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128-531: The United Kingdom was the hardest hit; during this period it lost some of its large industrial lead over the economies of continental Europe . While it was occurring, the view was prominent that the British economy had been in continuous depression from 1873 to as late as 1896 and some texts refer to the period as the Great Depression of 1873–1896 , with financial and manufacturing losses reinforced by

256-600: A long recession in the agricultural sector . In the United States, historians refer to the Depression of 1873–1879 , kicked off by the Panic of 1873 , and followed by the Panic of 1893 , book-ending an era of prosperity. The U.S. National Bureau of Economic Research dates the contraction following the panic as lasting from October 1873 to March 1879. At 65 months, it is the longest-lasting contraction identified by

384-607: A protective tariff in 1879 in Otto von Bismarck 's Germany over the protests of his National Liberal Party allies. In 1887, Italy and France embarked on a bitter tariff war . In the United States, Benjamin Harrison won the 1888 US presidential election on a protectionist pledge. As a result of the protectionist policies enacted by the world's major trading nations, the global merchant marine fleet posted no significant growth from 1870 to 1890 before it nearly doubled in tonnage in

512-503: A French public which wanted territory and a French army which wanted revenge. The situation did not suit either France, which unexpectedly found itself next to the militarily powerful Prussian-led North German Confederation, or Prussia, whose foremost objective was to complete the process of uniting the German states under its control. Thus, war between the two powers since 1866 was only a matter of time. In Prussia, some officials considered

640-463: A bad situation much worse was the conduct of General Auguste-Alexandre Ducrot , commander of the 1st Division. He told General Abel Douay , commander of the 2nd Division, on 1 August that "The information I have received makes me suppose that the enemy has no considerable forces very near his advance posts, and has no desire to take the offensive" . Two days later, he told MacMahon that he had not found "a single enemy post ... it looks to me as if

768-528: A billion dollars of debt. One in four laborers in New York were out of work in the winter of 1873–1874 and, nationally, a million became unemployed. The sectors which experienced the most severe declines in output were manufacturing, construction, and railroads. The railroads had been a tremendous engine of growth in the years before the crisis, yielding a 50% increase in railroad mileage from 1867 to 1873. After absorbing as much as 20% of US capital investment in

896-596: A broad deployment which made envelopment highly likely but the effectiveness of French Chassepot-rifle fire inflicted costly repulses on infantry attacks, until the French infantry had been extensively bombarded by the Prussian artillery. The Battle of Spicheren on 5 August was the second of three critical French defeats. Moltke had originally planned to keep Bazaine's army on the Saar River until he could attack it with

1024-551: A column or line formation , Prussian infantry moved in small groups that were harder to target by artillery or French defensive fire. The sheer number of soldiers available made encirclement en masse and destruction of French formations relatively easy. The army was equipped with the Dreyse needle gun renowned for its use at the Battle of Königgrätz , which was by this time showing the age of its 25-year-old design. The rifle had

1152-692: A contact-detonated shell, the Krupp gun had a longer range and a higher rate of fire than the French bronze muzzle loading cannon, which relied on time fuses. The Prussian army was controlled by the General Staff , under General Helmuth von Moltke . The Prussian army was unique in Europe for having the only such organisation in existence, whose purpose in peacetime was to prepare the overall war strategy, and in wartime to direct operational movement and organise logistics and communications. The officers of

1280-482: A distant plateau south of the town of Spicheren, and took this as a sign of Frossard's retreat. Ignoring Moltke's plan again, both German armies attacked Frossard's French 2nd Corps, fortified between Spicheren and Forbach. The French were unaware of German numerical superiority at the beginning of the battle as the German 2nd Army did not attack all at once. Treating the oncoming attacks as merely skirmishes, Frossard did not request additional support from other units. By

1408-671: A fever pitch, and fears of a bubble culminated in a panic in Vienna beginning in April 1873. The collapse of the Vienna Stock Exchange began on May 8, 1873, and continued until May 10, when the exchange was closed; when it was reopened three days later, the panic seemed to have faded, and appeared confined to Austria-Hungary . Financial panic arrived in the Americas only months later on Black Thursday , September 18, 1873, after

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1536-682: A few years mining abated. Resumption of silver dollar coinage was authorized by the Bland–Allison Act of 1878. The resumption of the US government buying silver was enacted in 1890 with the Sherman Silver Purchase Act . Monetarists believe that the 1873 depression was caused by shortages of gold that undermined the gold standard, and that the 1848 California Gold Rush , 1886 Witwatersrand Gold Rush in South Africa and

1664-526: A fierce opponent of Prussia who, as French Ambassador to Austria in 1866, had advocated an Austro-French military alliance against Prussia. Napoleon III's worsening health problems made him less and less capable of reining in Empress Eugénie, Gramont and the other members of the war party, known collectively as the "mameluks". For Bismarck, the nomination of Gramont was seen as "a highly bellicose symptom". The Ems telegram of 13 July 1870 had exactly

1792-516: A major obstacle in terms of logistics. Only one railway there led to the German hinterland but could be easily defended by a single force, and the only river systems in the region ran along the border instead of inland. While the French hailed the invasion as the first step towards the Rhineland and later Berlin, General Edmond Le Bœuf and Napoleon III were receiving alarming reports from foreign news sources of Prussian and Bavarian armies massing to

1920-516: A mania of railroad-building. In the late 1870s the economic situation in Chile deteriorated. Chilean wheat exports were outcompeted by production in Canada, Russia and Argentina and Chilean copper was largely replaced in international markets by copper from the United States and Spain. Income from silver mining in Chile also dropped. Aníbal Pinto , president of Chile in 1878, expressed his concerns

2048-520: A massacre, the French army disengaged and retreated in a westerly direction towards Bitche and Saverne, hoping to join French forces on the other side of the Vosges mountains . The German 3rd army did not pursue the French but remained in Alsace and moved slowly south, attacking and destroying the French garrisons in the vicinity. About 160,000 French soldiers were besieged in the fortress of Metz following

