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Spain and the American Revolutionary War

18th-century war between Great Britain and Spain

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  • 10 chapters

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Through American Revolutionary War

Beginning in 1776, it jointly funded Roderigue Hortalez and Company, a trading company that provided critical military supplies. Spain provided financing for the final siege of Yorktown in 1781 with a collection of gold and silver in Havana, then Spanish Cuba. Spain was allied with France through the Bourbon Family Compact and the Revolution was an opportunity to confront their common enemy, Great Britain. As the newly appointed Chief Minister of King Charles III of Spain, the Count of Floridablanca wrote in March 1777, "the fate of the colonies interests us very much, and we shall do for them everything that circumstances permit".

Aid to the United States: 1776–1778

Spanish Louisiana governor Luis de Unzaga was given clear directives from Madrid and Havana: he was to remain officially neutral while quietly favoring the American rebels. This explains why, in April 1776, he provided safe harbor in New Orleans to several rebel ships fleeing the Royal Navy—an action that risked provoking British military retaliation and potentially forcing Spain into an immediate war. The following month, he established a front company in New Orleans under the name Roderigue Hortalez et Cie, naming the playwright Pierre-Augustin de Beaumarchais as its director. Through this fictitious firm, Unzaga secretly funneled gunpowder, firearms, blankets, food, medicines, and other essential supplies to the colonial rebels, all without arousing British suspicions.

In July 1776, France and Spain agreed to finance the initial large-scale joint arms shipment. American diplomat Arthur Lee informed Congress that Spain would extend a confidential line of credit worth four million reales de vellón—equivalent to roughly 500,000 Continental dollars (more than $17 million in 2024 dollars). This marked Spain's initial aid to the poorly equipped Continental Army, funding the acquisition of 216 cannons, 27 mortars, 238 gun carriages, 12,826 grenades, 51,134 rounds, 300,000 pounds of gunpowder, 30,000 muskets with bayonets, 4,000 tents and 30,000 full uniforms. With the aid of these timely Spanish provisions, General Horatio Gates triumphed over General John Burgoyne at Saratoga on 17 October 1777.

The same year, in correspondence with Spain’s envoy in Paris, the Count of Aranda from Aragon, Benjamin Franklin expressed gratitude for Spain’s further loan of nearly 200,000 livres in cash, “along with naval provisions from its harbors.”

Spanish aid was supplied to the new nation through four main routes: from French ports with the funding of Rodrigue Hortalez and Company, through the port of New Orleans and up the Mississippi River, from the warehouses in Havana, and from Bilbao, through the Gardoqui family trading company. Spain made loans to the United States to be used to furnish war supplies through the House of Gardoqui.

Smuggling from New Orleans began in 1776 when General Charles Lee sent two Continental Army (the army of the United States) officers to request supplies from the New Orleans Governor, Luis de Unzaga. Unzaga, concerned about overtly antagonizing the British before the Spanish were prepared for war, agreed to assist the rebels covertly. Unzaga authorized the shipment of desperately needed gunpowder in a transaction brokered by Oliver Pollock, a Patriot (Revolutionary) and financier. When Bernardo de Gálvez y Madrid, Count of Gálvez was appointed Governor of New Orleans in January 1777, he continued and expanded the supply operations.

As the American diplomat Benjamin Franklin reported from Paris to the Congressional Committee of Secret Correspondence in March 1777, the Spanish court quietly granted the rebels direct admission to the rich, previously restricted port of Havana under most favored nation status. Franklin also noted in the same report that three thousand barrels of gunpowder were waiting in New Orleans and that the merchants in Bilbao "had orders to ship for us such necessaries as we might want".

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