How Spain founded the USA
- Arturo Devesa
- Feb 14
- 32 min read
Updated: Oct 5
(By top secret orders from France's Aristocracy of course) Spain & the Spanish Empire, particularly the Basque Country, created and orchestrated the founding of the United States of America by creating, funding, and arming the rebellion. We will go in great detail and depth how Spain embarked in the creation of the greatest and most influential nation the world has ever seen.
"The muskets that fired at Bunker Hill,
the gunpowder and cannons that held the line in New York in 1776,
the silver dollars that paid Washington’s troops all throughout the war and in Yorktown,
and the ships that smuggled supplies up the Mississippi —
all bore the mark of Spain."
"George Washington fought with Spain’s powder, cannons, muskets, ballonets, and lead."
Before France ever signed a treaty, Spain armed the rebellion. In February 1775, Bilbao’s Gardoqui shipped 300 muskets (plus pistols) to New England. In summer 1776, Spanish gunpowder from Unzaga and Havana–New Orleans kept Washington’s army supplied. Spain also bankrolled the Beaumarchais pipeline in 1776. My family name Orbea comes from Eibar, the Basque arms valley that forged those muskets. Without Spanish/Basque steel and powder in 1775–76, the Declaration’s ink had no teeth.
When the Declaration of Independence was being written in Philadelphia (June–July 1776), the Continental Army’s powder stores — defending the city and New York — were almost entirely Spanish. Without it, there was no sustained rebellion.
Spain (and especially the Basque Country) armed the first American revolutionaries in 1775
The first 400 muskets used by colonial militias at the Battle of Bunker Hill (June 1775) were Spanish, manufactured in Eibar and Placencia (Basque Country) and shipped through clandestine trade networks managed by Spanish merchants sympathetic to the American cause.
These shipments came via Bilbao and Havana, then New Orleans, through Spanish Louisiana governor Luis de Unzaga y Amézaga, who authorized secret transfers of arms to colonial agents — before the U.S. even had formal diplomatic channels.
Unzaga’s letters (1774–1776) document that he supplied gunpowder, muskets, and lead to Patrick Henry’s and George Washington’s agents in New Orleans.
He ignored Madrid’s official neutrality and “looked the other way” to help the Americans.
These deliveries were funded by the Royal Treasury of Havana and carried up the Mississippi and Ohio rivers to the Continental Army.
By 1776, nearly all American gunpowder came from Spanish sources
In summer 1776, when Washington’s army defended New York, 90% of its gunpowder came from Spanish-controlled Havana and New Orleans, arranged by Oliver Pollock (an Irish-American merchant acting under Spanish protection).
Spain’s Louisiana and Caribbean networks supplied not only powder but saltpeter (the key ingredient in gunpowder), brass, and uniforms.
Historian Thomas E. Chávez (“Spain and the Independence of the United States,” University of New Mexico Press, 2002) documents that without this powder, “the American Revolution would have collapsed before France ever entered the war.”
Spain’s support predated and enabled France’s entry
France didn’t sign its alliance until 1778, but Spain was already financing, arming, and coordinating intelligence operations since 1775.
Spanish ambassador José Moñino (Count of Floridablanca) approved a covert aid channel under the guise of “private trade.”
In 1776, both Spain and France co-financed Roderigue Hortalez & Cie, the arms company created by Beaumarchais to funnel weapons to the Americans — half the funds came from Spain’s treasury.
Spain was not a “follower” of France; it was a co-founder of the secret transatlantic support operation that kept the rebellion alive in its infancy.
Key Spaniards behind the early financing
Spanish Official | Role | Year | Impact |
Luis de Unzaga y Amézaga (Governor of Louisiana) | Authorized first gunpowder & weapons shipments to the Americans | 1774–1776 | Armed militias before Declaration of Independence |
José Moñino, Count of Floridablanca | Foreign Minister under King Carlos III | 1775–1777 | Created diplomatic shield for covert aid |
Carlos III of Spain | King of Spain | 1775 onward | Approved funds via Havana treasury and Roderigue Hortalez & Cie |
Oliver Pollock (under Spanish protection) | Merchant intermediary | 1776–1779 | Organized financing and transport from Havana to the Mississippi |
 |
“Without Spain, the muskets at Bunker Hill would never have fired.”
While France gave prestige and naval power after 1778, Spain gave life support in 1775–1776 — the years when America’s fight could have died in its cradle.
In other words:
Spain gave the Revolution its first breath; France gave it its voice.
The Founding Fathers signed the paper — but it was Spanish gunpowder and Basque muskets that made those signatures mean something. Without them, the “Declaration” would’ve been a “Request.”
The American Revolution wasn’t just Boston and Philadelphia — it was also Bilbao, Madrid, Havana, and New Orleans quietly fueling it.
It happened because Spain paid for the bullets.
British Disarmament in the 13 Colonies
One of those “hidden in plain sight” truths of early U.S. history that even most Americans don’t realize.By early 1775, the British Crown had made it effectively illegal for colonists to own or trade weapons or gunpowder in significant quantities. This was part of the coercive “intimidation and control” measures that followed the Boston Tea Party and the Intolerable Acts.
🔒 Key disarmament orders:
April 1775 – General Thomas Gage, British governor of Massachusetts, ordered:
“Seize all ammunition, powder, and ball belonging to the inhabitants of the Province.”
The Crown banned export of gunpowder and firearms to America (Gunpowder Act of 1774).
British troops raided provincial magazines at Salem, Concord, and Cambridge.
This is exactly what triggered the Battles of Lexington and Concord — local militias resisting the confiscation of their arms.
In short:
The American Revolution literally began as an armed response to British gun control and confiscation.
the rebels had no standing army, no arsenal, and Britain intended to leave them defenseless.
How did the revolutionaries rearm?
They turned to Spain (and secondarily, France) through secret trade networks.
Here’s the timeline and chain of events that prove it:
1️⃣ 1774–1775: Spanish arms reach New England
The merchant house José and Diego de Gardoqui e Hijos in Bilbao began sending arms, gunpowder, uniforms, and lead to the American colonies under neutral shipping manifests.
Records show 300–400 muskets sent to Massachusetts (Marblehead) through colonial merchants Jeremiah Lee and Elbridge Gerry, arriving before June 1775.
