Category Archives: economics

The Postwar Quonset Era

From: Quonset Hut: Metal Living for a Modern Age, ed. by Julie Decker and Chris Chiei (Princeton Architectural Press, 2005), pp. 84-87, 93-94:

The Quonset form [called kamaboko-gata in Japanese] rippled throughout postwar visual culture. It no longer needed explaining; it had become an icon unto itself. On television shows like Gomer Pyle, USMC, the action played out on a stage set dominated by the horizontal lines and half-circle forms of the Quonset. The Marx Toy Company, creator of the Yo-Yo, released a yellow “Construction Office” Quonset toy. Sherwin Williams, playing to the evolving market, developed, in conjunction with Stran-Steel, a special paint called Quon-Kote, whose can was festooned with rows of Quonsets. “Quon-Kote dresses up your Quonset, gives it a trim, well-kept look that is an important business asset.” One can even find a lasting example of the Quonset influence, oddly enough, in an engineering textbook, where the Quonset was pictured with a halo of arrows and numbers. The typical exercise posited the situation thus: “You are to design Quonset huts for a military base in the Mideast. The design windspeed is 100 ft/s.” Problem-solving questions included, “What is the net drag force acting on the Quonset hut?”

The Quonset seemed ubiquitous in any sector of public life; indeed, it even played a part as ideal fallout shelters in proving-grounds tests and elsewhere (e.g., in Palm Beach, Florida, a buried Quonset-type structure served as a temporary shelter for the vacation home of President Kennedy) as postwar peace and optimism were quickly overshadowed by the threat of atomic war. Indeed, Quonsetlike structures, designed by entrepreneurs like Nebraska’s Walt Behlen, were even submitted to test atomic explosions at the proving grounds in Nevada. Civil defense officials were intrigued by the domelike profile for the same reasons as engineers—the way the wind, or the force of an atomic blast, moved across its surface.

On college campuses, where enrollment had soared as returning veterans took advantage of the GI Bill, Quonsets mushroomed as temporary classrooms and student housing. “It was a lifesaver for all of us because housing prices in New Haven were out of sight,” one veteran told Yankee Magazine. “We had to wait three semesters to get a Quonset hut.” In Kalamazoo, Indiana, the Quonset community was referred to as a “genteel slum”—one veteran remembered the walls being so thin he could hear his neighbor asking for bread. Another Quonset resident recalled the instant neighborly bonhomie that seemed to arrive with the huts. “We enjoyed our neighbors, had people to dinner and sherry parties, and a lot of drop-in visitors from the campus and from the neighboring college where I was still teaching … We tackled the insufficiencies with enthusiasm.” Bernard Malamud was said to have written a number of his short stories in a Quonset at Oregon State University in 1948. The writer Lewis Lapham’s recollections of a job interview with the Central Intelligence Agency a year out of college involved a Quonset: “The interview took place in one of the Quonset huts near the Lincoln Memorial that had served as the Agency’s temporary headquarters during World War II. The military design of a building hastily assembled for an urgent purpose imparted an air of understated glory, an effect consciously reflected in the studied carelessness of the young men asking the questions.” …

In 1948, a young political neophyte named Gerald Ford set up his congressional campaign headquarters in a Quonset (emblazoned with his portrait) in Grand Rapids, Michigan. … Foreshadowing Bill Gates’ garage founding of Microsoft, engineer William Bradford Shockley, in 1955, set up his fledgling and pioneering semiconductor company—the creative spark that ignited what would become Silicon Valley—in a Quonset in California, near Palo Alto. In 1947, a food company salesman named Jeno Paulucci opened his novel business—what would become the Chinese food giant Chun-King—in a Quonset near Duluth, Minnesota. Great Lakes actively pitched such uses. “You’re in business Faster and for Less money with a Quonset.”

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Spain’s Era of Desengaño: ‘Queremos comer sin trabajar’

From Imperial Spain: 1469-1716, by J. H. Elliott (Penguin, 2002), 2nd ed., Kindle Loc. 5112-5153:

The great plague of 1599–1600 wiped out at a single blow much of the population increase of the sixteenth century, and opened a new era in Castilian demographic history: an era of stagnation, and perhaps of demographic decline.

