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Far more serious than March’s financial chicanery were the economic consequences of the left’s electoral victory. Workers put in huge wage demands, far beyond what the factory or farm could sustain. Strikes multiplied, unemployment rose and the value of the peseta fell sharply on the foreign exchanges. The real problem facing the centre-left government of Azaña was the result of its Faustian pact with the hard left of caballeristas, who saw it as the equivalent of the Kerensky regime in Russia, a view shared by the right. This liberal government found that it had no influence on its electoral allies, now set upon a revolutionary course, and could not persuade their followers to obey the law. Luis Araquistaín, the editor of Claridad and the voice of the bolshevizing tendency within the socialists and UGT, had argued during the election campaign that Spain, like Russia in 1917, was ready for revolution. He had rejected the earlier warnings of Julián Besteiro, the former leader of the UGT, that revolutionary activities such as factory occupations simply horrified the middle class and destroyed the economy. Each left-wing organization began to form its own militia–the communists’ was the most disciplined and effective. And an unprecedented number of people went around armed, ready to defend themselves from the attacks of opponents. The general impression of a breakdown of law and order played straight into the hands of the undemocratic right. The right-wing press blamed the disorders on the left, while the left blamed the right. The right insisted that democracy was not working and that the Cortes had become useless. Women from the middle and upper classes insulted officers in the streets, telling them that they were cowards for not overthrowing the government.

No group on the right did more to cause disorder, and thus to provoke a military coup, than the Falange. It was subsidized from a number of sources–10,000 pesetas monthly from Renovación Española, money from the Banco de Vizcaya, and later from Juan March, and 50,000 pesetas a month from Mussolini passed through the Italian embassy in Paris.23 The Nazis, however, had little confidence in them and refused them the million marks of support which they had requested. The Falange needed the money because it was growing at an astonishing rate, largely due to an influx from the youth movement of Acción Popular–some 15,000 of them in the spring of 1936, effectively doubling the size of the Falange to 30,000.24

The Falange Española, or Spanish Phalanx, had been born in the Comedy Theatre in Madrid on 29 October 1933. It was founded by José Antonio Primo de Rivera, the elder son of the dictator, a young lawyer of dark good looks and supposedly great charm. He attracted a coterie of fascist intellectuals and appealed to students, especially those from wealthy families, the señoritos, as well as many from the lower middle class who felt threatened by social change. The Falange had also been joined by former members of his father’s Patriotic Union from a decade before, as well as frustrated monarchists and conservatives appalled by the electoral victory of the left.

Falangism differed from Nazism and fascism in its profoundly conservative nature. Mussolini used Roman symbols and imperial imagery in his speeches merely for their propaganda effect. The Falange, on the other hand, used modern and revolutionary phraseology while remaining fundamentally reactionary. The Church was the essence of Hispanidad (Spanishness). The new state would ‘draw its inspiration from the spirit of the Catholic religion which is traditional in Spain’. Their symbols were those of Ferdinand and Isabella: the yoke of the authoritarian state and the arrows of annihilation to wipe out heresy. They did not just borrow the symbols, but tried to revive the Castilian mentality. The ideal Falangist was supposed to be ‘half-monk, half-soldier’.

Yet the movement suffered from something of a split personality between the nationalist and the socialist elements. José Antonio attacked ‘the social bankruptcy of capitalism’ and denounced the living conditions of workers and peasants. Yet Marxism he found repugnant as an ideology, because it was not Spanish and because a class struggle weakened the nation. The country had to be united in a system in which the employer could not exploit the employee. At one moment José Antonio was making vain approaches, first to the socialist Prieto, then to the anarcho-syndicalist CNT. The next, he was reminding Franco of Oswald Spengler’s remark that in the last resort civilization had always been saved by a platoon of soldiers. But a civilization which has to be saved by soldiers is a conservative’s image of a perfect world, rather than that of a revolutionary national socialist.

The Falange constantly sought more firearms for their street fighting and José Antonio put in motion a Bulldog Drummond-style intrigue. Luis Bolín, the London correspondent of the monarchist ABC, met a prominent but anonymous Englishman by a secret recognition signal in Claridge’s Hotel. They arranged for large quantities of submachine-guns to be packed in champagne cases and shipped from Germany in a private yacht. In fact, they did not arrive in time, but it was not long before Bolínin London began to organize a far more important delivery.

The Falange, however, already had weapons from other sources. On 10 March a Falangist squad led by Alberto Ortega tried to assassinate Professor Luis Jiménez de Asúa, a socialist deputy, but instead killed his police escort. Four days later Falangists made an attempt on Largo Caballero’s life. That same day, 14 March, José Antonio met Franco in the house of the general’s brother-in-law, Ramón Serrano Súñer, to discuss a joint plan of action. The following day the Falange was outlawed by the government because of the attack on Largo Caballero and José Antonio was arrested for the illegal possession of arms. It is difficult to reconcile José Antonio’s famous charm with the brutality of his followers and the outspoken racism of his coterie at their dinner-jacketed gatherings in the Hotel Paris. He cannot, in any case, escape responsibility, because his speeches were a clear incitement, even if violence remained an abstract quantity to the fastidious Andalucian.

The ideal of defending traditional Spain required active preparation, now that the authoritarian right had discarded any further attempt to make use of the parliamentary system. In the Pyrenees the Carlists had started to arm and train their requeté militia, famous since the Carlist wars in the nineteenth century for its uniform of a Basque beret in bright red.

The Carlist movement was purely arch-conservative. Its official title was the Traditionalist Communion and it has been described as a form of lay Jesuitry. It believed that a ‘judaeo-marxist-masonic’ conspiracy was going to turn Spain into a colony of the Soviet Union.25 Liberalism, in the view of Carlists as well as the Church hierarchy, was the source of all modern evils, and they dreamed of reviving a royal Catholic autocracy in a populist form. The main Carlist strength lay in the Pyrenees, though they did have supporters in a number of other areas, such as Andalucia. The Carlists no longer showed their former sympathy with regionalist aspirations. This had stemmed from their stronghold being in the former kingdom of Navarre and had also been a means of winning Basque and Catalan support for the Carlist wars in the nineteenth century. By 1936 they had come to detest Basque and Catalan nationalism.