
José de Salamanca, 1st Count of los Llanos
Spanish businessman and politician (1811–1883)
José de Salamanca y Mayol, 1st Marquess of Salamanca, 1st Count of Llanos, GE (23 May 1811 – 21 January 1883) was a Spanish businessman and politician. He served as Finance Minister of Spain and briefly as de facto prime minister in 1847.2
From Wikipedia’s article on José de Salamanca, 1st Count of los Llanos (this version), CC BY-SA 4.0.
Born May 23, 1811, died Jan 21, 1883.1
About
Prominent during the reign of Isabella II, he was responsible for an extension to the city of Madrid; the Salamanca neighborhood of that city now bears his name. He had an adventurous life with many ups and downs, being Spain’s wealthiest man during a significant period of his life and one of the largest fortunes in the world at one point. His prominent associates included Maria Christina of the Two Sicilies, queen mother and regent for the young Queen Isabella. As a businessman, he undertook many projects that shaped modern Spain: railways, construction of entire neighborhoods, banking and investments; at the same time, he was associated with no small amount of political and corporate corruption.
From Wikipedia’s article on José de Salamanca, 1st Count of los Llanos, shared under CC BY-SA 4.0.2
Companies
Early life and education
- Date not recordedUniversity of Granada3
Salamanca studied philosophy and law at the Colegio de San Bartolomé y Santiago in Granada, finishing his studies in 1828. It was probably in Granada that he first met groups opposed to the absolutist regime of Ferdinand VII, including Mariana Pineda, who became a martyr for the Spanish liberals when she was tried and condemned to death in 1831.
Shortly after his return to his native Málaga, the liberal general José María Torrijos was detained for an attempted coup. Salamanca was probably involved in the coup; he went to Madrid in an unsuccessful attempt to seek a royal pardon for Torrijos. His revolutionary ardor was calmed for a time and, thanks to his father's friendship with Francisco Cea Bermúdez, the President of the Council of Ministers (effectively, prime minister), he was made mayor of Monòver, (province of Alicante) in 1833.
That year Ferdinand VII died, bringing to power his wife, Maria Christina, as regent for the three-year-old queen Isabella II. The revolutionary movements of the regency era first propelled the future marquess onto the national scene. In 1835 he was named mayor of Vera (province of Almería); while there he married Petronila Livermore y Salas. After serving as mayor of Vera, he was chosen to represent the province of Almería in the Revolutionary Government at Seville.
In 1837 the Mutiny of La Granja de San Ildefonso forced Maria Christina to restore the liberal Constitution of 1812, which was elaborated into the new Progressive Constitution of 1837. Salamanca was elected deputy for Málaga in the new Cortes, which brought him to the capital, Madrid to serve in this office.
From Wikipedia’s article on José de Salamanca, 1st Count of los Llanos (this version), CC BY-SA 4.0.
Career
Occupation: banker, entrepreneur, politician, art collector.10
- 1881 to 1883Member of the Congress of Deputies7
- 1879 to 1881Senator of the Kingdom7
- 1876 to 1878Member of the Congress of Deputies7
- 1872Senator of the Kingdom7
- 1871 to 1872Senator of the Kingdom7
- 1863 to 1868Senator for Life of Spain7 9
- 1861 to 1864Member of the Cortes during the reign of Isabel II7
- 1857 to 1858Member of the Cortes during the reign of Isabel II7
- 1853Member of the Cortes during the reign of Isabel II7
- 1851Member of the Cortes during the reign of Isabel II7
- 1847Minister of the Treasury of Spain7 8
- 1847 to 1848Member of the Cortes during the reign of Isabel II7
More of their career (6)
- 1843 to 1846Member of the Cortes during the reign of Isabel II7
- 1840Member of the Cortes during the reign of Isabel II7
- 1837Member of the Cortes during the reign of Isabel II7
- Date not recordedFounded Madrid, Zaragoza and Alicante railway4
- Date not recordedFounded Companhia dos Caminhos de Ferro Portugueses5
- Date not recordedFounded Comboios de Portugal6
During the 42 years of his life that Salamanca spent in Madrid, Salamanca had a major career as a financier and businessman. It is for this that he is most remembered. He was a founder of the Bank of Isabella II (1844) and the Bank de Cádiz (1846) Upon returning from his first exile he earned close to 300 million reales by renting out the state salt monopoly for five years. This amount was twice what he had earned since obtaining this monopoly. Not for the first time, he restored his relations with Narváez. Narváez and Agustín Fernando Muñoz, Duke of Riánsares (second husband of the queen mother Maria Christina) came to be his partners in a number of subsequent business ventures.
