arnhorst to reorganize the military
power. The two former were nobles; the latter sprung from the people,--a
peasant's son; but they worked together in tolerable harmony,
considering the rival jealousies that at one time existed among all the
high officials, with their innumerable prejudices.

Baron von Stein, born in 1757, of an old imperial knightly family from
the country near Nassau, was as a youth well-educated, and at the age of
twenty-three entered the Prussian service under Frederic the Great, in
the mining department, where he gained rapid promotion. In 1786 he
visited England and made a careful study of her institutions, which he
profoundly admired. In 1787 he became a sort of provincial governor,
being director of the war and Domaine Chambers at Cleves and Hamm.

In 1804 Stein became Minister of Trade, having charge of excise,
customs, manufactures, and trade. The whole financial administration at
this time under King Frederick William III was in a state of great
confusion, from an unnecessary number of officials who did not work
harmoniously. There was too much "red tape." Stein brought order out of
confusion, simplified the administration, punished corruption, increased
the national credit, then at a very low ebb, and re-established the bank
of Prussia on a basis that enabled it to assist the government.

But a larger field than that of finance was opened to Stein in the war
of 1806. The king intrusted to him the portfolio of foreign
affairs,--not willingly, but because he regarded him as the ablest man
in the kingdom. Stein declined to be foreign minister unless he was
entirely unshackled, and the king was obliged to yield, for the
misfortunes of the country had now culminated in the disastrous defeat
at Friedland. The king, however, soon quarrelled with his minister,
being jealous of his commanding abilities, and unused to dictation from
any source. After a brief exile at Nassau, the peace of Tilsit having
proved the sagacity of his views, Stein returned to power as virtual
dictator of the kingdom, with the approbation of Napoleon; but his
dictatorship lasted only about a year, when he was again discharged.

During that year, 1807, Stein made his mark in Prussian history. Without
dwelling on details, he effected the abolition of serfdom in Prussia,
the trade in land, and municipal reforms, giving citizens
self-government in place of the despotism of military bureaus. He made
it his business to pay off