no longer a question of free trade city or complete annexation to the Customs Union, but instead the alternatives of free trade throughout the city or in a smaller free port area. As was to be expected, the actions of the 32 merchants unleashed a storm of indignation in Hamburg. In the stock exchange, a petition received 1,730 signatures asserting "that the preservation of the freedom of Hamburg is imperative both in the national interest of the entire fatherland and in Hamburg's interest”. Pressure to join the Customs Union starting in 1879 In the first decade of the new federation's existence, Bismarck largely left trade policy in the hands of his deputy the liberal-minded President of the Chancellery Rudolf von Delbrück. Delbrück pursued a policy of making trade as free as possible and reduced the protective tariffs of the Customs Union. After the Franco-Prussian War, French war indemnities reduced the need for customs revenues. However, Delbrück resigned in April 1876 over disagreements with Bismarck. In 1875, the iron industry sought the retention of the 1876 expiring tariffs of the Customs Union. Bismarck now intervened - in addition to increasing individual customs duties and taxes, he would also replace the previously low financial tariffs by introducing a protective duty system. This change in customs policy would have the dual advantage of protection of domestic industry against cheap foreign imports, while increasing the revenue of the empire. Industrial and agricultural interests were decisive. Only Hamburg, Bremen, and Oldenburg voted against Bismarck's proposals in the Federal Council. The Hamburg Chamber of Commerce justified Hamburg's opposition saying they would make the entire domestic consumption more expensive, increase costs for industry and ultimately would challenge other countries to counter-measures. Two main causes led to the high tariff policy. Firstly, imperial expenses, particularly military, were increasing and Bismarck decided to get revenue by increasing import duties rather than by raising direct taxes. Customs duties were paid directly to the central authorities. Alternatively the contributions made by the individual states could be increased, but they would need to raise the sums by persuading their legislatures to raise direct taxation. Politically it was easier raise the tariff. Secondly, a fall in agricultural prices led the agrarian interest, which previously opposed high duties on manufactures, to combine with industrialists to demand a general increase in the tariff. The high tariff heightened the disparity with Hamburg and the Chancellor felt