Institutional Maria Theresa was as conservative in matters of state as in those of religion, but she implemented significant reforms to strengthen Austria's military and bureaucratic efficiency. She employed
Friedrich Wilhelm von Haugwitz, who modernised the empire by creating a
standing army of 108,000 men, paid for with 14 million
florins extracted from crown lands. The central government was responsible for funding the army, although Haugwitz instituted taxation of the nobility, who had never before had to pay taxes. Moreover, after Haugwitz was appointed the head of the new central administrative agency, dubbed the Directory, (
Directorium in publicis et cameralibus) in 1749, he initiated a radical centralization of state institutions down to the level of the District Office (
Kreisamt). Thanks to this effort, by 1760 there was a class of government officials numbering around 10,000. However, the Duchy of Milan, the Austrian Netherlands and Hungary were almost completely untouched by this reform. In the case of Hungary, Maria Theresa was particularly mindful of her promise that she would respect the privileges in the kingdom, including the immunity of nobles from taxation. In light of the failure to reclaim Silesia during the Seven Years' War, the governing system was once again reformed to strengthen the state. The Directory was transformed into the United Austrian and Bohemian Chancellery in 1761, which was equipped with a separate, independent judiciary and separate financial bodies. She also refounded the
Hofkammer in 1762, which was a ministry of finances that controlled all revenues from the monarchy. In addition to this, the
Hofrechenskammer, or exchequer, was tasked with the handling of all financial accounts. Meanwhile, in 1760, Maria Theresa created the Council of State (
Staatsrat), composed of the state chancellor, three members of the high nobility and three knights, which served as a committee of experienced people who advised her. The council of state lacked executive or legislative authority; nevertheless, it showed the difference between the form of government employed by Maria Theresa and that of Frederick II of Prussia. Unlike the latter, Maria Theresa was not an autocrat who acted as her own minister. Prussia would adopt this form of government only after 1807. in Vienna Maria Theresa doubled the state revenue from 20 to 40 million florins between 1754 and 1764, though her attempt to tax clergy and nobility was only partially successful. These financial reforms greatly improved the economy. After Kaunitz became the head of the new
Staatsrat, he pursued a policy of "aristocratic enlightenment" that relied on persuasion to interact with the estates, and he was also willing to retract some of Haugwitz's centralization to curry favour with them. Nonetheless, the governing system remained centralised, and a strong institution made it possible for Kaunitz to increase state revenues substantially. In 1775, the Habsburg monarchy achieved its first balanced budget, and by 1780, the Habsburg state revenue had reached 50 million florins.
Medicine After Maria Theresa recruited
Gerard van Swieten from the Netherlands, he also employed a fellow Dutchman named
Anton de Haen, who founded the Viennese Medicine School (
Wiener Medizinische Schule). Maria Theresa also banned the creation of new burial grounds without prior government permission, thus countering wasteful and unhygienic burial customs. After the
smallpox epidemic of 1767, she promoted
inoculation, which she had learned of through her correspondence with
Maria Antonia, Electress of Saxony (who in turn probably knew of it through her own correspondence with Frederick the Great). After unsuccessfully inviting the Sutton brothers from England to introduce their technique in Austria, Maria Theresa obtained information on current practices of smallpox inoculation in England. She overrode the objections of
Gerard van Swieten (who doubted the effectiveness of the technique), and ordered that it be tried on thirty-four newborn orphans and sixty-seven orphans between the ages of five and fourteen years. The trial was successful, establishing that inoculation was effective in protecting against smallpox, and safe (in the case of the test subjects). The Empress therefore ordered the construction of an inoculation centre, and had herself and two of her children inoculated. She promoted inoculation in Austria by hosting a dinner for the first sixty-five inoculated children in
Schönbrunn Palace, waiting on the children herself. Maria Theresa was responsible for changing Austrian physicians' negative view of inoculation. In 1770, she enacted a strict regulation of the sale of poisons, and apothecaries were obliged to keep a poison register recording the quantity and circumstances of every sale. If someone unknown tried to purchase a poison, that person had to provide two character witnesses before a sale could be effectuated. Three years later, she prohibited the use of
lead in any eating or drinking vessels; the only permitted material for this purpose was pure
tin.
Law The centralization of the Habsburg government necessitated the creation of a unified legal system. Previously, various lands in the Habsburg realm had their own laws. These laws were compiled and the resulting
Codex Theresianus could be used as a basis for legal unification. In 1769, the
Constitutio Criminalis Theresiana was published, and this was a codification of the traditional criminal justice system since the Middle Ages. This criminal code allowed the possibility of establishing the truth through
torture, and it also criminalised witchcraft and various religious offenses. Although this law came into force in Austria and Bohemia, it was not valid in Hungary. Maria Theresa is credited, however, in ending the witch hunts in
Zagreb, opposing the methods used against
Magda Logomer (also called Herrucina), who was the last prosecuted witch in Zagreb following her intervention. She was particularly concerned with the sexual morality of her subjects. Thus, she established a Chastity Commission (
Keuschheitskommission) in 1752 to clamp down on prostitution,
homosexuality,
adultery and even sex between members of different religions. This Commission cooperated closely with the police, and the Commission even employed secret agents to investigate private lives of men and women with bad reputations. They were authorised to raid banquets, clubs, and private gatherings, and to arrest those suspected of violating social norms. The punishments included whipping, deportation, or even the
death penalty. By late 1772, Maria Theresa had decided on more radical reform. In 1773, she entrusted her minister
Franz Anton von Raab with a model project on the crown lands in Bohemia: he was tasked to divide up the large estates into small farms, convert the forced labour contracts into leases, and enable the farmers to pass the leaseholds onto their children. Raab pushed the project through so successfully that his name was identified with the program, which became known as
Raabisation. After the success of the program on the crown lands, Maria Theresa had it also implemented on the former Jesuit lands, as well as crown lands in other parts of her empire. However, Maria Theresa's attempts to extend the Raab system to the great estates belonging to the Bohemian nobles were fiercely resisted by the nobles. They claimed that the crown had no right to interfere with the serf system, since the nobles were the original owners of the land and had allowed the peasants to work it on stipulated conditions. The nobles also claimed that the system of forced labour had no connection with the peasants' poverty, which was a result of the peasants' own wastefulness and the increased royal taxes. Somewhat surprisingly, the nobles were supported by Maria Theresa's son and co-ruler Joseph II, who had earlier called for the abolition of serfdom. In a letter to his brother
Leopold, of 1775, Joseph complained that his mother intended to "abolish serfdom entirely and arbitrarily destroy the centuries-old property relations." He complained that "no consideration was being taken for the landlords, who were threatened with the loss of more than half their income. For many of them, who are carrying debts, this would mean financial ruin." By 1776, the court was polarized: on one side was a small reform party (including Maria Theresa, Raab, Blanc, Gebler and Greiner); on the conservative side were Joseph and the rest of the court. Joseph argued that it was difficult to find a middle way between the interests of the peasants and nobles; he suggested instead that the peasants negotiate with their landlords to reach an outcome. Joseph's biographer Derek Beales calls this change of course "puzzling". In the ensuing struggle, Joseph forced Blanc to leave the court. Because of the opposition, Maria Theresa was unable to carry out the planned reform and had to settle on a compromise. The system of serfdom was only abolished after Maria Theresa's death, in the
Serfdom Patent (1781) issued (in another change of course) by Joseph II as sole ruler. ==Late reign==