In the month of August, the South German States, Bavaria, Wuertemberg and Baden, accepted Prussia's terms; whereby they paid small war indemnities and recognised the new constitution of Germany.

Outwardly they formed a South German Confederation; but this had a very shadowy existence; and the three States by secret treaties with Prussia agreed to place their armies and all military arrangements, in case of war, under the control of the King of Prussia.

Thus within a month from the close of "the Seven Weeks' War," the whole of Germany was quietly but firmly bound to common action in military matters; and the actions of France left little doubt as to the need of these timely precautions.
On those German States which stood in the way of Prussia's territorial development and had shown marked hostility, Bismarck bore hard.

The Kingdom of Hanover, Electoral Hesse (Hesse-Cassel), the Duchy of Nassau, and the Free City of Frankfurt were annexed outright, Prussia thereby gaining direct contact with her Westphalian and Rhenish Provinces.

The absorption of Frankfurt-on-the-Main, and the formation of a new league, the North German Confederation, swept away all the old federal machinery, and marked out Berlin, not Vienna or Frankfurt, as the future governing centre of the Fatherland.