Zollverein

History glossary

Also called: German customs union · Topic: The Rise of Nationalism in Europe · NCERT: Class 10, Ch 1 "The Rise of Nationalism in Europe"

Meaning

The Zollverein (German for "customs union") was a trade union of German states. Prussia started it in 1834, and most German states joined. It removed the tariff barriers (taxes on goods crossing a border) between its members and cut the number of currencies from over thirty to two.

It matters because it showed that economic unity came before political unity in Germany. A single German market was built decades before Bismarck created a German state in 1871.

Explanation

Background: why German traders wanted it

  • The German lands were badly divided. There were 39 German states in the early 19th century.
  • Each state had its own currency.

  • Each had its own weights and measures.

  • Moving goods was slow and costly. In 1833 a merchant going from Hamburg to Nuremberg had to cross 11 customs barriers. At each one he paid a duty of about 5%.

  • Duties were charged by weight.
  • So the goods had to be weighed and measured again at every barrier.

  • Each region used different units, so this wasted a lot of time and money.

  • Even a simple measure was different in each city. The elle (a measure of cloth) was 54.7 cm in Frankfurt, 55.1 cm in Mainz, 65.6 cm in Nuremberg and 53.5 cm in Freiburg.

  • Merchants and industrialists wanted one economic territory. That meant free movement of goods, people and capital. This demand was called economic liberalism (economic freedom for traders and producers).

The Prussian model: the Tariff Law of 1818

  • Prussia tried the idea at home first. The Prussian Tariff Law of 1818 abolished all internal customs dues inside Prussian territory. [2]
  • It also offered free trade to neighbouring states. This Prussian free-trade area became the core of the later national customs union. [2]

Main features of the Zollverein (1834)

  • Formed in 1834 at Prussia's initiative. Most German states joined.
  • It was made by merging two earlier regional customs unions. Eighteen states were members in 1834. [2]
  • Austria was not included. [2]
  • Free trade inside, protection outside:
  • Trade between member states was free. The tariff barriers between them were abolished.

  • A common external tariff (one shared tax on goods from outside), based on the Prussian Tariff of 1818, protected members from foreign competition, mainly British goods. [2]

  • Currencies were cut from over thirty to two.

Results: from one market to one nation

  • Railways joined the markets together. A growing railway network linked the separate markets into one. It also helped people and goods move around.
  • Shared interests created national feeling.
  • Traders across many states now had the same economic interests.

  • Nationalist feeling grew inside what began as a customs deal.

  • Friedrich List gave the idea its slogan. He said the customs union should "bind the Germans economically into a nation". It would bring their interests together and protect them with a common tariff.

  • It strengthened Prussia's lead.
  • Prussia started the union and Austria was left out.
  • The new single market grew up around Prussia. Prussia later led the political unification of Germany under Bismarck (1871).

Time, place and evidence

  • Period: early 19th century. The 1818 Prussian Tariff Law led to the Zollverein of 1834, and political unification followed in 1871.
  • Place: the German states of Central Europe, led by Prussia. Austria stayed outside. [2]
  • Places named in the sources: Hamburg and Nuremberg (the 1833 trade route), and Frankfurt, Mainz, Nuremberg and Freiburg (the elle measurements).
  • Key people and groups:
  • Prussia, which started the union.
  • Friedrich List, Professor of Economics at the University of Tübingen, who explained its aim.

  • Merchants and industrialists, the commercial middle class who demanded it.

  • How we know about it:

  • NCERT Class 10, Ch 1 is the main exam source. It gives the Hamburg–Nuremberg example, the elle figures and List's quotation.
  • Friedrich List's writings state the nationalist purpose of the union.
  • The Prussian Tariff Law of 1818 is an official record of the earlier model. [2]

Don't confuse with

  • Prussian Tariff Law of 1818: this law removed customs dues inside Prussia only. It was the forerunner. The Zollverein (1834) was a union of many German states. [2]
  • German unification (1871): this was political unity, achieved under Bismarck. The Zollverein was only economic unity, and it came first.
  • Frankfurt Parliament (1848): this was a political attempt by middle-class liberals to unite Germany under a constitution, and it failed. The Zollverein was a trade arrangement and it succeeded.
  • Elle: this was a measure of cloth that varied from city to city. It shows the problem the Zollverein tried to solve. It is not a currency and not a tax.

Prelims Hooks

  • Zollverein: formed in 1834, at Prussia's initiative. It cut currencies from over thirty to two.
  • Forerunner: the Prussian Tariff Law of 1818. There were eighteen member states in 1834, and Austria was excluded. [2]
  • Friedrich List (Tübingen): said the customs union should "bind the Germans economically into a nation".
  • Hamburg → Nuremberg (1833): 11 customs barriers, with about 5% duty at each.
  • Early 19th century: 39 German states, each with its own currency, weights and measures.
  • Chronology trap: Prussian Tariff Law (1818) → Zollverein (1834) → German unification (1871).

Mains Points

  • Economic unity can come before political unity and help produce it.
  • The Zollverein and the railways created one German market and shared economic interests.
  • This happened decades before Bismarck's German state of 1871.
  • The Prussian Tariff Law of 1818 shows Prussia had already tested the model at home. [2]

  • This is a useful comparison in answers on economic unions and identity, such as the EU or India's single internal market after 1947.

  • Nationalism in the German lands was a middle-class project. The merchants, industrialists and professionals created by industrialisation wanted free movement of goods, people and capital. Their economic liberalism turned into national feeling. The aristocracy and the peasantry did not lead this change.

  • The Zollverein shaped who would lead Germany.
  • Prussia started the union and Austria was kept out. [2]
  • So the German market grew up around Prussia, which later led political unification.
  • This shows how economic institutions can decide political leadership.

Related concepts

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Sources

  1. 1Class 10, Ch 1 "The Rise of Nationalism in Europe" (primary)
  2. 2Zollverein — Prussian Tariff of 1818britannica.com · tier 3