Under Charles III. (1759-1788), a wise and enlightened prince, the second great revival of the country commenced, and trade and commerce began to show signs of returning activity.  Previous to his accession to the throne, Spain appeared to be a corpse, over which the powers of Europe could contend at will.  Suddenly men were astounded to see that country rise with renewed vigor to play once more an important part on the international stage.  Commerce and agriculture were developed, native manufactures were encouraged in every way possible, and an attempt was made to remove all prejudices against trade, among the nobles.  Meritorious as these reforms were, it would give a false impression to represent them as wholly successful.  The regeneration of Spain was by no means accomplished, and many of the abuses which had been growing for centuries, survived the attempt to effect their annihilation.  One of the chief causes of this failure was the corruption and ignorance of the lower officials; and a large portion of the population remained, to a great extent, sunk in sloth and superstition, in spite of all that was done in their behalf.

During the inglorious reign of Charles IV. (1788-1808), who left the management, of affairs in the hands of the incapable Godoy, (at once the queen’s lover and the king’s prime minister), a war broke out with Britain, which was productive of nothing but disaster to the Spaniards.  Charles finally abdicated in favor of his son, the Prince of Asturias, who ascended the throne as Ferdinand VII.  Forced by Napoleon to resign all claims to the Spanish crown, Ferdinand became the prisoner of the French in the year of his accession, and in the same year, Joseph, the brother of the French emperor, was declared King of Spain, and set out for Madrid to assume the kingdom thus assigned him.  But Spanish loyalty was too profound to be daunted even by the awe-inspiring power of the great Napoleon.  For the first time he found himself confronted, not by terrified and selfish rulers, but by an infuriated people.  The rising on Spain commenced the popular movement which ultimately proved fatal to his power.

In July, 1808, England, on solicitation, made peace with Spain, recognized Ferdinand VII. as king, and sent an army to aid the Spanish insurrection.  Joseph invaded the country on July 9, defeated the Spaniards at Rio Seco, and entered Madrid on the 20th.  But the defeat of Dupont at Baylen by the veteran Spanish general Castanos somewhat altered the position of affairs, and Joseph, after a residence of ten days in his capital, was compelled to evacuate it.