Treaties of Tilsit - Franco-Prussian Treaty (9 July)

Franco-Prussian Treaty (9 July)

The treaty with Prussia stripped the country of about half its territory: Cottbus passed to Saxony, the left bank of the Elbe was awarded to the newly-created Kingdom of Westphalia, Białystok was given to Russia (which led to the creation of the Belostok Oblast), and the rest of the Polish lands in Prussian possession since the Second and Third Partitions became the quasi-independent Duchy of Warsaw. Prussia was to reduce the army to 40,000 and on 9 March 1808 France fixed its tribute to be levied from Prussia at 154,500,000 Francs (= Prussian dollar 41.73 mio.), deducting 53,500,000 which had been raised so far during the ongoing French occupation, the sum was lowered in two steps to altogether 120 million Francs by 1 November 1808.

Talleyrand had advised Napoleon to pursue milder terms; the treaties marked an important stage in his estrangement from the emperor. Until 1812 the French occupants requisitioned in money and kind from various corporations and persons, especially by billetting soldiers on cities, further contributions additionally amounting to between 146 to 309 million Francs, according to different calculations. The Prussian government indebtedness soared between 1806 and 1815 by thaler 200 million to altogether 180.09 million interest-bearing debts, 11.24 million non-interest-bearing unconsolidated treasury notes and another 25.9 million former provincial debts assumed by the royal government. Whereas the cities' debts, especially those of Berlin often billetted on, were not assumed by the Prussian government. Since the creditors deemed Prussia to be over-indebted in 1817 the 4-per cent state bonds were traded at the bourses with a disagio of 27 to 29 per cent, in 1818 even with a discountor of 35 per cent, causing the effective interest to rise to 6.15 per cent. At restructuring part of the debts in 1818 by a £ 5 million loan (= thaler 30 million) at 5% at the London financial market the Prussian government had to accept a disagio of 28⅓%, thus paying an annual effective rate of 6.98%.

When the Treaty was being formulated, it was noted by an observer that the Prussian king was pacing on the bank of the Neman river; Napoleon had to "but raise his hand, and Prussia would cease to exist." (McKay) Hence, many observers in Prussia and Russia viewed the treaty as unequal and as a national humiliation. The Russian soldiers refused to follow Napoleon's commands, as the Lisbon Incident demonstrated to all Europe. Napoleon's plans to marry the tsar's sister were stymied by Russian royalty. Cooperation between Russia and France eventually broke down in 1810 when the tsar began to allow neutral ships to land in Russian ports. In 1812, Napoleon crossed the Neman river and invaded Russia, ending any vestige of alliance.