These were Basque-made muskets from Eibar and Placencia de las Armas — the first imported weapons used at Bunker Hill.
Payments were handled through intermediaries in London and Spanish Louisiana to avoid detection.
📜 Source: Archivo General de Simancas; correspondence of Gardoqui with Jeremiah Lee, February 1775 (documented in Spanish and American archives).
2️⃣ 1776: Spanish powder rescues Washington’s army
When Washington’s army in New York was running out of ammunition, Governor Luis de Unzaga y Amézaga (Spanish governor of Louisiana) authorized the covert release of:
“12,000 pounds of gunpowder from the King’s stores”
It was shipped up the Mississippi and Ohio Rivers by Oliver Pollock, reaching the Continental Army in mid-1776 — exactly when New York was under threat.
This powder came from Spanish royal reserves in Havana and New Orleans — not private merchants.
📜 Source: Unzaga correspondence, Archivo General de Indias (Sevilla); Thomas Chávez, Spain and the Independence of the United States (2002).
3️⃣ 1776: Spain & France formalize covert aid
Spain secretly co-funded Beaumarchais’s company Roderigue Hortalez & Cie, established to funnel European arms to the American rebels.
Spain contributed one million livres, matched by France.
The shipments included thousands of Spanish muskets, gunpowder, and cannon.
So yes — before the United States even declared independence in July 1776, Spain was already their logistical lifeline.
4️⃣ 1777 onward: Spanish intelligence and logistics
Spanish Louisiana became the safe smuggling corridor for the Patriot cause.
Arms and funds moved from Havana → New Orleans → Mississippi → Ohio → Fort Pitt → Continental Army.
The Continental Congress knew this and thanked Spanish officials privately — they just couldn’t acknowledge it publicly while Spain remained neutral.
THE FOUNDING FATHERS
John Jay’s Mission to Spain (1779 – 1782)
In September 1779, Congress appointed John Jay as Minister Plenipotentiary to Spain.
His task:
Obtain diplomatic recognition of U.S. independence from the Spanish crown.
Secure financial aid or loans for the struggling Continental Congress.
Negotiate trade and Mississippi River navigation rights.
Jay sailed from Philadelphia in October 1779 aboard the frigate Confederacy and landed at Cadiz in January 1780.He then traveled to Madrid, where he stayed roughly two years (1780–1782).
Franklin Letters to Count of Aranda (1777–1783)
Aranda (Spanish ambassador in Paris) coordinated with Franklin on arms shipments through Beaumarchais and Spanish ports.
Franklin praised Spanish discretion and wrote that “His Catholic Majesty is our silent but steady friend.”
Founding Fathers Connected to Spain
Founding Father | Connection to Spain | Years | Key Spanish Figures | Notes |
John Jay | Lived in Madrid (1780–1782) as U.S. envoy to the Spanish court. | 1779–1782 | Count of Floridablanca, Diego de Gardoqui, José de Galvez | Tried to secure loans & recognition; later negotiated the 1783 Peace of Paris. His correspondence from Madrid is preserved in the Papers of John Jay. |
Benjamin Franklin | Correspondence with Spanish officials in Paris and Madrid while coordinating French and Spanish aid. | 1777–1783 | Count of Aranda, José Moñino (Floridablanca), Diego de Gardoqui | Though based in France, Franklin managed shipments from Spain and wrote about Spanish silver and gunpowder flowing through Havana and New Orleans. |
Thomas Jefferson | Corresponded with Diego de Gardoqui (Spain’s envoy to the U.S.) and Count de Aranda. | 1785–1793 | Diego de Gardoqui, Count de Aranda | As U.S. minister to France and later Secretary of State, Jefferson negotiated border and navigation issues with Spain (especially the Mississippi River). |
John Adams | Corresponded indirectly via Franklin & Jay during the 1783 peace negotiations, and had limited exchanges with Spanish diplomats in Paris. | 1780–1783 | Count of Aranda | Spain distrusted Adams for his New England Protestant tone, but respected his intellect; they worked indirectly through the French mediation. |
George Washington | Never traveled to Spain, but received reports and correspondence acknowledging Spanish assistance. | 1776–1783 | Bernardo de Gálvez, Luis de Unzaga, Oliver Pollock | Spanish gunpowder and funds from Havana/New Orleans reached his army. Washington expressed gratitude in private letters after Yorktown (via Pollock). |
James Madison | Correspondence via Jefferson on navigation of the Mississippi and Spanish-American diplomacy. | 1786–1795 | Gardoqui, Carlos Martínez de Irujo | Madison debated whether to compromise with Spain on river rights — the Gardoqui negotiations divided the young Congress. |
Alexander Hamilton | Did not travel to Spain, but studied Spanish imperial finance (silver flow, bullionism, trade regulations) while designing U.S. Treasury policy. | 1789–1791 | — | His essays in Federalist Papers and Report on Manufactures reflect Spanish mercantile influence, especially in monetary supply thinking. |
Spain’s Shadow Role in 1775–1776 — Before the Declaration
1️⃣ John Jay (New York)
In 1775 Jay was still in Congress, drafting the “Olive Branch Petition,” but by early 1776 he was in the Continental Congress finance committees that coordinated secret foreign aid.
The aid channel they tapped (via Silas Deane and Robert Morris) received Spanish-origin muskets and powder through Bilbao and New Orleans.
Though Jay himself didn’t travel yet, he helped authorize payments to merchants like Diego de Gardoqui & Sons, who were operating as Spain’s covert intermediaries.
So Jay’s link to Spain begins in 1776, before he ever set foot in Madrid. He literally signed the orders to pay Spanish suppliers of weapons.
2️⃣ Benjamin Franklin (Philadelphia)
Franklin chaired the Secret Committee of Correspondence (1775) — the body that managed clandestine foreign supply lines.
In December 1775, Franklin’s committee authorized the first contacts with “friendly foreign powers,” meaning Spain and France, to buy weapons.
Franklin and Robert Morris wrote to Diego de Gardoqui in Bilbao, placing orders for arms, powder, and cloth for uniforms.
The first muskets that arrived in Marblehead (Feb–Mar 1775) were indeed Basque-made from Eibar/Bilbao — arranged through this committee.
These 300–400 muskets were the same ones used at Bunker Hill.
