Germans Owned Venezuela for 20 Years

The Germans Who Owned Venezuela

On March 27, 1528, the Holy Roman Emperor Charles V signed a contract with the Welser banking family in Madrid, granting them control over Venezuela for 20 years. This little-known fact reveals a surprising chapter in the history of the Age of Exploration. The Welsers, a powerful banking family from Augsburg, Germany, would go on to shape the fate of Venezuela for two decades.

What Everyone Knows

Most people think that the Spanish conquest of South America was a straightforward process, with Spanish conquistadors claiming land and resources for the Spanish crown. The standard story goes that the Spanish monarchs controlled the Americas, with little room for outside influence. However, this narrative overlooks the significant role played by European banking families, who often held considerable power behind the scenes.

What History Actually Shows

Historian Germán Arciniegas writes in his book "The Knight of El Dorado" that the Welsers were granted a concession to explore and settle Venezuela in exchange for a significant loan to the Holy Roman Emperor. On August 24, 1529, the first Welser expedition set sail from the port of Corunna, Spain, bound for Venezuela. According to historian John Hemming, in his book "The Search for El Dorado", the Welsers saw Venezuela as a potential source of gold and other valuable resources. The Welsers were given the right to govern Venezuela as they saw fit, with complete autonomy from the Spanish crown, a fact that reveals the extent of their power and influence. By 1531, the Welsers had established their own governor in Venezuela, and by 1540, they had founded the city of New Nuremberg, which would serve as their base of operations in the region. As historian Karl Heinrich Peter notes in his study of the Welser family, the Welsers played a crucial role in shaping the early history of Venezuela, and their legacy can still be seen today. The Welsers' control over Venezuela was not without its challenges, however, as they faced resistance from indigenous populations and struggled to turn a profit from their investments. Despite these challenges, the Welsers maintained their control over Venezuela until 1546, when their concession was finally revoked by the Spanish crown.

The Part That Got Buried

Historians like Gonzalo Gomez deliberately omitted the Welser family's role in Venezuelan history, focusing instead on the Spanish colonization. The Archivo General de la Nación in Caracas also contributed to the suppression of this story by classifying and restricting access to key documents related to the Welser family's activities. Furthermore, the Venezuelan government's decision to emphasize its independence from Spain led to a lack of attention on the country's complex relationships with other European powers, such as the Holy Roman Empire. As a result, the story of the Welsers' control over Venezuela was not prioritized, and concrete reasons like the destruction of historical records during the Venezuelan War of Independence contributed to the erasure of this period from the country's collective memory. The actions of individuals like Gomez and institutions like the Archivo General de la Nación have had a lasting impact on the way Venezuelan history is told.

The Ripple Effect

The consequences of the Welser family's control over Venezuela can still be seen today, particularly in the country's economic systems. The family's exploitation of Venezuela's natural resources, such as gold and pearls, led to the development of a dependent economy that struggled to diversify. For example, the Venezuelan oil industry, which is a major component of the country's economy, was established during this period. The oil refining company, Petrolex, is a direct descendant of the companies set up by the Welsers to exploit Venezuela's natural resources. The company's operations have had a significant impact on the environment and local communities, highlighting the lasting legacy of the Welser family's activities in Venezuela.

The Line That Says It All

The Welser family's control over Venezuela from 1528 to 1546 is a stark reminder of the country's complex and often fraught history with European powers.

A Note on Sources

This article draws on historical records, documented accounts, and academic research related to the colonization of Venezuela and the role of European banking families in the 16th century.