Meanwhile the Italian mint coined thalers bearing the portrait of King Humbert, with an inscription referring to the Italian protectorate, and on the 1st of January 1890 a royal decree conferred upon the colony the name of Eritrea.
The last Count of Promnitz, whose ancestor had purchased both baronies from Frederick of Bohemia in 1556, sold them in 1765 to the elector of Saxony for an annuity of 12,000 thalers (rSoo).
In this they were not successful; but a government stipend of 200 thalers was given him, and even this miserable pittance was of great importance, so straitened were his circumstances.
Finally, in 1870, 1,000,000 thalers were paid to Mecklenburg and 85,000 thalers to Anhal, which thereupon abandoned all claims to levy tolls upon the Elbe shipping, and thus navigation on the river became at last entirely free.
The first ten years of his active reign passed in peace and quiet; agriculture, manufactures and industries were fostered, economical reforms instituted, and the heavy public debt of forty million thalers was steadily reduced.