2176-503: A pure gold standard . This measure, referred to by its opponents as "the Crime of 1873" and the topic of William Jennings Bryan 's Cross of Gold speech in 1896, forced a contraction of the money supply in the United States. It also drove down silver prices further, even as new silver mines were being established in Nevada , which stimulated mining investment but increased supply as demand

2304-436: A range of only 600 m (2,000 ft) and lacked the rubber breech seal that permitted aimed shots. The deficiencies of the needle gun were more than compensated for by the famous Krupp 6-pounder (6 kg despite the gun being called a 6-pounder, the rifling technology enabled guns to fire twice the weight of projectiles in the same calibre) steel breech-loading cannons being issued to Prussian artillery batteries. Firing

2432-583: A reserve and to guard against a Prussian advance through Belgium . A pre-war plan laid down by the late Marshal Niel called for a strong French offensive from Thionville towards Trier and into the Prussian Rhineland. This plan was discarded in favour of a defensive plan by Generals Charles Frossard and Bartélemy Lebrun , which called for the Army of the Rhine to remain in a defensive posture near

2560-667: A result of the Franco-Austrian War of 1859 . During the Austro-Prussian War of 1866, the Empress Eugénie , Foreign Minister Drouyn de Lhuys and War Minister Jacques Louis Randon were concerned that the power of Prussia might overtake that of France. They unsuccessfully urged Napoleon to mass troops at France's eastern borders while the bulk of the Prussian armies were still engaged in Bohemia as

2688-488: A return to the French borders of 1814, with the annexation of Luxembourg , most of Saarland , and the Bavarian Palatinate . Bismarck flatly refused what he disdainfully termed France's politique des pourboires ("tipping policy"). He then communicated Napoleon III's written territorial demands to Bavaria and the other southern German states of Württemberg , Baden and Hesse-Darmstadt , which hastened

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2816-542: A revolutionary uprising which seized and held power for two months before its suppression; the event would influence the politics and policies of the Third Republic . The causes of the Franco-Prussian War are rooted in the events surrounding the lead up to the unification of the German states under Otto von Bismarck . France had gained the status of being the dominant power of continental Europe as

2944-471: A rubber ring seal and a smaller bullet, the Chassepot had a maximum effective range of some 1,500 metres (4,900 ft) with a short reloading time. French tactics emphasised the defensive use of the Chassepot rifle in trench-warfare style fighting—the so-called feu de bataillon . The artillery was equipped with rifled, muzzle-loaded La Hitte guns . The army also possessed a precursor to the machine-gun:

3072-652: A second panic in Vienna and further failures in continental Europe before receding. France, which had been experiencing deflation in the years preceding the crash, was spared financial calamity for the moment, as was the United Kingdom. Some have argued the depression was rooted in the 1870 Franco-Prussian War that devastated the French economy and, under the Treaty of Frankfurt , forced that country to make large war reparations payments to Germany. The primary cause of

3200-487: A single recession lasted from 1873 to 1896 or 1897 is not supported by most modern reviews of the period. It has even been suggested that the trough of this business cycle may have occurred as early as 1875. In fact, from 1869 to 1879, the US economy grew at a rate of 6.8% for real net national product (NNP) and 4.5% for real NNP per capita. Real wages were flat from 1869 to 1879, while from 1879 to 1896, nominal wages rose 23% and prices fell 4.2%. Irving Fisher believed that

3328-402: A war against France both inevitable and necessary to arouse German nationalism in those states that would allow the unification of a great German empire. This aim was epitomized by Prussian Chancellor Otto von Bismarck's later statement: "I did not doubt that a Franco-German war must take place before the construction of a United Germany could be realised." Bismarck also knew that France should be

3456-557: A warning that no territorial changes could be effected in Germany without consulting France. As a result of Prussia's annexation of several German states which had sided with Austria during the war and the formation of the North German Confederation under Prussia's aegis, French public opinion stiffened and now demanded more firmness as well as territorial compensations. As a result, Napoleon demanded from Prussia

3584-482: Is a correlation between whether a British citizen considers themselves "British" or "European" and whether they live in an area which primarily supported Brexit . Derivatively, the adjective continental refers to the social practices or fashion of continental Europe. Examples include breakfast , topless sunbathing and, historically, long-range driving (before Britain had motorways ) often known as Grand Touring . Differences include electrical plugs, time zones for

3712-610: Is that although the Scandinavian peninsula is attached to continental Europe, and accessible via a land route along the 66th parallel north , it is usually reached by sea. Kontinenten ("the Continent") is a vernacular Swedish expression that refers to an area excluding Sweden , Norway , and Finland but including Denmark (even the Danish Archipelago which is technically not a part of continental Europe) and

3840-567: Is the longest-lasting contraction identified by the NBER, eclipsing the Great Depression's 43 months of contraction. Figures from Milton Friedman and Anna Schwartz show net national product increased 3 percent per year from 1869 to 1879 and real national product grew at 6.8 percent per year during that time frame. However, since between 1869 and 1879 the population of the United States increased by over 17.5 percent, per capita NNP growth

3968-582: The 1879 famine , thousands of Irish tenant farmers affected by depressed producer prices and high rents launched the Land War in 1879, which resulted in the reforming Irish Land Acts . In the United States, the Long Depression began with the Panic of 1873. The National Bureau of Economic Research dates the contraction following the panic as lasting from October 1873 to March 1879. At 65 months, it

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4096-634: The Canary Islands , Madeira , the Azores , Iceland , the Faroe Islands , and Svalbard . The Scandinavian Peninsula is sometimes also excluded even though it is a part of "mainland Europe", as the de facto connections to the rest of the continent were historically across the Baltic Sea or North Sea (rather than via the lengthy land route that involves travelling to the north of

4224-455: The European continent , – which can conversely mean the whole of Europe – and, by some, simply as the Continent . When Eurasia is regarded as a single continent, Europe is treated both as a continent and subcontinent . The continental territory of the historical Carolingian Empire was one of the many old cultural concepts used for mainland Europe . This was consciously invoked in

