In the middle of the eighteenth century, France was defeated in the commercial war in world market by England because of the overwhelming inferiority of hers national productivity. This fact gave an severe impact to the ruling class in France and forced it to try a reform of the socio-economic system of the Kingdom in order to elevate industrial potentiality. For example, Bertin, minister of Louis XV, endeavoured to realise a modernisation of feudal agrarian system, namely, division of commons, abolition of open field system, free trade of corn etc.. The establishment of the Creusot, a big modern iron foundry, in Middle France was an important part of this ambitious policy, too. At that time, the iron industry in this country was technically so traditional that it had no capacity to adapt itself to the immense demand of the new policy. For it depended exclusively upon charcoal and waterpower yet. Therefore, De Wendel, a famous noble manufacturer, planned to construct a factory of new model whose technology was imported from England, where coaks and steam-engine were made use of. Of course, this enterprise needed big money ; then several financiers were syndicated. Nevertheless, it necessitated too enormous a capital for them to provide all. Accordingly they demanded the aid of the King. But Wendel's and his collaborators's efforts were rendered very difficult with the grave financial crisis in the pre-revolutionary period. At last they was obliged to establish this enterprise as a joint-stock company that was novel in this field. As it was explaned above, the Creusot was built in accordance with a modern model in technological and financial forms. But when we analyse it radically from the point of view of comparative economic history, it is clear that the social meaning of this establishment is found in the self-reform of the absolute monarchy and the feudal ruling class in order to maintain their domination. Hence, it was overdowned in the highest stage of the revolutionary process.

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Since the age of the Fuggers the textile industries flourished in the South Germany. Woollen and linnen cloths produced by the clothiers in the villages and small rural towns in the Black Forest and Swabia were exported by merchants and several trading companies, of which the Calwer Zeughandlungs kompagnie and Uracher Leinwandhalungskompanie were the most famous for their large scale of trade. Towards the end of the 18th centnry, however, foreign trade in these articles came to be hardly possible, which caused a rash decline of these export textile industries. Contrary to them, textile industries in the Middle Wurtemberg were growing from the 18th century on, owing to a home market. We can odserve in these capitalism unfolding by : Moriz Mohl, Uber die wurtembergischen Gewerbeindustrie, 1828 ; some small industrialists founded "manufacturs" and enlarsged their workshops, while weavers and spinners grew poorer and fell into dependence upon merchants or large manufacturers who used to visit distant markets to sell their cloths. The poorest of weavers and spinners were compelled to give up their trade to be employees in manufactures. After the conclusion of the Custums Union (the Zollverein) in 1833, machineries out of Great Britain or another were set to transfer these manufactures to the factories in the prospect of a broader home market, by the industrialists or several enterprising merchants.

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