The elections of 1878, by weakening the Liberal parties, enabled Bismarck also to take in hand the great financial reform which he had long contemplated.
At the foundation of the North German Confederation it had been arranged that the imperial exchequer should receive the produce of all customs duties and also of excise. It depended chiefly on the taxes on salt, tobacco, brandy,Financial reform.beer and sugar. So far as the imperial expenses were not covered by these sources of revenue, until imperial taxes were introduced, the deficit had to be covered by “matricular” contributions paid by the individual states in proportion to their population. All attempts to introduce fresh imperial taxes had failed. Direct taxation was opposed by the governments of the states, which did not desire to see the imperial authorities interfering in those sources of revenue over which they had hitherto had sole control; moreover, the whole organization for collecting direct taxes would have had to be created. At the same time, owing to the adoption of free trade, the income from customs was continually diminishing. The result was that the sum to be contributed by the individual states constantly increased, and the amount to be raised by direct taxation, including local rates, threatened to become greater than could conveniently be borne. Bismarck had always regarded this system with disapproval, but during the first four or five years he had left the care of the finances entirely to the special officials, and had always been thwarted in his occasional attempts to introduce a change. His most cherished project was a large increase in the tax on tobacco, which at this time paid, for homegrown tobacco, the nominal duty of four marks per hundred kilo. (about a farthing a pound), and on imported tobacco twenty-four marks. Proposals to increase it had been made in 1869 and in 1878, and on the latter occasion Bismarck for the first time publicly announced his desire for a state monopoly, a project which he never gave up, but for which he never was able to win any support. Now, however, he was able to take up the work. At his invitation a conference of the finance ministers met in July at Heidelberg; they agreed to a great increase in the indirect taxes, but refused to accept the monopoly on tobacco. At the beginning of the autumn session a union of 204 members of the Reichstag was formed for the discussion of economic questions, and they accepted Bismarck’s reforms. In December he was therefore able to issue a memorandum explaining his policy; it included a moderate duty, about 5%, on all imported goods, with the exception of raw material required for German manufactures (this was a return to the old Prussian principle); high finance duties on tobacco, beer, brandy and petroleum; and protective duties on iron, corn, cattle, wood, wine and sugar. The whole of the session of 1879 was occupied with the great struggle between Free Trade and Protection, and it ended withProtection.a decisive victory for the latter. On the one side were the seaports, the chambers of commerce, and the city of Berlin, the town council of which made itself the centre of the opposition. The victory was secured by a coalition between the agricultural interests and the manufacturers; the latter promised to vote for duties on corn if the landlords would support the duties on iron. In the decisive vote the duty on iron was carried by 218 to 88, on corn by 226 to 109. The principle of protection was thus definitely adopted, though considerable alterations have been made from time to time in the tariff. The result was that the income from customs and excise rose from about 230 million marks in 1878-1879 to about 700 millions in 1898-1899, and Bismarck’s object in removing a great burden from the states was attained.
The natural course when the new source of income had been obtained would have been simply to relieve the states of part or all of their contribution. This, however, was not done. The Reichstag raised difficulties on the constitutionalState contributions.question. The Liberals feared that if the government received so large a permanent source of revenue it would be independent of parliament; the Centre, that if the contributions of the states to the imperial exchequer ceased, the central government would be completely independent of the states. Bismarck had to come to an agreement with one party or the other; he chose the Centre, probably for the reason that the National Liberals were themselves divided on the policy to be pursued, and therefore their support would be uncertain; and he accepted an amendment, the celebratedFranckenstein Clause, proposed by Georg Arbogast Freiherr von Franckenstein (1825-1890), one of the leaders of the Centre, by which all proceeds of customs and the tax on tobacco above 130 million marks should be paid over to the individual states in proportion to their population. Each year a large sum would be paid to the states from the imperial treasury, and another sum as before paid back to meet the deficit in the form of state contributions. From 1871 to 1879 the contribution of the states had varied from 94 to 67 million marks; under the new system the surplus of the contributions made by the states over the grant by the imperial treasury was soon reduced to a very small sum, and in 1884-1885 payments of the empire to the states exceeded the contributions of the states to the empire by 20 million marks, and this excess continued for many years; so that there was, as it were, an actual grant in relief of direct taxation. In Prussia, by the Lex Huene, from 1885 to 1895, all that sum paid to Prussia, so far as it exceeded 15 million marks, was handed over to the local authorities in relief of rates. The increased expenditure on the navy after 1897 again caused the contributions required from the states to exceed the grants to them from the imperial exchequer. In 1903 Baron von Stengel, who succeeded Baron von Thielmann as finance minister in this year, proposed that the matricular contributions of the several states, instead of varying as heretofore with the exigencies of the annual budget,should be fixed by law. This plan, originally suggested by Dr von Miquel, was adopted by the Reichstag in May 1904. The deficits in the imperial budget, however, continued. In 1909 the whole system of German imperial finance was once more in the melting-pot, and, in spite of the undoubted wealth of the country, the conflict of state and party interests seemed to make it practically impossible to remould it on a satisfactory basis.
