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Prussian Reform Movement

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Through World War I, Napoleon and Serfdom

The reforms were a reaction to the defeat of the Prussians by Napoleon I at the battle of Jena-Auerstedt in 1806, leading to the second Treaty of Tilsit, in which Prussia lost about half its territory and was forced to make massive tribute payments to the First French Empire. To make those payments, it needed to rationalize its administration.

To become a great power again, it initiated reforms from 1807 onwards, based on Enlightenment ideas and in line with reforms in other European nations. They led to the reorganization of Prussia's government and administration and changes in its agricultural trade regulations, including the abolition of serfdom and allowing peasants to become landowners. In industry, the reforms aimed to encourage competition by suppressing the monopoly of guilds. Administration was decentralised and the power of Prussian nobility reduced. There were also parallel military reforms led by Gerhard von Scharnhorst, August Neidhardt von Gneisenau, and Hermann von Boyen, and educational reforms headed by Wilhelm von Humboldt. Gneisenau made it clear that all these reforms were part of a single programme when he stated that Prussia had to put its foundations in "the three-faced primacy of arms, knowledge and the constitution".

It is harder to ascertain when the reforms ended—in the fields of the constitution and internal politics in particular, the year 1819 marked a turning point, with Restoration tendencies gaining the upper hand over constitutional ones. Though the reforms undoubtedly modernised Prussia, their successes were mixed, with results that were against the reformers' original wishes. The agricultural reforms freed some peasants, but the liberalization of landholding condemned many of them to poverty. The Prussian nobility saw its privileges reduced but its overall position reinforced.

Reasons, aims and principles

Prussia in 1807

Prussia's position in Europe

In 1803, German Mediatisation profoundly changed the political and administrative map of Germany. Favourable to mid-ranking states and to Prussia, the reorganisation reinforced French influence. In 1805, the Third Coalition formed in the hope of stopping French domination of Europe from advancing further, but the coalition's armies were defeated at Austerlitz in December 1805. Triumphant, Napoleon I continued to work towards dismantling the Holy Roman Empire. On 12 July 1806, he detached 16 German states from it to form the Confederation of the Rhine under French influence. On 6 August the same year, Francis I of Austria was forced to renounce his title of emperor, and dissolve the Empire.

French influence had reached as far as the Prussian frontier by the time Frederick William III of Prussia realised the situation. Encouraged by the United Kingdom, Prussia broke off its neutrality (in force since 1795), repudiated the 1795 Peace of Basel, joined the Fourth Coalition and entered the war against France. Prussia mobilised its troops on 9 August 1806, but two months later was defeated at Jena-Auerstedt. Prussia was on the verge of collapse, and three days after the defeat Frederick William III issued posters appealing to the inhabitants of Berlin to remain calm. Ten days later, Napoleon entered Berlin.

The war ended on 7 July 1807 with the first Treaty of Tilsit between Napoleon and Alexander I of Russia. Two days later, Napoleon signed a second Treaty of Tilsit with Prussia, removing half its territory and forcing Prussia's king to recognise Jérôme Bonaparte as sovereign of the newly created Kingdom of Westphalia, to which Napoleon annexed the Prussian territories west of the river Elbe. Prussia had had nine million inhabitants in 1805, of whom it lost 4.55 million in the treaty. It was also forced to pay 120 million francs to France in war indemnities and fund a French occupying force of 150,000 troops.

Financial situation

The biting defeat of 1806 was not only the result of poor decisions and Napoleon's military genius, but also a reflection on Prussia's poor internal structures. In the 18th century the Prussian state had been the model of enlightened despotism for the rest of Germany. To the west and south, there was no single state or alliance that could challenge it. Yet in the era of Frederick II of Prussia it was a country oriented towards reform, beginning with the abolition of torture in 1740.

The economic reforms of the second half of the 18th century were based on a mercantilist logic. They had to allow Prussia a certain degree of self-sufficiency and give it sufficient surpluses for export. Joseph Rovan emphasises that:

the state's interest required that its subjects were kept in good health, well nourished, and that agriculture and manufacture made the country independent of foreign countries, all the while allowing it to raise money by exporting surpluses.

Economic development also had to fund and support the military. Prussia's infrastructure was developed in the form of canals, roads and factories. Roads connected its outlying regions to its centre, the Oder, Warthe and Netze marshes were reclaimed and farmed and apple-growing was developed.