4352-566: The Panic of 1893 , another huge market crash. In the United States, the National Bureau of Economic Analysis dates the recession through March 1879. In January 1879, the United States returned to the gold standard which it had abandoned during the Civil War; according to economist Rendigs Fels, the gold standard put a floor to the deflation, and this was further boosted by especially good agricultural production in 1879. The view that

4480-699: The Siege of Metz and the Battle of Sedan , resulted in the capture of the French Emperor Napoleon III and the decisive defeat of the army of the Second Empire ; a Government of National Defense was formed in Paris on 4 September and continued the war for another five months. German forces fought and defeated new French armies in northern France, then besieged Paris for over four months before it fell on 28 January 1871, effectively ending

4608-576: The Treaty of Paris following the Crimean War a precondition for the union. But Imperial France was not ready to do this. "Bonaparte did not dare to encroach on the Paris Treaty: the worse things turned out in the present, the more precious the heritage of the past became". The French Army consisted in peacetime of approximately 426,000 soldiers, some of them regulars, others conscripts who until March 1869 were selected by ballot and served for

4736-658: The War of 1870 , was a conflict between the Second French Empire and the North German Confederation led by the Kingdom of Prussia . Lasting from 19 July 1870 to 28 January 1871, the conflict was caused primarily by France's determination to reassert its dominant position in continental Europe, which appeared in question following the decisive Prussian victory over Austria in 1866 . According to some historians, Prussian chancellor Otto von Bismarck deliberately provoked

4864-602: The Western United States – an expansion funded largely by foreign investors. In 1873, during a decline in the value of silver – exacerbated by the end of the German Empire's production of thaler coins – the US government passed the Coinage Act of 1873 in April. This essentially ended the bimetallic standard of the United States, forcing it for the first time onto

4992-608: The continental part of Greece (excluding the Aegean Islands , Crete , and the Ionian Islands ), the continental part of Italy (excluding Sardinia , Sicily , etc.), the continental part of Portugal (excluding the Azores and Madeira ), and the continental part of Spain (excluding the Balearic Islands , the Canary Islands , the plazas de soberanía , etc.). The term is used from the perspective of

5120-422: The mitrailleuse , which could unleash significant, concentrated firepower but nevertheless lacked range and was comparatively immobile, and thus prone to being easily overrun. The mitrailleuse was mounted on an artillery gun carriage and grouped in batteries in a similar fashion to cannon. The army was nominally led by Napoleon III, with Marshals François Achille Bazaine and Patrice de MacMahon in command of

5248-532: The production of iron doubled between the 1870s and 1890s, the price of iron halved. Many countries experienced significantly lower growth rates relative to what they had experienced earlier in the 19th century and to what they experienced afterwards: The global economic crisis first erupted in Austria-Hungary , where in May 1873 the Vienna Stock Exchange crashed. In Hungary, the panic of 1873 terminated

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5376-414: The 1870s, 1880s, and 1890s were a period of falling price levels and rates of economic growth significantly below the periods preceding and following. Between 1870 and 1890, iron production in the five largest producing countries more than doubled, from 11 million tons to 23 million tons, steel production increased twentyfold (half a million tons to 11 million tons), and railroad development boomed. But at

5504-630: The 1896–99 Klondike Gold Rush helped alleviate such crises. Other analyses have pointed to developmental surges (see Kondratiev wave ), theorizing that the Second Industrial Revolution was causing large shifts in the economies of many states, imposing transition costs, which may also have played a role in causing the depression. Like the later Great Depression , the Long Depression affected different countries at different times, at different rates, and some countries accomplished rapid growth over certain periods. Globally, however,

5632-539: The 1950s as one of the basis for the prospective European integration (see also multi-speed Europe ) The most common definition of mainland Europe excludes these continental islands : the Greek islands , Cyprus , Malta , Sicily , Sardinia , Corsica , the Balearic Islands , Great Britain and Ireland and surrounding islands, Novaya Zemlya and the Nordic archipelago, as well as nearby oceanic islands , including

5760-450: The 19th century". The Union Générale, a French bank, failed in 1882, prompting the French to withdraw three million pounds from the Bank of England and triggering a collapse in French stock prices. The financial crisis was compounded by diseases impacting the wine and silk industries French capital accumulation and foreign investment plummeted to the lowest levels experienced by France in

5888-459: The 2nd Army in front and the 1st Army on its left flank, while the 3rd Army closed towards the rear. The aging General von Steinmetz made an overzealous, unplanned move, leading the 1st Army south from his position on the Moselle . He moved straight toward the town of Spicheren, cutting off Prince Frederick Charles from his forward cavalry units in the process. On the French side, planning after

6016-475: The Austro-Prussian War, were treading carefully before stating that they would only side with France if the south Germans viewed the French positively. This did not materialize as the four South German states had come to Prussia's aid and were mobilizing their armies against France. Napoleon III was under substantial domestic pressure to launch an offensive before the full might of Moltke's forces

6144-506: The Franco-Prussian War broke out before these reforms could be completely implemented. The mobilisation of reservists was chaotic and resulted in large numbers of stragglers, while the Garde Mobile were generally untrained and often mutinous. French infantry were equipped with the breech-loading Chassepot rifle , one of the most modern mass-produced firearms in the world at the time, with 1,037,555 available in French inventories. With

6272-459: The French defended their position just outside Frœschwiller. By afternoon, the Germans had suffered c.  10,500 killed or wounded and the French had lost a similar number of casualties and another c.  9,200 men taken prisoner, a loss of about 50%. The Germans captured Fröschwiller which sat on a hilltop in the centre of the French line. Having lost any hope for victory and facing

6400-578: The French had a chance to sweep away the key Prussian defense, and to escape. Two Prussian corps had attacked the French advance guard, thinking that it was the rearguard of the retreat of the French Army of the Meuse. Despite this misjudgment the two Prussian corps held the entire French army for the whole day. Outnumbered 5 to 1, the extraordinary élan of the Prussians prevailed over gross indecision by