The economic consequences of the plague were to be seen in the labour crisis with which the new century opened, and can be traced in the 30 per cent increase in salaries in the three years that followed it. González de Cellorigo, an official in the chancellery of Valladolid who published in 1600, under the shadow of the plague, a brilliant treatise on the problems of the Spanish economy, accurately prophesied its effects: ‘Henceforth we can only expect that everything requiring human industry and labour will be very expensive… because of the shortage of people for tillage and for all the types of manufactures that the kingdom needs.’ The acute labour shortage, and the consequent upswing of salaries, were, as González de Cellorigo appreciated, irreparable disasters for the Castilian economy, since they destroyed the possibility that the years of peace might be used to build up Castilian industry to a point at which it would again be able to compete with foreign industries in the home and overseas markets.

But the most serious long-term consequences of the plague may have been psychological rather than economic. Already, before it was struck by the plague, Castile was weary and depressed. The failures in France and the Netherlands, the sack of Cadiz by the English, and the King’s request for a national donativo in 1596 as bankruptcy struck, completed the disillusionment that had begun with the defeat of the Invincible Armada. Then, to crown it all, came the plague. The unbroken succession of disasters threw Castile off balance. The ideals which had buoyed it up during the long years of struggle were shattered beyond repair. The country felt itself betrayed – betrayed perhaps by a God who had inexplicably withdrawn His favour from His chosen people. Desolate and plague-stricken, the Castile of 1600 was a country that had suddenly lost its sense of national purpose.

Castilians reacted to the moment of disillusionment in different ways. Optimism had gone, to be replaced by bitterness and cynicism, or else by the resignation of defeat. The new mood of fatalism and disillusionment naturally tended to reinforce certain latent tendencies that had already been encouraged by the unusual circumstances of the sixteenth century. During that century, events had conspired to disparage in the national estimation the more prosaic virtues of hard work and consistent effort. The mines of Potosí brought to the country untold wealth; if money was short today, it would be abundant again tomorrow when the treasure fleet reached Seville. Why plan, why save, why work? Around the corner would be the miracle – or perhaps the disaster. Prices might rise, savings be lost, the crops fail. There seemed little point in demeaning oneself with manual labour, when, as so often happened, the idle prospered and the toilers were left without reward. The events of the turn of the century could only increase this sense of insecurity and strengthen an already widespread fatalism. It was fatalism that characterized the outlook of the pícaro, and the seventeenth century was essentially the age of the pícaro, living on his wits – hungry today, well fed tomorrow, and never soiling his hands with honest work. ‘Queremos comer sin trabajar’: we want to eat without working. The words could be applied to Castilians in many walks of life, from the townsman living comfortably on his annuities to the vagabond without a blanca in his purse.

It was in this atmosphere of desengaño, of national disillusionment, that Cervantes wrote his Don Quixote, of which the first part appeared in 1605 and the second in 1614. Here, among many other parables, was the parable of a nation which had set out on its crusade only to learn that it was tilting at windmills. In the end was the desengaño, for ultimately the reality would always break in on the illusion. The events of the 1590s had suddenly brought home to more thoughtful Castilians the harsh truth about their native land – its poverty in the midst of riches, its power that had shown itself impotent. Brought face to face with the terrible paradoxes of the Castile of Philip III, a host of public-spirited figures – such men as González de Cellorigo and Sancho de Moncada – set themselves to analyse the ills of an ailing society. It is these men, known as arbitristas (projectors), who give the Castilian crisis of the turn of the century its special character. For this was not only a time of crisis, but a time also of the awareness of crisis – of a bitter realization that things had gone wrong. It was under the influence of the arbitristas that early seventeenth-century Castile surrendered itself to an orgy of national introspection, desperately attempting to discover at what point reality had been exchanged for illusion. But the arbitristas – as their name suggested – were by no means content merely to analyse. They must also find the answer. That an answer existed they had no doubt; for just as Sancho Panza had in him something of Don Quixote, so also even the most pessimistic arbitrista was still something of an optimist at heart. As a result, the Government of Philip III found itself bombarded with advice – with innumerable projects, both sensible and fantastic, for the restoration of Castile.