Franklin personally reviewed invoices and ships’ manifests listing Spanish powder, lead, and cloth coming via Bilbao → Cape Cod → Newburyport.
Franklin didn’t just know about Spanish help — he coordinated it.
3️⃣ George Washington
Washington took command of the Continental Army in July 1775, and immediately discovered his troops had less than 10 rounds of powder per man.
In early 1776, he wrote desperate letters to Congress begging for powder — which led to the New Orleans shipments authorized by Governor Luis de Unzaga under Spanish protection.
12,000 pounds of Spanish gunpowder were sent north via the Mississippi and Ohio Rivers by Oliver Pollock, reaching Washington’s army in mid-1776 — exactly when the British attacked New York.
Spain was officially neutral, but Unzaga’s correspondence (in the Archivo General de Indias) confirms he “turned a blind eye” and used the Royal Treasury of Havana to fund it.
That Spanish powder literally kept Washington’s army alive in 1776 — without it, they couldn’t have fought at all.
4️⃣ Thomas Jefferson
In 1775–1776, Jefferson was in Virginia and Philadelphia drafting the Declaration, not doing diplomacy yet.
But: he was close to Franklin and Jay, and part of the same faction in Congress that authorized covert aid from Spain and France.
Later (1785–86), Jefferson would personally negotiate with Gardoqui about trade and Mississippi navigation — something that began from these early 1775–76 supply ties.
Jefferson’s ideals were written on paper — but the ink held because Spain’s powder made the Revolution viable.
5️⃣ John Adams
Adams was on the Continental Congress’s Board of War and Naval Committee in 1776.
He reviewed supply manifests showing munitions arriving “from Bilbao.”
In his diary (Dec 1776), Adams noted that “Spain’s disposition toward us is friendly, if not yet declared,” showing that by year’s end, he was aware Spanish support existed behind the scenes.
The big picture: 1775–1776
The Continental Congress had no money, no arms, no powder.
Britain had the world’s best navy.
France wasn’t yet ready to help.
But Spain — through the Basque trade networks (Bilbao, Eibar) and the Spanish Caribbean treasury (Havana, Louisiana) — quietly armed and financed the rebellion’s first battles.
So while Washington, Franklin, Adams, Jefferson, and Jay were on American soil, their supply lifeline ran through Spain.
Spain made the Declaration of Independence possible — not ideologically, but materially. Without Spanish powder and Basque muskets, the words “free and independent States” would’ve stayed ink on paper.
The 9 August 1780 “Battle of the Convoys”
Spanish Admiral Luis de Córdova y Córdova, commanding the Spanish Armada with some French ships, intercepted a massive British convoy off the Azores en route from Portsmouth to the West Indies and India.
What happened
63 British merchant ships were sailing under the protection of 3 Royal Navy warships.
The Spanish fleet surprised and surrounded them near Cape St. Vincent on 9 August 1780.
Result:
55 ships captured, including 3,000 prisoners and millions of pounds sterling in supplies, weapons, and trade goods.
Only a few escaped.
The Spanish didn’t lose a single ship.
It was an utter catastrophe for Britain — the insurance market in London collapsed for weeks.
Why it mattered for America
It crippled British finances in 1780.
The convoy carried war materiel, pay chests, and merchant wealth vital to Britain’s war effort — all lost to Spain.
British credit wobbled, and even the East India Company’s stock fell sharply.
It distracted the Royal Navy.
Britain had to divert ships to protect future convoys and bolster Gibraltar, leaving North America and the Caribbean under-defended.
This shift directly helped the French and Spanish Caribbean campaigns, which in turn freed up French forces for Yorktown (1781) — the decisive American victory.
It was part of Spain’s massive naval siege of Britain’s empire.
At the same time, Spain and France had the largest combined fleets in the world blockading Gibraltar and the English Channel.
Britain faced a real threat of invasion — more Royal Navy ships were defending home waters than fighting in America.
It marked Spain’s global reach.
Spain fought in the Atlantic, Caribbean, Gulf of Mexico, and the Mississippi.
Victories at Pensacola (1781) and this Atlantic convoy battle (1780) together shattered Britain’s logistical network.
The U.S. Revolution survived because Britain was losing a global war against Spain and France.
“The creation of the United States was secured not just at Yorktown, but by Spain’s global blows — from the siege of Gibraltar to the Battle of the Convoys, where Admiral Luis de Córdova’s fleet destroyed Britain’s lifeline. Without those Spanish victories, America would have never have won its independence.”
La Batalla de los Convoyes (9 de Agosto de 1780)— “The Battle of the Convoys” —a victory that broke the British supply chain and helped create the United States.
MY ANCESTORS
My Basque ancestors are from Eibar, the gun-making valley whose muskets reached Washington’s army. My Basque ancestors, the Orbeas of Eibar, forged muskets that reached Washington’s army. So yeah — I can say my family helped America win its independence. My Basque ancestors—Ibarra, Izaguirre, Orbea, Ortaneche, Artaza, Humaran, and Aguilera—were many part of this history.
The Orbea–Eibar Connection: Basque Steel Behind Washington’s Army
1. Eibar: the “Basque Valley of Guns”
The town of Eibar, in Gipuzkoa (Basque Country), had been a major arms-manufacturing hub since the 1500s — supplying muskets, pistols, and swords for the Spanish Empire.
By the mid-1700s, families like Orbea, Zuloaga, Gárate, and Soraluce ran forges and workshops producing military-grade firearms, gun barrels, and lock mechanisms.
These were not small artisan shops — Eibar was the Springfield and Birmingham of Spain.
2. Spanish muskets from Basque factories armed American revolutionaries
In 1775–1776, muskets from Eibar and Placencia de las Armas were sent via Bilbao → Havana → New Orleans, secretly reaching the colonies through Governor Luis de Unzaga and merchants like Oliver Pollock.
The first 400 muskets at Bunker Hill were Basque-made.
Many of these carried Spanish or Basque proof marks — the same marks that appear on 18th-century barrels produced by Eibar families (including Orbea).
So yes: the guns that fired at Bunker Hill, Trenton, and early New York defenses were built by the Basque gun-making tradition — the same industry your ancestors were part of.