6528-577: The French into declaring war by releasing an altered summary of the Ems Dispatch , a telegram sent by William I rejecting French demands that Prussia never again support a Hohenzollern candidacy. Bismarck's summary, as mistranslated by the French press Havas , made it sound as if the king had treated the French envoy in a demeaning fashion, which inflamed public opinion in France. French historians François Roth and Pierre Milza argue that Napoleon III

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6656-443: The French into declaring war on Prussia in order to induce four independent southern German states— Baden , Württemberg , Bavaria and Hesse-Darmstadt —to join the North German Confederation ; other historians contend that Bismarck exploited the circumstances as they unfolded. All agree that Bismarck recognized the potential for new German alliances, given the situation as a whole. France mobilised its army on 15 July 1870, leading

6784-751: The General Staff were hand-picked from the Prussian Kriegsakademie (War Academy). Moltke embraced new technology, particularly the railroad and telegraph, to coordinate and accelerate mobilisation of large forces. On 28 July 1870 Napoleon III left Paris for Metz and assumed command of the newly titled Army of the Rhine, some 202,448 strong and expected to grow as the French mobilization progressed. Marshal MacMahon took command of I Corps (4 infantry divisions) near Wissembourg , Marshal François Canrobert brought VI Corps (4 infantry divisions) to Châlons-sur-Marne in northern France as

6912-517: The German border and repel any Prussian offensive. As Austria, along with Bavaria, Württemberg, and Baden were expected to join in a revenge war against Prussia, I Corps would invade the Bavarian Palatinate and proceed to "free" the four South German states in concert with Austro-Hungarian forces. VI Corps would reinforce either army as needed. Unfortunately for Frossard's plan, the Prussian army mobilised far more rapidly than expected. The Austro-Hungarians, still reeling after their defeat by Prussia in

7040-668: The III Corps launched a risky attack. The French were routed and the III Corps captured Vionville, blocking any further escape attempts to the west. Once blocked from retreat, the French in the fortress of Metz had no choice but to engage in a fight that would see the last major cavalry engagement in Western Europe. The battle soon erupted, and III Corps was shattered by incessant cavalry charges , losing over half its soldiers. The German Official History recorded 15,780 casualties and French casualties of 13,761 men. On 16 August,

7168-550: The NBER, eclipsing the Great Depression's 43 months of contraction. In the United States, from 1873 to 1879, 18,000 businesses went bankrupt, including 89 railroads. Unemployment peaked in 1878 at 8.25%. The period preceding the depression was dominated by several major military conflicts and a period of economic expansion. In Europe, the end of the Franco-Prussian War yielded a new political order in Germany , and

7296-569: The North German Confederation to respond with its own mobilisation later that day. On 16 July 1870, the French parliament voted to declare war on Prussia; France invaded German territory on 2 August. The German coalition mobilised its troops much more effectively than the French and invaded northeastern France on 4 August. German forces were superior in numbers, training, and leadership and made more effective use of modern technology, particularly railways and artillery. A series of hard-fought Prussian and German victories in eastern France, culminating in

7424-556: The Panic of 1873 and the severity of the contractions which followed it could be explained by debt and deflation and that a financial panic would trigger catastrophic deleveraging in an attempt to sell assets and increase capital reserves; that selloff would trigger a collapse in asset prices and deflation , which would in turn prompt financial institutions to sell off more assets, only to further deflation and strain capital ratios . Fisher believed that had governments or private enterprise embarked on efforts to reflate financial markets,

7552-437: The Prussian 40th Regiment of the 16th Infantry Division from the town of Saarbrücken with a series of direct attacks. The Chassepot rifle proved its worth against the Dreyse rifle , with French riflemen regularly outdistancing their Prussian counterparts in the skirmishing around Saarbrücken. However the Prussians resisted strongly, and the French suffered 86 casualties to the Prussian 83 casualties. Saarbrücken also proved to be

7680-435: The Prussian Army, when potentially 1,000,000 would be required. Under Marshal Adolphe Niel , urgent reforms were made. Universal conscription and a shorter period of service gave increased numbers of reservists, who would swell the army to a planned strength of 800,000 on mobilisation. Those who for any reason were not conscripted were to be enrolled in the Garde Mobile , a militia with a nominal strength of 400,000. However,

7808-448: The Rhine in Saarbrücken back across the river to Spicheren and Forbach. Marshal MacMahon, now closest to Wissembourg, spread his four divisions 20 miles (32 km) to react to any Prussian-Bavarian invasion. This organization was due to a lack of supplies, forcing each division to seek out food and forage from the countryside and from the representatives of the army supply arm that was supposed to furnish them with provisions. What made

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7936-485: The aftermath of the American Civil War , increasing by nearly a quarter between 1865 and 1873, they stagnated until the 1880s, posting no real growth, before resuming their robust rate of expansion in the later 1880s. The collapse of cotton prices devastated the already war-ravaged economy of the southern United States . Although farm prices fell dramatically, American agriculture continued to expand production. Thousands of American businesses failed, defaulting on more than

8064-400: The aggressor in the conflict to bring the four southern German states to side with Prussia, hence giving Germans numerical superiority. He was convinced that France would not find any allies in her war against Germany for the simple reason that "France, the victor, would be a danger to everybody—Prussia to nobody," and he added, "That is our strong point." Many Germans also viewed the French as

8192-485: The armies of France would take up a defensive position that would protect against every possible attack point, but also left the armies unable to support each other. While the French army under General MacMahon engaged the German 3rd Army at the Battle of Wörth , the German 1st Army under Steinmetz finished their advance west from Saarbrücken. A patrol from the German 2nd Army under Prince Friedrich Karl of Prussia spotted decoy fires nearby and Frossard's army farther off on

