Above all it evolved the Customs-Union (_Zollverein_), which gradually
attached the smaller states, by material interests if not by sympathy,
to the Prussian system. A reform of the tariff conditions in the new
Prussian monarchy had been from the first a matter of urgent necessity,
and this was undertaken under the auspices of Baron Heinrich von Bülow
(1792-1846), minister in the foreign department for commerce and
shipping, and Karl Georg Maassen (1769-1834), the minister of finance.
When they took office there were in Prussia sixty different tariffs,
with a total of nearly 2800 classes of taxable goods: in some parts
importation was free, or all but free; in others there was absolute
prohibition, or duties so heavy as to amount to practical prohibition.
Moreover, the long and broken line of the Prussian frontier, together
with the numerous enclaves, made the effective enforcement of a high
tariff impossible. In these circumstances it was decided to introduce a
system of comparative free trade; raw materials were admitted free; a
uniform import of 10% was levied on manufactured goods, and 20% on
"colonial wares," the tax being determined not by the estimated value,
but by the weight of the articles. It was soon realized, however, that
to make this system complete the neighbouring states must be drawn into
it; and a beginning was made with those which were enclaves in Prussian
territory, of which there were no less than thirteen. Under the new
tariff laws light transit dues were imposed on goods passing through
Prussia; and it was easy to bring pressure to bear on states completely
surrounded by Prussian territory by increasing these dues or, if need
were, by forbidding the transit altogether. The small states, though
jealous of their sovereign independence, found it impossible to hold
out. Schwarzburg-Sondershausen was the first to succumb (1819);
Schwarzburg-Rudolstadt (1822), Saxe-Weimar and Anhalt-Bernburg (1823),
Lippe-Detmold and Mecklenburg-Schwerin (1826) followed suit so far as
their "enclaved" territories were concerned; and in 1826 Anhalt-Dessau
and Anhalt-Cöthen, after several years' resistance, joined the Prussian
Customs-Union. In 1828 Hesse-Cassel entered into a commercial treaty
with Prussia. Meanwhile, alarmed at this tendency, and hopeless of
obtaining any general system from the federal diet, the "middle" states
had drawn together; by a treaty signed on the 18th of January 1828
Württemberg and Bavaria formed a tariff union, which was joined in the
following year by the Hohenzollern principalities; and on the 24th of
September 1828 was formed the so-called "Middle German Commercial Union"
(_Handelsverein_) between Hanover, Hesse-Cassel, the Saxon duchies,
Brunswick, Nassau, the principalities of Reuss and Schwarzburg, and the
free cities of Frankfort and Bremen, the object of which was to prevent
the extension of the Prussian system and, above all, any union of the
northern Zollverein with that of Bavaria and Württemberg.
Public-domain text, read in full here on John Shaqi.
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