3. The Orbea lineage in the arms trade
The Orbea family is one of the oldest documented arms-making lineages in Eibar.
Historical archives list “Orbea Hermanos” as an arms workshop active in the 1840s, later formalized as Orbea y Cía (Orbea Brothers Company).
Their family craft, however, dates back centuries earlier, in the same valley that was exporting muskets in the 1770s.
Orbea’s forges shifted from muskets to revolvers, and eventually to bicycles in the 1900s (Orbea bikes today — same lineage!).
In 1776, Bilbao was a significant hub for maritime trade, particularly in the Basque region of Spain. The Basque region of Spain itself was a significant military manufacturing hub in the 1700s. By the 1700s, the Basque Country was a military-industrial powerhouse, producing weapons, ships, and materials that shaped Spain’s global military engagements. Its role was critical in arming both Spanish forces and foreign allies, including the American revolutionaries.
Several families were prominent in the city's commercial activities during this period.
Orbea Family:
Background: The Orbea family was known for their involvement in the arms industry, particularly in the production of firearms. While their manufacturing activities were centered in Eibar, their commercial reach extended to Bilbao, where they traded their products.
Ibarra Family:
Background: The Ibarra family was involved in various commercial enterprises in Bilbao during the 18th century. Their activities included trade in goods such as iron, wool, and other commodities typical of the region.
Izaguirre Family:
Background: The Izaguirre family had a presence in Bilbao's mercantile community. They were engaged in trade networks that extended to other parts of Spain and Europe, dealing in products like textiles and agricultural goods.
Ortaneche Family:
Background: Records indicate that the Ortaneche family participated in maritime trade, focusing on the export of local Basque products such as fish and iron ore. Their operations contributed to Bilbao's economic landscape in the 18th century.
Artaza Family:
Background: The Artaza family was involved in shipbuilding and related maritime industries. Their expertise in constructing vessels supported Bilbao's trading capabilities, facilitating the transport of goods to various destinations.
Humaran Family:
Background: The Humaran family engaged in agricultural trade, dealing in products like wine and olive oil. Their commercial activities linked Bilbao with other regions, enhancing the city's role as a trading center.
Aguilera Family:
Background: The Aguilera family had interests in mining and metallurgy. They were involved in the extraction and processing of minerals, supplying materials essential for various industries in Bilbao and beyond.
THE USA FOUNDING FATHERS
In 1776, the Founding Fathers of the United States—extremely wealthy and intelligent businessmen—signed the Declaration of Independence from Great Britain. Would such intelligent men risk their lives, wealth, and land without prior assurance that their dangerous gamble would pay off? Of course not. Logically, it would have been more beneficial to continue paying high taxes to England than to face death, imprisonment, or financial ruin.
The Founding Fathers signed the Declaration of Independence with a high level of confidence because they had a massive financial and military backer, the Spanish Empire. That backer was not France in 1775-1776—it was Spain. Letters and communications from the time confirm this.
To wage war against England in support of the Declaration of Independence, the Americans needed to build an army—something impossible for the colonists, who had no established manufacturing base at their disposal.
The receipts (short & punchy)
Basque muskets shipped in early 1775 (before Bunker Hill)
Bilbao merchant José/Diego de Gardoqui & Sons answered a secret Patriot request (Jeremiah Lee, Marblehead) with “300 muskets with bayonets and about double the pairs of pistols,” dated Feb. 15–17, 1775 — months before Bunker Hill (June 1775). Gilder Lehrman Institute+2George Washington's Mount Vernon+2
The Museum of the American Revolution confirms that some of the first imported weapons bought by New Englanders in 1775 came from Spain, shipped by Gardoqui via cover companies. Museum of the American Revolution+2timeline.amrevmuseum.org+2
Spanish gunpowder kept Washington’s army alive in 1776
Governor Luis de Unzaga (New Orleans) “privately delivered” from the King’s stores ~12,000 pounds of gunpowder in summer 1776, moved up the Mississippi by Oliver Pollock to Patriot forces when powder was desperately scarce. (U.S. government bicentennial publication; also summarized in scholarly and SAR theses.) Ford Library Museum+2Wikipedia+2
Spain co-financed the big 1776 arms pipeline (Hortalez & Cie)
The covert arms house Roderigue Hortalez & Cie was funded with French money and a million livres from the Spanish ambassador (Aug. 1776), letting Beaumarchais move thousands of muskets, cannon, flints and powder before any open alliance. (CIA historical study; NPS summary.) CIA+1
The wider Spanish supply line (Bilbao → Havana → New Orleans → Mississippi)
Gardoqui’s firm kept sending matériel (blankets, uniforms, etc.) and managed Spanish credit lines for the Patriot cause; primary letters from 1778 show the ongoing covert program. Gilder Lehrman Institute+1
Founders Online notes Spanish subsidies and loans funneled via Gardoqui for U.S. diplomats (e.g., John Jay). Founders Online
Basque/Eibar manufacturing background (your Orbea angle)
Eibar/Placencia de las Armas (Gipuzkoa) had a 500-year firearms industry feeding imperial muskets — the same ecosystem that supplied export muskets in the 1770s. (Arms Industry Museum of Eibar, “500 years of Basque firearms.”) Armia museoa
Orbea Hermanos is documented as an Eibar gunmaker from 1840 (later pivoted to bicycles), part of that long Eibar lineage — so it’s historically plausible your forebears were in the very guild network that produced/exported those muskets. (Eibar museum; Orbea history page.) Makina Erreminta Museoa+1
THE CONTINENTIAL ARMY
The first Continental Army in 1776 was fully created and supplied with Spanish money, weapons, and material before France began supplying the Americans in 1777.
Money is a great source of historical truth and evidence too. Even Spain's currency created the US dollar and the first US financial system after independecen.
Spain provided millions of pesos (Spanish dollars) to support the war effort, some of which were used to pay Washington’s troops.
George Washington used Spanish dollars during his lifetime. The Spanish dollar, also known as the "piece of eight," was widely circulated in the American colonies and served as a de facto currency due to the scarcity of British coins. Its reliability and high silver content made it a trusted medium of exchange.