8320-405: The border at Wissembourg. Upon learning from captured Prussian soldiers and a local area police chief that the Prussian Crown Prince's Third Army was just 30 miles (48 km) north from Saarbrücken near the Rhine river town Wissembourg, General Le Bœuf and Napoleon III decided to retreat to defensive positions. General Frossard, without instructions, hastily withdrew his elements of the Army of

8448-415: The border, attacked in overwhelming but uncoordinated fashion by the German 3rd Army. During the day, elements of a Bavarian and two Prussian corps became engaged and were aided by Prussian artillery, which blasted holes in the city defenses. Douay held a very strong position initially, thanks to the accurate long-range rapid fire of the Chassepot rifles, but his force was too thinly stretched to hold it. Douay

8576-417: The bubble in 1873. Both the Union Pacific and the Northern Pacific lines were central to the collapse; another railway bubble was the Railway Mania in the United Kingdom. Because of the Panic of 1873, governments depegged their currencies, to save money. The demonetization of silver by European and North American governments in the early 1870s was certainly a contributing factor. The US Coinage Act of 1873

8704-417: The comparatively long period of seven years. Some of them were veterans of previous French campaigns in the Crimean War , Algeria , the Franco-Austrian War in Italy, and in the Mexican campaign . However, following the " Seven Weeks War " between Prussia and Austria four years earlier, it had been calculated that, with commitments in Algeria and elsewhere, the French Army could field only 288,000 men to face

8832-401: The conclusion of defensive military alliances with these states. France had been strongly opposed to any further alliance of German states, which would have threatened French continental dominance. The only result of French policy was the consent of Prussia to nominal independence for Saxony, Bavaria, Wurttemberg, Baden, and Hessia-Darmstadt; this was a small victory, and one without appeal to

8960-431: The crisis would have been less severe. David Ames Wells (1890) wrote of the technological advancements during the period 1870–1890, which included the Long Depression. Wells gives an account of the changes in the world economy transitioning into the Second Industrial Revolution in which he documents changes in trade, such as triple expansion steam shipping, railroads, the effect of the international telegraph network and

9088-442: The decade from 1869 to 1879 saw a 3-percent-per annum increase in money national product, an outstanding real national product growth of 6.8 percent per year in this period, and a phenomenal rise of 4.5 percent per year in real product per capita. Even the alleged "monetary contraction" never took place, the money supply increasing by 2.7 percent per year in this period. From 1873 through 1878, before another spurt of monetary expansion,

9216-419: The defeats on the frontier. A retirement from Metz to link up with French forces at Châlons was ordered on 15 August and spotted by a Prussian cavalry patrol under Major Oskar von Blumenthal. Next day a grossly outnumbered Prussian force of 30,000 men of III Corps (of the 2nd Army) under General Constantin von Alvensleben , found the French Army near Vionville, east of Mars-la-Tour. Despite odds of four to one,

9344-450: The disaster at Wissembourg had become essential. General Le Bœuf, flushed with anger, was intent upon going on the offensive over the Saar and countering their loss. However, planning for the next encounter was more based upon the reality of unfolding events rather than emotion or pride, as Intendant General Wolff told him and his staff that supply beyond the Saar would be impossible. Therefore,

9472-480: The dominant European land power. Bismarck maintained great authority in international affairs for two decades, developing a reputation for Realpolitik that raised Germany's global stature and influence. In France, it brought a final end to imperial rule and began the first lasting republican government. Resentment over the French government's handling of the war and its aftermath triggered the Paris Commune ,

9600-506: The early 1870s, the bank had joined in the speculative fever, investing in real estate and unsecured loans to railroads; its collapse in 1874 was a severe blow to African-Americans . The recession exacted a harsh political toll on President Ulysses S. Grant . Historian Allan Nevins says of the end of Grant's presidency: Various administrations have closed in gloom and weakness ... but no other has closed in such paralysis and discredit as (in all domestic fields) did Grant's. The President

9728-529: The effect on French public opinion that Bismarck had intended. "This text produced the effect of a red flag on the Gallic bull", Bismarck later wrote. Gramont, the French foreign minister, declared that he felt "he had just received a slap". The leader of the monarchists in Parliament, Adolphe Thiers , spoke for moderation, arguing that France had won the diplomatic battle and there was no reason for war, but he

9856-670: The failure of the banking house of Jay Cooke and Company over the Northern Pacific Railway . The Northern Pacific railway had been given 40 million acres (160,000 km) of public land in the Western United States and Cooke sought $ 100,000,000 in capital for the company; the bank failed when the bond issue proved unsalable, and was shortly followed by several other major banks. The New York Stock Exchange closed for ten days on September 20. The financial contagion then returned to Europe, provoking

9984-613: The field armies. However, there was no previously arranged plan of campaign in place. The only campaign plan prepared between 1866 and 1870 was a defensive one. The German army comprised that of the North German Confederation led by the Kingdom of Prussia , and the South German states drawn in under the secret clause of the preliminary peace of Nikolsburg, 26 July 1866, and formalised in the Treaty of Prague , 23 August 1866. Recruitment and organisation of

10112-460: The following way: If a new mining discovery or some novelty of that sort does not come to improve the actual situation, the crisis that has long been felt, will worsen This "mining discovery" came, according to historians Gabriel Salazar and Julio Pinto , into existence through the conquest of Bolivian and Peruvian lands in the War of the Pacific . It has been argued that economic situation and

10240-465: The heights. The Battle of Wörth began when the two armies clashed again on 6 August near Wörth in the town of Frœschwiller , about 10 miles (16 km) from Wissembourg . The Crown Prince of Prussia's 3rd army had, on the quick reaction of his Chief of Staff General von Blumenthal, drawn reinforcements which brought its strength up to 140,000 troops. The French had been slowly reinforced and their force numbered only 35,000. Although badly outnumbered,