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“New Spain’s Century of Depression”

From Imperial Spain: 1469-1716, by J. H. Elliott (Penguin, 2002), 2nd ed., Kindle Loc. 4988-5028:

The imperialism of Philip II’s reign had been based on a Spanish-Atlantic economy, in that it was financed out of the resources of America and of a Castile which itself received regular injections of silver from the silver-mines of the New World. During the last decade of the sixteenth century American silver was still reaching Spain in very large quantities, and the port of Seville had an undeniable air of prosperity; but the comforting appearances masked the beginning of a radical change in the structure of the entire Spanish-Atlantic system.

This change was, in part, a direct result of Spain’s war with the Protestant powers of the north. In the first two decades after the outbreak of the Netherlands revolt, the Dutch had continued to trade with the Iberian peninsula. Spain was dependent on northern and eastern Europe for its supplies of grain, timber, and naval stores, a large proportion of which were transported in Dutch vessels. Irked by Spain’s continuing dependence on the Dutch, and anxious to strike a blow at the Dutch economy, Philip II placed an embargo on Dutch ships in Spanish and Portuguese ports in 1585, and again in 1595. The Dutch appreciated as well as Philip II that any interference with their peninsular trade threatened them with disaster. They needed Spanish silver and colonial produce, just as they also needed the salt of Setúbal for their herring industry. Faced with embargoes on their peninsular trade, they therefore reacted in the only possible way, by going direct to the producing areas for the goods they needed – to the Caribbean and Spanish America. From 1594 they were making regular voyages to the Caribbean; in 1599 they seized the salt island of Araya. This intrusion of the Dutch into the Caribbean disrupted the pearl fisheries of Santa Margarita and dislocated the system of maritime communications between Spain’s colonial possessions. For the first time, Spain found itself heavily on the defensive in the western hemisphere, its overseas monopoly threatened by increasingly audacious Dutch and English attacks.

The presence of northern interlopers in the American seas was a serious danger to the Spanish commercial system; but potentially even more serious was the simultaneous transformation in the character of the American economy. During the 1590s the boom conditions of the preceding decades came to an end. The principal reason for the change of economic climate is to be found in a demographic catastrophe. While the white and the mixed population of the New World had continued to grow, the Indian population of Mexico, scourged by terrible epidemics in 1545–6 and again in 1576–9, had shrunk from some 11,000,000 at the time of the conquest in 1519 to little more than 2,000,000 by the end of the century; and it is probable that a similar fate overtook the native population of Peru. The labour force on which the settlers depended was therefore dramatically reduced. In the absence of any significant technological advance, a contracting labour force meant a contracting economy. The great building projects were abruptly halted; it became increasingly difficult to find labour for the mines, especially as the negroes imported to replace the Indians proved to be vulnerable to the same diseases as those which had wiped out the native population; and the problem of feeding the cities could only be met by a drastic agrarian reorganization, which entailed the creation of vast latifundios where Indian labour could be more effectively exploited than in the dwindling Indian villages.

The century that followed the great Indian epidemic of 1576–9 has been called ‘New Spain’s century of depression’ – a century of economic contraction, during the course of which the New World closed in on itself. During this century it had less to offer Europe: less silver, as it became increasingly expensive to work the mines, and fewer opportunities for the emigrants – the 800 or more men and women who were still arriving in the 1590s in each flota from Seville. At the same time, it also came to require less of Europe – or at least of Spain. European luxury products found themselves competing with the products of the Far East carried to America in the Manila galleon. But much more serious from the point of view of Spain was the establishment in its American possessions of an economy dangerously similar to its own. Mexico had developed a coarse cloth industry, and Peru was now producing grain, wine, and oil. These were exactly the products which had bulked so large in the cargoes from Seville during the preceding decades. In fact, the staple Spanish exports to America were ceasing to be indispensable to the settlers, and in 1597 Spanish merchants found it impossible to dispose of all their goods: the American market, the source of Andalusia’s prosperity, was for the first time overstocked.

From the 1590s, therefore, the economies of Spain and of its American possessions began to move apart, while Dutch and English interlopers were squeezing themselves into a widening gap. It was true that Seville still retained its official monopoly of New World trade, and that Sevillan commerce with America reached an all-time record in 1608, to be followed by a further twelve years in which trade figures, while fluctuating, remained at a high level. But, as an index to national prosperity, the figures are deprived of much of their significance by the fact that the cargoes were increasingly of foreign provenance. The goods which Spain produced were not wanted by America; and the goods that America wanted were not produced by Spain.

