Empire Rising: Spain

Chapter 138: Chapter 123: Encouraging Economic Data

The good news is that the Spanish Government is not short of money for the moment.

The economic growth brought by industry and infrastructure is unpredictable, and this has allowed the Spanish economy to achieve rapid takeoff.

By April 1872, Carlo had obtained the Spanish economic forecast data provided by Spain’s finance department, showing a noticeable increase compared to the previous year.

Seeing such exaggerative economic data, Carlo finally understood the harm caused by the Bourbon Dynasty’s inept rule to Spain.

It can even be bluntly said that Spain fell into decline under the Bourbon Dynasty. Although Spain during the Habsburg Dynasty was also weakening, overall it still held a dominant position in Europe.

After the Bourbon Dynasty rose to power through the War of Succession, Spain entered a long period of decline. Both Queen Isabella and her father, Ferdinand VII, were notoriously incompetent kings in Spanish history.

There’s no need to elaborate on Queen Isabella. She was so morally bankrupt that even her own son Alfonso had lineage issues.

Even worse was Queen Isabella’s father, Ferdinand VII, who was known as one of the worst kings in Spanish history. Napoleon once installed his brother Joseph Bonaparte as King of Spain, but faced vehement opposition from the Spaniards.

Ultimately, Ferdinand VII was reinstated with Napoleon’s permission, and the Bourbon Dynasty resumed control over Spain. After reclaiming the throne, Ferdinand VII brutally suppressed Spanish revolutionaries, calling his reign the Ten Dark Years.

What’s more, the independence of Spain’s American Colonies occurred under Ferdinand VII’s rule.

He further disrupted the Bourbon Dynasty’s traditions by insisting on appointing his daughter Isabella as heir, rather than his rightful brother Carlos, leading to decades of turmoil with the Carlos Faction Wars.

It can be said that Spain’s decline and the Bourbon family’s involvement cannot be separated, nor can it be divided from Ferdinand VII and Queen Isabella’s actions.

This father-daughter pair ruled Spain for 54 years, dragging the nation from a powerhouse to a secondary power in Europe.

If it weren’t for the unexpected arrival of Carlo, the subsequent reigns of Alfonso XII and Alfonso XIII, two mediocre kings, would have made Spain’s reawakening hopes fade completely.

Nonetheless, this also shows the Spaniards’ support and affection for the Monarchy. The incredibly inept Bourbon Dynasty managed to hold on to power in Spain until modern times.

Though Spain occasionally transformed into a republic, its ability to restore the monarchy demonstrates the Bourbon Dynasty’s significant standing among Spaniards.

In other words, Spaniards of this era are still quite accepting of the Monarchy. However, after nearly a century of Bourbon rule over Spain, the Spaniards’ support for the Monarchy was naturally transferred to the Bourbon Dynasty.

But with the unexpected emergence of Carlo, Spaniards naturally have different choices.

The historical failure of King Amadeo was firstly due to losing his biggest supporter, Prime Minister Prim, even before arriving in Spain.

Secondly, Amadeo did not fully acknowledge the responsibilities of the King of Spain. His Italian identity resulted in limited support within Spain, coupled with the combined opposition from the Republican Faction and Carlos Faction, causing the Savoy Dynasty to last only a few years in Spain.

But now it’s different. With the support of Prime Minister Prim, Carlo’s throne is exceptionally secure.

Moreover, the Carlos Faction has been eliminated, and the Bourbon Dynasty no longer poses a significant threat to Carlo. Under Carlo’s propaganda, even the uneducated Spanish farmers are aware of the pain inflicted by the despotic and ignorant Bourbon Dynasty.

Additionally, the reduction of agricultural tax and the abolition of the tithe are gifts Carlo bestowed upon all Spanish farmers, and undoubtedly the best way to gain favor.

Under the media propaganda by numerous newspapers, the people may not know what Carlo looks like, but they certainly know this young King from Italy has enacted policies to reduce agricultural taxes and abolish the tithe.

Compared to the previous rule of Queen Isabella, conservative Spanish farmers naturally know whom they should support.

At least their taxes have been genuinely reduced, which is also the best way Carlo won over public opinion. By giving farmers tangible benefits, they know whom they should be loyal to.

Once supported by these conservative farmers, Carlo’s rule in Spain becomes indispensable. The reason Spain remains a monarchy in future generations is because of the substantial support for the Monarchy from these conservatives.

Currently, the majority of the population, the farmers, support Carlo’s rule in Spain, which essentially means more than half of Spain supports Carlo’s governance.