10368-439: The impacts of economic uncertainty. The extraordinary collapse of farm prices provoked a protectionist response in many nations. Rejecting the free trade policies of the Second Empire , French president Adolphe Thiers led the new Third Republic to protectionism, which led ultimately to the stringent Méline tariff in 1892. Germany's agrarian Junker aristocracy, under attack by cheap, imported grain, successfully agitated for

10496-1015: The island residents of each country to describe the continental portion of their country or the continent (or mainland) as a whole. Metropolitan France is also known as l'Hexagone , "the Hexagon", referring to its approximate shape on a map. Continental Italy is also known as lo Stivale , "the Boot", referring to its approximate shape on a map. Continental Spain is referred to as peninsular Spain . Franco-Prussian War German victory Before 18 January 1871 : [REDACTED]   North German Confederation [REDACTED]   Bavaria [REDACTED]   Württemberg [REDACTED]   Baden Total deployment : Initial strength : Peak field army strength : Total deployment : Initial strength : Peak field army strength : 756,285 144,642 The Franco-Prussian War or Franco-German War , often referred to in France as

10624-424: The latter half of the 19th century. After a boom in new investment banks after the end of the Franco-Prussian War, the destruction of the French banking industry wrought by the crash cast a pall over the financial sector that lasted until the dawn of the 20th century. French finances were further sunk by failing investments abroad, principally in railroads and buildings. The French net national product declined over

10752-511: The long-term survival of the House of Bonaparte . A national plebiscite held on 8 May 1870, which returned results overwhelmingly in favor of the Emperor's domestic agenda, gave the impression that the regime was politically popular and in a position to confront Prussia. Within days of the plebiscite, France's pacifist Foreign Minister Napoléon, comte Daru , was replaced by Agenor, duc de Gramont ,

10880-652: The measure. In 1878, Congress overrode President Rutherford B. Hayes 's veto to pass the Silver Purchase Act , a similar but more successful attempt to promote "easy money". The United States endured its first nationwide strike in 1877, the Great Railroad Strike of 1877 . This led to widespread unrest and often violence in many major cities and industrial hubs including Baltimore , Philadelphia, Pittsburgh , Reading , Saint Louis , Scranton , and Shamokin . The Long Depression contributed to

11008-457: The menace of the Bavarians is simply bluff" . Even though Ducrot shrugged off the possibility of an attack by the Germans, MacMahon tried to warn his other three division commanders, without success. The first action of the Franco-Prussian War took place on 4 August 1870. This battle saw the unsupported division of General Douay of I Corps, with some attached cavalry, which was posted to watch

11136-660: The most part, the use of left-hand traffic , and for the United Kingdom, currency and the continued use of certain imperial units alongside the metric units which have long since displaced customary units in continental Europe. Britain is physically connected to continental Europe through the undersea Channel Tunnel (the longest undersea tunnel in the world), which accommodates both the Eurotunnel Shuttle (passenger and vehicle use – vehicle required) and Eurostar (passenger use only) services. These services were established to transport passengers and vehicles through

11264-703: The one in office. In its centennial year, a year of deepest economic depression, the nation drifted almost rudderless. Recovery began in 1878. The mileage of railroad track laid down increased from 2,665 mi (4,289 km) in 1878 to 11,568 in 1882. Construction began recovery by 1879; the value of building permits increased two and a half times between 1878 and 1883, and unemployment fell to 2.5% in spite of (or perhaps facilitated by) high immigration. Business profits declined briefly between 1882 and 1884. The recovery in railroad construction reversed itself, falling from 11,569 mi (18,619 km) of track laid in 1882 to 2,866 mi (4,612 km) of track laid in 1885;

11392-508: The opening of the Suez Canal. Wells gives numerous examples of productivity increases in various industries and discusses the problems of excess capacity and market saturation. Wells' opening sentence: The economic changes that have occurred during the last quarter of a century – or during the present generation of living men – have unquestionably been more important and more varied than during any period of

11520-428: The part of individuals. And yet the world wonders, and commissions of great states inquire, without coming to definite conclusions, why trade and industry in recent years has been universally and abnormally disturbed and depressed. Continental Europe Continental Europe or mainland Europe is the contiguous mainland of Europe , excluding its surrounding islands. It can also be referred to ambiguously as

11648-489: The peninsula where it meets Finland, and then south through northeast Europe). The Øresund Bridge now links the Scandinavian road and rail networks to those of Western Europe. In both Great Britain and Ireland, the Continent is widely and generally used to refer to the mainland of Europe. An amusing British newspaper headline supposedly once read, "Fog in Channel ; Continent Cut Off". It has also been claimed that this

11776-794: The period (1874–1877, 1881–1886, and 1891–1892), separated by periods of recovery. The United Kingdom, which had previously experienced crises every decade since the 1820s, was initially less affected by this financial crisis, even though the Bank of England kept interest rates as high as 9 percent in the 1870s. The 1878 failure of the City of Glasgow Bank in Scotland arose through a combination of fraud and speculative investments in Australian and New Zealand companies (agriculture and mining) and in American railroads. Building on an 1870 reform , and

11904-622: The prewar economic boom that followed. Only the United Kingdom and the Netherlands remained committed to low tariffs. In 1874, a year after the 1873 crash, the United States Congress passed legislation called the Inflation Bill of 1874 designed to confront the issue of falling prices by injecting fresh greenbacks into the money supply. Under pressure from business interests, President Ulysses S. Grant vetoed

12032-513: The price depression in the United States was the tight monetary policy that the United States followed to get back to the gold standard after the Civil War . The U.S. government was taking money out of circulation to achieve this goal, therefore there was less available money to facilitate trade. Because of this monetary policy the price of silver started to fall causing considerable losses of asset values; by most accounts, after 1879 production

12160-404: The price of steel rails collapsed from $ 71/ton in 1880 to $ 20/ton in 1884. Manufacturing again collapsed – durable goods output fell by a quarter again. The decline became a brief financial crisis in 1884, when multiple New York banks collapsed; simultaneously, in 1883–1884, tens of millions of dollars of foreign-owned American securities were sold out of fears that the United States

