The French government imposed high tariffs on imported goods to protect the French economy, and also bore the significant cost of building roads and canal. The Prussian government guaranteed the investments of those who invested their money in railroad construction. Since investors had little to lose, money flowed freely into the German railroads. The German economist Friedrich List was instrumental in instituting the customs union, among the several German States which eliminated internal tariffs and imposed a high protective duty on all goods imported from other nations.

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