The acceptance by Bismarck of the principle of Protection and his alliance with the Catholic Centre were followed by the disruption of the National Liberal party and a completeParty changes.change in the parliamentary situation. Already the Liberal ministers, Falk and Hobrecht, had resigned, as well as Max von Forckenbeck the president, and Stauffenberg the vice-president of the Reichstag; in their place there were chosen a Conservative, and the Catholic Baron von Franckenstein. The whole party had voted against the Franckenstein Clause, but a few days later fifteen of the right wing left the party and transferred their support to the government. For another year the remainder kept together, but there was no longer any real harmony or co-operation; in 1880 nineteen, including most of the ablest leaders, Lasker, Forckenbeck, Bamberger and Bunsen, left the party altogether. The avowed cause of difference was commercial policy; they were the Free Traders, but they also justly foresaw that the reaction would extend to otherSecessionists.matters. They took the name of theLiberale Vereinigung, but were generally known as theSezessionisten; they hoped to become the nucleus of a united Liberal party in which all sections should join together on the principles of Free Trade and constitutional development. At the elections of 1881 they secured forty-seven seats, but they were not strong enough to maintain themselves, and with great reluctance in 1884 formed a coalition with the Progressives (Freisinnigen), who had gained greatly in strength owing to the breach among the government parties. They did so reluctantly, because they would thereby condemn themselves to assume that attitude of purely negative criticism which, during the great days of their prosperity, they had looked down upon with contempt, and were putting themselves under the leadership of Eugen Richter, whom they had long opposed. The new party, theDeutschfreisinnige,Freisinnige.had no success; at the election of 1884 they secured only sixty-seven seats, a loss of thirty-nine; they were subjected to all inconveniences which belonged to opposition; socially, they were boycotted by all who were connected with the court or government; they were cut off from all hope of public activity, and were subjected to constant accusations forBismarck Beleidigung. Their only hope was in the time when the crown prince, who had shown great sympathy with them, should succeed. They were popularly known as the crown prince’s party. Lasker soon died; others, such as Forckenbeck and Bunsen, retired from public life, unable to maintain their position at a time when the struggle of class interests had superseded the old conflicts of principle. At the election of 1887 they lost more than half their seats, and in 1893 the party again broke up.
The remainder of the National Liberals only won forty-five seats in 1881, and during the next three years they were without influence on the government; and even Bennigsen, unable to follow Bismarck in his new policy, disgusted at the proposals for biennial budgets and the misuse of government influence at the elections, retired from political life. In 1884 a new development took place: under the influence of Miquel a meeting was held at Heidelberg of the South German members of the party, who accepted the commercial and social policy of the government, including the Socialist law; their programme received Bismarck’s approval, and was accepted by the rest of the party, so that they henceforward were taken into favour by the government; but they had won the position by sacrificing almost all the characteristics of the older Liberalism; the hope of a reunion for all the different sections which had hitherto kept the name of Liberal was at an end.
