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Post-WWI Germany
In the early summer of 1919 the harsh terms of the Versailles peace treaty were revealed. Scheidemann’s cabinet resigned and was succeeded by the Bauer cabinet, which sent a delegation to sign the Versailles Treaty on 28 June. Germany was to lose large areas of land: Alsace-Lorraine was to be returned to France, West Prussia, Upper Silesia and Posen were to go to the newly reconstructed Poland, Danzig was to become a free city under League of Nations supervision, with the ‘Polish Corridor’ separating East Prussia from the rest of Germany. Germany was deprived of colonies, and any union of Germany and Austria was forbidden. The army was limited to 100,000 men, and the left bank of the Rhine was to be demilitarised under Allied supervision, with Allied occupation to be phased out over a period of time. In the notorious ‘war guilt clause’ Germany was burdened with responsibility for the war.
Germany’s growth contrasted with the longer, slower process of industrialisation in Britain, where there was a multiplicity of small family firms competing with one another, associated with a belief that the state should not intervene in a supposedly free market. In Germany, there was considerable state intervention, as well as an important role played by a small number of great investment banks, such as the Deutsche and Dresdner Banks. In contrast to Britain, too, there was increasing economic concentration and cartelisation. Cartels were organisations of firms producing similar products which had a common interest in fixing prices and determining conditions of production and marketing. Their number increased rapidly, from eight in 1875 to around 3,000 by the 1920s.
After the unity, how did the Austria vs Prussia competition go
With the acquisition of the Rhenish and Westphalian territories, Prussia gained not only in territorial size and population but also, crucially, in economic power and potential. Not only was Prussia now more equal to Austria in simple demographic terms; Prussia also was poised to outstrip Austria in economic development, a major factor in the century of industrialisation. Constitutionally, however, both Prussia and Austria remained relatively conservative. Prussia did not gain a united parliament, and although reforms were continued in certain provinces (with the western provinces, which were not engaged in a programme of reform, nevertheless continuing to be more progressive), centrally the programme of reforms was dropped by King Frederick William III. Major reformers had been dismissed from office by 1819–20. In Austria, the absence of a perceived need for centralisation in response to territorial or other changes, and the earlier reforms under Joseph II, added up to a programme of conservatism and inactivity in the post-Napoleonic period.
How did the French Revolution contribute
The political impact of the French Revolution on Germany was profound and ultimately irreversible. There is more ambiguity about its effects in other spheres. Economically, the French continental blockade against England probably did not last long enough to be of much help to Germany’s economic development. While the preconditions for later economic takeoff were established in the abolition of a variety of feudal restrictions on trade and labour mobility, the Napoleonic Wars probably on the whole retarded immediate economic development except in the Rhenish provinces directly administered by the French. Culturally, it is usually asserted that the Wars of Liberation served to turn the cultural nationalism of Herder into a new political nationalism. Yet this is probably overstated: there were only the most limited, partial stirrings of a political nationalism at this time, with local loyalties arguably very much more important.
After Napoleonic Era
A German Confederation ( Deutscher Bund ) was established in place of the Holy Roman Empire. The Confederation was made up of thirty-eight states (thirty-nine after 1817): thirty-four monarchies and four free cities. The Confederation’s boundaries were basically the same as those of the Holy Roman Empire. It did not correspond with the
Under Napoleonic Rule, in Germania
In 1807, serfdom was abolished. Since peasants frequently could not meet the compensation payments, their formal freedom in practice meant little. The main beneficiaries were in fact the nobles (and the legislation was in any case later modified by regulations unfavourable to the peasantry). Restrictions imposed by the notion of ‘estates’ as status groups defined by birth, rather than social classes, were lifted, so that nobles could now engage in middle-class occupations, while peasants and burghers could (at least in theory) buy noble lands. This transformation from a status to a class society created a potential mobility of labour, which formed a precondition for later capitalist economic development.