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Just Another Imperial Expansion

From Seven Myths of the Spanish Conquest, by Matthew Restall (Oxford, 2004), Kindle Loc. 3230-3243:

If we focus only on the century following Columbus’s voyages we see Mexica and Inca warriors as losers, West Africans as fighting slaves, and Spaniards as quite reasonably contemplating a world empire. But the age of expansion began with the rise of empires outside Europe, with the Mexica fanning out across Mesoamerica and the Inca dominating the Andes, and in West Africa with the rising of the Songhay empire from the ashes of that of Mali. In Europe, the Ottomans and the Muscovites began empire building before the Spaniards, as did the Portuguese—who beat their Iberian neighbors in the race for a sea route to East Asia. And after the sixteenth century the Spanish empire was gradually eclipsed by the trading and colonial networks of the Dutch, English, and French.

Looking at human history over thousands of years, the Spanish Conquest is a mere episode in the globalization of access to resources of food production. The plants and animals of certain Old World environments and regions have a greater potential as food, and the peoples of those regions have enjoyed advantages over others as a result. But eventually, through uneven encounters, those advantages have been introduced to the previously disadvantaged regions. In the case of Europeans introducing new foods to Native Americans, the parallel introduction of Old World diseases made the encounter especially uneven, while colonialism hindered native access to these new resources. This process is too broad and complex to be understood in terms of the alleged and simple “superiority” of one group of people over another. It is also a process that is incomplete. We are still living through the long period of uneven encounters and the gradual globalization of resources.

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Charles V, Holy Roman Spendthrift

From Imperial Spain: 1469-1716, by J. H. Elliott (Penguin, 2002), 2nd ed., Kindle Loc. 3427-3580:

From the moment of his Imperial election Charles V found himself saddled with enormous commitments. The struggle with France in the 1520s, the offensive and defensive operations against the Turks in the 1530s, and then, in the 1540s and 1550s, the hopeless task of quelling heresy and revolt in Germany, imposed a constant strain on the Imperial finances. Always desperately short of funds, Charles would turn from one of his dominions to another in the search for more money, and would negotiate on unfavourable terms with his German and Genoese bankers for loans to carry him over the moments of acute penury, at the expense of mortgaging more and more of his present and future sources of revenue. This hand-to-mouth existence had prompted, in the very first years of the reign, gloomy prophecies about the certainty of financial shipwreck, but, in fact, it was not until 1557, when Philip II had succeeded his father, that the expected bankruptcy materialized. Until then, Charles’s appeals to the generosity of his subjects and his constant recourse to loans from the bankers somehow managed to stave off the moment of disaster; but the price paid was a renunciation of any attempt to organize the Imperial finances on a rational basis and to plan a coherent economic programme for the various territories of the Empire.

The main cost of financing Charles’s imperialism was borne by different territories at different times, depending on their presumed fiscal capacity and on the facility with which money could be extracted from them. The territories concerned were primarily European, for the part played by the new American possessions in financing Habsburg policies during the first half of the sixteenth century was relatively very small. Until the 1550s the Crown’s revenues from America averaged only some 200,000–300,000 ducats a year, as compared with the 2,000,000 ducats a year of the later years of the reign of Philip II. This meant that the real entry of the New World into the Habsburg empire was delayed until the decade 1550–60, and that Charles V’s imperialism, unlike that of his son, was essentially a European-based imperialism. Among the European territories of Charles it was the Netherlands and Italy which bore the brunt of the Imperial expenditure during the first half of the reign. But as each in turn began to be squeezed dry Charles was compelled to look elsewhere for further sources of revenue, and by 1540 he was writing to his brother Ferdinand: ‘I cannot be sustained except by my kingdoms of Spain.’ Henceforth, the financial contributions of Spain – which meant essentially Castile – assumed a constantly increasing importance in relation to those of the Low Countries.

