more than a
hundred years before, and left Prussia the dominant power in Germany. It
determined that the unity of Germany should be brought about not by
revolutionary means as in 1848, not as in 1849 had been attempted by
voluntary agreement of the princes, not by Austria, but by the sword of
Prussia. This was the great work of Bismarck's life; he had completed
the programme foreshadowed in his early speeches, and finished the work
of Frederick the Great. It is also the turning-point in Bismarck's own
life. Having secured the dominance of the crown in Prussia and of
Prussia in Germany, he could afford to make a reconciliation with the
parties which had been his chief opponents, and turn to them for help in
building up a new Germany. The settlement of 1866 was peculiarly his
work. We must notice, first, how in arranging the terms of peace he
opposed the king and the military party who wished to advance on Vienna
and annex part of Austrian Silesia; with greater foresight he looked to
renewing the old friendship with Austria, and insisted (even with the
threat of resignation) that no territory should be demanded. The
southern states he treated with equal moderation, and thereby was able
to arrange an offensive and defensive alliance with them. On the other
hand, in order to secure the complete control of North Germany, which
was his immediate object, he required that the whole of Hanover,
Hesse-Cassel, Hesse-Nassau and the city of Frankfort, as well as the
Elbe duchies, should be absorbed in Prussia. He then formed a separate
confederation of the North German states, but did not attempt to unite
the whole of Germany, partly because of the internal difficulties which
this would have produced, partly because it would have brought about a
war with France. In the new confederation he became sole responsible
minister, with the title _Bundes-Kanzler_; this position he held till
1890, in addition to his former post of premier minister. In 1871 the
title was altered to _Reichs-Kanzler_.

The reconciliation with the Prussian parliament he effected by bringing
in a bill of indemnity for the money which had been spent without leave
of parliament. The Radicals still continued their opposition, but he
thereby made possible the formation of a large party of moderate
Liberals, who thenceforward supported him in his new Nationalist policy.
He aslo, in the constitution for the new confederation, introduced a
parliament (_Bundestag_) electe