However, industry remained very limited, with heavy state control. Trades were organised into monopolistic guilds and fiscal and customs laws were complex and inefficient. After the defeat of 1806, funding the occupation force and the war indemnities put Prussia's economy under pressure. As in the 18th century, the early 19th century reforms aimed to create budgetary margins, notably in their efforts towards economic development.

Frederick II of Prussia favoured both economic and political reform. His government worked on the first codification of Prussia's laws – the 19,000 paragraph General State Laws for the Prussian States. Article 22 indicated that all his subjects were equal before the law: "The state's laws unite all its members, without difference of status, rank or sex". However, Frederick died in 1786 leaving the code incomplete and was succeeded by Frederick William II of Prussia, who extended the same administrative structure and the same civil servants.

The absolutist system started to re-solidify under the obscurantist influence of Johann Christoph von Wöllner, financial privy councillor to Frederick William II. The reforms stalled, especially in the field of modernising society. The editing of the General State Laws was completed in 1792, but the French Revolution led to opposition to it, especially from the nobility. It was then withdrawn from circulation for revision and did not come back into force until 1794. Its aims included linking the state and middle class society to the law and to civil rights, but at the same time it retained and confirmed the whole structure of the Ancien Régime. Serfdom, for example, was abolished in Prussia's royal domains but not in the estates of the great landowners east of the river Elbe. The nobility also held onto its position in the army and administration. In 1797 Frederick William III succeeded his father Frederick William II, but at the time of his accession he found society dominated by the old guard, apart from the General State Laws promulgated in 1794. His own idea of the state was absolutist and he considered that the state had to be in the hands of the sovereign. Before 1806, several observers and high-level civil servants such as Heinrich Friedrich Karl vom Stein and Karl August von Hardenberg underlined the fact that the Prussia state needed restructuring. As Minister of Finances and the Economy, Stein put some reforms in place, such as standardising the price of salt (then a state monopoly) and partially abolishing the export-import taxes between the kingdom's territories. In April 1806, he published Darstellung der fehlerhaften Organisation des Kabinetts und der Notwendigkeit der Bildung einer Ministerialkonferenz (literally Exposé on the imperfect organisation of the cabinet and on the necessity of forming a ministerial conference). In it, he wrote:

"There should be a new and improved organisation of state affairs, to the measure of the state's needs born of circumstances. The main aim is to gain more strength and unity across the administration."

Start of the reforms

Trigger – the defeat of 1806

Prussia's war against Napoleon revealed the gaps in its state organisation. Following the series of defeats in December 1806, Frederick William III fled from French armies and arrived at Ortelsburg, a small town in East Prussia. On 12 December, he composed the Declaration of Ortelsburg. Besides venting his anger over a chain of capitulations and demanding merciless punishment for those deserters, he also announced a revolutionary measure that any fighting man could be promoted into the officer corps regardless of his class, whether he was a private, warrant officer or prince. Pro-war and a strong critic of his sovereign's policies, Stein was dismissed in January 1807 after the defeat by France. However, Frederick William III saw that the Prussian state and Prussian society could only survive if they began to reform. After the treaty of Tislsit, he recalled Stein as a minister on 10 July 1807 with the backing of Hardenberg and Napoleon, the latter of whom saw in Stein a supporter of France. Queen Louise of Mecklenburg-Strelitz also supported Stein's re-appointment – indeed, she was more in favour of reform than her husband and was its main initiator. Aided by Stein, Hardenberg and others, she had convinced her husband to mobilise in 1806 and in 1807 she had even met with Napoleon to demand that he review the hard conditions imposed in the treaty. Hardenberg wrote the same year:

« I believe that queen Louise could tell the king what the queen of Navarre, Catherine de Foix, said to her husband Jean d'Albret – "If we were born, your dear Catherine and my dear Jean, we would not have lost our kingdom"; for she would have listened to men of energy and asked advice, she would have taken them on and acted decisively. What [the king] lacks in personal strength is replaced in this way. An enterprising courage would have replaced a tolerant courage.»

