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of　that　day　　that；　as　a　result　of　this　blockade；　German



manufactures　of　all　and　every　kind　for　the　first　time　began　to　make



an　important　advance；（1*）　that　then　only　did　the　improved　breeding



of　sheep　（which　had　been　commenced　some　time　before）　become　general



and　successful；　that　then　only　was　activity　displayed　in　improving



the　means　of　transport。　It　is　true；　on　the　other　hand；　that　Germany



lost　the　greater　part　of　her　former　export　trade；　especially　in



linens。　Yet　the　gain　was　considerably　greater　than　the　loss；



particularly　for　the　Prussian　and　Austrian　manufacturing



establishments；　which　had　previously　gained　a　start　over　all　other



manufactories　in　the　German　states。



　　　　But　with　the　return　of　peace　the　English　manufacturers　again



entered　into　a　fearful　competition　with　the　German；　for　during　the



reciprocal　blockade；　in　consequence　of　new　inventions　and　a　great



and　almost　exclusive　export　trade　to　foreign　lands；　the



manufactories　of　the　island　had　far　outstripped　that　of　Germany；



and　for　this　reason；　as　well　as　because　of　their　large　acquired



capital；　the　former　were　first　in　a　position　to　sell　at　much　lower



prices；　to　offer　much　superior　articles；　and　to　give　much　longer



credit　than　the　latter；　which　had　still　to　battle　with　the



difficulties　of　a　first　beginning。　Consequently　general　ruin



followed　and　loud　wailings　amongst　the　latter；　especially　in　the



lower　Rhenish　provinces；　in　those　regions　which；　having　formerly



belonged　to　France；　were　now　excluded　from　the　French　market。



Besides；　the　Prussian　customs　tariff　had　undergone　many　changes　in



the　direction　of　absolute　free　trade；　and　no　longer　afforded　any



sufficient　protection　against　English　competition。　At　the　same　time



the　Prussian　bureaucracy　long　strove　against　the　country's　cry　for



help。　They　had　become　too　strongly　imbued　with　Adam　Smith's　theory



at　the　universities　to　discern　the　want　of　the　times　with



sufficient　promptness。　There　even　still　existed　political



economists　in　Prussia　who　harboured　the　bold　design　of　reviving　the



long…exploded　'physiocratic'　system。　Meanwhile　the　nature　of　things



here　too　proved　a　mightier　force　than　the　power　of　theories。　The



cry　of　distress　raised　by　the　manufacturers；　hailing　as　it　did　from



districts　still　yearning　after　their　former　state　of　connection



with　France；　whose　sympathies　it　was　necessary　to　conciliate；　could



not　be　safely　disregarded　too　long。　More　and　more　the　opinion



spread　at　the　time　that　the　English　Government　were　favouring　in　an



unprecedented　manner　a　scheme　for　glutting　the　markets　on　the



Continent　with　manufactured　goods　in　order　to　stifle　the



Continental　manufactures　in　the　cradle。　This　idea　has　been



ridiculed；　but　it　was　natural　enough　that　it　should　prevail；　first；



because　this　glutting　really　took　place　in　such　a　manner　as　though



it　had　been　deliberately　planned；　and；　secondly；　because　a



celebrated　member　of　Parliament；　Mr　Henry　Brougham　（afterwards　Lord



Brougham）；　had　openly　said；　in　1815；　'that　it　was　well　worth　while



to　incur　a　loss　on　the　exportation　of　English　manufactures　in　order



to　stifle　in　the　cradle　the　foreign　manufactures。'（2*）　This　idea　of



this　lord；　since　so　renowned　as　a　philanthropist；　cosmopolist；　and



Liberal；　was　repeated　ten　years　later　almost　in　the　same　words　by



Mr　Hume；　a　member　of　Parliament　not　less　distinguished　for



liberalism；　when　he　expressed　a　wish　that　'Continental　manufactures



might　be　nipped　in　the　bud。'



