[143] As a major political capital, Madrid was the center of a variety of fields of influence that linked the city to both interior and maritime economic worlds. Madrid contained an important nucleus of demand consisting of a large population of poor and unskilled people and a small wealthy elite. The poor could buy only a limited range of staples, the wealthy tended to enrich their life-style by importing goods from afar. Elite prosperity brought expansion which, because of the nature of the rural economy, meant increasingly unstable urban food supplies, declining urban real wages, and a narrowing of the range of goods that the poor could buy from the hinterland. At the same time, the wealth of the elite that was not used to acquire services and palaces was used to buy luxuries from distant sources. This situation contributed to the collapse of Castile's sixteenth-century market economy after 1600 and helped lock the interior into a rigid pattern of subsistence farming, wool production, and the wheat-wine-meat triad of monocultures. This structure was little affected by urban growth in the eighteenth century; and the process went a step further when, in the nineteenth century, the capital shifted its demand for cheaper textiles to distant suppliers, undermining the textile industry that had been part of the rural economy for centuries.
Behind this dynamic relationship is the constant reality that Madrid did supply itself on a large scale from its Castilian hinterland. Having summarized the evolution of Madrid as a market, we must now examine the ways in which the capital city interacted with the rural world despite the lack of change that resulted. This implies a Castilian version of the urban "conquest of the soil" characteristic of other European cities. (1) These "conquests" involved [144] control of the collection and sometimes the production of rural surpluses for the urban market. They included various combinations of regulation, reorganization of land use, and changes in land ownership. In Spain, this "conquest" oriented rural economic interests to affairs in Madrid without greatly altering the structure of landowning and rural power. (2) This may reflect the fact that while the urban bourgeoisie bought into the rural economies surrounding many urban centers, there is not much evidence for it in Castile. There are some indications of the process around Ciudad Real, but urban life there was more an extension of rural society than the source of potentially significant change. (3)
Nevertheless, links between
urban supply and rural surpluses encouraged the interpenetration of rural
and urban elites. Landed families that accumulated marketable commodities
were drawn into urban supply, while the functionaries, contractors, and
wholesalers who mobilized supplies were not averse to a "vertical integration"
of their activities that extended their influence into rural life. Not
until the nineteenth century did Castile witness the kind of large-scale
transfer of land to ostensibly bourgeois hands that marked the seventeenth-century
Venetian Terrafirma or the Parisian hinterland. Even then, it is an open
question whether in the process the city conquered the countryside or the
Castilian countryside confirmed its conquest of the Spanish capital.
(4) Whatever the relationship
of urban supply agents to the land, the elaboration of the supply system
brought about a long-term restructuring of the urban network of Castile
and of associated long-distance trade. In Part Two we will examine Madrid's
conquest of the Castilian commodities trade and try to help explain why
Madrid's impact on its hinterland did so little to orient agriculture to
the market, compared with that of London or Barcelona.
(5)
I. Wheat and Bread
In common with most larger
towns, Hapsburg Madrid possessed medieval señorial privileges that
obligated the towns in its jurisdiction to provide bread to the city at
regulated prices. The system was so detailed that quotas were [145]
assigned to individual residents in each town, (6)
and in the early eighteenth century this service obligation extended to
towns 40-50 miles away. (7)
Even so, it quickly became a minor part of the bread supply, and in the
1660's this pan de obligación provided only a tenth of Madrid's
annual consumption. (8)
The regulations of 1660 were still in force in 1739, however, and in 1765
the amount of bread provided was about the same, even though the system
had supposedly been dismantled after the crisis of 1753.
(9) When the system
finally disappeared, after the grain trade was deregulated in 1765, it
was succeeded by a dispute over access to the urban market--an indication
that the system of obligación had created a permanent baking industry
in several communities.
The early seventeenth century
saw administered production supplemented by regulation of the price and
transfer of both bread and wheat. The area of control varied with the quality
of the harvest, but it tended to grow with the city. In the 1580's, bread
and wheat embargoes occasionally extended as far as 45 miles; but after
1598, distances of 60-70 miles were common--in 1608 and 1631, the distances
reached 80 and even 120 miles. (10)
Authorities also began to set the price of bread in the villages at a lower
level than in the capital. The distorting effects of these measures are
clearly present in the covariations of regional price trends between 1590
and 1640. (11)
The towns of the region continually resisted this expansion of control,
and by the 1630's deterioration of the regional economy had led to the
exemption of many communities, and the system was becoming ineffective.
(12)
Meanwhile, Madrid developed
an urban baking industry, capable by 1667 of producing over 1,000 fanegas
of bread daily. (13)
As the industry grew, authorities shifted attention to the wheat market
and improvised a structure of [146] transportation controls and
purchasing agents. The first third of the seventeenth century saw the rapid
development of judicial protection for long-haul transport, combined with
renewal of government power to preempt transport services.
(14) In 1600 the city
council, concerned about extreme price fluctuations and rural speculation
in grain, also discussed using a single broker to coordinate purchases
from various supply areas. (15)
The proposal was not adopted, but private brokers were increasingly used
to acquire e rain for the Madrid Pósito, laying the basis
for an expanded role by that institution. As wheat controls evolved, the
detailed regulation of regional bread prices fell into disuse.
(16) When supplies
were adequate the grain administration remained in the background and bakers
bought their wheat privately from suppliers in the provinces of Madrid,
Guadalajara, and Toledo. This private grain market remains shadowy, although
there are eighteenth-century references to grain markets in Arévalo,
Guadalajara, Talavera, Alcalá de Henares, Illescas, and Guadarrama.
(17)
Crops in New Castile were
sensitive to the weather, and supplies disappeared quickly after a poor
harvest. Consequently, as the city grew, the supply of pan de obligación
and the private wheat market used by bakers were increasingly supplemented
by the municipal grain depot, the Pósito. This climaxed in
the crisis of 1630-31, when the Pósito handled over 1.5 million
bushels of wheat, a two-year supply. (18)
The Pósito obtained the grain through private contractors
backed by a juez protector. The costs were initially subsidized
by assessments and forced loans from the city's guilds, but by the 1660's
they were a regular part of the fiscal structure of Crown and city.