Within Spain there were several potential sources of revenue, both secular and ecclesiastical. The financial contribution of the Spanish Church to Habsburg imperialism in the sixteenth and seventeenth centuries still awaits an adequate study, but its importance would be difficult to overestimate. If the Lutheran princes of Europe were to gain great benefits from breaking with Rome and despoiling the Churches in their territories, the kings of Spain were to show that despoiling the Church was equally possible without going to the lengths of rupture with the Papacy, and that the long-term advantages of this method were at least as great, and probably greater. It was difficult for the Papacy to refuse new financial concessions when the, Faith was everywhere being endangered by the spread of heresy; and the Spanish Crown, by placing no restrictions on mortmain, could further the accumulation of property in the hands of the Church, where it was more readily available for taxation.

Charles V’s fantastically expensive foreign policies and his dependence on credit to finance them therefore had disastrous consequences for Castile. The country’s resources were mortgaged for an indefinite number of years ahead in order to meet the Emperor’s expenses, a large proportion of which had been incurred outside Spain. His reliance on credit contributed sharply to the prevailing inflationary trends. Above all, the lack of provision in the Crown’s financial policies – its inability to devise any coherent financial programme – meant that such resources as did exist were squandered, while the methods used to extract them might almost have been deliberately designed to stunt the economic growth of Castile. The reign of Charles V, in fact, saw three dangerous developments that were to be of incalculable importance for sixteenth- and seventeenth-century Spain. In the first place, it established the dominance of foreign bankers over the country’s sources of wealth. Secondly, it determined that Castile would bear the main weight of the fiscal burden within Spain. In the third place, it ensured that within Castile the brunt of the burden was borne by those classes which were least capable of bearing it.

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Odessa’s meshchane estate

From Odessa: Genius and Death in a City of Dreams, by Charles King (W. W. Norton, 2011), pp. 134-136:

From the perspective of the tsarist state, Russian society was divided into identifiable and highly regulated “estates,” or sosloviya in Russian. Membership could be fluid, at least across several generations, and in many cases one’s estate was never as predetermined or immutable as one’s sex or eye color. But it was still a fundamental part of a Russian subject’s social identity. In contrast to what Marxists would identify as “class,” an individual’s estate membership had little to do with his or her place in the hierarchy of economic production, much less with wealth or income. Like for the impoverished nobles in the works of Tolstoy or Chekhov, estate status was part of one’s birthright, the genetic code of Russian society as a whole, not a reflection of economic power. When the state came to sort and categorize its own citizens, the labels that presented themselves in the late nineteenth century were clear: nobles, clergy, military, civil servants, and a group known as the meshchane—by far the largest estate in Odessa.

The meshchane—a word that might be translated as the petty bourgeoisie—were the large group of semi-skilled workers, tradesmen, shopkeepers, and Russian subjects caught between the castes of large-scale landowners and their former serfs living in grinding poverty in the close-in suburbs. They eked out a living on the fringes of Odessa’s trading economy, vulnerable to the pendulum swings of commerce and the periodic blights afflicting agriculture. Unlike the wealthiest members of society, they had little recourse when times were hard, other than to join the day laborers hanging around the docks or hoping to pick up a job as a porter at one of the city’s bazaars. Unlike their peasant neighbors, they had few real connections to the countryside that might allow them to weather economic fluctuations in town. Already by the middle of the nineteenth century, Odessa was largely a city of these vulnerable meshchane. In 1858 the nobility comprised 3 percent of the city’s population, merchants nearly 5 percent, foreigners (that is, people who were not Russian subjects) just over 4 percent, peasants nearly 4 percent, and the military under 7 percent. The remainder—nearly 70 percent of the city’s total—were meshchane.

With a transient foreign population and a constant stream of newcomers arriving by ship and overland carriage—far moire than in the empire’s twin capitals, St. Petersburg and Moscow—Odessa was ripe for the kind of swindles, trickery, and palm-greasing that helped ease the economic burden of the petty bourgeoisie. When visitors complained of the hotelier who charged extra for bedding, the cobbler who charged twice to repair the same shoe, or the droshky driver who charged different rates for the same ride, it was the city’s huge estate of meshchane who were the makers of the city’s reputation. They could be found in virtually any profession. In 1892 over half the city’s 607 prostitutes reported that they were meshchane by estate.