Salamanca was credited with development of the neighborhood of Madrid that was named for him. This was the first phase of the expansion of Madrid proposed by Carlos María de Castro.. One of his last business ventures was a similar expansion of San Sebastián in 1881.
Railways
Salamanca also invested in railways, beginning the construction of the line from Madrid to Aranjuez. On 24 December 1845 the Sociedad del Ferrocarril de Madrid a Aranjuez (Madrid-Aranjuez Railway Company) was established with a capital of 45 million reales. This time his partners were the banker Nazario Carriquiri and the Count of Retamoso, Maria Christina's brother-in-law.
The construction of the line caused Salamanca some economic difficulties, and coincided with the financial crisis of 1846, not to mention Salamanca's failure at the Bank of Isabella II and a fall from grace that sent him into exile in France for 16 months. The line was successfully completed and began service on 7 February 1851. Queen Isabella II presided over the opening of the line and more than a thousand invitees enjoyed a generous party at Salamanca's personal expense. Three months later, the line was bringing in 50,000 reales every day. On 13 August 1852, Salamanca sold the line to the state for 60.2 million reales, then rented it back for 1,500,000 reales a year.
Today, that route is part of the line from Madrid to Alcázar de San Juan, where it divides into a route to Andalusia and one to the Spanish Levante. A Sunday tourist train, the Tren de la Fresa ("Strawberry Train") keeps alive the nickname earned by the Madrid-Aranjuez line in its early years. The present-day Aranjuez station is located at a small distance from the original terminus immediately at the Royal Palace of Aranjuez.
Salamanca also invested in railways from Madrid to Irún, Córdoba to Málaga, and from Aranjuez to the Mediterranean; his investments were not limited to Spain. They extended throughout Europe and the Americas, including the Atlantic and Great Western Railroad in New York State, Pennsylvania, and Ohio: hence the name of the small city of Salamanca in western New York and its surrounding township.
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Panic at the Bolsa de Madrid
In autumn 1844, the Bolsa de Madrid—Spain's largest stock exchange—saw a series of enthusiastic sessions. Optimism reigned at the stability provided by the government of Narvaez. However, after several days of analysis, Salamanca began to sell short in a seemingly clumsy strategy.
Taking advantage of his privileged position in public affairs, Salamanca knew that several generals were considering a coup. He also knew that Narváez was maintaining a correspondence with some of them, intending to get them to drop the plan.
When the news arrived that General Martín Zurbano had risen up in rebellion in Nájera, Salamanca and his associates announced it to sow panic. The stock exchange, sensitive to any abrupt change in public affairs, plummeted, and Salamanca profited by some 30 million reales in a single day. Fernando Muñoz and General Narváez each received 2 million.
(...) It is very "salty", and although I was much enraged, I am weak, I want... but do not say it because then I come to propose a business where we're going to give Spain many millions.
Where the law has most failed is on the routes that have been granted to Señor Salamanca, and the reason is because this man is associated with a powerful man who has too much and too fatal an influence on the matter.
Failed Bank of Isabella II
Founded in 1844, it was to be an institution more or less on a par with the Bank of San Fernando. It was founded with capital of 100 million reales, which it distributed generously as credit among Spain's emerging capitalist investors.
Although the bank was never a financial success, Salamanca used its capital to make purchases, such as 71-block lot purchased from María Luisa de Borbón, paid for with a check for 1 million reales drawn on the bank. When the time came that the check had to be made good, Salamanca turned to Queen Isabella, who owed money to the bank. However, she insisted on paying the debt with her shares in the Madrid-Aranjuez railway, shares for which she had paid 4 million reales, but which were by this time practically worthless.
The bank was ultimately rescued by being merged into the Bank of San Fernando, forming the basis for the Bank of Spain.
From Wikipedia’s article on José de Salamanca, 1st Count of los Llanos (this version), CC BY-SA 4.0.
Personal life
Awards
- Date not recordedKnight of the Legion of Honour14
Links
Sources
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- 15WikidataComboios de Portugal, Founder
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