(19)
Headed by a member of the
city council, the Pósito in 1748 came under supervision of
a new Junta de Abastos, which also acquired jurisdiction over beef,
mutton, pork, olive oil, candles, fish, and charcoal. After the riots of
1766, the Junta was replaced by the Real Direcciónde Abastos,
supervised by the city government. (20)
Between 1774 and 1799, this agency was run by Don [147] Manuel de
Santa Clara, simultaneously a regidor of the Ayuntamiento
and director of the Pósito. A good example of eighteenth-century
bureaucracy, the Pósito now included a five-man Junta
de Dirección, a five-man accounting office, three administrators,
four receiving and dispatching officers, two measurers, and a corps of
laborers to handle the grain. There was also an assortment of guards, messengers,
chaplains, a surgeon, and four bakery inspectors. It supervised a baking
industry that had 129 bakers and over 900 employees in 1757, and had by
the 1780's developed a well-organized producers' guild.
(21)
The relative importance of
public and private supply is apparent in a report from 1779 summarized
in Table 7.1. The Pósito supplied 19% of the city's grain
through its own roving agents and another 7% through purchase of shipments
brought to the city by small vendors. The city's bakers obtained 57% of
the total through their own regional market network and another 13% from
small vendors who brought their grain to the public grain exchange, the
Alhóndiga.
It became increasingly difficult
to maintain the stability of supply and price after 1750,
(22) and the government
simultaneously expanded its own activities and experimented with freer
grain and bread markets. The wheat administration became more complex and
extended farther and farther across the interior (Map 7.1). In 1753 the
network of over 100 mini-depots, part of the system of pan de obligación,
was abandoned in favor of large outlying granaries on major supply routes.
(23) By 1790 the system
included resident commissioners in Arévalo, Salamanca, Toro, and
Córdoba. There were five supplementary depots (two in Arévalo,
two in Navas de San Antonio, and one at Guadarrama), with a capacity of
300,000 bushels, a combined staff of 12, and a complete flour mill. In
1785, concerned over the condition of the poor in the capital, the Crown
opened a large bakery in the Pósito itself to produce 5,000
loaves of pan de pobres daily from cheaper flour produced at the
administration's Guadarrama mill. (24)
While hardly a novel institution, the Pósito of eighteenth-century
Madrid acquired a noteworthy importance within existing market and supply
structures. It routinely bought sizable quantities of grain from the market
created by small suppliers near the city and from sources outside the bakers'
market area. Distant purchases were made at current local prices after
the harvest, and as private supplies were used or hoarded, this wheat was
sold to bakers in quantities designed to dampen price fluctuations.
(25) When crops were poor, [148] the Pósito
mobilized supplies throughout Old and New Castile and sometimes acted as
the sole agent for the city's wheat supply. In the last two decades of
the eighteenth century, the Pósito handled 30% of annual
supply even when the harvests were good, often providing over half the
daily supply in the months before the next harvest.
(26) As supply became more precarious, the Pósito
claimed to need at least a third of the market in order to remain financially
stable. (27)
Not surprisingly, the Pósito
became very protective of the thinly spread supply of movable surpluses
upon which it depended. In 1779 the director expressed concern over the
proposed military purchase of 150,000 bushels of wheat in the Toro-Salamanca-Zamora
region and the risk of disrupting the grain market. Six years later, efforts
to mobilize Castilian grain in order to supply peninsular naval bases created
a confrontation between military supply contractors and Pósito
authorities. (28)
All of this is a clear indication of the degree to which the city had outgrown
the market-oriented mobilization of surpluses at politically acceptable
prices.
[150] To accomplish
its task, the Pósito of the late eighteenth century regularly
purchased 200-300,000 bushels of wheat from as far away as Falencia, Sa-hagún,
and Zamora--200 miles by oxcart or muleback. Agents then con-tracted with
transporters for delivery to Madrid, using royal authority to preempt their
services. The cost of this grain delivered in Madrid often exceeded the
price at which it was distributed, representing a direct subsidy of the
food supply. Less obvious subsidies were also involved. To hold down the
cost of transport and assure its availability, the government strongly
supported the transporters' access to common and winter pastures, despite
local resistance. Moreover, the frequent commandeering of transport to
move grain interfered with commerce, even when it was otherwise encouraged.
(29) The government
also interfered with grain exports in quite distant areas for the sake
of Madrid. In 1789, for example, export of Andalusian wheat was prevented
on the grounds that Andalucía was an area that often supplied Madrid,
even though the regional contribution was quite small.
(30)
Meanwhile, the supply of
bread itself continued to arouse discussion. By 1765 the old system of
pan de obligación and related positillos had disappeared,
but it left in a number of communities a developed baking industry that
was dependent on access to Madrid. At least six towns possessed authorized
flour scales, and in 1771 nine communities were providing over 300 fanegas
of bread daily to the Plaza Mayor. The Bakers' Guild successfully expelled
this competition between 1771 and 1791, but in 1790 residents of ten towns
still sold 85 fanegas of bread daily outside the city gates. In
1791, pan defuera was readmitted on the grounds that "a free commerce"
would bring "the best results at the best price," but on the condition
that partici-pants also sell to the Pósito the equivalent
in wheat of one-third of their bread. Complaints over this liberalization
appeared in 1794, and in 1801 the Crown rejected a Bakers' Guild proposal
for a joint-stock company with a complete monopoly of the urban bread supply.
(31)
While participating directly
in the wheat and bread trades on a large scale, the government assumed
the presence of private grain markets and was laying the basis for their
increased prominence in the nineteenth century. Hapsburg Spain is notorious
in the textbooks for its use of a tasa (price ceiling) to hold down
prices as grain left the farm. (32)
In fact, this ceiling was [151] periodically adjusted,
(33) and by the later
seventeenth century was widely ignored. (34)
In 1755, movement of grain to Madrid was deregulated, allowing grain merchants,
bakers, transporters, and private individuals to bring in grain freely.
(35) In 1765 the entire
Castilian grain trade was freed from price regulation, although import
and export controls soon reappeared. One of the preliminary reports on
the reform contains a classic statement of faith in the free market:
It is possible to quote provincial
officials to the effect that there was no Castilian grain market in the
eighteenth century, but such sources were biased toward protecting local
economies, and the elements of a Castilian commercial network were appearing.