These events had a very unfortunate effect on the character of the parliament. From 1878 to 1887 there was no strong party on which Bismarck could depend for support. After 1881 the parties of opposition were considerably strengthened. AlsatiansPolitical reaction.and Poles, Guelphs, Clericals and Radicals were joined in a common hostility to the government. Parliamentary history took the form of a hostile criticism of the government proposals, which was particularly bitter because of the irreconcilable opposition of the Free Traders. Few of the proposals were carried in their entirety, many were completely lost; the tobacco monopoly and the brandy monopoly were contemptuously rejected by enormous majorities; even an increase of the tax on tobacco was refused; the first proposals for a subsidy to the Norddeutsche Lloyd were rejected. The personal relations of the chancellor to Parliament were never so bitter. At the same time, in Prussia there was a tendency to make more prominent the power of the king and to diminish the influence of the parliament. A proposal to introduce biennial budgets was for this reason regarded with great suspicion by the Opposition as a reactionary measure, and rejected. The old feelings of suspicion and jealousy were again aroused; the hostility which Bismarck encountered was scarcely less than in the old days of the conflict. After the elections of 1881 a protest was raised against the systematic influence exercised by Prussian officials. Puttkammer, who had now become minister of the interior, defended the practice, and a royal edict of 4th January 1882 affirmed the monarchical character of the Prussian constitution, the right of the king personally to direct the policy of the state, and required those officials who held appointments of a political nature to defend the policy of the government, even at elections.
One result of the new policy was a reconciliation with the Centre. Now that Bismarck could no longer depend on the support of the Liberals, it would be impossible to carry on the government if the Catholics maintained theirEnd of the Kulturkampf.policy of opposition to all government measures. They had supported him in his commercial reform of 1878, but by opposing the Septennate in 1880 they had shown that he could not depend upon them. It was impossible to continue to treat as enemies of the state a party which had supplied one of the vice-presidents to the Reichstag, and which after the election of 1881 outnumbered by forty votes any other single party. Moreover, the government, which was now very seriously alarmed at the influence of the Social Democrats, was anxious to avail itself of every influence which might be used against them. In the struggle to regain the adherence of the working men it seemed as though religion would be the most valuable ally, and it was impossible to ignore the fact that the Roman Catholic priests had alone been able to form an organization in which hundreds of thousands of working men had been enlisted. It was therefore for every reason desirable to remedy a state of things by which so many parishes were left without incumbents, a condition the result of which must be either to diminish the hold of Christianity over the people, or to confirm in them the belief that the government was the real enemy of Christianity. It was not easy to execute this change of front with dignity, and impossible to do so without forsaking the principles on which they had hitherto acted. Ten years were to pass before the work was completed. But the cause of the conflict had been rather in the opinions of the Liberals than in the personal desire of Bismarck himself. The larger political reasons which had brought about the conflict were also no longer valid; the fears to which the Vatican decrees had given rise had not been fulfilled; the failure of the Carlists in Spain and of the Legitimists in France, the consolidation of the new kingdom in Italy, and the alliance with Austria had dispelled the fear of a Catholic league. The growth of the Catholic democracy in Germany was a much more serious danger, and it proved to be easier to come to terms with the pope than with the parliamentary Opposition. It would clearly be impossible to come to any agreement on the principles. Bismarck hoped, indeed, putting all questions of principle aside, to establish amodus vivendi; but even this was difficult to attain. An opportunity was given by the death of the pope in 1878. Leo XIII. notified his accession to the Prussian government ina courteous despatch; the interchange of letters was followed by a confidential discussion between Bismarck and Cardinal Franchi at Kissingen during the summer of 1878. The hope that this might bring about some agreement was frustrated by the sudden death of the cardinal, and his successor was more under the influence of the Jesuits and the more extreme party. Bismarck, however, was not discouraged.
The resignation of Falk in July 1879 was a sign of the change of policy; he was succeeded by Puttkammer, who belonged to the old-fashioned Prussian Conservatives and had no sympathy with the Liberal legislation. The way was further prepared by a lenient use of the penal laws. On the 24th of February 1880 the pope, in a letter to the ex-archbishop of Cologne, said he was willing to allow clerical appointments to be notified if the government withdrew the obnoxious laws. In 1880 a provisional Bill was submitted to parliament giving the crown discretionary power not to enforce the laws. It was opposed by the Liberals on the ground that it conceded too much, by the Clericals that it granted too little, but, though carried only in a mutilated form, it enabled the priests who had been ejected to appoint substitutes, and religious worship was restored in nearly a thousand parishes. In the elections of 1881 the Centre gained five more seats, and in 1883 a new law was introduced prolonging and extending that of 1881. Meanwhile a Prussian envoy had again been appointed at the Vatican; all but three of the vacant bishoprics were filled by agreement between the pope and the king, and the sequestrated revenues were restored. Finally, in 1886, a fresh law, besides other concessions, did away with theKultur Examen, and exempted seminaries from state control. It also abolished the ecclesiastical court, which, in fact, had proved to be almost unworkable, for no priests would appeal to it. By this, the real Kulturkampf, the attempt of the state to control the intellect and faith of the clergy, ceased. A further law of 1887 permitted the return to Prussia of those orders which were occupied in charitable work.
