Managers as Officers of the State: The Role of Enterprise in Gustav Schmoller's Prussian Theory
In German history the period between 1870 and 1873 is known under the name Grunderzeit, the time of the founding of modern business organizations. The Franco-Prussian War had ended with a victory for the Germans, who obtained an agreement from France to pay 5 billion marks in reparations. North German philosophical idealism had realized itself in the notion of the German state under Prussian leadership. Since the building of the railways that had begun in the 1840s, German industrial development had been on the march. The enormous French reparations payments started the rush under the Grunderzeit.] Some 928 companies were founded with a capital of 2.9 billion marks, which was a half billion greater than the total amount invested in the previous twenty years.