(38) The Cinco
Gremios Mayores were active in the Castilian grain trade in 1737 and
1753, (39)
while the regulations of 1755 and 1765 clearly assume the presence of a
market network. The Pósito's use of roving agents offered
a model for private traders, and it is suggestive that some of its purchases
were made through established local brokers. The muleteers of Sangarcia
in Segovia offer an example of private enterprise building upon commercialization
developed by the state. Starting as transporters for the Pósito,
after 1770 they developed a private supply link between [152] Old
Castile and the market in Madrid. The eighteenth century also brought a
growing number of local fairs and markets, many of which were in grain-exporting
regions. While these fairs were dominated by local subsistence exchanges,
they could be used to consolidate stocks for long-distance commerce.
(40)
Not surprisingly, most private
grain merchants were clustered around Madrid, and the official register
contains 230 entries between 1768 and 1785. Of these, 178 represent neighborhood
stalls retailing fodder, including 23 connected with taverns and various
other retail enterprises; (41)
31 merchants ran wholesale-retail outlets within the city, while 26 wholesalers
maintained warehouses in 15 outlying towns. Several of the latter were
owned by residents of Madrid, and some combined rural storehouses with
outlets in the city. The most intriguing figures are Antonio Corte, who
had warehouses in Loeches and San Martín de la Vega; Manuel Ángulo,
with warehouses in Vallecas and Fuenlabrada; Don Juan Angel de San Pelayo,
with warehouses in Madrid and Vicalvaro; and Francisco Cabarrus, who registered
in 1776 as owner of grain warehouses in five different towns, making him
the city's biggest private grain speculator well before his emergence as
a financier in the 1780's. (42)
The location of outlying
wholesalers matches the geography of the grain markets proposed in 1765
for Arévalo, Guadalajara, Talavera, Alcalá de Henares, Illescas,
and Guadarrama (Map 7.1). Given capital, provincial brokers, and transporters
like those of Sangarcia, these businesses were equipped to enter the Old
Castile market at times when regional price differentials were great enough.
The private system thus imitated and built upon that of the Pósito,
with its roving agents, secondary granaries along the highways, and provincial
commission agents. Here we have an important link in the chain of connections
between the bakers of the city and their suppliers, and a glimpse of the
increasingly sophisticated system that channeled grain to the urban market.
Another link in this system
was the Alhóndiga, Madrid's commodity exchange for private
grain transactions. This was an old institution that increased in prominence
whenever government intervention in the grain supply [153] was reduced.
It was the place where bakers bought or registered wheat they did not get
from the Pósito. In 1755 it became the sole municipal exchange
for wheat, barley, rye, oats, and carob beans. By 1790, very few staples
actually passed through the Alhóndiga except for luxury-grade
flour. This reflects the increased role of the Pósito and the bakers'
use of grain dealers outside the city. Additional exchanges were created
in 1806, and the Alhóndiga continued to register grain imports
and provide monthly reports of grain movements. (43)
In the ideological climate
of the nineteenth century, the emphasis shifted from the Pósito
to the Alhóndiga, but the government was unable to withdraw
from direct intervention. Napoleonic authorities abolished transport controls
and preemptive bidding for grain shipments, (44)
and in 1814 Ferdinand VII renewed the legislation of 1765 freeing the grain
trade. Wheat remained scarce, however, with a long period of disorganized
supply; (45)
and in 1820, despite the Liberal premises of the new regime, the Alhóndiga
was intervening to stabilize prices as the Pósito had done
earlier. In 1824-25 the restored monarchy went to great lengths to bring
state- and Church-owned wheat to the city, but sold it at the Alhóndiga
rather than at the Pósito. (46)
In 1832-34, the Alhóndiga was still submitting reports of
grain flows in conformance with the regulations of 1790.
(47) The markets for
all foodstuffs were freed of regulation in 1836, but the Alhóndiga
continued to figure in the documents, while in 1837-38 and again in 1847
the Pósito was subsidized to provide supplements to the grain supply.
As of 1852-54, the city still provided 15% of annual consumption and spent
another 450,000 reales on subsidizing bread prices for the poor.
(48)
It does not appear that increased
emphasis on market institutions in grain made much difference in supply
conditions. The wheat supply does appear more stable in the 1840's as grain
farming expanded, but severe shortages reappeared in 1847, 1853,1857, and
1867-68, and New Castile remained the focus of the most severe price fluctuations
in Spain. (49)
The persistent tension [154] between free market, speculation, and
public order maintained government intervention and encouraged opposition
to the tariff barriers sought by agricultural interests.
(50) Thus the institutional
framework of the wheat supply may have changed over the generations, but
the fundamental reality of a politically subsidized market remained part
of the urban-rural relationship from Madrid's rise to prominence through
the mid-nineteenth century. (51)
Without cheap transportation, a true market could not function beyond a
radius of 50-75 miles. The alternatives were administrative organization
of grain movements or subsidization of the consuming market so that it
could pay a market price high enough to absorb the costs of an extended
supply network. The outcome was a combination of open market exchanges,
administered transfers of supplies, and a subsidized urban market structure
staffed by a cadre of functionaries and merchants. The system was superficially
becoming market-driven, but it still depended on the ability of the state's
"revenue economy" to maintain the economic base of the consuming market.
In any case, the system operated to draw producers and owners of surplus
grain over a wide region into regular commercial relationship with the
capital city.
The center of this system
of concessions was another old institution, the administration of the peso
real, where commodities other than grain had to be weighed and registered
before sale. (54)
In the eighteenth century, this agency complemented the Pósito
and Alhóndiga, administering controls at the city gates,
monitoring the contracts negotiated by the Junta de Abastos and
its successor agencies, and adjusting retail prices of commodities to market
conditions. (55)
Through this institution, the food and merchandise of daily life flowed
out to the stalls of the rastro, which serviced the poor, and the
Plaza Mayor, central market for household supplies for more affluent
families. (56)
In the late eighteenth century,
joint-stock companies organized by merchant guilds and the Cinco Gremios
Mayores became active in supply contracting as an urban business elite
developed. The supply business became risky after 1785, as supply fell
behind demand, and many concessions became losing propositions, forcing
the authorities into administrative improvisation.
