In the 14th century the silk manufacture was introduced, and the first paper mill was established as early as 1390. During the 15th century Germany became celebrated for its watch manufacture. Printing works were established at Augsburg and the lace manufacture introduced into Saxony in the 16th century. At that time Germany was to Europe, in regard to industry and commerce, what England is now. The thirty years' war destroyed all prosperity for a long time. At the beginning of the 18th century German industry again flourished, principally in consequence of the immigration of the Huguenots expelled from France. Frederick II. of Prussia and Joseph II. of Austria strove to raise it to its former eminence, but the French revolutionary wars blighted it once more. Since then it has recovered the lost ground, principally by means of the Zolherein, a commercial union of German states, which was inaugurated in 1819 and gradually joined by the majority of the states. According to the constitution of 1871, the German empire constitutes one customs and commercial union, except a few small communes which on account of their situation remain excluded from the common line of customs, and the two Hanse towns, Hamburg and Bremen, which as free ports may remain outside of the union until they themselves demand admittance." Besides the states of the empire, the Zollverein embraces the grand duchy of Luxemburg and the Austrian commune of Jungholtz on the southern frontier of Bavaria. By the Zollverein free commerce was established among all its members, while a high tariff protected their industry against foreign competition.

The progress made by Germany under this system is truly remarkable.While 50 years ago it had become preeminently an exporter of raw products of the soil, it is now one of the principal exporters of industrial products and importers of raw materials. The centres of German industry are the kingdom of Saxony, Westphalia, Rhenish Prussia, and Alsace-Lorraine. The linen manufacture stands highest in Saxony, Silesia, and Rhenish Prussia. The cotton industry of Germany has of late assumed very large dimensions. The number of spindles in 1869 was estimated at 5,000,000. The imports of cotton into the territory of the Zollverein were 2,271,000 cwt., of cotton yarn 313,264, and of cotton goods 28,700 cwt.; while on the other hand the exports of cotton were 936,397 cwt., of cotton yarn 66,861, and of cotton goods 198,562. How the woollen manufacture of Germany has been increased by the Zollverein may be seen from the fact that in 1825 Germany exported to England alone 280,-000 cwt. of raw wool, while in 1869 the quantity of woollen yarn imported into Germany amounted to 300,000 cwt., and the quantity exported to 94,000, leaving not less than 206,-000 cwt. as the net import of raw material. In the same year the quantity of woollen cloth exported amounted to 306,581 cwt.

The German silk fabrics equal in quality the French and English, but are somewhat inferior in design. The principal silk manufactories are in Prussia (Berlin, Elberfeld, and Crefeld) and Saxony. The export of silk fabrics from Germany is nearly equal in amount to the domestic consumption. The paper manufacture has made considerable progress, although the finest qualities are still imported to some extent. In some fabrics of wood, as the choicest kinds of cabinet furniture, and all kinds of toys, Germany stands unequalled, and is a large exporter to all countries of the world. The iron manufacture has of late increased rapidly. The production of raw iron in the empire amounted in 1868 to 27,757,880 cwt. (21,065,199 in Prussia, 4,487,458 in Alsace-Lorraine, 961,382 in Bavaria), and in 1869 to about 33,000,000 cwt. The best iron and steel wares are manufactured in Rhenish Prussia and Saxony. The machine shops of Prussia, Saxony, Bavaria, and Baden rival, if they do not excel, the largest establishments of their kind in England. Other important branches of industry are gold and silver wares (Augsburg and Berlin), glass wares (Silesia), leather (Rhenish Prussia), porcelain (Saxony and Berlin), mathematical and astronomical instruments (Munich and Berlin), clocks (Baden), etc.

Brewing is one of the most extensive branches of industry, especially in Bavaria. There were in the year 1870-,71 in the empire (exclusive of Lorraine) 302 beet sugar manufacturing establishments (227 in Prussia, 35 in Anhalt, 25 in Brunswick, 5 each in the Thuringian states and Wurtemberg, 4 in Bavaria, 1 in Baden), which made 4,876,000 cwt. of sugar.-The foreign commerce of Germany is of great importance. The total value of imports in 1870 was estimated at $403,200,-000, of exports at $345,600,000. The present customs law of the German empire bears date July 1, 1869; a newr tariff was introduced on Oct. 1, 1870. All transit duties have been abolished; the duties on imports have been greatly reduced; of exports only rags are subject to a duty. The free towns, Hamburg, Bremen, and Lubeck, are the principal outlets of German commerce. Hamburg holds the third rank of all European ports, London and Liverpool only being superior. The income of the Zollverein in 1871 was $22,900,000. The merchant navy of Germany is larger than that of any other country except England and the United States. It numbered in December, 1871, 5,122 vessels (of which 179 were steamers), of an aggregate tonnage of 1,305,000. The number of vessels entering the German ports in 1871 was 68,155, of 8,735,000 tons; the number of vessels cleared 67,471, of 8,364,000 tons.

The principal articles of export are wool, hops, grain, cattle, linen yarn, skins and hides, glass ware, and antimony, to England; iron and steel wares, zinc, coal, lumber, hops, hemp, flax and seed, alcohol, and cattle, to France; grain, timber, coal, wine, leather, wool, metals, woollen and cotton fabrics, hosiery, hardware, china, and glass ware, to Holland; wool, wine, and salt, to Belgium; grain, salt, and brandy, to Switzerland; seeds, fruit, preserves, and sugar, to Sweden and Russia; linen and cotton goods, ribbons, and hosiery, to Italy, Spain, and Portugal; wine, cotton, woollen, linen, and silk goods, hardware, glass ware, toys, etc, to America. The imports are, besides all kinds of raw material (cotton, pig iron, copper, coal, &c), coffee, sugar, rice, wine (from France and Hungary), cloth, laces, machines, the finer qualities of silk fabrics, jewelry, etc. The silver standard prevailed in Germany until the establishment of the empire, when the gold standard was adopted. The unit in the northern states was the Thaler (30 thalers to 1 Zollverein pound of silver, equal to 1.389 lb. avoirdupois); in the western the Gulden Khei-nisch or Rhenish florin (52 1/2 to 1 lb. of silver). The gold coins common to all Germany were the crown (50 to 1 lb. of fine gold) and the half crown; their value was regulated by commerce, and averaged about 9 1/6 thalers ($6 58) the crown.