As permanent results of the conflict there remain only the alteration in the Prussian constitution and the expulsion of the Jesuits; the Centre continued to demand the repeal of this, and to make it the price of their support of government measures; in 1897 the Bundesrat permitted the return of the Redemptorists, an allied order. With these exceptions absolute religious peace resulted; the Centre to a great extent succeeded to the position which the National Liberals formerly held; in Bavaria, in Baden, in Prussia they obtained a dominant position, and they became a government party.
Meanwhile Bismarck, who was not intimidated by the parliamentary opposition, irritating and embarrassing though it was, resolutely proceeded with his task of developing the material resources of the empire. In order to do soNationalization of railways.the better, he undertook, in addition to his other offices, that of Prussian minister of commerce. He was now able to carry out, at least partially, his railway schemes, for he could afford to ignore Liberal dislike to state railways, and if he was unable to make all the lines imperial, he could make most of them Prussian. The work was continued by his successors, and by the year 1896 there remained only about 2000 kilometres of private railways in Prussia; of these none except those in East Prussia belonged to companies of any great importance. More than this, Bismarck was able to obtain Prussian control of the neighbouring states; in 1886 the Brunswick railways were acquired by the Prussian government, and in 1895 the private lines in Thuringia. The imperial railways in Alsace-Lorraine are managed in close connexion with the Prussian system, and in 1895 an important step was taken towards extending Prussian influence in the south. A treaty was made between Prussia and Hesse by which the two states together bought up the Hesse-Ludwig railway (the most important private company remaining in Germany), and in addition to this agreed that they would form a special union for the joint administration of all the lines belonging to either state. What this means is that the Hessian lines are managed by the Prussian department, but Hesse has the right of appointing one director, and the expenses and profits are divided between the two states in proportion to their population. Thus a nucleus and precedent has been formed similar to that by which theZollvereinwas begun, and it was hoped that it might be possible to arrange similar agreements with other states, so that in this way a common management for all lines might be established. There is, however, strong opposition, especially in South Germany, and most of the states cling to the separate management of their own lines. Fearful that Prussia might obtain control over the private lines, they have imitated Prussian policy and acquired all railways for the state, and much of the old opposition to Prussia is revived in defence of the local railways.
A natural supplement to the nationalization of railways was the development of water communication. This is of great importance in Germany, as all the chief coal-fields and manufacturing districts—Silesia, Saxony, WestphaliaCanals.and Alsace—are far removed from the sea. The most important works were the canal from Dortmund to the mouth of the Ems, and the Jāhde canal from the Ems to the Elbe, which enables Westphalian coal to reach the sea, and so to compete better with English coal. In addition to this, however, a large number of smaller works were undertaken, such as the canalization of the Main from Frankfort to the Rhine; and a new canal from the Elbe to Lübeck. The great ship canal from Kiel to the Elbe, which was begun in 1887 and completed in 1896, has perhaps even more importance for naval than for commercial purposes. The Rhine, so long the home of romance, has become one of the great arteries of traffic, and lines of railways on both sides have caused small villages to become large towns. The Prussian government also planned a great scheme by which the Westphalian coal-fields should be directly connected with the Rhine in one direction and the Elbe in the other by a canal which would join together Minden, Hanover and Magdeburg. This would give uninterrupted water communication from one end of the country to the other, for the Elbe, Oder and Vistula are all navigable rivers connected by canals. This project, which was a natural continuation of Bismarck’s policy, was, however, rejected by the Prussian parliament in 1899. The opposition came from the Agrarians and extreme Conservatives, who feared that it would enable foreign corn to compete on better terms with German corn; they were also jealous of the attention paid by the government to commercial enterprise in which they were not immediately interested. The project was again laid by the government before the PrussianLandtagon the 14th of April 1901 and was again rejected. In 1904 it was once more introduced in the modified form of a proposal of a canal from the Rhine to Leine in Hanover, with a branch from Datteln to Ham, and also of a canal from Berlin to Stettin. This bill was passed in February 1905.