(57) The state's obligation
to maintain stable supplies and "just" prices was challenged as the fiscal
desperation of the government of Charles IV (1788-1808) coincided with
pressure from speculators and landowners to hasten experiments with freer
markets. The pressure for access to the Madrid market had already been
reflected in a reluctance to concede true supply monopolies. The hostility
to supply monopolies appeared as early as 1766, and the admitted difficulty
of making peso controls actually work is indicative of the problem.
(58) Since each commodity involved a different network of urban-rural
connections, it is worth our while to examine them individually.
The price and area of control
reflected both the grape harvest and estimated urban demand, and were intended
to forestall sale to other markets. The embargo zone grew from 8 leagues
before 1586 to 15-20 leagues during the first half of the seventeenth century.
(59) Unlike the tasa
on wheat, the farm price of wine was adjusted every year, while retail
prices were changed every few weeks. By the 1620's, the tasa or
maximum price allowed producers was scaled to compensate for the supply
contractor's transport costs from more distant sources. Thus when the price
was 7.5 reales an arroba within 5 leagues, it was only 6.25
reales for wine originating from beyond 10 leagues. Producers complained
that they were forced to accept legal prices when crops were short, but
that the contractors were not held to them if the supply was more plentiful
than expected, nor would they buy wine that had been stored from the previous
year. The supply contractor, meanwhile, constantly dickered with the government
for higher retail prices and complained because wine was sold in Madrid
for less than it brought in Toledo. (60)
In 1650 we see the Herederos
providing not only their own wine but large quantities from the region
around Toledo. By 1678 they held a six-year concession for the entire wine
supply, except for a few specified exclusions. The inclusion of the contract
to farm the substantial wine taxes was attractive, and the competition
with the Taberneros was intense. By 1683 the contract had passed
to the Taberneros, who in any case controlled the final retailing
of the commodity. (61)
In the eighteenth century,
official attention shifted to taxes and away from actual supply, leaving
the wine market relatively free. Annual summaries of taxable and nontaxable
wine appear, (62)
along with more careful regulation of [157] the wine that religious
communities sold to the public at their wine-shops.
(63) By midcentury
the authorities farmed the taxes for collection at the city gates, and
there are no further mentions of wine price controls in the countryside,
although the peso continued to set retail wine prices. There is
no indication of a monopoly concession, and the government used a system
of vending licenses available to Herederos, Taberneros, religious
communities, and out-of-town suppliers. (64)
Once taxes were paid on entry, the wine market was surprisingly free and
involved wholesalers, the retailers' guild, and rural producers seeking
direct access to the urban market. This clearly represents a functioning
regional market that provided the basis for nineteenth-century supply.
(65)
Judging from the tenor of
the documents, the oil monopoly was one of the most difficult for contractors
and administrators to enforce. In part this was because olive oil was a
major raw material for the soap industry. Soap manufacturers were forbidden
to sell oil in the city; and when the two were controlled by the same concessionaire,
conflict was minimized. (69)
Between 1780 [158] and 1785, the oil supply was taken under direct
administration. The concession was sought by the Compañía
de Longistas (mercantile wholesalers), who had other interests in the
supply system, but it ultimately passed to the Cinco Gremios Mayores.
They agreed to a stipulated price, provided 240 retail shops, and paid
rent for city-owned facilities. Responding to objections to the monopoly,
the government authorized producers and transporters to sell their own
oil in their own shops. The concessionaire, meanwhile, got permission to
send itinerant retailers through the city streets, and obtained the contract
to supply oil for the city's streetlights. The Cinco Gremios also
got a parallel concession for the soap supply that included control of
the city's retail outlets and the right to distribute soap to neighboring
towns. Here, too, they had to accept the presence of wholesale outlets
belonging to independent producers, but the latter had to obtain licenses
for their stores. (70)
The contract was not a success,
and three years later, agents of the Cinco Gremios were complaining
that the concessions were ignored by many towns and urban wholesalers,
and that they could not find transport for oil purchased in Andalucía.
Transporters apparently preferred to work for producers and urban distributors
outside the concession. Consequently, the Cinco Gremios Mayores
had trouble meeting contract terms and were losing money.
(71) The licensing
of supplementary vendors and the persisting evasion of regulations suggest
the elements of a more flexible distribution resembling that for the wine
supply. Thus the nineteenth-century abolition of the government's role
in coordinating oil supply did not disrupt the market, and coincides with
rising demand. (72)
Oil producers and transporters, regional soap manufacturers, and urban
distributors had developed a web of contacts which supplanted monopolistic
concessions.
There were a number of supplements
to the main concession that suggest that a true monopoly of this trade
was hard to enforce. Hogs were raised in the mountains, fattened on barley,
and brought to the livestock fairs in Talavera, Medellin, and Trujillo.
Bakers and millers in the city customarily bought hogs to be fattened on
waste materials from the bakeries, and they were suspected of selling pork
below the established price. Stockmen, like the organized group at Talavera,
also sought access to the city market independent of the concessionaire.
To prevent interloping, the contractor obtained a ruling that hogs had
to be in the sellers' possession for six months and properly fattened on
barley. City residents could buy whole carcasses outside the walls, but
the stock-owners were prevented from making sales inside the gates.
(76)
These regulations changed
little in the course of the eighteenth century, although, as with other
commodities, the pork supply passed for a time under contract with the
Cinco Gremios Mayores. (77)
The decreased regulation of supply that marked the nineteenth century was
less complete in this case, but coordination of supply gave way to regulation
of the quality and cleanliness of the product. The government-contracted
supplier of the eighteenth century was replaced in the nineteenth century
by a number of private slaughterhouses and purveyors. In 1841 the government
established a municipal slaughterhouse and sought to impose tighter quality
controls. (78)
There is no [160] evidence that the authorities assisted in financing
the pork supply after the mid-1830's, and market-oriented supply systems
that can be glimpsed in the eighteenth-century sources became the central
feature of the trade.