12288-568: The rest of continental Europe. In Norway, similarly, one speaks about Kontinentet as a separate entity. In Denmark, Jutland is referred to as the mainland and thereby a part of continental Europe. The Scandinavian Peninsula is now connected to the Danish mainland (the Jutland Peninsula ) by several bridges and tunnels. The Continent may sometimes refer to the continental part of France (excluding Corsica and overseas France ),

12416-501: The revival of colonialism leading to the New Imperialism period, symbolized by the scramble for Africa , as the western powers sought new markets for their surplus accumulated capital. According to Hannah Arendt 's The Origins of Totalitarianism (1951), the "unlimited expansion of power" followed the "unlimited expansion of capital ". In the United States, beginning in 1878, the rebuilding, extending, and refinancing of

12544-510: The same time, prices in several markets collapsed – the price of grain in 1894 was only a third what it had been in 1867, and the price of cotton fell by nearly 50 percent in just the five years from 1872 to 1877, imposing great hardship on farmers and planters. This collapse provoked protectionism in many countries, such as France, Germany, and the United States, while triggering mass emigration from other countries such as Italy, Spain, Austria-Hungary , and Russia. Similarly, while

12672-667: The southeast in addition to the forces to the north and northeast. Moltke had indeed massed three armies in the area—the Prussian First Army with 50,000 men, commanded by General Karl von Steinmetz opposite Saarlouis , the Prussian Second Army with 134,000 men commanded by Prince Friedrich Karl opposite the line Forbach - Spicheren , and the Prussian Third Army with 120,000 men commanded by Crown Prince Friedrich Wilhelm , poised to cross

12800-447: The ten years from 1882 to 1892. A ten-year tariff war broke out between France and Italy after 1887, damaging Franco-Italian relations which had prospered during Italian unification . As France was Italy's biggest investor, the liquidation of French assets in the country was especially damaging. The Russian experience was similar to the US experience – three separate recessions, concentrated in manufacturing, occurred in

12928-400: The time he realized what kind of a force he was opposing, it was too late. Seriously flawed communications between Frossard and those in reserve under Bazaine slowed down so much that by the time the reserves received orders to move out to Spicheren, German soldiers from the 1st and 2nd armies had charged up the heights. Because the reserves had not arrived, Frossard erroneously believed that he

13056-477: The total supply of bank money rose from $ 1.964 billion to $ 2.221 billion – a rise of 13.1 percent or 2.6 percent per year. In short, a modest but definite rise, and scarcely a contraction. The period preceding the Long Depression had been one of increasing economic internationalism, championed by efforts such as the Latin Monetary Union , many of which then were derailed or stunted by

13184-443: The town of Wissembourg finally surrendered to the Germans. The French troops who did not surrender retreated westward, leaving behind 1,000 dead and wounded and another 1,000 prisoners and all of their remaining ammunition. The final attack by the Prussian troops also cost c.  1,000 casualties. The German cavalry then failed to pursue the French and lost touch with them. The attackers had an initial superiority of numbers,

13312-425: The traditional destabilizer of Europe, and sought to weaken France to prevent further breaches of the peace. The immediate cause of the war was the candidacy of Leopold of Hohenzollern-Sigmaringen to the throne of Spain. France feared an encirclement resulting from an alliance between Prussia and Spain. The Hohenzollern prince's candidacy was withdrawn under French diplomatic pressure, but Otto von Bismarck goaded

13440-645: The tunnel on a 24/7 basis between England and continental Europe, while still maintaining passport and immigration control measures on both sides of the tunnel. This route is popular with refugees and migrants seeking to enter the UK. Especially in Germanic studies , continental refers to the European continent excluding the Scandinavian Peninsula , Britain, Ireland, and Iceland. The reason for this

13568-446: The various armies were almost identical, and based on the concept of conscripting annual classes of men who then served in the regular regiments for a fixed term before being moved to the reserves. This process gave a theoretical peace time strength of 382,000 and a wartime strength of about 1,189,000. German tactics emphasised encirclement battles like Cannae and using artillery offensively whenever possible. Rather than advancing in

13696-510: The view of new wealth in the nitrate was the true reason for the Chilean elite to go into war with its neighbors. Another response to the economic crisis, according to Jorge Pinto Rodríguez , was the new pulse of conquest of indigenous lands that took place in Araucanía in the 1880s. France's experience was somewhat unusual. Having been defeated in the Franco-Prussian War , the country

13824-575: The war virtually without allies. The calculation was for a victorious offensive, which, as the French Foreign Minister Gramont stated, was "the only way for France to lure the wary Austrians, Italians and Danes into the French alliance". The involvement of Russia on the side of France was not considered by her at all, since Russia made the lifting of restrictions on its naval construction on the Black Sea imposed on Russia by

13952-484: The war. In the final days of the war, with German victory all but assured, the German states proclaimed their union as the German Empire under the Prussian king Wilhelm I and Chancellor Bismarck. With the notable exceptions of Austria and German Switzerland , the vast majority of German-speakers were united under a nation-state for the first time. Following an armistice with France, the Treaty of Frankfurt

14080-409: The western railways, commensurate with the wholesale giveaway of water, timber, fish, minerals in what had previously been Indian territory, characterized a rising market. This led to the expansion of markets and industry, together with the robber barons of railroad owners, which culminated in the genteel 1880s and 1890s. The Gilded Age was the outcome for the few rich. The cycle repeated itself with

14208-495: The world's history. Other changes Wells mentions are reductions in warehousing and inventories, elimination of middlemen, economies of scale , the decline of craftsmen, and the displacement of agricultural workers. About the whole 1870–90 period Wells said: Some of these changes have been destructive, and all of them have inevitably occasioned, and for a long time yet will continue to occasion, great disturbances in old methods, and entail losses of capital and changes in occupation on