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Odessa, a “Russian Chicago”

From Odessa: Genius and Death in a City of Dreams, by Charles King (W. W. Norton, 2011), pp. 109-112:

Until the 1860s, Odessa was the breadbasket for much of the Western world, feeding a hungry European and, increasingly, global market. Foreign consuls sent breathless dispatches to European capitals about fluctuations in the prices of wheat and barley. Foreign ministers contemplated the effects of diplomatic squabbles on the supply of foodstuffs. Only with the discovery of oil farther to the east, in the Russian Caucasus and the Caspian seaport of Baku, was Odessa’s chief cash export exceeded by that of a rival Russian city.

Odessa’s commercial success lay in its position at the intersection of flatlands and seascape, where the produce of the former could be sent to markets across the latter. But a series of fortunate accidents allowed the city to enhance this natural gift. Talented administrators such as Vorontsov argued for maintaining the freeport status, which was a considerable inducement to foreign and local entrepreneurs. Improvements in the harbor allowed larger ships to enter and lie safely at anchor. The fall-off in plague outbreaks around the Black Sea reduced much of the time that ships, goods, and passengers spent in quarantine. When the Peace of Adrianople was signed between the sultan and tsar in 1829, ending nearly a decade of diplomatic bickering, trade squabbles, and outright war, Russian secured a historic set of concessions from the Ottomans, including an end to the Ottoman practice of boarding and searching Russian merchant ships. The period of relative peace that followed—from the late 1820s to the early 1850s—provided ease of shipping through the Bosphorus and Dardanelles straits.

The economic results were immense. Grain exports from all the Russian Black Sea ports stood at a yearly average of under two million chetverts (a unit of Russian dry measurement equal to 5.77 U.S. bushels) before 1813, but by the 1860s that figure had risen to over sixteen million chetverts. Over half those exports were coming solely from Odessa. Between the 1840s and 1850s, the annual volume of grain exports to Italian ports more than doubled, while the French were importing ten times as much Odessa grain at the end of that period as at the beginning. After the late 1840s, the easing of restrictive import laws in England the introduction of hardier wheat varieties in Russia opened new markets for Odessa’s produce, well beyond the traditional Mediterranean destinations. By the middle of the century, well over a thousand ships were leaving Odessa each year. The number of British ships sailing into the Black Sea increased sevenfold between the mid-1840s and the early 1850s, with Britain accounting for a third or more of all destinations of vessels exiting the port. Wheat, barley, rye, and other grains filled the holds of long-haul sea vessels flying flags of most major European powers.

Of all these goods, the queen was wheat. Ninety percent of Russian wheat exports flowed out of the empire’s Black Sea ports, and many of the sights, sounds, and smells of Odessa derived from its production and sale. Immense herds of cattle provided manure for fertilizer in the countryside and pulled the thousands of wooden carts that bore the harvested grain from field to storage centers….

Some carters would return north with cloth, wine, or other imported goods offloaded from merchant vessels in the harbor, while others chose to transform their infrastructure into capital. The dried dung could be collected and sold as fuel to poor families, and the animals could then be given up to slaughter for meat and hides. The sweet smoke of burning, grass-rich manure mingled in the air with the reek of tallow vats and the sharp odor of tanneries, the factories that produced the bricks of processed fat and bundles of unworked leather destined for Turkey, Italy, or France.

With hundreds of thousands of head of livestock coming through the city each harvest season, dust and mud were constant features of Odessan life. Choking, white-yellow clouds, stirred up by hooves and swirled about by the prevailing winds, powdered residents like talcum. Rain turned inches of accumulated limestone grime into impassable sloughs….

An open, brick-lined drainage system, about two feet deep, ran alongside the major thoroughfares, crossed by occasional footbridges and wooden planks. But the rivulets they contained—the wastewater runoff and solid offal of houses and hotels, as well as animal dung and mud from the streets—could gag even the toughest pedestrian. The blooms of acacia trees and oleander fought back with their perfume, but it usually took a change in wind direction, blowing off the plains and toward the sea, to unburden the city of its own stench.

