The installation of the intendancy system contributed to the further marginalization of the creole elite. It changed the question of who would occupy the positions of Crown officials and shifted the center of influence from landed Creole elites to peninsular Spaniards. Creoles were largely pushed out in favor of peninsular administrators.
The intendancy system was part of the new attitude on the part of the Bourbons to push the economic development of the mother country. The intendants were meant to be promoters of export-oriented economic activity. They were meant to focus on extractive activities, and not manufacturing ones.
Cartography
The Bourbons launched large projects of information gathering to investigate and record the natural endowments in their American colonies to enable more efficient exploitation of their colonies’ resources. These projects included censuses and large cartographical efforts. Various types of detailed maps were created to display terrain, mineral deposits, bridges and canals, forts, and other important features like mines. Mine-based maps and plans showed plans of mining towns and technical drawings of equipment like winches and ovens which were used in mine production. These maps were used to help the Bourbons fulfil their other reform goals, such as revitalizing old mines and creating new ones. They also used these maps to be able to levy more efficient taxes upon their colonies based on what they consumed and produced in abundance.
Agriculture
In terms of agriculture, the Bourbons established state monopolies over crops and established state monopoly over purchases, too. They specifically focused on commercial export crops like sugar, indigo, cochineal, tobacco, and cacao. The State was the one in charge of taking primary products and transforming them into consumable final products. Through this entire process, the crown was focused on capturing tax revenue. Additionally, Spanish merchants were pushed upwards as a result of these changes. This shift to a focus on export crops and commercial agriculture further altered and limited the autonomy and functionality of the colonies, as they became resources in a system of direct extraction for the Spanish Empire. This boosted a need for trade between Spain and the colonies as they exported raw goods and needed to receive back the processed and manufactured resources of Spain.
Military
The Bourbon reforms brought a different stratagem to military organization in Latin America. The reforms focused on a strong relationship with the cabildos, and compositions of councils chosen by the wealthy creoles. Due to a fear amongst the Bourbons of a potential penetration of their empire by other European empires, they engaged in the construction of fortresses and garrisons and created and heavily promoted militias composed of people of a variety of backgrounds and races to supplement their army.
The military was a place where creoles still enjoyed a political space within the bourbon reforms. In fact, the Bourbons encouraged the creation of militia under Creole control. The Creoles were also tasked with founding municipalities and collecting revenue in order to support their militias and build fortifications. Shortly, the militias soon became significantly larger and more powerful than the standing Spanish army. In New Spain alone, there was 6000 Spanish soldiers to 23,000 militia.
Some believe that militias were often created along race lines, with militias for whites, blacks and mixed race people. However, other studies indicate that the men in militias were from all races, most of them being mixed-race. These militias aided the supplement of a standing Spanish army, which, at the time, was occupied with conflicts on the home front. Eventually, the militias formed the base for independent armies, and turned on the Spanish. Outnumbered and already indulged in conflict abroad, Spain was put in a difficult situation that they created themselves. However, this begs a crucial thought; was the Spanish crown foolish to encourage the creation of these militias? While on the surface this seemed to be a failure from the beginning, the reality was Spain did not have much of a choice but to trust the Creoles. The reality was the Spanish empire was tied down in to many places, and naturally they ran out of resources.
Mining
The Bourbons implemented a range of mining reforms to reverse the decline of mines in New Spain and in accordance with the Bourbon's goals to increase the wealth of Spain.
The mines had been declining due to technological issues and high costs: as tunnels deepened, flooding became easier and it became more expensive and time-consuming to extract mineral ores. Therefore, the Spanish Crown attempted to revitalize the mines and create new ones through a series of reforms. These included giving the mine owners control over labor costs through lower salaries, lowering the prices of gunpowder and organizing its supply more efficiently, as well as a steadier and cheaper supply of mercury which was used for refining silver ores. The reforms also gave tax exemptions to mine production.
In 1787, mining ordinances of New Spain and the
Tribunal de Minería in Lima were created, to handle and make more efficient mining production.
In 1792, the Tribunal opened a new mining school, the Royal Mining Seminary, with limited success.
There was much growth in mine production under the Bourbons, with silver output increasing by over 15 million Pesos in Mexico alone.
Some historians attribute this growth to the Bourbon reforms, whereas others attribute it more to the rising investments of entrepreneurs into mining during this period. For example, regarding Zacatecas, a mining region with huge turnover in mining production, historian Tandeter argues that “There the rise of the first quarter of the century can be attributed to individual entrepreneurs.”
Entrepreneurial investments allowed for improvements in mining technology and lower costs.
The city of Potosí saw increases in silver production. Mita was still in place, but through purchasing the rights of mita from miners who had been given mita quotas and incorporating themselves into the infrastructure of forcible sale of goods to the indigenous, merchants were still able to participate in mining. These merchants were income-pursuing more than they were profit-pursuing when purchasing the rights of mita, while also seeking profit in the forcible sale of goods to the indigenous. However, to clarify, ‘forcible sale’ is a phrase that ought to be read with caution. The evidence indicates that there were indigenous peoples who would participate in the purchase of goods from these merchants willingly, and that mules used in mule trains helped to facilitate their own internal economy.
The Catholic Church
The
Catholic Church
The Catholic Church, also known as the Roman Catholic Church, is the largest Christian church, with 1.3 billion baptized Catholics worldwide . It is among the world's oldest and largest international institutions, and has played a ...
played a major role in the Bourbon Reforms, specifically in the viceroyalties. A vice royalty is basically a territory governed by a
viceroy
A viceroy () is an official who reigns over a polity in the name of and as the representative of the monarch of the territory. The term derives from the Latin prefix ''vice-'', meaning "in the place of" and the French word ''roy'', meaning "k ...
, a ruler exercising authority in a colony on behalf of a
sovereign. The Catholic Church was the most widely regarded church among the vice royalties of Spanish America, and the new colonies brought forth an opportunity to spread
Catholicism
The Catholic Church, also known as the Roman Catholic Church, is the largest Christian church, with 1.3 billion baptized Catholics worldwide . It is among the world's oldest and largest international institutions, and has played a ...
.
The
Catholic Church
The Catholic Church, also known as the Roman Catholic Church, is the largest Christian church, with 1.3 billion baptized Catholics worldwide . It is among the world's oldest and largest international institutions, and has played a ...
came about as a religious and political entity in the
Iberian Peninsula
The Iberian Peninsula (),
**
* Aragonese and Occitan: ''Peninsula Iberica''
**
**
* french: Péninsule Ibérique
* mwl, Península Eibérica
* eu, Iberiar penintsula also known as Iberia, is a peninsula in southwestern Europe, defi ...
in the fifteenth and sixteenth centuries. From here, missionaries who possessed the banner of
Christ
Jesus, likely from he, יֵשׁוּעַ, translit=Yēšūaʿ, label= Hebrew/Aramaic ( AD 30 or 33), also referred to as Jesus Christ or Jesus of Nazareth (among other names and titles), was a first-century Jewish preacher and religi ...
came to the Americas for a fresh, new environment for
Christianity
Christianity is an Abrahamic monotheistic religion based on the life and teachings of Jesus of Nazareth
Jesus, likely from he, יֵשׁוּעַ, translit=Yēšūaʿ, label=Hebrew/Aramaic ( AD 30 or 33), also referred to as Jesu ...
to thrive. There was a clear alliance between the Church and the Crown in
Spanish America
Spanish America refers to the Spanish territories in the Americas during the Spanish colonization of the Americas. The term "Spanish America" was specifically used during the territories' imperial era between 15th and 19th centuries. To the en ...
.