What Were the Economic and Political Reasons for Protective Tariffs in 1879

In the early 1870s Bismarck delegated economic matters to an administrator named Delbruck, who continued the free trade policies of the Zollverein. This free trade was an essential policy for most National Liberals. However, in 1879 Bismarck repealed both free trade and his alliance with the National Liberals, instead aligning himself with the Conservative and Centre Parties. With this alliance came the introductions of tariffs to protect German industry and agriculture. There were strong economic and political reasons for this change including; problems with wheat prices and other farmed products, a decline in industrial growth, issues with government revenue and budget and gaining support from

There were convincing economic and financial reasons for Bismarck’s introduction of protective tariffs. Towards the end of the 1870s German agriculture suffered from the effects of a series of bad harvests, where crop production was severely low and also from the importation of cheap wheat from other countries such as USA and Russia. This in turn lowered the price of wheat and increased hardship towards German farmers. Bismarck who was also a landowner, recognised that a prolonged depression in the agriculture section was not good news at all. Also he argued that if Germany was to become reliant on foreign products like grain and crops, the country would desperately struggle in times of war. So by introducing protectionism and tariffs, this would improve German self-sufficiency.

On top of an agricultural depression Bismarck faced a slowdown in industrial growth after 1873, which resulted in a lack of support for the policy of free trade. Industrialists and workers turned to Bismarck and his government to help protect their interests and ease their distress and angst. Following the adoption of protective tariffs by France, Russia and Austria, many pressure groups in Germany comprising of industrialists and labourers, put pressure on Bismarck to follow suit. So Bismarck's attempts to appease this unrest and to keep up with neighbouring countries also led to the introduction of these protectionist tariffs.

Finally the federal government’s revenue, which came from customs duties and indirect taxation, was not adequate at all to cover the growing costs of armaments and administration. In order to reduce the deficit, small payments were made by individual states, which Bismarck saw as only a short term solution. By bringing about these new tariffs he hoped this would give the federal government an extra, profitable source of income. This would ensure the federal government would be financially independent of both the states and the Reichstag, which was the most desirable outcome for Bismarck.

However, on the other hand political motives could also explain the reason for the appearance and introduction of these protective tariffs. Bismarck realised there was political gains in abandoning free trade in Germany, something that had him got into power due to his alliance with the National Liberals. Although he had made this alliance, the Liberals and Bismarck had never got along and their insistence on parliamentary rights and refusal to pass anti-socialist legislation angered