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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 formall