On this basis she induced neighbouring small German States to join her in a Customs Union (Zollverein), which gradually extended, until by 1836 it included all the States of the present Empire except the two Mecklenburgs, the Elbe Duchies, and the three Free Cities of Hamburg, Bremen, and Luebeck.

That is to say, the attractive force of the highly developed Prussian State practically unified Germany for purposes of trade and commerce, and that, too, thirty-eight years before political union was achieved.
This, be it observed, was on condition of internal Free Trade, but of moderate duties being levied on foreign products.

Up to 1840 these import duties were on the whole reduced; after that date a protectionist reaction set in; it was checked, however, by the strong wave of Free Trade feeling which swept over Europe after the victory of that principle in England in 1846-49.

Of the new champions 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.