Equally important was the action of the government in developing foreign trade. The first step was the inclusion of Hamburg and Bremen in theZollverein; this was necessary if German maritime enterprise was to becomeHamburg and Bremen.a national and not merely a local concern, for the two Hansa cities practically controlled the whole foreign trade and owned three-quarters of the shipping; but so long as they were excluded for the Customs Union their interests were more cosmopolitan than national. Both cities, but especially Hamburg, were very reluctant to give up their privileges and the commercial independence which they had enjoyed almost since their foundation. As a clause in the constitution determined that they should remain outside the Customs Union until they voluntarily offered to enter it, there was some difficulty in overcoming their opposition. Bismarck, with characteristic energy, proposed to take steps, by altering the position of the imperial customs stations, which would practically destroy the commerce of Hamburg, and some of his proposals which seemed contrary to the constitution aroused a very sharp resistance in the Bundesrat. It was, however, not necessary to go to extremities, for in 1881 the senate of Hamburg accepted an agreement which, after a keen struggle, was ratified by the citizens. By this Hamburg was to enter theZollverein; a part of theharbour was to remain a free port, and the empire contributed two million pounds towards rearranging and enlarging the harbour. A similar treaty was made with Bremen, the free port of that city being situated near the mouth of the Weser at Bremerhaven; and in 1888, the necessary works having been completed, the cities entered the Customs Union. They have had no reason to regret the change, for no part of the country profited so much by the great prosperity of the following years, notwithstanding the temporary check caused by the serious outbreak of cholera at Hamburg in 1892.
During the first years of the empire Bismarck had occasionally been asked to interest himself in colonial enterprise. He had refused, for he feared that foreign complications might ensue, and that the country might weaken itselfColonies.by dissipation of energy. He was satisfied that the Germans should profit by the commercial liberty allowed in the British colonies. Many of the Germans were, however, not contented with this, and disputes regarding the rights of German settlers in Fiji caused some change of feeling. The acquisition of German colonies was really the logical and almost necessary sequel of a protective policy. For that reason it was always opposed by the extreme Liberal party.
The failure of the great Hamburg house of Godefroy in 1879 threatened to ruin the growing German industries in the South Seas, which it had helped to build up. Bismarck therefore consented to apply to the Reichstag for a state guarantee to a company which would take over its great plantations in Samoa. This was refused, chiefly owing to the influence of the Liberal party. Bismarck therefore, who took this rebuff much to heart, said he would have nothing more to do with the matter, and warned those interested in colonies that they must depend on self-help; he could do nothing for them. By the support of some of the great financial firms they succeeded in forming a company, which carried on the business and undertook fresh settlements on the islands to the north of New Guinea. This event led also to the foundation of a society, theDeutscher Kolonial Verein, under the presidency of the prince of Hohenlohe-Langenburg, to educate public opinion. Their immediate object was the acquisition of trading stations. The year 1884 brought a complete change. Within a few months Germany acquired extended possessions in several parts both of Africa and the South Seas. This was rendered possible owing to the good understanding which at that time existed between Germany and France. Bismarck therefore no longer feared, as he formerly had, to encounter the difficulties with Great Britain which would be the natural result of a policy of colonial expansion.
His conversion to the views of the colonial party was gradual, as was seen in his attitude to the proposed acquisition of German stations in South-West Africa. In Namaqualand and Damaraland, British influence, exercised from CapeAfrica.Colony, had long been strong, but the British government had refused to annex the country even when asked so to do by the German missionaries who laboured among the natives. In 1882 F. A. Lüderitz, a Bremen tobacco merchant, approached Bismarck on the question of establishing a trading station on the coast at Angra Pequeña. The chancellor, while not discouraging Lüderitz, acted with perfect fairness to Great Britain, and throughout 1883 that country might have acted had she known her mind. She did not, and in the summer of 1884 Bismarck decided no longer to await her pleasure, and the south-west coast of Africa from the frontier of the Portuguese possessions to the Orange river, with the exception of Walfish Bay, was taken under German protection. During the same year Dr Nachtigal was despatched to the west coast, and stealing a march on his British and French rivals he secured not only Togoland but Cameroon for the Germans. On the east coast Bismarck acted decisively without reference to British interests. A company, theGesellschaft für deutsche Kolonization, was founded early in 1884 by Dr Carl Peters, who with two companions went off to the east coast of Africa and succeeded in November of that year in negotiating treaties with various chiefs on the mainland who were alleged to be independent of Zanzibar. In this region British opposition had to be considered, but in February 1885 a German protectorate over the territory acquired by Peters was proclaimed.
