s of Free Trade on
the Continent, the foremost in point of time was Cavour, for that
kingdom of Sardinia on which he built the foundations of a regenerated
and united Italy. Far more important, however, was the victory which
Cobden won in 1859-60 by inducing Napoleon III. to depart from the
almost prohibitive system then in vogue in France. The Anglo-French
Commercial Treaty of January 1860 seemed to betoken the speedy
conversion of the world to the enlightened policy of unfettered exchange
of all its products. In 1862 and 1865 the German Zollverein followed
suit, relaxing duties on imported articles and manufactured goods--a
process which was continued in its commercial treaties and tariff
changes of the years 1868 and 1869.

At this time Bismarck's opinions on fiscal matters were somewhat vague.
He afterwards declared that he held Free Trade to be altogether false.
But in this as in other matters he certainly let his convictions be
shaped by expediency. Just before the conclusion of peace with France he
so far approximated to Free Trade as to insist that the Franco-German
Commercial Treaty of 1862, which the war had of course abrogated--- war
puts an end to all treaties between the States directly engaged--should
now be again regarded as in force and as holding good up to the year
1887[81]. He even stated that he "would rather begin again the war of
cannon-balls than expose himself to a war of tariffs." France and
Germany, therefore, agreed to place one another permanently on "the most
favoured nation" footing. Yet this same man, who so much desired to keep
down the Franco-German tariff, was destined eight years later to
initiate a protectionist policy which set back the cause of Free Trade
for at least a generation.

[Footnote 81: For that treaty, and Austria's desire in 1862 to enter the
German Zollverein, see _The Diplomatic Reminiscences of Lord A. Loftus,
_vol. ii. pp. 250-251.]

What brought about this momentous change? To answer this fully would
take up a long chapter. We can only glance at the chief forces then at
work. Firstly, Germany, after the year 1873, passed through a severe and
prolonged economic crisis. It was largely due to the fever of
speculation induced by the incoming of the French milliards into a land
where gold had been none too plentiful. Despite the efforts of the
German Government to hold back a large part of the war indemnity for
purposes of military defence and substantial enterprises,