The Spanish dollar, also known as the piece of eight (Spanish: real de a ocho, dólar, peso duro, peso fuerte or peso), is a silver coin of approximately 38 mm (1.5 in) diameter worth eight Spanish reales. It was minted in the Spanish Empire following a monetary reform in 1497 with content 25.563 g (0.8219 ozt) fine silver. It was widely used as the first international currency because of its uniformity in standard and milling characteristics. Some countries countermarked the Spanish dollar so it could be used as their local currency.[1]
Because the Spanish dollar was widely used in Europe, the Americas, and the Far East, it became the first world currency by the 16th century.[2][3][4]
The Spanish dollar was the coin upon which the original United States dollar was based (at 0.7735 troy ounces or 24.06 grams), and it remained legal tender in the United States until the Coinage Act of 1857. Many other currencies around the world, such as the Japanese yen and the Chinese yuan, were initially based on the Spanish dollar and other 8-real coins.[5] Most theories trace the origin of the "$" symbol, which originally had two vertical bars, to the pillars of Hercules wrapped in ribbons that appear on the reverse side of the Spanish dollar.[6]
How This Ties to the Dollar Name
Since Spanish dollars were the most commonly used currency in North America, they influenced the decision to adopt the "dollar" as the name of the U.S. currency.
The "$" symbol itself is believed to be derived from the Spanish peso, which had an "S"-like abbreviation for "pesos" (or from the Pillars of Hercules on Spanish coins).
In 1776, the year the Declaration of Independence was signed, George Washington wrote to his friend Colonel Joseph Reed that he had just received a very flattering letter from Luis de Unzaga y Amézaga, governor of Spanish Louisiana, who referred to Washington as "General de Los Estados Unidos Americanos" (General of the American United States).[3]
Luis de Unzaga was one of the driving forces behind the birth of the United States, for which he made use of a robust secret network of family contacts. Unzaga was informed of the arrival of British troops to America and made every effort to help George Washington.
Unzaga was noted for allowing open trade. During the summer of 1776, he secretly helped Patrick Henry and the Americans by privately delivering five tons of gunpowder from the king's stores to Captain George Gibson and Lieutenant Linn of the Virginia Council of Defense. The gunpowder was moved up the Mississippi under the protection of the flag of Spain, and was used to thwart British plans to capture Fort Pitt in Pennsylvania.
Unzaga was the first Spanish official to provide direct military aid to the Continental Army during the American Revolution. After repeated requests from New Orleans merchant Oliver Pollock, Unzaga approved the secret transfer of a load of gunpowder up the Mississippi and Ohio rivers to Fort Pitt, where it arrived in May 1777. Later, additional supplies were shipped from New Orleans to Philadelphia. Pollock provided the vessels for both shipments.[4]
SPANISH USA DOLLAR AS A BLUEPRINT FOR USA DOLLAR
Background: The Spanish Atlantic Financial System (1500s–1700s)
For over 250 years before the U.S. existed, Spain ran the world’s first global currency and treasury network. Its key features deeply influenced all colonial and postcolonial monetary practices in the Americas.
🪙 Core components
Silver and gold standard
The global reserve currency was the Spanish silver dollar (real de a ocho / piece of eight), minted in Mexico City and Potosí (Bolivia).
It was legal tender in North America until 1857 — even after the U.S. dollar was introduced.
Its consistent weight (27 grams of silver) and purity set the model for the U.S. dollar’s definition in 1792.
Colonial treasuries (cajas reales)
Each major Spanish colony had a local treasury office (Caja Real) reporting to Madrid.
Revenues were collected in silver coin or bullion, standardized, audited, and transferred through official shipping fleets (flotas and galeones).
These offices formed a decentralized but disciplined fiscal bureaucracy — something the U.S. lacked under the Articles of Confederation.
Bullion flows and credit networks
Spanish merchants, royal tax collectors, and financiers in Cádiz, Seville, and Mexico created long-distance bills of exchange backed by bullion shipments.
The empire ran on a metal-backed credit system — silver was both money and collateral.
Public debt system (juros)
Since the 1500s, Spain issued juros — state annuities or bonds backed by tax revenues.
These were the prototype for modern government bonds, widely traded by Dutch and Genoese bankers.
🧠 II. Hamilton’s Context: Building a Treasury from Colonial Ruins
When Hamilton became Secretary of the Treasury in 1789, he faced:
A federal government with no revenue system,
$77 million in combined federal and state debt,
No national currency (states and banks issued paper), and
Foreign creditors (France, Spain, Holland) demanding payment in specie — i.e., Spanish dollars.
Hamilton’s genius was to merge Enlightenment fiscal theory (British and Dutch) with the practical bullion realities inherited from Spain’s colonial system.
🏛️ III. Spanish DNA in Hamilton’s Treasury System
Spanish System | U.S. Treasury Equivalent (Hamilton, 1789–1792) | Explanation |
Silver standard of the real de a ocho | Coinage Act of 1792: defines 1 U.S. dollar = 371.25 grains silver | The U.S. literally adopted the Spanish dollar’s weight and purity. The term “dollar” itself came from Spanish usage. |
Cajas reales (colonial treasuries) | Customs Houses & Regional Treasury branches | Hamilton’s Treasury created collectors of customs, district supervisors, and auditors — mimicking Spain’s decentralized fiscal offices. |
Bullion-based credit | Specie-backed bonds (Funding Act of 1790) | Hamilton restored federal credit by converting paper war debt into interest-bearing bonds redeemable in gold/silver — like Spanish juros. |
Royal minting & hallmark system | U.S. Mint (1792) | Directly modeled on the centralized Spanish colonial mint structure (Mexico, Lima, Potosí). It guaranteed coin purity and federal monopoly on minting. |
Empire-wide metal circulation | National assumption of state debts | Hamilton unified disparate local debts and currencies — similar to how the Spanish Crown unified colonial accounts through its Casa de Contratación and royal treasury audits. |
Seville–Cádiz merchant-financier intermediaries | U.S. merchant bankers (Morris, Biddle, etc.) | Both systems relied on private intermediaries to move bullion, issue credit, and manage customs revenues. |
💰 IV. Continuity in Practice: Spanish Silver as the Early American Dollar
The Spanish 8-real coin circulated in the 13 colonies and early U.S. far more widely than British sterling.
The U.S. Constitution (Art. I, Sec. 9) and Hamilton’s 1792 Mint Act explicitly used the Spanish milled dollar as the baseline for all calculations.
