ABSTRACT

Frederick The Great's commercial relations with Poland, Austria and Saxony were an important factor in promoting the expansion of the Prussian economy. In 1740 Prussia was not one of the major economic regions of Germany, being an underdeveloped country with poor soil, a harsh climate, few minerals, inadequate communications and a small population. By 1786 Prussia was one of the leading agrarian and manufacturing countries on the Continent and this change had, to some extent, been achieved at the expense of Poland, Austria and Saxony. Owing to Poland’s political weakness Frederick was able to exploit its economic resources for his own benefit and at the first partition of the republic he seized sufficient territory to secure control of the trade of the Vistula valley. By filching Silesia from the Habsburgs Frederick acquired a great linen industry, so that Prussia for the first time became an exporter, on a large scale, of linen cloth. Silesia also produced large quantities of raw wool and had important mineral resources. Saxony, a small but economically advanced state, was twice occupied by Prussian troops in Frederick’s reign. He appropriated the revenues of Saxony and levied additional contributions in cash and in kind for the upkeep of his forces. He exploited the forests of Saxony and he tried to secure the secret of the manufacture of porcelain in order to establish this industry in Berlin.