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 with the sword the antagonism existing since 1848 in German affairs between Prussia and Austria. As Prussian envoy to the Federal Diet in the fifties Bismarck had observed the instability of the lesser German states and the decline of Austria's strength, as well as the methods of Napoleon, especially the use the latter made of the principle of nationalities; but he was also able to see that since 1860 Napoleon's star was on the wane. To a certain extent he appropriated Napoleon's views in order that Prussia might reap the fruits of what the French emperor had sown in Europe. At the same time he preserved an independent judgment so as to fit his measures to German conditions and proved that his genius contained greater qualities and more elements of success. In the Danish War (1864), fought to settle whether Schleswig and Holstein belonged to Denmark or Germany, he forced the Austrian minister of foreign affairs, Rechberg, to adopt his policy. He then manoeuvred Austria into a position of diplomatic isolation in Europe and, after forming an alliance with Italy, made a furious attack upon Austria in 1866. After two weeks of war Austria was completely defeated at Königgrätz (3 July), and by the middle of July Prussia had occupied all Germany. In the meanwhile Napoleon had intervened. Bismarck put him off with unmeaning, verbal concessions, and in like manner pacified the German Liberals whose continued opposition might hinder the carrying out of his solution of the question of German unity. He then concluded with Austria the Treaty of Prague (23 August, 1866) which partook of the nature of a compromise. Austria separated itself entirely from Germany, the South German states were declared internationally independent, Prussia was recognized as the leader of North Germany, while Hanover, Hesse-Cassel (Electoral Hesse), Hesse-Nassau, Schleswig-Holstein, and Frankfurt were directly annexed to Prussia, and preliminaries were arranged for the adoption of a federal constitution by the still-existing North German states. The constitution of the North-German Confederation, established, 1 July, 1867, was framed by Bismarck so that the federal development of German constitutional law should be guarded, thus the constitution was adopted by treaties with the several sovereign princes, the autonomy of the individual states was assured, and a federal council (Bundesrat) was to be the representative of the various governments. The necessary unity of the government was guaranteed (1) by endowing Prussia with large authority in administration, giving it especially the command of the army and direction of diplomatic relations; (2) by assigning foreign affairs, formation of the army, economic interests, traffic and means of communication to the authority of the confederation, the competence of which was to be gradually enlarged (the model here taken being the Federal Acts of the Congress of Vienna of 1815); (3) by creating the Reichstag (Parliament), elected by universal, direct and equal suffrage, as the exponent of the national desire for unity. In the years immediately following the Reichstag passed laws regulating the administration of justice.

Bismarck considered the absence from the confederation of the South German states to be merely temporary. As early as August, 1866, he had secretly made sure of their co-operation in case of war. In 1867 he re-established the customs-union with them; politico-economic questions of common interest were, in future, to be laid before the Reichstag of the North German Confederation which, for this purpose, was to be complemented by delegates from Southern Germany so as to constitute a customs parliament. In all other respects he left diplomatic relations with the states of South Germany in statu quo. Attempts on their part to found a southern confederation failed. In like manner Bismarck postponed as long as possible the accounting with France in regard to the unification of Germany, although he foresaw that such an accounting was unavoidable. At a conference held in London, in 1867, he secured the neutralization of Luxembourg. In 1868 he desired to secure a resolution in favour of national unity from the customs parliament. To attain this he relied on the economic progress which, in consequence of the gradual unification of Germany, continually grew more marked and caused a complete change in a Liberal direction in the legislation on social and economic questions, and in that on the administration of law, both in the North German Confederation and Bavaria. Illustrations of these more liberal changes are: the organization of the postal system by Henry Stephan; introduction of freedom of trade and the right to reside in any part of Germany; enactment of the penal code, 1870. Notwithstanding these results of the efforts towards union, the opposition, led by Ludwig Windthorst, succeeded in obtaining a majority against him.

On 19 July, 1870, war broke out with France, the cause being the candidature of Prince Leopold of Hohenzollern for the Spanish throne. Napoleon had not been able to secure the help of Austria and Italy; furthermore, his army was not prepared for war. Bismarck, on the contrary, fanned to white heat the national enthusiasm of Germany. The German armies quickly crossed the Rhine, and gained a firm footing on the other side by a rapid succession of victories at Weissenburg, Wörth, and the Heights of Spicheren. The main French army under Bazaine was defeated at Metz and shut up inside the city, 14-18 August. The army of relief under MacMahon was defeated at Sedan, 1-2 September. The war became a series of Strasburg fell, 28 September; Metz, 27 October; and Paris, not until 28 January. Meanwhile Gambetta had organized a national militia, 600,000 strong, which, in conjunction with the remains of the standing army, harassed and obstructed the Germans on the Loire and in the North-West from October to January. On 10 May, 1871, by the Peace of Frankfurt, Alsace-Lorraine was restored to Germany as an imperial territory (Reichsland). The southern states had already joined the Confederation, which had become the German Empire (with an area of 208,748 sq. miles). The Constitution of the North German Confederation was adopted, with the reservation of certain privileges in favour of Bavaria and Würtemberg. The Constitution was proclaimed 16-20 April, 1871, Prussia being entitled to 17 of the 58 votes in the Bundesrat or Federal Council, and to 236 of the 397 deputies in the Reichstag or Imperial Parliament. William I assumed the title of "German Emperor" at Versailles, 18 January, 1871; the office was made hereditary.

.—(1) 1871-1888.—A development that had been in progress for many centuries and had been attended by many complications had practically reached its culmination; the political union of the Germans in a single body politic, without any relinquishment of the federal principle, so far as the relations among the ruling houses were concerned, had been accomplished, advantage being taken of the popular movement towards the unification of the several States into one organic whole. Austria had been excluded from Germany, the political consolidation of Northern Germany was almost complete, and Prussia's economic superiority over the south had been established beyond question. For while Southern and Central Germany (with the exception of Saxony and Nassau), as well as Hanover, experienced an increase in population of only about 22 to 36 per cent between 1830 and 1880, that of Prussia grew about 60 per cent; and nearly all the coal and ore deposits of Germany were located within the borders of the latter kingdom. Withal, during the ensuing years the united people did not devote themselves