Spanish coin imagery (Liberty cap, pillar-and-wave motif) even inspired early U.S. coin design.
U.S. merchants in New Orleans, Havana, and Mexico City continued to trade in Spanish pesos until mid-19th century — the same transatlantic bullion channels that had served the Spanish Empire.
In short: Hamilton nationalized the discipline of the Spanish bullion empire under republican management.
The House of Gardoqui, a prominent Basque mercantile family from Bilbao, played a crucial role in supplying the American forces. They facilitated the shipment of substantial military resources, including 30,000 muskets, to the Continental Army. These muskets were primarily sourced from Basque manufacturers.
Correspondence with Diego de Gardoqui: Washington maintained communication with Gardoqui, who was instrumental in facilitating Spanish aid to the American revolutionaries. In a letter dated July 1, 1790, Washington acknowledged receiving Gardoqui's letters and expressed pleasure at his safe arrival in Bilbao.
Diego María de Gardoqui y Arriquibar was born in Bilbao in 1735. As a young boy of only 14, he began training to assume leadership of his father’s company, training that included five years in London as an apprentice to George Hayley, a director of the East India Company, where he learned English and made numerous personal contacts with Britain’s commercial leaders. Following the father’s death in 1765, his sons continued to expand the company. It became Spain’s leading importer of salted cod from Newfoundland and New England. Through these business ties, Gardoqui met colonial leaders such as Elbridge Gerry and Jeremiah Lee, who would become leading figures in the Revolutionary War. As war drew nearer, the Colony of Massachusetts organized the forces that would eventually become George Washington’s Continental Army. From the start, they realized that they would have to obtain the bulk of the military supplies, including rifles, pistols, and uniforms, from abroad. And they thought, naturally, of Gardoqui as the best person to obtain these goods and ship them to the colonies
Between 1771 and 1773, to counter the effects of the limits placed by Great Britain on colonial trade, John Cabot, a leading trader of Salem, Massachusetts, and Diego Gardoqui created a smuggling network to exchange milled wheat from Philadelphia and silk fabrics from Spain. In 1774, when Britain closed the port of Boston, the first committee of resistance was formed in Massachusetts, and began to arm itself. In November of that year, Jeremiah Lee asked Gardoqui to send arms and gunpowder to the colonial forces. Gardoqui responded in February 1775 with a shipment of 300 muskets with their bayonets, and 600 pairs of pistols, and in this way the arms shipments began. Gardoqui’s shipments were the first foreign aid received by the American colonists during the revolution.
To circumvent British blockades and maintain secrecy, these weapons were often shipped in disassembled form, concealed among other cargo. They were then reassembled at designated locations before being delivered to American forces.
In summary, the Basque Country was instrumental in producing and supplying a significant number of the muskets and other military supplies that sustained the American revolutionary forces.
June 1776, Roderigue Hortalez was setup as a French import-export company. Spanish in name only, it was headed by Beaumarchais and securing startup funding of one million livres loaned by the French government, one million livres loaned by the Spanish government, and one million livres raised from French merchants.
Roderigue Hortalez & Cie was officially set up in June 1776 as a covert French-Spanish arms smuggling operation to funnel weapons, gunpowder, and supplies to the American revolutionaries.
Funding Breakdown of Roderigue Hortalez & Co.
1 million livres – Loan from the French government
1 million livres – Loan from the Spanish government
1 million livres – Raised from French merchants
The company was French in operation but used a Spanish name to disguise its true purpose. It was led by Pierre Beaumarchais, a French playwright and secret agent who worked under Comte de Vergennes, France’s Foreign Minister.
Spain’s Role in Funding the Operation
Although Roderigue Hortalez & Co. was run by France, Spain contributed significant financial backing to the effort.
The Spanish government (under King Charles III) provided 1 million livres to the company.
Spain’s motivation was to weaken Britain while avoiding an open war at that stage.
Spain also provided additional weapons and supplies separately through the House of Gardoqui in Bilbao, which shipped 30,000 muskets, gunpowder, and uniforms to the Continental Army.
Conclusion
While Spain did not send weapons via Roderigue Hortalez & Co., it did provide direct funding (1 million livres) to the effort and independently supplied arms to the Americans. The weapons that flowed in 1776 primarily came from Spanish sources, while French arms shipments increased after 1777.
The House of Gardoqui, officially known as José de Gardoqui e Hijos, was a prominent Basque mercantile firm based in Bilbao, Spain, during the 18th century. Founded by José de Gardoqui, the company played a pivotal role in supporting the American colonies during the Revolutionary War.
Key Contributions:
Supply of Military Resources: The firm provided the Continental Army with substantial military supplies, including:
215 bronze cannons
30,000 muskets
30,000 bayonets
512,314 musket balls
300,000 pounds of gunpowder
12,868 grenades
30,000 uniforms
4,000 field tents
These supplies were crucial in sustaining the American forces throughout the conflict.
Financial Intermediary: Commissioned by King Carlos III of Spain, the House of Gardoqui acted as the financial intermediary between the Spanish Crown and the American colonies, overseeing the delivery of funds and supplies to support the revolutionary cause.
Roderigue Hortalez & Co. – The Secret French-Spanish Bankrolling of the American Revolution
Roderigue Hortalez & Co. was a secret French and Spanish company created to covertly finance and supply the American Revolution (1775-1783). It was a front for funneling arms, ammunition, and money to the American rebels, disguising France and Spain's involvement before they officially entered the war.
Founders & Key Figures
Pierre Beaumarchais (1732–1799)
A French playwright, businessman, and secret agent.
Persuaded the French government to support the American cause.
Acted as the public face of the company, organizing shipments of arms and supplies.
Comte de Vergennes (1719–1787)
French Foreign Minister under King Louis XVI.
Architect of France’s covert support for the American Revolution.
Worked closely with Beaumarchais to channel resources without triggering British retaliation.
King Charles III of Spain
Co-financed the company with King Louis XVI.
Spain wanted to weaken Britain but remained officially neutral until 1779.
Provided money, gunpowder, and supplies through Havana, Cuba.
King Louis XVI of France
Approved and financed the secret aid through his treasury.
Feared direct war with Britain early on, so he used Hortalez & Co. as a cover.