Stein set certain conditions for his taking the job, among which was that the cabinets system should be abolished. In its place, ministers had to win their right to power by speaking to the king directly. After this condition had been satisfied, Stein took up his role and was thus directly responsible for the civil administration as well as exercising a controlling role over the other areas. Frederick William III still showed little inclination to engage in reforms and hesitated for a long while. The reformers thus had to expend much effort convincing the king. In this situation, it was within the bureaucracy and the army that the reformers had to fight the hardest against the nobility and the conservative and restorationist forces. The idealist philosophy of Immanuel Kant thus had a great influence on the reformers – Stein and Hardenberg each produced a treatise describing their ideas in 1807.

Nassauer Denkschrift

After his recall, Stein retired to his lands in Nassau. In 1807, he published the Nassauer Denkschrift, whose main argument was the reform of the administration. In contrast to the reforms in the states of the Confederation of the Rhine, Stein's approach was traditionalist and above all anti-Enlightenment, focussing instead on critiquing absolutism. Stein followed English models such as the Glorious Revolution of 1688 and was sceptical of a centralised and militarised bureaucracy, favouring a decentralised and collegiate administration. With his collaborators, he followed (in his own words) a "policy of defensive modernisation, not with Napoleon but against him".

According to Stein, the administration should be split up by field and no longer by geographical area. Thus the administration had to be divided into two branches – the public revenue branch and the top-level state-policy branch (oberste Staatsbehörde). One of the main aims of this concept was to rationalise the state financial system to raise the money to meet its war indemnities under the Treaties of Tilsit. Rationalising the state finances would allow the state to raise revenue but limit losses due to poor administrative organisation.

Stein was an anti-absolutist and an anti-statist, suspicious of bureaucracy and central government. For him, civil servants were only men paid to carry out their task with "indifference" and "fear of innovation". Above all, he set out to decentralise and form a collegiate state. Stein thus gave more autonomy to the provinces, Kreise and towns. Thanks to the different posts he had previously held, Stein, realised that he had to harmonise the government of the provinces. He had recourse to the old corporative constitution, as he had experienced in Westphalia. The landowner, according to Stein, was the keystone to local self-government – "If the landowner is excluded from all participation in the provincial administration, then the link which links him to the fatherland remains unused".

However, it was not only functional considerations which played a role for Stein. He felt he first had to educate the people in politics and provincial self-government was one of the most useful things in this area. On landowners' participation in the provincial administration, he wrote:

the economy as regards administrative costs is however the least important advantage gained by the landowners' participation in the provincial administration. What is much more important is to stimulate the spirit of the community and of the civic sense, the use of sleeping and poorly led forces and spreading knowledge, the harmony between the spirit of the nation, its views and its needs and those of the national administrations, the re-awakening of the feelings for the fatherland, independence and national honour.

In his reform projects, Stein tried to reform a political system without losing sight of the Prussian unity shaken by the defeat of 1806.

Rigaer Denkschrift

Stein and Hardenberg not only made a mark on later policy but also represented two different approaches to politics, with Hardenberg more steeped in Enlightenment ideas. He took the principles of the French Revolution and the suggestions created by Napoleon's practical policy on board more deeply than Stein. Hardenberg was a statist who aspired to reinforce the state through a dense and centralised administration. Nevertheless, these differences only represented a certain change of tendency among the reformers. The initiatives put in place were very much things of their own time, despite the latter umbrella concept of the 'Stein-Hardenberg reforms'.

The Rigaer Denkschrift was published the same year as Stein's work and presented on 12 September 1807. It bore the title 'On the reorganisation of the Prussian state'. Previously a resident of Riga, Hardenberg had been summoned in July by the king of Prussia under pressure from Napoleon. Hardenberg developed ideas on the overall organisation of the Prussian state that were different from those of his fellow reformers. The main editors of the Rigaer Denkschrift were Barthold Georg Niebuhr, an expert financier, Karl vom Stein zum Altenstein, a future minister of Finances and Heinrich Theodor von Schön. These three men concluded that the Revolution had given France a new impetus: "All the sleeping forces were re-awakened, the misery and weakness, the old prejudices and the shortcomings were destroyed." Thus, in their view, Prussia had to follow France's example:

The folly of thinking that one can access the revolution in the safest way, remaining attached to the ancien regime and strictly following the principles for which it argues has only stimulated the revolution and made it continually grow larger. These principles' power is so great – they are so generally recognised and accepted, that the state that does not accept them must expect to be ruined or to be forced to accept them ; even the rapacity of Napoleon and his most-favoured aides are submitted to this power, and will remain so against their will. One cannot deny that, despite the iron despotism with which he governs, he nevertheless follows these principles widely in their essential features ; at least he is forced to make a show of obeying them.