The presence of interlopers
on the concession, suggested by various special regulations, is confirmed
by a proposal made in 1805-06 by graziers and brokers from outlying towns.
They sought the right to maintain their own urban outlets outside the official
concession, offering a kind of market-sharing agreement in which they would
agree to fixed quotas on the amounts sold. The proposal confirms the presence
of developed market structures and shows the same tendency for the supply
to become more open which we have seen in the wine, olive oil, and pork
trades. (82)
The Napoleonic wars created
a livestock shortage in Spain, and after 1814 [161] meat was again
brought from France, Portugal, and North Africa.
(83) In the 1820's
the government stopped granting concessions, and meat was provided by a
group of private suppliers. Actual processing of meat was done at a municipal
slaughterhouse, with a staff of 21 employees and numerous casual laborers,
but government intervention was confined to quality rather than market
control. (84)
Once again, a nineteenth-century "free market" was peopled by purveyors
who appeared as organized interlopers in the eighteenth-century system
of monopolistic concession.
With the exception of mandatory
firewood supplies for royal palaces around Madrid, there is little mention
of fuel in the seventeenth-century sources until the severe winter of 1694-95.
At that time, the Alcaldes ordered registration of all supplies
warehoused in the city, and authorized anyone paying the appropriate taxes
to sell fuel, regardless of the existing concession.
(85) Similar shortages
in 1715 led to attacks upon shipments brought in by the supply contractor.
By the 1730's the position of the contractors had been strengthened by
delegation of the Crown's right to preempt transport services. This was
made more specific in 1739, when complaints that construction of the royal
palace was monopolizing transport resulted in the allocation of 4,000 carts
to the charcoal suppliers. (86)
The form of the charcoal
supply contract in the eighteenth century is exemplified by the multiple
partnership that undertook a two-year concession in 1745. Only the concessionaires
could buy timber for charcoal from montes within 40 miles of Madrid.
They were authorized to force landowners to sell timber, given general
access to transport, allocated full use of carters from 11 mountain towns
near charcoal-processing sites, and received exclusive access to several
pastures on supply routes. The contract stipulated two wholesale warehouses
and 16 retail outlets within Madrid. It allowed for vendors outside the
concession, but they were restricted to wholesale transactions, limited
to one outlet each, and required to maintain a minimum volume of sales;
[162] these exceptions were restricted to charcoal producers marketing
their own product.
Noble participation in this
supply trade is documented by a clause near the end of the charcoal concession:
Charcoal appears to have
been more closely supervised in the eighteenth century than any other commodity
except wheat. Government involvement in the supply was substantial, and
the city maintained warehouses, equipment, and other facilities that were
leased to the contractor. In 1766 the bureaucracy included a central staff
of 13, plus 16 supervisors and assistants in 4 district warehouses in the
city, and 4 commissioners with 8 assistants who canvassed woodlots and
contracted for charcoal production. (89)
In the last decades, charcoal provision aroused serious concern and passed
through various management arrangements. In the ten years after 1794, the
charcoal supply accumulated a deficit of 18 million reales, with
debts outstanding to the Pósito, the Bank of San Carlos,
the Countess of La Coruña, the Cinco Gremios Mayores, and
various agencies of the Crown. Ultimately, the fiscal crisis of the wars
with France and England forced the government to accept the proposals of
economists who favored the end of government intervention. In 1805 the
state abandoned the charcoal supply and sold the system--[163] warehouses,
equipment, existing inventories, and purchase contracts--at auction.
(90)
There is little subsequent
reference to regulation of fuel, and reliance on private suppliers, combined
with land sales, precipitated much of the deforestation apparent in modern
Spain. Traditional charcoal-harvesting cut the trees and left the stumps.
The commonly harvested tree species regrew from the stumps, leaving the
soil-holding root system intact. The landowners and purveyors of the nineteenth
century not only harvested the trees, but pulled up the stumps to get a
larger immediate return on their investment. The result was erosion and
deforestation of hill areas within the urban supply network.
(91)
This did not necessarily
change the underlying relationship of the landlord to the countryside or
the state, nor the state-supported nature of the market in Madrid. In Chapter
8 we will look at the regional and rural markets from which supplies were
drawn, and document the ways in which urban supply connected with the people
who had stocks of commodities that the government hoped to mobilize for
its capital city.
1. Marc Venard, Bourgeois et paysans au XVIIe
síécle, Recherche sur le role des bourgeois parisiens dans
la vie agricole au Sud de Paris au XVII siécle (1957), pp. 17,
31-33, and esp. ch. 8, pp. 93-107; Gastón Roupnel, La ville et
la campagne au XVIIe siécle, Etude sur les populations dupays dijonnais
(1955), pp. 199, 229-231, quotation from pp. 248-249; Daniele Beltrami,
La penetrazione económica dei veneziani in Terraferma, Forze
di lavoro eproprietá fondiaria nelle campagne venete dei secoli
XVII e XVIII (1961), passim, esp. pp. 57-81 and 101-112.
Source: AHN, Consejos,
leg. 6776-3.
Type of Purchase
Amount (a)
Subtotals
Pósito (total)
176,359 fn.
Bought at door
47,264 fn.
Bought by agents
129,095
Bakers (total)
434,374
Bought at Alhóndiga
in Madrid
95,968
Bought in the country
388,406
Convents
15,662
15,662
Private residents
1,170
1,170
Total
677,565
a. Quantities
in Castilian fanegas; one fanega -- 1.5 bushels. The total
does not include a possible 120,000 fanegas of bread from nearby
towns: AHN, Hacienda, leg. 3713.
In this manner, with the modifications indicated, the supply of Madrid
would be assured, since the bakers cannot run short of grain as long as
any is available in Spain. It might be expensive, but this would attract
more to the market and thus its very expensiveness, attracting competition,
will produce cheapness. The only additional requirement is that the bakers,
even though wheat is very expensive, be required to continue producing
bread. (36)
The same report assumes the need for continued regulation of bread
prices. The decrees freeing the internal grain trade also required grain
merchants to register with the authorities and report all transactions.
