Prussian Economy Flashcards
Who was the Prussian finance minister in 1818?
Friedrich von Motz
What were the ideas of von Motz?
- Customs duties were symbolic of political divisions, to abolish them would be a step on the road to political unity
- Prussian customs union established 1818 from a patchwork of states in the north and central Germany. The success of this venture led to the creation of the Zollverein in 1834
What was the Zollverein?
(In terms of years and figures)
- German customs union established 1834 including 18 states, by 1844 only Austria and five other German states were not members
- 600 miles of railway track in 1840 to 4000 miles in 1850. This stimulated the growth of industry and urbanisation helping Prussia to become the economic leader of Germany.
Why was the Zollverein a force for unity?
- Motz and other Prussian ministers realised that states which found financial advantage in an economic union under Prussian leadership might take a favourable view of similar arrangements in a political union.
- Prussian came to be regarded by many of the northern states as the natural leader of a united Germany.
- 1867- After Austro-Prussian war (and the creation of the North German confederation)- southern states were incorporated into the new Zollparlament. A parliament created to dicuss the policy of the zollverein, this politically linked the united force that was the North German confederation and the southern states who were currently resistant to overall German unification.
How did the Zollverein shift the power between Austria and Prussian in Germany?
By 1870 Prussia had double the length of railway lines compared to Austria and their production of iron and coal was 5 times more than that of Austria.
Counter point
Why might the role of the Zollverein in achieving political unity have been exaggerated?
- Although unified economically, it did not transfer into political unity. Until 1866, Austria was the dominant power in the German confederation and many German states politically supported Austria to counter balance the economic domination of Prussia. In 1866, many Zollverein states such as Bavaria, Saxony, Frankurt and Hannover sided with Austria in the Austro-Prussian war.
- 1848 middle-class businessmen such as Hansemann and Camphausen joined the revolutions as they were frustrated by their lack of political power as they had become economically powerful through the establishment of the Zollverein.
Counter point
Why was Austrias decision not to join the zollverein significant in the argument that the Prussian economy was not the most significant unifying factor in Germany?
Austria didn’t join zollverein as it had protectionist policies which disagreed with free trade. Austria also became increasingly unlikely to join as they were reluctant to give Prussia the oppotunity to dominate. This meant that Austria remained in control of the German Confederation until 1866, therefore possibly arguing that the unity bought about by the zollverein was inconsequential as Austria retained all political control over governance and policy making.
How did the economic development of Prussia under-pin success in other areas?
- The development of the heavy industry and rail network urbanised Prussia at a greater rate than other states. Use of railways as military tactics meant Prussian mobilisation was more efficient than that of Austria at the battle of Sadowa July 1866.
- Allowed for development of the military, significantly the introduction of new superior technologies such as the needle gun and Krupp artilery which had more fire power than anything Austria possessed.
- Belief that unification was achieved through ‘coal and iron’.
