VI. 1867. CHAP. the Federal Council and the Reichstag were bound to take the organization of the Federal army into account when they voted the military estimates, and they were not permitted to refuse any vote which could in any way injure this organization. The military estimate was calculated at 225 thalers for each man, and by Article LXII. of the Constitution a sum of 67,433,400 thalers or 10,115,010l. (299,704 times 225 thalers) was obliged to be voted from July 1, 1867, to December 31, 1871. And this vote was to be continued until the peace establishment of the army was settled.1 The Confederation derived its revenues from the following sources : 1. Those Customs dues which are set aside for Federal purposes, as well as the excise on those articles of consumption (that is on beet-sugar, salt, tobacco, beer, and brandy) which the Customs Union devoted to the Federal Chest. 2. The Aversal-Summen,' that is those sums which the parts of the Federal territory lying outside the limits of the Customs Union, have to pay to be exempted from the Customs dues. 3. The tax on exchange stamps. Each State deducts a certain percentage. 4. The revenues of the posts and telegraphs. 5. The fees which are paid to the Federal Court of appeal for commercial matters. 1 In April 1874 the peace establishment was fixed at 401,659 men, for the term of seven years. 6. The fees received by the Federal Consuls. 7. The quotas which each State had to pay into the Federal Chest. These constitute about a third of the whole revenue. They were calculated on the number of the population, in fact a kind of poll tax. This was rather hard on largely-populated and poor countries, and too favourable for the small rich States. A deputy of the Reichstag pointed out the injustice of equally taxing 100,000 citizens of Bremen, and 100,000 inhabitants of the Thuringian forests. Some of the States procured some slight alleviations from these quotas. The loan of 10,000,000 thalers, which was contracted in 1867, was placed under the direction of the Prussian National Debt Administration, and was supervised by the Chancellor, and by a committee of seven members elected by the Federal Council and the Reichstag. A yearly account had to be rendered to the Federal Council and to the Reichstag, by the head of the Confederation, of the expenditure of the revenue. Before closing these remarks on the Constitution of 1867, some mention must be made of the Customs Union. CHAP. 1867. Union. The Customs Union established in 1865, for Customs twelve years, and to which twenty-four States had given their adhesion, was considered dissolved by the war, yet it was determined to allow it to continue till some measures of reform had been decided CHAP. VI. 1867. on. For North Germany it was, of course, no longer necessary, and the relations in which the South German States stood to it were capable of improvement. The machinery was complicated. It had been the custom for the representatives of the several States to meet in conference in the summer, when any of their resolutions were sanctioned by the Governments and ratified by the Assemblies. It happened only in one or two instances that the Assemblies of the States refused to ratify any resolution; but their right of veto existed, and reference to them delayed business. The equality of votes was again an injustice, and sometimes an inconvenience. Frankfort was on precisely the same footing as Prussia. After the war the whole of North Germany possessed but one legislation, exercised by the Federal Council and the Reichstag, for customs, commerce, and taxes. It was impossible, then, that the old Customs Union could have continued to exist; otherwise the South German States might have vetoed and hampered the legislative acts for the whole of North Germany. A congress, on the invitation of Count Bismarck, was held at Berlin in June 1867, when it was agreed to establish a Federal Commercial Council, and a Commercial Parliament for the whole of Germany; in fact, to form a Commercial Constitution, similar to the political Constitution of North Germany, and to render legislation in commercial matters independent of the political assemblies. The elections for these commercial bodies were con ducted in the same manner as those for the Federal Council and the Reichstag. The Government of the Customs Union consisted, then, of three bodies on the model of the North German Confederation, viz. of a Presidency, of a Federal Council, and of a Parliament. Laws required the assent of the majority of the Federal Council and of the Parliament, but no change could be made in the existing laws without the consent of the King of Prussia as President of the Union. The laws were not submitted to the assemblies of the several States. The Customs duties and taxes on the articles of consumption imposed by the Union were to last till December 31, 1877, unless the Customs Federal Council and the Customs Parliament altered them with the sanction of the King of Prussia. The publication of the treaties, laws, decrees, &c. of the Union was made by each State in its own manner, as there was no Gazette (Gesetz-Blatt) for the Customs Union. All that was required of each State was that these laws &c. should be published. The Presidency of the Union was an attribute of the King of Prussia. He named the President of the Customs Federal Council, and the chief Customs officials. He had a veto, as mentioned above, in all resolutions which altered the existing laws, and also against the dissolution of the Customs Parliament. The summoning, proroguing, and dissolving of the Federal Council and Parliament were in his hands. The Federal Council of the Customs Union was I CHAP. VI. 1867. VI. 1867. Customs CHAP. composed of the members of the Federal Council of the North German Confederation, and the representatives of the four Southern States. The number amounted to fifty-eight in all; that is, forty-three from the North German Confederation, six from Bavaria, four from Würtemberg, three from Baden, and two from South Hesse. A representative of Prussia was to be President of the Council, but it was not necessary that he should be the Chancellor. The members of the Customs Federal Council enjoyed the same diplomatic privileges as those of the Federal Council of the North German Confederation, and could attend the meetings of the Customs Parliament. The Federal Council had to meet once a year, and was also to be summoned whenever the Customs Parliament met. The functions of the Federal Council were as follows. The assent of the Council was necessary to the laws issued by the Union, and without its consent, the King of Prussia could not conclude commercial and navigation treaties. It issued decrees and instructions with regard to the laws and treaties of the Union being carried into effect, and took cognizance of any defect in the executive machinery. In conjunction with the King of Prussia it could decree the dissolution of the Customs Parliament. A simple majority was required for the adoption of any measure. There were three permanent Committees in the Customs Federal Council, one for commerce and trade, one for the customs and taxes, and one for |