(37)
II. Other Staple Commodities
No other commodity was as
basic to public order as wheat, and government supervision of other supply
trades involved less direct intervention. (52)
The system that evolved in the seventeenth century covered seven commodities:
meat, pork (which was administered separately), olive oil, fish, charcoal,
soap, and candles. The government used a pattern of annual contracts or
concessions of the sort seen in various forms throughout Europe. Contracts
were let in competitive bidding, sometimes to one individual who supplied
two or three commodities, sometimes to a consortium of investors and suppliers
providing a single staple. The successful bidder (obligado) negotiated
retail prices, market guarantees, control of supplies, and access to transport.
The commodities were then retailed through private stalls and vendors in
the city. Some contracts included advances from the government, [155]
but ultimately the contractor paid the government for the concession. With
occasional exceptions, the government relied on private contractors until
1786, experimented with a combined contract with the Five Major Guilds
until 1794, and thereafter used various forms of provisional administration.
(53)
[156] A. Wine
By 1600, city authorities
were granting annual concessions to groups of suppliers who agreed to obtain
and retail wine at prices regulated by the city. The concessionaires in
the seventeenth and early eighteenth centuries were the Gremio de Herederos
Cosecheros de Madrid and the Gremio de Taberneros. The first
began as a guild of the vintners in the jurisdiction of Madrid, with privileged
access to the market. As the city grew, they had become middlemen for wine
from more distant sources. The second competitor was the Guild of Wine-sellers
within the city, which also was involved in wholesale trading. The guild
that held the contract negotiated for a set price to the rural supplier
and a radius of control within which wine had to be marketed in Madrid.
B. Olive Oil and Soap
The city's olive oil supply
contracts were similar to those for wine in the seventeenth century; but
while the wine concession was deregulated after 1700, the olive oil supply
remained highly monopolistic. The contracting broker provided a guarantor
(abonador) for the contract and supplied oil at negotiated prices
that varied with the season and proximity of the new crop. In the 1740's
the contract specified two warehouses in the city, 12 wholesale outlets
with a staff of 24, and a minimum of 130 retail stalls (tiendas).
Retailers could not deal with other suppliers, while the contractor could
deal with carriers arriving with oil and with producers in Andalucía.
(66) The monopoly
was often violated, and in 1734 the concessionaire complained bitterly
about nonresidents selling oil in the streets at less than the negotiated
price. (67)
Officials became convinced that important amounts of oil were escaping
taxes and, after an investigation in 1745, temporarily placed the oil supply
under municipal administration. (68)
C. Fish
The arrangements for supplying
fish, particularly the widely used dried cod, paralleled those for olive
oil and soap. The commodity came from a distant source, there were few
intermediate suppliers, and regulation was relatively easy. Consequently,
we see an exclusive concession to a contractor who provided a guarantor
and made the commercial arrangements with the suppliers in Bilbao.
(73) This particular
supply trade was part of the commerce [159] between Madrid and the
periphery of the peninsula, and in 1768 the contractor had a Catalán
name and the guarantor was a French commercial house with contacts in Bilbao
and Bayonne. (74)
Here, too, there was little real reason for control once supply was separated
from taxation, and nineteenth-century governments did little to regulate
the fish supply. By that time the trade showed a reduced volume and a greater
variety in what was basically a luxury food. (75)
D. Pork and Pork Products
The supply of fresh and
preserved pork followed the same pattern as olive oil and soap. In the
1730's and 1740's, there was an exclusive concession which gave the contractor
a monopoly on sausage as well as fresh pork sold. The contractor had access
to salt pans, got a ban on street vendors, and was protected from competitive
bidding in the first two days of regional livestock fairs. The contract
also precluded competition in the city from other suppliers.
E. Beef and Mutton
Beef and mutton were the
most important of the supply trades after wheat, and their administration
was correspondingly complex. As with other commodities, the basic mechanism
was a concession granted to a contractor who undertook to provide meat
at stipulated prices under defined conditions. The prices fluctuated within
limits designed to protect the consumer from sharp changes caused by weather
and speculation. Prices were scaled in advance to allow for seasonal availability,
with beef being about 10% more expensive in December, January, and February.
Retailers in the rastro (slaughteryard) got an established mark-up,
and those in other markets around the city were allowed a slightly larger
margin to cover distribution costs. More than in the other commodity trades,
contracts often involved government loans for initial purchases at the
livestock fairs. Agents of the concessionaire could buy cattle and sheep
in Extremadura, Andalucía, Galicia, Asturias, La Mancha, and throughout
the two Castiles. They had precedence over buyers from other towns, and
could make preemptive matching bids within eight days of any sale, while
purchasing agents from Aragón, Valencia, and Catalonia were forbidden
to compete for Castilian cattle. (79)
The supply contractor also had the right to pasture cattle en route to
Madrid in any common or council-owned pastures within 20 miles of the capital,
and was guaranteed rental of pastures for cattle in transit.
(80) In the late 1780's,
the concession was held by the Cinco Gremios Mayores, which channeled
part of the business out of Castile to Portugal and Morocco.
(81)
F. Charcoal
The organization of the
charcoal supply was basically similar to that of other concessions, but
the nature of the commodity imposed important differences. Charcoal is
a bulky commodity and needed substantial storage facilities and transport
services. The industry also required extensive forest tracts that were
harvested every 15-20 years. Of necessity, the concession involved owners
of large tracts of land.
With the condition that, should some of those entering in this contract
as partners be "Hijosdalgo de sangre notoria," as it seems unjust
that there should be any derogation of their nobility for entering the
agreement, the Consejo has ordered that, despite their being such
contractors, the agreement cannot embarrass them during its duration, or
afterwards, and they will continue to be able to have coaches and sedan
chairs, regardless of any regulations to the contrary.
(87)
This is confirmed by sources which show the Dukes of Medinaceli and
Infantado routinely selling charcoal to the city.