Similar events took place in the South Seas. The acquisition of Samoa, where German interests were most extensive, was prevented (for the time being) by the arrangement made in 1879 with Great Britain and the United States. But in 1884 andThe Pacific.1885 the German flag was hoisted on the north of New Guinea (to which the name Kaiser Wilhelmsland has been given), on several parts of the New Britain Archipelago (which afterwards became the Bismarck Archipelago), and on the Caroline Islands. The last acquisition was not kept. The Spanish government claimed the islands, and Bismarck, in order to avoid a struggle which would have been very disastrous to monarchical government in Spain, suggested that the pope should be asked to mediate. Leo XIII. accepted the offer, which was an agreeable reminiscence of the days when popes determined the limits of the Spanish colonial empire, all the more gratefully that it was made by a Protestant power. He decided in favour of Spain, Germany being granted certain rights in the islands. The loss of the islands was amply compensated for by the political advantages which Bismarck gained by this attention to the pope, and, after all, not many years elapsed before they became German.
Bismarck in his colonial policy had repeatedly explained that he did not propose to found provinces or take over for the government the responsibility for their administration; he intended to leave the responsibility for their material development to the merchants, and even to entrust to them the actual government. He avowedly wished to imitate the older form of British colonization by means of chartered companies, which had been recently revived in the North Borneo Company; the only responsibility of the imperial government was to be their protection from foreign aggression. In accordance with this policy, the territories were not actually incorporated in the empire (there would also have been constitutional difficulties in doing that), and they were officially known as Protectorates (Schutzgebiete), a word which thus acquired a new signification. In 1885 two new great companies were founded to undertake the government. TheDeutsch-Ost-Afrika Gesellschaft, with a capital of £200,000, took over the territories acquired by Dr Peters, and for the South Seas theNeu-Guinea Gesellschaft, founded by an amalgamation of a number of firms in 1884, received a charter in 1885. It was not, however, possible to limit the imperial responsibility as Bismarck intended. In East Africa the great revolt of the Arabs in 1888 drove the company out of all their possessions, with the exception of the port of Dar-es-Salam. The company was not strong enough to defend itself; troops had to be sent out by the emperor under Captain Wissmann, who as imperial commissioner took over the government. This, which was at first a temporary arrangement, was afterwards made permanent.
The New Guinea Company had less formidable enemies to contend with, and with the exception of a period of three years between 1889 and 1892, they maintained a full responsibility for the administration of their territory till the year 1899, when an agreement was made and ratified in the Reichstag, by which the possession and administration was transferred to the empire in return for a subsidy of £20,000 a year, to be continued for ten years. The whole of the colonies have therefore now come under the direct administration of the empire. They were at first placed under the direction of a special department of the Foreign Office, and in 1890 a council of experts on colonial matters was instituted, while in 1907 a separate office for colonial affairs was created. In 1887 the two chief societies for supporting the colonial movement joined under the name of theDeutsche Kolonialgesellschaft. This society takes a great part in forming public opinion on colonial matters.
This new policy inevitably caused a rivalry of interests with other countries, and especially with Great Britain. In every spot at which the Germans acquired territory they found themselves in opposition to British interests. The settlement of AngraGermany and Great Britain.Pequeña caused much ill-feeling in Cape Colony, which was, however, scarcely justified, for the Cape ministry was equally responsible with the British government for the dilatoriness which led to the loss of what is now German South-West Africa. In Togoland and Cameroon British traders had long been active, and the proclamation of British sovereignty was impending when the German flag was hoisted. The settlement in East Africa menaced the old-established British influence over Zanzibar, which was all the more serious because of the close connexion between Zanzibar and the rulers of the Persian Gulf; and Australia saw with much concern the German settlement in New Guinea, especially as a British Protectorate (which in the view of Australians should have included the whole of what Germany was allowed to take) had previously been established in the island. In Africa Britain and France proceeded to annex territory adjacent to the German acquisitions, and a period followed during which the boundaries of German, French and British possessions were determined by negotiation. The overthrow of Jules Ferry and the danger of war with France made a good understanding with Great Britain of more importance. Bismarck, by summoning a conference to Berlin (1884-1885) to discuss African questions, secured for Germany a European recognition which was very grateful to the colonial parties; and in 1888, by lending his support to the anti-slavery movement of Cardinal Lavigerie, he won the support of the Centre, who had hitherto opposed the colonial policy. Finally a general agreement for the demarcation of Africa was made in 1890 (seeAfrica, § 5). A similar agreement had been made in 1886 regarding the South Seas. It was made after Bismarck had retired from office, and he, as did the colonial party, severely criticized the details; for the surrender of Zanzibar and Witu cut short the hopes which had been formed of building up a great German empire controlling the whole of East Africa. Many of the colonial party went further, and criticized not only the details, but the principle. They were much offended by Caprivi’s statement that no greater injury could be done to Germany than to give her the whole of Africa, and they refused to accept his contention that “the period of flag-hoisting was over,” and that the time had come for consolidating their possessions. It must, however, be recognized that a continuation of the ambitious policy of the last few years might easily have involved Germany in dangerous disputes.