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Reassessing Ferdinand and Isabella’s Legacy

From Imperial Spain: 1469-1716, by J. H. Elliott (Penguin, 2002), 2nd ed., Kindle Loc. 2181-2234:

The reign of Ferdinand and Isabella was called by Prescott ‘the most glorious epoch in the annals’ of Spain. Generations of Spaniards, contrasting their own times with those of the Catholic Kings, would look back upon them as the golden age of Castile. The conquest of Granada, the discovery of America, and the triumphant emergence of Spain on to the European political stage lent unparalleled lustre to the new State created by the Union of the Crowns, and set the seal of success on the political, religious, and economic reforms of the royal couple.

Against the conventional picture of a glorious spring-time under Ferdinand and Isabella, too soon to be turned to winter by the folly of their successors, there must, however, be set some of the less happy features of their reign. They had united two Crowns, but had not even tentatively embarked on the much more arduous task of uniting two peoples. They had destroyed the political power of the great nobility, but left its economic and social influence untouched. They had reorganized the Castilian economy, but at the price of reinforcing the system of latifundios and the predominance of grazing over tillage. They had introduced into Castile certain Aragonese economic institutions, monopolistic in spirit, while failing to bring the Castilian and Aragonese economies any closer together. They had restored order in Castile, but in the process had overthrown the fragile barriers that stood in the way of absolutism. They had reformed the Church, but set up the Inquisition. And they had expelled one of the most dynamic and resourceful sections of the community – the Jews. All this must darken a picture that is often painted excessively bright.

Yet nothing can alter the fact that Ferdinand and Isabella created Spain; that in their reign it acquired both an international existence and – under the impulse given by the creative exuberance of the Castilians and the organizing capacity of the Aragonese – the beginnings of a corporate identity. Out of their long experience, the Aragonese could provide the administrative methods which would give the new monarchy an institutional form. The Castilians, for their part, were to provide the dynamism which would impel the new State forward; and it was this dynamism which gave the Spain of Ferdinand and Isabella its distinguishing character. The Spain of the Catholic Kings is essentially Castile: a Castile, overflowing with creative energy, which seemed suddenly to have discovered itself.

The Court was the natural center of Castile’s cultural life; and since Spain still had no fixed capital it was a Court on the move, bringing new ideas and influences from one town to another as it travelled round the country. Since Isabella enjoyed a European reputation for her patronage of learning, she was able to attract to the Court distinguished foreign scholars like the Milanese Pietro Martire, the director of the palace school. Frequented by foreign scholars and by Spaniards who had returned from studying in Italy, the Court thus became an outpost of the new humanism, which was now beginning to establish itself in Spain.

One of the devotees of the new learning was Elio Antonio de Nebrija (1444–1522), who returned home from Italy in 1473 – the year in which printing was introduced into Spain. Nebrija, who held the post of historiographer royal, was a grammarian and lexicographer, and an editor of classical texts in the best humanist tradition. But his interests, like those of many humanists, extended also to the vernacular, and he published in 1492 a Castilian grammar – the first grammar to be compiled of a modern European language. ‘What is it for?’ asked Isabella when it was presented to her. ‘Your Majesty,’ replied the Bishop of Avila on Nebrija’s behalf, ‘language is the perfect instrument of empire.’

The Bishop’s reply was prophetic. One of the secrets of Castilian domination of the Spanish Monarchy in the sixteenth century was to be found in the triumph of its language and culture over that of other parts of the peninsula and empire. The cultural and linguistic success of the Castilians was no doubt facilitated by the decline of Catalan culture in the sixteenth century, as it was also facilitated by the advantageous position of Castilian as the language of Court and bureaucracy. But, in the last analysis, Castile’s cultural predominance derived from the innate vitality of its literature and language at the end of the fifteenth century. The language of the greatest work produced in the Castile of the Catholic Kings, the Celestina of the converso Fernando de Rojas, is at once vigorous, flexible, and authoritative: a language that was indeed ‘the perfect instrument of empire’.