(88)
III. Conclusion
The bureaucratic systems
of the seventeenth and eighteenth centuries grew out of very old traditions
of municipal government supplemented by improvisations during Madrid's
first phase of rapid growth. The second period of urban growth, in the
eighteenth century, found those arrangements inadequate and produced another
set of expedients, foreshadowing the more overtly market-driven supply
structures of the nineteenth and twentieth centuries. A close examination
of the regulatory arrangements of the eighteenth century reveals that the
"freeing" of trade in agricultural staples in the nineteenth century was
but one step in a long process through which administered economic flows
were supplanted by a market network and a community of commercial intermediaries
with agricultural connections. Eighteenth-century administrative expedients
often involved recognition of this structure, and verify national adaptation
to Madrid as the permanent economic reference point for the interior.
26. In 1783 and 1791, for example, the Pósito supplied half the city's grain in May, June, July, and August until the new crop was available: AVM, Secretaria, sig. 2-126-22; and AHN, Consejos, leg. 6780.
28. Ibid., legs. 6775-2 and 6777-15. The latter shows that important figures in the Madrid grain supply--Pedro Casamayor & Company, and the merchant house of Cabarrús & Lalonne--were also contracting to supply the military.
29. Ringrose, Transportation and Economic Stagnation in Spain, 1750-1850, pp. 116-117 on regulation, 104-112 on pasture and privileges, and 123-124 on disruption of economic activities.
30. Miguel Capella Martínez and Antonio Malilla Tascón, Los Cinco Gremios Mayores de Madrid (1951), p. 248.
31. On bread-producing towns in the area: AHN, Alcaldes, libro for 1768; and AHN, Hacienda, leg. 3713. On sales outside the gates and readmission to the city: AHN, Consejos, leg. 6780. On subsequent disputes: AHN, Hacienda, legs. 1608-C, 4608-C, and 2235. There were 3,000 two-pound loaves in 85 fanegas. For the standard example, see Vicens Vives, Manual de historia económica de España, pp. 314-315.
33. AHN, Alcaldes, libro for 1628, fol. 474.
34. Gonzalo Anes Álvarez and Jean-Paul LeFlem, "Las crises del siglo XVII: producción agrícola, precios e ingresos en tierras de Segovia" (1965), pp. 63-65; and Anes, Las crises agrarias, pp. 337-338.
35. Capella Martínez and Matilla Tascón, Los Cinco Gremios, p. 253.
36. Memoria by Pablo de Olavide in AHN, Consejos, leg. 6774-30. In the original it reads: Parece que de este modo, y con los auxilios indicados, se asegura la subsistencia de Madrid, pues a los panaderos no les puede faltar trigo si lo hay en España. Podía ser caro, pero siéndolo, vendrá a los mercados, y su misma carestía, trayendo la concurrencia, producirá la barratez. Sola resta, que a los panaderos aun que [sic] este el trigo muy caro, les tenga siempre cuenta panaderalo....
37. Some of these lists have been found: AHN, Consejos, leg. 6774-30; Alcaldes, libros for 1768, fols. 404-411, and 1790, fols. 1125-1135. The major list is in AHN, Consejos, leg. 6777-21.
38. Anes, Las crises agrarias, pp. 329-336.
39. Capella and Matilla, Los Cinco Gremios, p. 253.
40. Angel García Sanz, Desarrollo y crisis del Antiguo Régimen en Castilla la Vieja: Economía y sociedad en tierras de Segovia de 1500 a 1814; Anes, Las crises agrarias, pp. 321-325; Martiniano Peña Sánchez, Crisis rural y transformaciones recientes en Tierra de Campos (1975).
41. AHN, Consejos, leg. 6777-21, "Lista de comerciantes en granos, 1768-85."
42. Born of a merchant family in Bayonne, Francisco Cabarrus served a commercial apprenticeship in Valencia and married his employer's daughter. He was sent to manage a soapworks owned by her family in Carabanchel Alto near Madrid, and appears as a grain speculator on a large scale in 1776 at the age of 24. See Antonio Elorza, La ideología liberal en la Ilustración española (1970), pp. 139-140.
43. AHN, Alcaldes. libros for 1734, fols. 692-93; 1755, fols. 235-238; and 1806, fol. 244; AHN, Consejos, leg. 6780, Ordenanzas for 1790, part 4; AHN, Hacienda, leg. 2235 (1801). The new posts were in the Plaza de Góngora and the Plaza de la Cebada. Geoffroy de Grandmaison, ed., Correspondence du Comte de la Forest, vol. 1, p. 423, and vol. 2, p. 108.
45. Maria Concepción Alfaya L., "Datos para la historia económica y social de España" (1926).
46. Manuel Espadas Burgos, "Abasto y hábitos alimenticios en el Madrid de Fernando VII," pp. 244-253.
47. There are two years of monthly summaries giving daily volume and price for wheat and barley in AHN, Consejos, legs. 9381-5 and 9378-1.
48. Antonio Fernández García, El abastecimiento de Madrid en el reinado de Isabel II, pp. 35-38,67-75.
49. Nicolás Sánchez-Albornoz, Las crises de subsistencias en España en el siglo XIX, pp. 62-65.
50. The protective controls that guaranteed the domestic market to Castilian producers were established by the Cortes of 1820 and received only minor adjustments until 1869; see Nicolás Sánchez-Albornoz, España hace un siglo, una economía dual, pp. 45-51, 63, 70, 73-74, 110-113; and Las crises de subsistencias, pp. 16-20.
51. Fermín Caballero--in Fomento de la población rural (1863), p. 82--speaks of the free trade in grain allowing New and Old Castile to "compete" for the Madrid market, but does not give details, and also implies that only railroads changed the market of the interior.
52. A distinction noted by Jean-Franiois Bergier in Genéve et l'économie européenne de la Renaissance (1963), pp. 100-116. Wine was regulated for purposes of morality or taxation, but not as a commodity essential to urban subsistence.
53. García Monerris and Peset, "Los gremios menores," p. 80; Vicente Palacio Atard, "Problemas de abastecimiento en Madrid a finales del siglo XVIII" (1969), p. 284.
54. The sources refer to mantenimientos y especias, y herrage, acero, lavor, lienzos, cera, seda, pez, resena, cueros y ganados. With some exceptions, the fees were 0.5% on sales brokered and 3 maravedises per arroba for certifying weight. This complex of peso real, correduría, and repeso was remarkably durable. AHN, Alcaldes, libro for 1623, fol. 545 (a contract); Consejos, leg. 511-5, fols. 21-25, 58 (regulations of 1563); AVM, Secretaría, sigs. 2-307-9 (regulations of 1615) and 2-487-28 (renewal of regulations of 1563, with modifications of 1756, reiterated in 1810). Annual revenue figures for the peso begin in the mid-sixteenth century (see Chapter 2).
