In Berlin, his admiration for
Frederick the Great, together with his distaste for the pettiness of the legal procedure at
Wetzlar, compelled him to take service in the monarchy of
Prussia. He gained a position in the department of mines and manufactures. At the head of that department was
Friedrich Anton von Heynitz who was a master of
economics and
civil government. In June 1785, Stein was sent for a time as Prussian ambassador to the courts of
Mainz,
Zweibrücken, and
Darmstadt. Between 1786 and 1787, Stein went on a tour in England where he pursued his research into commercial and mining affairs.
Directorship In November 1787, Stein was appointed
Kammerdirektor, director of the chamber of war and domains, for the king's possessions west of the river
Weser. From 1796 until 1803, he was supreme president of all the
Westphalian chambers dealing with the commerce and mines of Prussian lands with a seat in
Minden. One of the chief benefits he conferred on these districts was the canalization of the river
Ruhr which became an important outlet for the
coal of that region. He also improved the navigation of the
Weser.
War with France Stein's early training and his stern practical mentality made him completely impervious to the enthusiasm that his contemporaries had shown for the
French Revolution. He disliked the methods of the revolutionaries which he saw as an interruption to the orderly development of peoples. Nevertheless, he carefully noted the new sources of national strength that arrose from reforms in France. After being at war with France in 1792 to 1795,
Prussia came to terms with the new revolutionary government in France at
Basel in April 1795. The two nations remained at peace until 1806. However,
Austria and southern Germany continued the struggle against France for most of that time. In Prussia,
Frederick William III succeeded
Frederick William II in November 1797. Unfortunately, Frederick William III listened to the advice of secret and irresponsible counsellors and persisted to undermine the
Peace of Basle.
Minister of State Stein in 1804 took office as minister of state for trade in Prussia. This made him responsible for indirect imposts, taxes, manufactures, and commerce. While in office he introduced useful reforms in his department, particularly by abolishing various restrictions on the internal trade of the nation, but he was hampered in his endeavors by the spirit of Prussian conservatism. Stein was not at ease with the effects of the Francophile policy by the chief minister
Christian Graf von Haugwitz. Little came of Stein's protests, but he continued to protest. Prussian policy continued to progress on the path that led to the disaster at
Battle of Jena starting on 14 October 1806. Stein was offered the portfolio for foreign affairs, which Stein declined to accept on the ground of his incompetence to manage that department unless there was a complete change in the system of government. Stein desired for
Karl August von Hardenberg to take that office and bring into effect, with Stein's own help, the necessary administrative changes. The Prussian king refused to accept Hardenberg and, greatly irritated by Stein's unusually outspoken letters, dismissed Stein altogether because he was "a refractory, insolent, obstinate and disobedient official". Stein spent the months in which
Napoleon completed the ruin of Prussia in retirement.
Treaty of Tilsit ,
Alexander I of Russia,
Queen Louise of Prussia, and Frederick William III in Tilsit, 1807. Painted by
Nicolas Gosse, Stein got to see
Karl August von Hardenberg who had been called to office in April 1807. Important reforms were effected in the cabinet system. During the negotiations at
Tilsit,
Napoleon refused to act upon Hardenberg's recommendations and Hardenberg thereupon retired. Surprisingly, Napoleon, who had as yet no idea of Stein's deep and earnest patriotism, All distinctions affecting the
land tenure, including land owned by the
nobility and
peasants' land, were swept away and the principle of
free trade in land was established. The
October Edict also abrogated all class distinctions respecting occupations and callings of any and every kind, thus striking another blow at the
caste system that had been so rigorous in Prussia. Stein's next step was to strengthen the cabinet by wise changes. Stein issued a measure for
municipal reform on 19 November 1808 which granted local
self-government on enlightened yet practical lines to all Prussian
towns and even to all
villages possessing more than 800 inhabitants. While Stein's efforts were directed more towards civil affairs, he also furthered the progress of the military reforms, which are connected more especially with the name of
Gerhard Johann David von Scharnhorst. They refashioned the
Prussian army on modern lines, with a reserve system. Military service was made obligatory for all classes. ==Exile==