With this farmer support, any remaining opposition, including the Church and the Republican Faction, can be easily tackled.

Moreover, the current Church is far from being a unified front. The Church is definitely one of Spain’s major forces, holding a position and influence no weaker than Spain’s nobility.

But the problem is that the current Spanish Church does not possess any real military power; all they have is countless land and wealth.

It’s like a fat, robust sheep before a butcher holding a knife. Aside from frantically fleeing, there’s perhaps nothing else to do but close its eyes and await the blade’s descent.

The Pope cannot provide them with support either. Within Spain, the Church’s power is vast but the least likely to pose a threat or influence the government.

Of course, if the Church dared to incite rebellion, that would be a good thing. Carlo and Prime Minister Prim are just seeking a valid excuse to strike at the Church.

Carlo’s idea of establishing a Spanish archbishop isn’t just a thought; it’s a genuine plan. The title of Spanish archbishop is Carlo’s means of winning over loyalists within the Church and splitting its unity.

If Archbishop Pedro of Toledo is unwilling to pledge allegiance to Carlo for this title, others surely will be willing for such a prestigious position.

After all, it is indeed the true Spanish archbishop role, holding the power to manage every Catholic Church and bishop in Spain.

As for whether the Pope desires to see Spain establish an archbishop to oversee the Spanish Catholic Church, that’s beyond what the Pope himself can decide.

After all, the Pope is still in Vatican now. The Catholic Church is like lambs waiting to be slaughtered, let alone just the Spanish Church.

Spain hasn’t yet reached Carlo’s ideal state, but compared to Queen Isabella’s reign, there have been significant improvements.

The people trust the government, given that all sorts of policies have been issued by the current government, which was formed after the revolution, so the hatred for the Bourbon Dynasty’s kingdom government naturally doesn’t transfer to the present government.

It’s fortunate Carlo was elected as King by the new government. The populace’s resentment against the previous monarchs won’t be redirected towards Carlo.

Such are the benefits of electing a king. The downside is that an elected king is difficult to wield power. However, Carlo’s influence continues to rise within his strategies, and gaining more power in the future seems very promising.

With the populace’s trust in the government, its construction and reforms have proceeded much more smoothly.

In the year 1871, Spain’s gross national product reached 6.678 billion Pesseta, with a growth rate exceeding 8% compared to 1870.

Such a growth percentage is quite normal. After all, Spain was still in warfare during 1870, but in 1871 Spain experienced peaceful development.

Spain also received assistance from Italy and Austria-Hungary in 1871, with the government securing a large amount of low-interest loans, which contributed to such strong economic growth.

The fiscal revenue remarkably broke through 4 billion Pesseta, surpassing last year’s fiscal expenditure and reaching a new high in Spanish government fiscal income with a total of 4.753 billion Pesseta.

However, due to greater industrial construction and railroads, roads building, Spain’s total fiscal expenditure in 1871 also hit a new high, reaching 5.125 billion Pesseta.

The good news is that the fiscal deficit in 1871 was only 37.2 million Pesseta, reducing over 22 million compared to 1870.

The increase in fiscal revenue mainly came due to the stabilization of order in Cuba, providing Spain with a large amount of income.

Plus, the rise in the populace’s actual income, along with an abundance of jobs arising from substantial infrastructure and industrial bases, steadily increased government tax revenue.

Several years ago, agricultural taxes accounted for the majority of the Spanish government’s fiscal revenue. But now, taxes from industry and finance have attained a significant scale, indicating Spain is transitioning from an agricultural to an industrial nation.

However, such a transition certainly won’t be accomplished in just a few years. Based on Spain’s current progress, within the next decade, it could develop into an agricultural-industrial nation.

After perhaps over 20 years of hard work, Spain could hope to entirely shake off the identity of an agricultural country to become a powerful industrial nation.

Of the over 1 billion Pesseta in fiscal expenditure increase from 1870 to 1871, a majority was invested in railroad, highway construction, and industrial development.

Such investment clearly isn’t a loss. This fund will provide feedback in various forms to the Spanish government’s economy and revenue in the future.

Moreover, based on Spain’s current economic development, fiscal expenditure and revenue in 1872 will substantially increase, further narrowing the gap with the great powers.

The largest gap still lies in population and colonies. A considerable part of the reason for Spain’s fiscal revenue being relatively small is it has a population of less than 17 million.

This population is less than half of Germany, Austria-Hungary, and France, nearly half of the United Kingdom, a major portion of Italy, and the government’s total fiscal revenue naturally can’t keep up with these great powers.