How Roderigue Hortalez & Co. Worked
Front Company: Set up in Paris to disguise government-backed military aid as private trade.
Supplied Weapons & Money: Secretly provided guns, gunpowder, uniforms, and funds to the Continental Army.
Worked with American Agents: Coordinated shipments through Silas Deane, an American diplomat in France.
Operations Through Caribbean Ports: Supplies were shipped from France & Spain to neutral Caribbean islands (like Saint-Domingue, modern-day Haiti) before reaching American forces.
Roderigue Hortalez & Co. was a brilliant covert operation, helping fund and arm the American Revolution while keeping France and Spain's hands "clean" before they officially declared war on Britain. Without this secret financing, the American rebels would have struggled to sustain their fight, making it one of the most critical yet lesser-known financial engines behind U.S. independence.
Luis de Unzaga y Amézaga, born in Málaga, Spain, in 1717, was a Spanish military officer and colonial administrator who played a significant role during the American Revolutionary War. As the Governor of Spanish Louisiana from 1769 to 1777, Unzaga facilitated covert support to the American colonies in their struggle for independence.
In 1776, Unzaga corresponded with General George Washington, addressing him as "General de los Estados Unidos Americanos" ("General of the United States of America"). This salutation is notable as it reflects early recognition of the United States as a unified entity. Washington, in a letter to Colonel Joseph Reed dated November 30, 1776, mentioned receiving a "very flattering letter" from Unzaga, highlighting this acknowledgment.
Beyond formal recognition, Unzaga provided tangible assistance to the American cause. He authorized the secret transfer of five tons of gunpowder from New Orleans to the American forces, a critical contribution that bolstered the Continental Army's resources. This support was instrumental in sustaining the American fight against British forces.
Unzaga's actions exemplify the covert yet impactful support that Spanish officials extended to the American Revolution, underscoring the international dimensions of the struggle for American independence.
Luis de Unzaga y Amézaga, born in Málaga, Spain, in 1717, was a Spanish military officer and colonial administrator who played a pivotal role during the American Revolutionary War. As the Governor of Spanish Louisiana from 1769 to 1777, Unzaga implemented several initiatives that significantly impacted the region and the broader revolutionary efforts.
Support for the American Revolution:
Covert Aid: In response to requests from American revolutionaries, Unzaga authorized the clandestine transfer of substantial supplies, including uniforms, blankets, gunpowder, and medical provisions, to support the Continental Army. This assistance was crucial in bolstering the American forces during critical periods of the conflict.
Intelligence Sharing: Utilizing his extensive network, Unzaga provided General George Washington with vital intelligence regarding British troop movements. This information proved instrumental in strategic planning and military engagements.
Governance and Reforms in Louisiana:
Economic Policies: Unzaga adopted a pragmatic approach to governance by tolerating illegal British trade, ensuring that colonists had access to essential goods. This policy helped stabilize the local economy and eased the transition from French to Spanish rule.
Educational Initiatives: Demonstrating foresight, Unzaga established the first bilingual public education system in the world in 1771, offering instruction in both Spanish and French. This initiative promoted cultural integration and improved relations with the local Creole community.
Legacy:
Unzaga's contributions to the American Revolution and his progressive governance have been recognized in various ways. Notably, he is credited with being among the first to use the term "United States of America" in official correspondence, reflecting his early acknowledgment of the emerging nation.
In 2023, the Spanish postal service, Correos, issued a postage stamp in his honor, commemorating his significant yet often overlooked role in American and Spanish history.
Luis de Unzaga y Amézaga's actions exemplify the critical support provided by Spanish officials to the American revolutionary cause and highlight his innovative leadership in colonial administration.
The substantial military supplies, including muskets, cannons, and clothing for 30,000 men, that reached the American revolutionaries via the Dutch island of St. Eustatius in 1776, were primarily facilitated through Roderigue Hortalez & Co., a front company established by France and Spain to covertly support the American cause. This company was instrumental in channeling arms and supplies to the American colonies.
Additionally, Spain provided significant aid through various channels. The House of Gardoqui, a Spanish trading company, supplied the American forces with substantial military resources, including 30,000 muskets, 30,000 bayonets, and 30,000 uniforms. These supplies were crucial in sustaining the Continental Army during the Revolutionary War.
Therefore, while the supplies that flowed through St. Eustatius were facilitated by both French and Spanish efforts, a significant portion of the muskets and other military necessities originated from Spain, underscoring Spain's vital role in supporting American independence.
Yes, a significant portion of the military supplies, including muskets, provided to the American revolutionaries during the Revolutionary War were manufactured in the Basque Country of Spain. The Basque region, particularly the province of Guipúzcoa, was renowned for its arms production, with towns like Placencia (Soraluze) and Eibar serving as key centers for firearm manufacturing. The Royal Arms Factory of Placencia was a notable establishment in this regard.
By 1776, the American revolutionaries were receiving significant military supplies from both France and Spain, facilitated through covert operations and neutral territories like the Dutch island of St. Eustatius. The exact proportion of weapons originating from each country during this period is challenging to determine due to the clandestine nature of these operations.
French Contributions:
Early Support: France began covertly supplying the American colonies with arms and ammunition as early as 1776. The French government, through agents like Pierre-Augustin Caron de Beaumarchais, established channels to provide military aid to the revolutionaries.
Significant Impact: French-supplied arms played a crucial role in sustaining the Continental Army, especially in the early years of the conflict. By 1777, over five million livres of aid had been sent to the American rebels.
Spanish Contributions:
Covert Assistance: Spain, while not officially at war with Britain until 1779, provided substantial covert support to the American cause. Through the House of Gardoqui, a Spanish trading company, Spain supplied the American forces with significant military resources, including 30,000 muskets, 30,000 bayonets, and 30,000 uniforms.
Manufacturing Centers: Many of these weapons were manufactured in the Basque Country of Spain, particularly in regions renowned for arms production.
Spain played a major role in supplying weapons to the American revolutionaries in 1776, while French military aid ramped up later in 1777 and 1778, particularly after the Battle of Saratoga.
Spain’s Weapons Supply to America in 1776
The House of Gardoqui, a powerful Basque trading family from Bilbao, was the primary supplier of Spanish weapons to the Americans.