The authors thus favoured a revolution "im guten Sinn" or "in the right sense", which historians later described as "revolution from above". Sovereigns and their ministers thus put in place reforms to gain all the advantages of a revolution without any of the disadvantages, such as losing their power or suffering from setbacks or outbreaks of violence.

As in Stein's Denkschrift, the Rigaer Denkschrift favours reviving national spirit to work with the nation and the administration. Hardenberg also sought to define society's three classes – the nobility, the middle class and the peasants. For him, the peasants took part in "the most numerous and most important but nevertheless the most neglected and belittled class in the state" and added that "the peasant class has to become the main object of our attention". Hardenberg also sought to underline the principle of merit which he felt had to rule in society, by affirming "no task in the state, without exception, is for this or that class but is open to merit and to skill and to the ability of all classes".

Overview

Within fourteen months of his appointment, Stein put in place or prepared the most important reforms. The major financial crisis caused by the requirements of Tilsit forced Stein into a radical austerity policy, harnessing the state's machinery to raise the required indemnities. The success of the reforms begun by Stein was the result of a discussion already going on within the upper bureaucracy and Stein's role in putting them in place was variable – he was almost never, for example, involved in questions of detail. Many of the reforms were drafted by others among his collaborators, such as Heinrich Theodor von Schön in the case of the October decree. However, Stein was responsible for presenting the reforms to the king and to other forces opposed to them, such as the nobility.

During Stein's short period of office, decisive laws were promulgated, even if the organizational law on state administration was not published until 1808 (i.e. after Stein's fall). It was during Stein's time in office that the edict of October 1807 and the cities' organizational reforms (Städteordnung) of 1808 were put into effect. After a short term of office by Karl vom Stein zum Altenstein, Hardenberg regained control of policy. From 1810, he bore the title of Staatskanzler, retaining it until 1822. Thanks to him, land reform was completed via the Edicts of Regulation (Regulierungsedikten) of 1811 and 1816 as well as the Ablöseordnung (literally the redemption decree) of 1821. He also pushed through the reforms of trade regulation such as the edict on professional tax of 2 November 1810 and the law on policing trades (Gewerbepolizeigesetz) of 1811. In 1818 he reformed the customs laws, abolishing internal taxes. As for social reform, an edict to emancipate Jewish citizens was promulgated in 1812. Despite the different initial situations and aims pursued, similar reforms were carried out in the states of the Confederation of the Rhine, except for the military and educational reforms. The Restoration put a stop to the reformist policy in Prussia around 1819 or 1820.

Main reforms

The reforms which were to be put in place were essentially a synthesis between historic and progressive concepts. Their aim was to replace the absolutist state structures which had become outdated. The state would have to offer its citizens the possibility of becoming involved in public affairs on the basis of personal freedom and equality before the law. The government's main policy aim was to make it possible to liberate Prussian territory from French occupation and return the kingdom to great-power status through modernising domestic policy.

The Prussian subject had to become an active citizen of the state thanks to the introduction of self-government to the provinces, districts (kreise) and towns. National sentiment had to be awakened as Stein foresaw in his Nassau work, but a citizen's duties were in some ways more important than his or her rights. Moreover, Stein's concept of self-government rested on a class-based society. A compromise between corporative aspects and a modern representative system was put in place. The old divisions into the three estates of nobility, clergy and bourgeoisie were replaced by divisions into nobility, bourgeoisie and peasants. The right to vote also had to be expanded, particularly to free peasants, which would be one of the bases for the freeing of the peasants in 1807.

The new organisation of power in the countryside and reform of industry were factors in the liberalisation of the Prussian economy. In this respect, the Prussian reforms went much further than those in the states of the Confederation of the Rhine and were much more successful. The 1806 financial crisis, intensified by the indemnities, the occupation costs and other war costs, gave the necessary impetus for these changes – in all, Prussia had to pay France 120 million francs. The freeing of the peasants, the industrial reforms and the other measures removed economic barriers and imposed free competition. The Prussian reforms relied on the economic liberalism of Adam Smith (as propounded by Heinrich Theodor von Schön and Christian Jakob Kraus) more heavily than the south German reformers. The Prussian reformers did not actively seek to encourage Prussian industry, which was then under-developed, but to remedy the crisis in the agricultural economy.

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