　　　　At　length　the　prayer　of　the　Prussian　manufacturers　found　a



hearing　　late　enough；　indeed；　as　must　be　admitted　when　one



considers　how　painful　it　is　to　be　wrestling　with　death　year　after



year　　but　at　last　their　cry　was　heard　to　real　good　purpose。　The



Prussian　customs　tariff　of　1818　answered；　for　the　time　in　which　it



was　established；　all　the　requirements　of　Prussian　industry；　without



in　any　way　overdoing　the　principle　of　protection　or　unduly



interfering　with　the　country's　beneficial　intercourse　with　foreign



countries。　Its　scale　of　duties　was　much　lower　than　those　of　the



English　and　French　customs　systems；　and　necessarily　so；　for　in　this



case　there　was　no　question　of　a　gradual　transition　from　a



prohibitive　to　a　protective　system；　but　of　a　change　from　free　trade



（so　called）　to　a　protective　system。　Another　great　advantage　of　this



tariff；　considered　as　a　whole；　was　that　the　duties　were　mostly



levied　according　to　the　weight　of　goods　and　not　according　to　their



value。　By　this　means　not　only　were　smuggling　and　too　low　valuations



obviated；　but　also　the　great　object　was　gained；　that　articles　of



general　consumption；　which　every　country　can　most　easily



manufacture　for　itself；　and　the　manufacture　of　which；　because　of



their　great　total　money　value；　is　the　most　important　of　any　for　the



country；　were　burdened　with　the　highest　import　duty；　while　the



protective　duty　fell　lower　and　lower　in　proportion　to　the　fineness



and　costliness　of　the　goods；　also　as　the　difficulty　of　making　such



articles　at　home　increased；　and　also　as　both　the　inducements　and



the　facilities　for　smuggling　increased。



　　　　But　this　mode　of　charging　the　duty　upon　the　weight　would　of



course；　for　very　obvious　reasons；　affect　the　trade　with　the



neighbouring　German　states　much　more　injuriously　than　the　trade



with　foreign　nations。　The　second…rate　and　smaller　German　states　had



now　to　bear；　in　addition　to　their　exclusion　from　the　Austrian；



French；　and　English　markets；　almost　total　exclusion　from　that　of



Prussia；　which　hit　them　all　the　harder；　since　many　of　them　were



either　totally　or　in　great　part　hemmed　in　by　Prussian　provinces。



　　　　Just　in　proportion　as　these　measures　pacified　the　Prussian



manufacturers；　was　the　loudness　of　the　outcry　against　them　on　the



part　of　the　manufacturers　of　the　other　German　states。　Add　to　that；



that　Austria　had　shortly　before　imposed　restrictions　on　the



importation　of　German　goods　into　Italy；　notably　of　the　linens　of



Upper　Swabia。　Restricted　on　all　sides　in　their　export　trade　to



small　strips　of　territory；　and　further　being　separated　from　one



another　by　smaller　internal　lines　of　customs　duties；　the



manufacturers　of　these　countries　were　well…nigh　in　despair。



　　　　It　was　this　state　of　urgent　necessity　which　led　to　the



formation　of　that　private　union　of　five　to　six　thousand　German



manufacturers　and　merchants；　which　was　founded　in　the　year　1819　at



the　spring　fair　held　in　Frankfort…on…the…Main；　with　the　object　of



abolishing　all　the　separate　tariffs　of　the　various　German　states；



and　on　the　other　hand　of　establishing　a　common　trade　and



custom…house　system　for　the　whole　of　Germany。



　　　　This　union　was　formally　organised。　Its　articles　of　association



were　submitted　to　the　Diet；　and　to　all　the　rulers　and　governments



of　the　German　states　for　approval。　In　every　German　town　a　local



correspondent　was　appointed；　each　German　state　had　its　provincial



correspondent。　All　the　members　and　correspondents　bound　themselves



to　promote　the　objects　of　the　union　to　the　best　of　their　ability。



The　city　of　N黵nberg　was　selected　as　the　head…quarters　of　the



union；　and　authorised　to　appoint　a　central　committee；　which　should



direct　the　business　of　the　union；　under　the　advice　of　an　assessor；



for　which　office　the　author　of　this　book　was　selected。　In　a　weekly



journal　of　the　union；　bearing　the　title　of　'Organ　des　deutschen



Handels…　und　Fabrikantenstandes；'（3*）　the　transactions　and　measures



of　the　central　committee　were　made　known；　and　ideas；　proposals；



treatises；　and　statistical　papers　relating　to　the　objects　of　the



union　were　published。　Each　year　at　the　spring　fair　in　Frankfort　a



general　meeting　of　the　union　was　held；　at　which　the　central



committee　gave　an　account　of　its　stewardship。



　　　　After　this　union　had　presented　a　petition　to　the　German　Diet



showing　the　need　and　expediency　of　the　measures　proposed　by　their



organisation；　the　central　committee　at　N黵nberg　commenced



operations。　Deputations　were　sent　to　every　German　Court；　and



finally　one　to　the　Congress　of　Plenipotentiaries　held　at　Vienna　in



1820。　At　this　congress　so　much　at　least　was　gained；　that　several　of



the　second…class　and　smaller　German　states　agreed　to　hold　a



separate　congress　on　the　subject　at　Darmstadt。　The　effect　of　the



deliberations　of　this　last…named　congress　was；　first；　to　bring



about　a　union　between　W黵temberg　and　Bavaria；　secondly；　a　union　of



some　of　the　German　states　and　Prussia；　then　a　union　between　the



middle　German　states；　lastly；　and　chiefly　in　consequence　of　the



exertions　o