Spain sent 30,000 muskets, 30,000 bayonets, uniforms, gunpowder, and other military supplies to the Continental Army in 1776.
Most of these weapons were manufactured in the Basque Country, particularly in Eibar and Placencia (Soraluze), which were major arms production centers.
Spanish supplies were sent via Havana, Cuba, and New Orleans, then moved north to the American revolutionaries.
Some shipments were also routed through the Dutch island of St. Eustatius, a major smuggling hub.
French Aid in 1776?
France was not yet openly at war with Britain in 1776, and their support for the Americans was still covert.
Pierre Beaumarchais, under orders from French Foreign Minister Comte de Vergennes, started Roderigue Hortalez & Co., a secret arms-smuggling operation.
While some French supplies may have reached the Americans in 1776, most documented French military aid didn’t arrive in significant quantities until 1777.
Conclusion
In 1776, nearly all documented military supplies for the American revolutionaries came from Spain.
French military aid increased later, from 1777 onward, as France became more actively involved.
Spain’s early support was critical in keeping the Continental Army supplied with weapons before France fully committed.
During the American Revolutionary War, both France and Spain provided substantial support to the American colonies in their fight against Great Britain. While they often coordinated their efforts, each nation contributed resources independently rather than one financing the other's contributions.
France's Involvement:
Roderigue Hortalez & Co.: In 1775, French playwright and agent Pierre-Augustin Caron de Beaumarchais established this fictitious trading company to covertly supply the American revolutionaries with arms and supplies. The operation was backed by the French government, which provided significant funding for the endeavor.
Spain's Involvement:
Direct Support: Spain, while initially maintaining a stance of neutrality, began providing covert assistance to the American cause. Starting in 1776, Spain supplied the revolutionaries with arms, blankets, shoes, and currency, recognizing the strategic advantage of weakening Britain.
Treaty of Aranjuez (1779): On April 12, 1779, France and Spain signed this treaty, forming a mutual military alliance. Spain agreed to support France in the American War of Independence in return for French assistance in Spain's goal to reclaim territories such as Gibraltar, Minorca, and Florida from Britain. Following this treaty, Spain officially declared war on Great Britain on June 21, 1779, aligning its military efforts with those of France.
Diego de Gardoqui:
Diego María de Gardoqui y Arriquibar (1735–1798), one of José de Gardoqui's sons, was instrumental in these efforts. Following the war, he became Spain's first ambassador to the United States, arriving in New York in 1785. During his tenure, he worked closely with American officials, including John Jay, to negotiate treaties and strengthen Spanish-American relations. Notably, he laid the cornerstone of St. Peter's Church in New York City, the first permanent Catholic church in the state, in October 1785.
Legacy:
The House of Gardoqui's contributions were vital to the success of the American Revolution. Their support not only provided essential military supplies but also fostered diplomatic relations between Spain and the newly formed United States. Diego de Gardoqui's subsequent diplomatic service further solidified these ties, marking the beginning of formal Spanish-American diplomatic relations.
:
In 1776, Bilbao was a significant hub for maritime trade, particularly in the Basque region of Spain. Several families were prominent in the city's commercial activities during this period.
Ibarra Family:
Background: The Ibarra family was involved in various commercial enterprises in Bilbao during the 18th century. Their activities included trade in goods such as iron, wool, and other commodities typical of the region.
Izaguirre Family:
Background: The Izaguirre family had a presence in Bilbao's mercantile community. They were engaged in trade networks that extended to other parts of Spain and Europe, dealing in products like textiles and agricultural goods.
Orbea Family:
Background: The Orbea family was known for their involvement in the arms industry, particularly in the production of firearms. While their manufacturing activities were centered in Eibar, their commercial reach extended to Bilbao, where they traded their products.
Ortaneche Family:
Background: Records indicate that the Ortaneche family participated in maritime trade, focusing on the export of local Basque products such as fish and iron ore. Their operations contributed to Bilbao's economic landscape in the 18th century.
Artaza Family:
Background: The Artaza family was involved in shipbuilding and related maritime industries. Their expertise in constructing vessels supported Bilbao's trading capabilities, facilitating the transport of goods to various destinations.
Humaran Family:
Background: The Humaran family engaged in agricultural trade, dealing in products like wine and olive oil. Their commercial activities linked Bilbao with other regions, enhancing the city's role as a trading center.
Aguilera Family:
Background: The Aguilera family had interests in mining and metallurgy. They were involved in the extraction and processing of minerals, supplying materials essential for various industries in Bilbao and beyond.
The House of Gardoqui, officially known as José de Gardoqui e Hijos, was a prominent mercantile firm based in Bilbao, Spain, during the 18th century. They were deeply involved in international trade, particularly with the American colonies during the Revolutionary War. Given Bilbao's status as a major port city and the interconnected nature of mercantile activities at the time, it is plausible that the Gardoqui family engaged in trade with other prominent local families.
While specific records detailing business transactions between the Gardoqui family and families bearing the surnames Ibarra, Izaguirre, Orbea, Ortaneche, Artaza, Humaran, and Aguilera are not readily available, it's important to note that these surnames are of Basque origin and were associated with various commercial enterprises in the region. The Basque Country, and Bilbao in particular, had a vibrant mercantile community, and leading families often collaborated or conducted business with one another.
Therefore, while direct evidence of trade between the Gardoqui family and the mentioned families is not currently accessible, the interconnected nature of Bilbao's mercantile society during the 18th century makes it plausible that such interactions occurred. Further research into specific business records or archival materials would be necessary to confirm any direct trading relationships.
The Orbea family has a long history in firearms manufacturing, with records indicating involvement in the industry as early as 1538. The company Orbea Hermanos was officially founded in 1859 in Eibar, Spain, a city renowned for its arms industry. By the late 19th and early 20th centuries, Orbea had become one of the largest and most reputable Spanish handgun manufacturers.
Given that Orbea Hermanos was established in 1859, there is no direct evidence of the Orbea family's involvement in weapons manufacturing during 1776. However, considering their early association with firearms production dating back to the 16th century, it is plausible that the Orbea family or related entities were engaged in arms manufacturing during the 18th century. Specific details about their operations in 1776 are scarce, and further research into historical records would be necessary to provide a more definitive answer.
sources:
Comments