ZOLLVEREIN.

ZOLLVEREIN. The German zollverein, or customs-association, was the union effected among a number of the German states, and begun by the junction of some of them with Prussia, for tariff purposes, a union by virtue of which (the Prussian tariff system being taken as a basis within the limits of the territory of the association) all tariff barriers between such states were swept away, while duties were collected at the boundary lines of the association, on their joint account, and divided among the several states, parties to the union, in proportion to their population.

—This union came into existence after the dissolution of more than one tariff alliance against Prussia, Jan. 1, 1834, and was at first intended to continue for eight years. At that date the union embraced eighteen German states. In 1835, Hessen-Homburg, Baden and Nassau entered it; in 1836, Frankfurt; in 1838, Waldeck; in 1842, Braunschweig, Lippe and Luxemburg; in 1851 and 1852, Hanover and Oldenburg. From 1854 to 1865, all the German states, with the exception of Austria, the two Mecklenburgs and the Hanseatic cities, belonged to the Zollverein. The last Zollverein treaty is dated May 16, 1865, and was to run from Jan. 1, 1866, to the end of 1877, but was set aside by the events of 1866. The zollverein, or customs-association treaty, of July 8 1867, between the North German confederation considered as a single tariff territory, on the one hand, and Bavaria, Wurtemberg, Baden and Hesse on the other, which was to continue in force for twelve years, rested on a different basis entirely.

—The Zollverein itself was brought to an end by the establishment of the German empire, inasmuch as the constitution of the empire, of April 16, 1871, art. 33, provides that Germany shall constitute one single country for tariff and commercial purposes, with Bremen and Hamburg as free ports. At present the Zollverein, therefore, has mainly an historical interest.

—The economic consequences to Germany of the Zollverein were the consequences which may be expected from every customs-union. 1. It reduced the cost of the collection and administration of the customs duties as a consequence of the removal of the tariff barriers between the associated states; 2, it rapidly developed the industry of those states by the application of the principle of free trade in their commercial intercourse; 3, it increased the customs receipts by increasing consumption, the tariff being a moderate one; 4, it rendered it possible for these states, through the union, to conclude advantageous treaties with foreign countries, which are more disposed to make concessions to a state which offers them a large market than to small, unimportant countries; 5, it increased the commerce of the customs-union with foreign countries; 6, it increased the political importance of Germany, since its political union was destined, sooner or later, as it actually did, to spring from its customs-union.^*159

M.