The inhabitants of Baden are of various origin,—those to the N. of the Murg being descended from the Alemanni, and those to the S. from the Franks, while the Swabian plateau derives its name and its population from another race. This distinction is still marked in the manners, the language, and the dress of the different districts. The majority of the people are engaged in agricultural and pastoral pursuits, for which much of the country is well adapted. In the valleys the soil is particularly fertile, yielding luxuriant crops of wheat, maize, barley, spelt, beans, potatoes, flax, hemp, hops, beet-root, and tobacco; and even in the more mountainous parts rye, wheat, and oats are extensively cultivated. There is a considerable extent of pasture land, and the rearing of cattle, sheep, pigs, and goats is largely attended to. The culture of the vine has recently been increasing, and the wines, which are characterised by a mildness of flavour, are in good demand. The gardens and orchards supply abundance of fruits, especially almonds and walnuts; and the keeping of bees is common throughout the country. A greater proportion of Baden than of any other of the South German states is occupied by forests. In these the predominant species are the fir and pine, but many others, such as the chestnut, are well represented. A third, at least, of the annual supply of timber is exported, the chief consumer being Holland, though of late years Paris has derived a considerable supply from this source.
The manufactures of Baden were formerly very insignificant, but have greatly increased since its accession to the Zollverein in 1835. They are, however, chiefly confined to iron and hardware goods, and the spinning and weaving of cotton. The latter industry is principally carried on at Ettlingen, Offenburg, St Blaise, Zell, Schopfheim; Manheim has an extensive manufacture of mirrors, and Carlsruhe of machines; while Pforzheim is famous for its production of jewellery and goldsmiths work. Beet-root sugar is manufactured at Waghäusel more largely than anywhere else in Germany. Paper, leather, and tobacco are also important objects of industry. The inhabitants of the Black Forest have long been celebrated for their dexterity in the manufacture of wooden ornaments and toys, watches, clocks, musical boxes, organs, &c. Of clocks alone about 600,000 are made every year.
The exports of Baden, which coincide largely with the industries just mentioned, are of considerable importance, but the bulk of its trade consists in the transit of goods. The country is well furnished with roads and railways, the greater proportion of the latter being in the hands of the state. A line runs the whole length of the land, for the most part parallel with the Rhine, while branches cross obliquely from east to west.
The educational institutions of Baden are numerous and flourishing, and public instruction is largely subsidised by the Government. There are two universities, the Protestant one at Heidelberg, founded in 1386, and the Catholic one at Freiburg, founded in 1457. The library at Heidelberg numbers 150,000 volumes, and that at Freiburg 100,000, while there is another of almost equal size at Carlsruhe. There are also lyceums at Carlsruhe, Constance, Freiburg, Heidelberg, Manheim, Rastadt, and Wertheim; several gymnasiums; normal schools at Carlsruhe, Ettlingen, and Meersburg, besides upwards of 2000 common schools established throughout the country. There is an institution in Pforzheim for the deaf and dumb, and one in Freiburg for the blind. The polytechnic school at Carlsruhe is among the most efficient institutions of the kind in Germany. The preparatory course extends over three years, and includes French, German, English, special history, mathematics, drawing, modelling, chemistry, mineralogy and geology, mechanics, &c. The special courses are engineering, architecture, forestry, chemistry, mechanics, commerce, and post-office service, and extend over from one to four years. The ducal family of Baden belong to the Protestant section of the Church, but the majority of the population are Roman Catholics. The returns of the census of 1871 are as follows:—Catholics, 942,560; Protestants, 491,008; other sects, 2265; and Jews, 25,703. The district where the Roman Catholic preponderance was greatest was Constance, while the Protestants were slightly more numerous in the district of Manheim.
The government of Baden is an hereditary monarchy, with the executive power vested in the grand duke, and the legislative authority in a Parliament consisting of two Chambers. The upper Chamber is composed of all the princes of the reigning line who are of age, the chiefs of ten noble families, the possessors of hereditary landed estates worth £25,000, the Roman Catholic archbishop of Freiburg, the president of the Protestant Church, a deputy from each of the universities, and eight nominees of the duke. The lower Chamber consists of 63 representatives, of whom 22 are elected by the burgesses of certain towns, and 41 by the inhabitants of the bailiwicks. The parliamentary candidate must possess tax-paying property of the value of 10,000 florins (£833), or derive a salary of at least £125 from a public office. Every citizen, if neither criminal nor pauper, has the right of voting, but only in the choice of deputy-electors, by whom the real election of the representatives is decided. The members of the lower House are elected for eight years, and meetings of Parliament must take place every two years.
The budgets are granted by Parliament for a term of two years. In 1875 the ordinary expenses were rated at £1,572,959, and the ordinary receipts at £1,557,108. The total public debt on the 1st of January 1874 was £12,985,067.
Since the organisation of 1864 courts are held at Constance, Freiburg, Offenburg, Carlsruhe, and Manheim, the supreme court being in the city last named. Manheim is also the seat of the central commission for the navigation of the Rhine.