The whole of the session of 1879 was occupied with the great struggle between Free Trade and Protection, and it ended with a decisive victory for the latter. On the one side were the seaports, the chambers of commerce, and the city of Berlin, the town council of which made itself the centre of the opposition. The victory was secured by a coalition between the agricultural interests and the manufacturers; the latter promised to vote for duties on corn if the landlords would support the duties on iron. In the decisive vote the duty on iron was carried by 218 to 88, on corn by 226 to 109. The principle of protection was thus definitely adopted, though considerable alterations have been made from time to time in the tariff. The result was that the income from customs and excise rose from about 230 million marks in 1878-1879 to about 700 millions in 1898-1899, and Bismarck's object in removing a great burden from the states was attained. State contributions. The natural course when the new source of income had been obtained would have been simply to relieve the states of part or all of their contribution. This, however, was not done. The Reichstag raised difficulties on the constitutional question. The Liberals feared that if the government received so large a permanent source of revenue it would be independent of parliament; the Centre, that if the contributions of the states to the imperial exchequer ceased, the central government would be completely independent of the states. Bismarck had to come to an agreement with one party or the other; he chose the Centre, probably for the reason that the National Liberals were themselves divided on the policy to be pursued, and therefore their support would be uncertain; and he accepted an amendment, the celebrated _Franckenstein Clause_, proposed by Georg Arbogast Freiherr von Franckenstein (1825-1890), one of the leaders of the Centre, by which all proceeds of customs and the tax on tobacco above 130 million marks should be paid over to the individual states in proportion to their population. Each year a large sum would be paid to the states from the imperial treasury, and another sum as before paid back to meet the deficit in the form of state contributions. From 1871 to 1879 the contribution of the states had varied from 94 to 67 million marks; under the new system the surplus of the contributions made by the states over the grant by the imperial treasury was soon reduced to a very small sum, and in 1884-1885 payments of the empire to the states exceeded the contributions of the states to the empire by 20 million marks, and this excess continued for many years; so that there was, as it were, an actual grant in relief of direct taxation. In Prussia, by the Lex Huene, from 1885 to 1895, all that sum paid to Prussia, so far as it exceeded 15 million marks, was handed over to the local authorities in relief of rates. The increased expenditure on the navy after 1897 again caused the contributions