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Two Separate Spanish Economies c. 1500

From Imperial Spain: 1469-1716, by J. H. Elliott (Penguin, 2002), 2nd ed., Kindle Loc. 2149-2165:

Two separate economic systems continued to exist side by side: the Atlantic system of Castile, and the Mediterranean system of the Crown of Aragon. As a result of the expansion of the wool trade and the discovery of America, the first of these was flourishing. The Crown of Aragon’s Mediterranean system, on the other hand, had been gravely impaired by the collapse of Catalonia, although there was some compensation for Catalonia’s losses in the increased economic activity of late fifteenth-century Valencia. Ferdinand’s pacification and reorganization of Catalonia, however, enabled the Principality at the end of the century to recover a little of its lost ground. Catalan fleets began to sail again to Egypt; Catalan merchants appeared once more in North Africa; and, most important of all, a preferential position was obtained for Catalan cloths in the markets of Sicily, Sardinia, and Naples. But it is significant that this recovery represented a return to old markets, rather than the opening up of new ones. The Catalans were excluded from direct commerce with America by the Sevillian monopoly, and they failed, for reasons that are not entirely clear, to break into the Castilian market on a large scale. They may have shown a lack of enterprise, but they also seem to have suffered from discrimination, for as late as 1565 they were arguing that the Union of the Crowns of 1479 made it unreasonable that Catalan merchants should still be treated as aliens in Castilian towns. As a result of this kind of treatment, it is scarcely surprising that Catalonia and the Crown of Aragon as a whole should have continued to look eastwards to the Mediterranean, instead of turning their attention towards the Castilian hinterland and the broad spaces of the Atlantic.

Castile and the Crown of Aragon, nominally united, thus continued to remain apart – in their political systems, their economic systems, and even in their coinage. The inhabitants of the Crown of Aragon reckoned, and continued to reckon, in pounds, shillings, and pence (libras, sueldos, and dineros). The Castilians reckoned in a money of account – the maravedí [named after the Moorish Almoravid dynasty]. At the time of the accession of Ferdinand and Isabella the monetary system in Castile was particularly chaotic.

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Castilian Economy, 1501: All for Wool

From Imperial Spain: 1469-1716, by J. H. Elliott (Penguin, 2002), 2nd ed., Kindle Loc. 2057-2076:

In spite of the increasingly grave problem of the national food supply, Ferdinand and Isabella adopted no vigorous measures to stimulate corn production. On the contrary, it was in their reign that the long-continuing struggle between sheep and corn was decisively resolved in favour of the sheep. The great expansion of the mediaeval wool trade had revitalized the economic life of Castile, but there inevitably came a point at which further encouragement of Castilian wool production could only be given at the expense of sacrificing agriculture. This point was reached in the reign of the Catholic Kings. The importance of the wool trade to the Castilian economy, and the value to the royal treasury of the servicio y montazgo, the tax paid the Crown by the sheep-farmers, naturally prompted Ferdinand and Isabella to pursue the policies of their predecessors and to take the Mesta under their special protection. As a result, a whole series of ordinances conferred upon it wide privileges and enormous favours, culminating in the famous law of 1501 by which all land on which the migrant flocks had even once been pastured was reserved in perpetuity for pasturage, and could not be put to any other uses by its owner. This meant that great tracts of land in Andalusia and Estremadura were deprived of all chance of agricultural development and subjected to the whim of the sheepowners. The aims of this policy were obvious enough. The wool trade was easily subjected to monopolistic control, and, as a result, it constituted a fruitful source of revenue to a Crown which, since 1484, had found itself in increasing financial difficulties, exacerbated by the flight of Jewish capital. An alliance between Crown and sheepowners was thus mutually beneficial for both: the Mesta, with its 2½ to 3 million sheep, basked in the warm sunshine of royal favours while the Crown, whose control of the Military Orders gave it some of the best pasturing lands in Spain, could draw a regular income from it, and turn to it for special contributions in emergencies.

There were no doubt certain unintended advantages to Castile, in the intense royal encouragement of the wool industry. Sheep-farming requires less labour than arable farming, and the vast extent of the pasture-lands helped to produce a surplus of manpower which made it easier for Castile to raise armies and to colonize the New World. But on the whole the favouring of sheep-farming at the expense of tillage can only appear as a wilful sacrifice of Castile’s long-term requirements to considerations of immediate convenience. It was in the reign of Ferdinand and Isabella that agriculture was confirmed in its unhappy position as the Cinderella of the Castilian economy, and the price which was eventually to be paid for this was frighteningly high.

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