55. García Monerris and Peset, "Los gremios menores," pp. 81-86.
56. Arthur Hamilton, "A Study of Spanish Manners, 1750-1800," pp. 56-58. By 1809 the fish supply owed 100,000 reales, the meat supply 400,000, and the Pósito 7 million. On the difficulties in 1791-1810: Archivo del Banco de España, legs. 562 and 716. Palacio Atard, in "Problemas del abastecimiento," p. 284, states that the seven supply branches lost 80 million reales under the Five Major Guilds in 1786-94, 22 million reales in 1796-98, and 11,500,000 in 1799-1801.
58. García Monerris and Peset, "Los gremios menores," p. 85; Anes, "Antecedentes." AHN, Alcaldes, libros for 1586, fol. 194; 1595, fol. 69; 1598, fols. 157-171; 1599, fol. 224;1613,fol. 112; 1628, fol. 176.
60. For examples: ibid., libros for 1623, fol. 520; 1625, fols. 11, 49, 73; 1628, fols. 10, 12, 175-176.
61. Ibid., libros for 1650, fol. 132; 1678, fols. 346-347; 1683, fols. 70 and 128.
63. In 1739 there were 14 of these, and they were accused of selling wine that had evaded taxation and keeping the extra profits that resulted: AHN, Alcaldes, libro for 1739, fols. 8-9, 48. By 1772 there was a system of rebates for tax-exempt institutions, which taxed wine on entering and returned the taxes on wine used for institutional purposes: Madoz, Diccionario geográfico, vol. 10, p. 1002.
64. AHN, Alcaldes, libros for 1742, fols. 261-264, and 1743, fols. 60-62.
65. Fernández García, El abastecimiento, p. 120.
66. AHN, Consejos, leg. 6733-2; Alcaldes, libros for 1739, fols. 75-80; 1741, fols. 7, 28; 1742, fols. 54-58, 187; 1743, fols. 73-76.
67. AHN, Alcaldes, libro for 1734, fols. 326, 332.
68. Ibid., libro for 1745, fol. 3.
69. Ibid., libros for 1734, fol. 321, and 1742, fol. 188. In 1768 both were provided by the same individual on a month-to-month arrangement, pending review of the joint contract. The next year a contract was granted with little change in the terms. AHN, Alcaldes, libro for 1768, fols. 10, 3, 9; Consejos, libro 2703.
70. This is not surprising, considering that powerful nobles like the Marques de Mondéjar long operated sizable soap factories in New Castile. See Helen Nader, "Nobility as Borrowers and Lenders" (paper given at American Historical Association, 1976), p. 13. Also AHN, Alcaldes, libro for 1787, fols. 1376-1446.
71. AHN, Consejos, leg. 6791-14.
72. Fernández García, El abastecimiento, p. 125.
73. AHN, Alcaldes, libros for 1739, fol. 94; 1741, fols. 7-28; 1742 fol. 187; and 1743, fol. 79.
74. Ibid., libro for 1768, fol. 5.
75. Espadas Burgos, "Abasto y hábitos alimenticios," p. 267.
76. AUN, Alcaldes, libros for 1734, fols. 319-320; 1739, fols. 81,90; 1741, fols. 7-28; 1742, fols. 174-186; and 1743, fol. 81.
77. Ibid., libro for 1791, fol. 726. See also Capella and Malilla, Los Cinco Gremios, p. 251.
78. Fernández Garcia, El abastecimiento, p. 83.
79. This is particularly interesting, given the dependence of Valencia on Castilian mutton; see James Casey, The Kingdom of Valencia in the Seventeenth Century.
80. AHN, Alcaldes, libro for 1741, fols. 427-436; Consejos, leg. 11463; and Clero, Jesuítas, leg. 27-5.
81. This was done as early as 1789-91: Capella and Malilla, Los Cinco Gremios, p. 251.
83. Espadas Burgos, "Abasto," pp. 259-263.
84. Fernández Garcia, El abastecimiento, pp. 85-103.
85. AHN, Alcaldes, libros for 1648, fol. 230, and 1695, fols. 17, 30, and 362-363.
86. AHN, Consejos, legs. 6772 and 51375.
87. This contract is in AHN, Alcaldes, libro for 1745, fols. 15-23. The quotation, from clause 27, fol. 21, reads: Con condición, que respecto de ser algunos de los que entramos en esta obligación, y fueren nuestros Participes Hijosdalgo de sangre notoria, y no parece justo que por entrar a ser obligados, les obste para poder gozar de su Nobleza: el Consejo se ha servido mandar, que sin embargo de ser tales obligados, no se ¡es pueda embarazar el tiempo de la obligación, ni para en adelante, el que pudiesse [sic] tenga coche, silla-volante, no obstante qualesquiera órdenes que haya en contraria.
88. For charcoal sales by the Infantados: AHN, Osuna, leg. 70 (accounts from 1775-1808); for the Medinacelis: Archivo del Duque de Medinaceli (Sevilla), estado de Medinaceli, legs. 60-82, 83. William J. Callahan's discussion of noble business activity--in Honor, Commerce, and Industry in Eighteenth-Century Spain (1972), pp. 15-20, 27--ignores urban supply, emphasizing that land precluded other investments. But land had to yield income, which meant commercializing its products, and charcoal supply was an obvious option for those who controlled forested land. The dichotomy between commercial and landed interests is too sharply drawn, and this is but one example of noble involvement in urban supply (see Chapter 8).
89. García Monerris and Peset, "Los gremios menores," p. 78.
90. AHN, Consejos, leg. 6790-19, 24, 26, 29.
91. Eusebio García Manrique, S.J., Borja y Tarazonay el Somontaño del Moncayo (1960), pp. 161 -168; Vicens Vives, Manual de historia económica, p. 613; and Raymond Carr, Spain, 1808-1939, p. 273.