14336-502: The years preceding the crash, this expansion came to a dramatic end in 1873; between 1873 and 1878, the total amount of railroad mileage in the United States barely increased at all. The Freedman's Savings Bank was a typical casualty of the financial crisis. Chartered in 1865 in the aftermath of the American Civil War, the bank had been established to advance the economic welfare of America's newly emancipated freedmen . In

14464-461: The £200 million indemnity imposed on France led to an inflationary investment boom in Germany and Central Europe. New technologies in industry such as the Bessemer converter were being rapidly applied; railroads were booming. In the United States, the end of the Civil War and a brief post-war recession (1865–1867) gave way to an investment boom, focused especially on railroads on public lands in

14592-545: Was a regular weather forecast in Britain in the 1930s. In addition, the word Europe itself is also regularly used to mean Europe excluding the islands of Great Britain, Iceland, and Ireland (although the term is often used to refer to the European Union ). The term mainland Europe is also sometimes used. Usage of these terms may reflect political or cultural allegiances, for example it has been observed that there

14720-410: Was drowned out by cries that he was a traitor and a Prussian. Napoleon's new prime minister, Emile Ollivier , declared that France had done all that it could humanly and honorably do to prevent the war, and that he accepted the responsibility "with a light heart". A crowd of 15,000–20,000 people, carrying flags and patriotic banners, marched through the streets of Paris, demanding war. French mobilization

14848-464: Was falling. Silver miners arrived at US mints, unaware of the ban on production of silver coins, only to find their product no longer welcome. By September, the US economy was in a crisis, deflation causing banking panics and destabilizing business investment, climaxing in the Panic of 1873 . The Panic of 1873 has been described as "the first truly international crisis". The optimism that had been driving booming stock prices in central Europe had reached

14976-565: Was growing, thus further putting downward pressure on prices due to increased industrial productivity, trade and competition. In the US the speculative nature of financing due to both the greenback , which was paper currency issued to pay for the Civil War and rampant fraud in the building of the Union Pacific Railway up to 1869 culminated in the Crédit Mobilier scandal . Railway overbuilding and weak markets collapsed

15104-516: Was in grave danger of being outflanked, as German soldiers under General von Glume were spotted in Forbach. Instead of continuing to defend the heights, by the close of battle after dusk he retreated to the south. The German casualties were relatively high due to the advance and the effectiveness of the Chassepot rifle. They were quite startled in the morning when they had found out that their efforts were not in vain—Frossard had abandoned his position on

15232-427: Was killed in the late morning when a caisson of the divisional mitrailleuse battery exploded near him; the encirclement of the town by the Prussians then threatened the French avenue of retreat. The fighting within the town had become extremely intense, becoming a door to door battle of survival. Despite an unceasing attack from Prussian infantry, the soldiers of the 2nd Division kept to their positions. The people of

15360-423: Was lower. Following the end of the episode in 1879, the U.S. economy would remain unstable, experiencing recessions for 114 of the 253 months until January 1901. The dramatic shift in prices mauled nominal wages  – in the United States, nominal wages declined by one-quarter during the 1870s, and as much as one-half in some places, such as Pennsylvania . Although real wages had enjoyed robust growth in

15488-454: Was met with great opposition by farmers and miners, as silver was seen as more of a monetary benefit to rural areas than to banks in big cities. In addition, there were US citizens who advocated the continuance of government-issued fiat money ( United States Notes ) to avoid deflation and promote exports. The western US states were outraged – Nevada , Colorado , and Idaho were huge silver producers with productive mines, and for

15616-536: Was mobilized and deployed. Reconnaissance by Frossard's forces had identified only the Prussian 16th Infantry Division guarding the border town of Saarbrücken , right before the entire Army of the Rhine. Accordingly, on 31 July the Army marched forward toward the Saar River to seize Saarbrücken. General Frossard's II Corps and Marshal Bazaine's III Corps crossed the German border on 2 August, and began to force

15744-444: Was ordered early on 15 July. Upon receiving news of the French mobilization, the North German Confederation mobilized on the night of 15–16 July, while Bavaria and Baden did likewise on 16 July and Württemberg on 17 July. On 19 July 1870, the French sent a declaration of war to the Prussian government. The southern German states immediately sided with Prussia. Napoleonic France had no documented alliance with other powers and entered

15872-578: Was preparing to abandon the gold standard. This financial panic closed eleven New York banks, more than a hundred small state banks, and led to defaults on at least $ 32 million worth of debt. Unemployment, which had stood at 2.5% between recessions, surged to 7.5% in 1884–1885, and 13% in the northeastern United States, even as immigration plunged in response to deteriorating labor markets. The 1880s saw an extraordinarily large expansion of industry, of railroads, of physical output, of net national product, and real per capita income. As Friedman and Schwartz admit,

16000-439: Was pressured by a bellicose press and public opinion and thus sought war in response to France's diplomatic failures to obtain any territorial gains following the Austro-Prussian War . Napoleon III believed he would win a conflict with Prussia. Many in his court, such as Empress Eugénie , also wanted a victorious war to resolve growing domestic political problems, restore France as the undisputed leading power in Europe, and ensure

16128-475: Was required to pay £200 million in reparations to the Germans and was already reeling when the 1873 crash occurred. The French adopted a policy of deliberate deflation while paying off the reparations. While the United States resumed growth for a time in the 1880s, the Paris Bourse crash of 1882 sent France careening into depression, one which "lasted longer and probably cost France more than any other in

16256-489: Was signed on 10 May 1871, giving Germany billions of francs in war indemnity , as well as most of Alsace and parts of Lorraine , which became the Imperial Territory of Alsace-Lorraine ( Reichsland Elsaß-Lothringen ). The war had a lasting impact on Europe. By hastening German unification , the war significantly altered the balance of power on the continent, with the new German state supplanting France as

16384-407: Was without policies or popular support. He was compelled to remake his Cabinet under a grueling fire from reformers and investigators; half its members were utterly inexperienced, several others discredited, one was even disgraced. The personnel of the departments was largely demoralized. The party that autumn appealed for votes on the implicit ground that the next Administration would be totally unlike

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