Zollverein facts for kids

German Zollverein, 1834–1919. * Prussia in 1834 * Areas included until 1866 * Austrian possessions outside the Zollverein * Borders of the 1828 German Confederation

The Zollverein (pronounced: Tsoll-fair-ine), also known as the German Customs Union, was a group of German states that joined together to manage their trade rules and money matters. It officially began on January 1, 1834, based on agreements made in 1833. However, the idea had been growing since 1818, with different customs unions forming among German states.

By 1866, most German states were part of the Zollverein. It was special because it was the first time in history that independent countries created a full economic union without also becoming one political country.

The Kingdom of Prussia was the main force behind creating the Zollverein. Austria was not included because it had very strict trade rules and didn't want to divide its own customs areas. By 1867, the Zollverein covered a huge area, about 425,000 square kilometers (164,000 square miles). It even made trade deals with countries like Sweden and Norway. When the German Empire was formed in 1871, it took over the Zollverein. However, some parts of the Empire, like Hamburg, didn't fully join until 1888. Interestingly, Luxembourg stayed in the Zollverein until 1919, even though it was not part of the German Empire.

Why the Zollverein Was Needed

Map of the south German states. Many small territories became larger powers like Baden, Württemberg, and Bavaria.

Imagine trying to send goods across Germany in the early 1800s! There were about 1800 different places where you had to stop and pay taxes on your goods. Even within Prussia, there were more than 67 local customs borders. For example, a shipment traveling from Königsberg to Cologne would be checked and taxed about 80 times. Each stop slowed down trade and made goods more expensive, which was bad for business.

After France won battles and took over land up to the Rhine River, many small German states were combined into larger ones around 1803. This helped reduce some of the many tiny borders. When the Holy Roman Empire ended in 1806, even more small areas were joined with bigger neighbors.

Historians believe Prussia wanted the Zollverein for a few reasons:

• To reduce Austria's power in Germany.
• To make the economies stronger.
• To protect Germany from possible attacks by France.
• To make smaller states less economically independent.

The Zollverein created a bigger market for German farm products and handmade goods. It helped unite the economy under good financial rules. While it aimed to remove trade barriers among its members, it kept high taxes on goods from outside countries. Some historians also think Prussia wanted the Zollverein to save money on managing customs.

Early Attempts at Trade Unity

During the time of Napoleon, there were attempts to unite trade in Europe. Napoleon wanted to stop trade with Britain to hurt its economy. This led to a "Continental System" that tried to create a unified market in Europe. However, its main goal was military, not economic. This system, along with wars, ruined markets for raw materials and finished goods, especially in Central Europe. Many small states almost went bankrupt because they relied on taxes from trade.

After Napoleon's wars, leaders met at the Congress of Vienna in 1814-1815. They redrew the map of Europe. Central Europe remained under Austrian influence. The German states kept their independence, but the old German parliament was replaced by a "Confederation Diet" in Frankfurt. Some people wanted to get rid of internal tolls and create one German tax on imports. However, the Congress of Vienna didn't solve these economic problems. It suggested that trade issues be discussed later.

Challenges in Uniting Trade Rules

Prussia and the states in central and southwest Germany (like Hesse-Kassel, Hesse-Darmstadt, Württemberg, Baden, and Bavaria) were leaders in modernizing their tax systems. Prussia had learned from Napoleon's time that removing customs barriers could work. In 1818, Prussia removed all internal customs barriers. After that, goods could move freely within Prussia, but goods coming into or leaving Prussia faced high taxes. This system was simple and worked well.

The new lands Prussia gained had different economies. The Rhineland and Westphalia had growing factories, while "old" Prussia was mostly farms. These differences made it hard to agree on customs rules.

The states in southwest Germany also faced problems. Their territories had grown, and this sometimes split up Prussia's land. These states often didn't trust Prussia and didn't want it to become too powerful. Also, these "middle-sized states" had trouble combining their new lands and people into their existing systems.

Economic problems after the Napoleonic Wars made things worse. There was high unemployment and high prices, especially for food. Britain's response to its own problems, like the "Corn Laws" (which limited grain imports), also hurt German farmers by making it harder for them to sell their grain to Britain.

In 1856, Bavaria led efforts for commercial reform, which resulted in the General German Commercial Code in 1861. This code was very successful in reducing trade barriers and increasing trade.

The 1820s and 1830s

Friedrich List, an economist who supported a united German trade system.

Johann F. Cotta, who helped create the south German customs agreement.

The Zollverein and German unification.

After the Napoleonic Wars, Germany had 39 states, including four city-states. Prussia removed its own internal taxes in 1818 and started inviting other states to do the same. The agreements that formed the Zollverein created strong economic links between Prussian lands and other territories. This helped create economic unity when Germany was still divided.

It was hard to get rid of internal customs because states relied on these taxes for their income. But outside forces helped. When Napoleon's trade system ended, German traders faced direct competition from English factories. A united German Trade and Tradesmen's Union demanded protection from English goods. Their spokesperson, economist Friedrich List, worried that Germans would become "drawers of water and hewers of wood for Britain" if they didn't unite.

Another person, Karl Friedrich Nebenius, described the problem: "The 38 toll barriers in Germany cripple domestic traffic... To trade from Hamburg to Austria... one must cut through the statutes of ten states, study ten tolls and toll barriers, ten times go through the toll barriers, and ten times pay the tolls."

In the 1820s, some southern German states tried to form their own customs union, excluding Prussia and Austria. These plans didn't work out well at first because the states had different interests. For example, Baden had good trade, but Bavaria had strict protective taxes.

However, in 1825, Württemberg and Bavaria formed the South German Customs Union. Other states, like Hanover and Saxony, made their own trade agreements, promising not to join Prussia's union. But these unions weren't very successful because they didn't fix the core problems.

In 1834, Baden and Württemberg joined the Prussian union, and it was renamed the German Customs Union, or Zollverein. By 1835, the Zollverein had grown to include most of the states in the German Confederation, including Saxony, Bavaria, and the Hessian states. It removed many internal trade barriers but kept protective taxes on foreign goods.

Important Dates

The Zollverein didn't end with the Austro-Prussian War in 1866, but it was greatly reorganized in 1867. The new Zollverein was stronger because no single state could block decisions. When Hamburg joined in 1888, it kept a small part of its port outside the Zollverein, and Bremen had a similar deal.

How the Zollverein Made a Difference

Economic Changes

The Zollverein was very important for Germany's economic unity in the mid-1800s. It greatly affected different regions, changing their economic fortunes by opening and closing markets.

Role in German Unification

Some historians believe the Zollverein helped set the stage for Germany to unite under Prussia's leadership. However, others argue that it might not have increased Prussia's political power much. They say that many states used the extra money from the customs union to try and stay independent. Smaller states joined for money reasons, and their membership didn't mean they were loyal to Prussia.

The Zollverein's impact on German unification might have been accidental, as it focused on the economy, not politics. But because it was a big part of Prussia's "German policy," Prussian leaders started thinking about Germany as a whole, looking for agreements that benefited everyone, not just Prussia.

Some historians also argue that the Zollverein might not have been the main reason for Prussia's economic strength in Germany. They say there's no clear sign that factory investments greatly increased in Prussia during this time, or that the customs union played a big role in reducing the importance of farming in Prussia's economy.

|