The French financier who helped modernize 19th-century Spain
José Buschental had a prominent role in the Spanish economy until he lost the government's favor and emigrated to South America
Four and a half years ago, in December 2021, we talked about Gaspar Remisa, from Osona but based in Madrid, who pulled the strings of state finances during the first half of the 19th century. One of the figures he was often associated with was a French investor named José Buschental, who would also be a key figure in the Spanish Treasury of those times.
The son of a rabbi and a writer of some fame, Buschental was born in Strasbourg, but before he was thirty he was already living in Brazil, where he prospered thanks to his ability to pull money out of thin air. The partners in his business ventures were usually not so lucky, while he always showed an unusual ability to land on his feet.
In that country he met the daughter of the Baron of Sorocaba and married her (1830). His wife, María de Gloria de Castro Delfim Pereira, opened the doors of the local elites to him, as the family had a very close relationship with Emperor Pedro I of Brazil. From then on, Buschental dedicated himself to a life of luxury that would not last long, as a severe financial crisis in the country forced him to seek new horizons.
- Businessman and financier
The departure was to jump the Atlantic again and settle in London, in what was only a temporary stay for his final destination, which was none other than Madrid. The arrival in the Spanish capital with a display of luxury and appearances served him to start mingling with the powerful of the State, at the same time that his wife used her relations with the royal family of Brazil to enter the circle of friendships of Isabella II.
In Spain, Buschental made a name for himself as an expert in raising capital for projects and also in debt issuance. From the forties onwards, we find him as a member of the board of directors of a good handful of businesses – some with very bizarre names – among which stand out the railway company Camino de Hierro del Centro de España, the carriage company Compañía de Trasportes Generales de España, the Compañía Peninsular General para el Alumbrado de Gas (where the Marquis of Salamanca and the aforementioned Gaspar Remisa were also present), La Esperanza - Compañía Española para Elevar La Industria Fabril a su Mayor Grado de Perfección y Baratura, or the transport vehicle concessionaire Collantes, Moore y Cia, among others.
His friendship with the Marquis of Salamanca – the promoter of the well-known Madrid neighborhood – served him to receive continuous commissions from the State to seek investors, especially in the City of London and Paris, in order to place public debt issues, a heroic task due to the scarce confidence that Spain offered to international markets. In 1847, José de Salamanca became Minister of Finance. In a time of strong financial speculation, investments became a roller coaster and in one of the falls, Buschental saw his fortune evaporate and, moreover, the president of the government, Ramón Narváez, exiled him. Once again, it was time to pack his bags.
Return to South America
After brief stays in Paris and Montevideo (Uruguay), in 1850 he settled in Argentina, but his wife did not accompany him, preferring to stay and live in the French capital. In Argentina, Buschental befriended José de Urquiza, who would soon become president of the South American country. The relationship helped him to revive his fortunes and become one of the country's leading bankers, in a period of success that lasted until 1860, when Urquiza left the presidency.
Given the lack of prospects, Buschental opted to change countries again; this time, he set foot in Uruguay, a place he already knew. One of his most significant investments there was the construction of what is considered the country's first tourist hotel, the Hotel Oriental, inaugurated in 1862 in the city of Santa Lucía. Many years later, in 1920, the establishment would be renamed the Biltmore Hotel and would become a gathering place for football clubs such as Peñarol, Club Nacional, and River Plate, with whom the singer Carlos Gardel joined on some festive nights.
In 1870, Buschental's health suddenly worsened, which prompted him to travel to Europe to consult with doctors on the continent. A journey through Madrid, Florence, London, and with New York as its final destination, was cut short in the English capital, where he died while staying at the Hotel Clarendon.
