No more free trade

Karikatur „Märchenhaftes – Eselein, streck‘ dich! Tischlein, deck‘ dich“ (Quelle: Uni Heidelberg, Ausschnitt)
No more free trade
Jul 12 1879
Cartoon "Fairytale - Little donkey, stretch yourself! Table, cover yourself" (Source: University of Heidelberg, excerpt)

The Reichstag establishes a tariff wall to protect German industry

The economic boom triggered by the unification of Germany was followed in 1873 by an almighty bust: prices fell, share prices tumbled, businesses went bankrupt and unemployment rose. Domestic causes of the crisis were exacerbated by cheap imports of British industrial goods and Russian and American grain. Lobbyists urged Chancellor Bismarck to abandon his policy of free trade and set up tariffs to protect domestic industries and farmers. The Reichstag passed the necessary legislation on 12 July 1879, introducing protective tariffs on iron, grain, wood, tobacco, tea and coffee.

The new policy led to higher prices, and the profits were invested into a campaign of modernization. However, wages stagnated and poverty fuelled a wave of overseas emigration. Wages did not recover until the mid-1880s.

Logo des Deutschlandmuseums

About the Deutschlandmuseum

An immersive and innovative experience museum about 2000 years of German history

The whole year at a glance

January
February
March
April
May
June
July
August
September
October
November
December

Discover history

Visit the unique Deutschlandmuseum and experience immersive history

2000 Jahre
12 Epochen
1 Stunde