It appeared a small compensation that Great Britain surrendered to Germany the island of Heligoland, which she hadHeligoland.taken from the Danes in the Napoleonic wars. It was annexed to Prussia; the natives born before the year 1880 were exempted from military service, and till the year 1901 no additional import duties were to be imposed. It has been strongly fortified and made a naval station.
It was easy for the Opposition to criticize the colonial policy. They could point out that, with the exception of parts of South-West Africa, no territory had been acquired in which any large number of German emigrants could live and rear families. They went as a rule to the UnitedProgress of German colonial expansion.States and South America, or to territories under the British flag. As markets for German products the colonies remained of small importance; in 1907 the whole value of the trade, import and export, between Germany and her colonies was less than £3,300,000, and the cost of administration, including the grant to the shipping companies, often exceeded the total trade. Many mistakes were made in the administration, and cases of misconduct by individual officials formed the text for attacks on the whole system. Generally, however, these criticisms were premature; it was surely wise, while the opportunity was still open, to take care that Germany, in the partition of the world among European races, should not alone go entirely without a share. The lack of colonial experience, and, often, the lack of sympathy with, or understanding of, the negro and other races over whom they had assumed a protectorate, were contributory causes in the slow development of Germany’s African colonies. The unwillingness of the Reichstag to sanction the expenditure of any large sums on railways and other public works also hindered the exploitation of the economic resources of very large areas. Yet at the close of the first twenty-five years’ existence of the colonial empire it might be said that the initial difficulties had been overcome, and sufficient knowledge gained to ensure Germany a return fairly commensurate with the efforts she had put forth. The necessity to enlist the interests of the natives on the side of the government, if any progress was to be made in industry or trade, was a lesson slowly learned. After the ArabColonial wars. The Herero rising.opposition had been crushed on the east coast of Africa, there still remained the native states to be dealt with, and few tribes voluntarily submitted to European control. There was a serious rising in 1905-1906, when thousands of lives were lost. In Togoland there were disturbances of a comparatively minor character; in the Cameroon hinterland campaigns were undertaken against the Fulu and Bornuese princes. It was, however, in South-West Africa that the Germans had their chief and most bitter experience in colonial warfare. Though “annexed” in 1884 it was not till ten years later, after protracted fighting, that the Hottentots of Namaqualand recognized Germany. After another decade of comparative peace war again broke out (1903) and spread from the Hottentots to the Herero. The Anglo-Boer War had then but recently ended, and in Germany generally, and especially in military circles, it had provoked much adverse criticism on the inability of the British to bring the contest to a speedier conclusion. To their surprise the Germans now found that, against an inferior foe operating in a more restricted area, they were unable to do as well as the British army had done. The story of the war is told elsewhere (seeGerman South-West Africa); it lasted well into 1908 and the Germans were indebted to the Cape Mounted Police for material help in bringing it to an end. As it progressed the Germans adopted many of the methods employed by the British in their colonial wars, and they learned to appreciate more accurately the immensity of the task which Lord Kitchener accomplished in overcoming the guerrilla warfare in the Boer republics.
It was obviously little use acquiring colonies and creating manufactures if German foreign trade was to be in the hands of other nations. As early as 1881 the government had published a proposal for a subvention to German shipping;Enlarged industrial policy.it was criticized with peculiar energy by Bamberger and the Free Traders; a Bill introduced in 1884 was abandoned, but in 1885 Bismarck succeeded in carrying a vote by which, for fifteen years, four million marks could annually be devoted to helping a line of mail steamers to the Pacific and Australia and a branch line in the Mediterranean. An agreement was made with the Norddeutsche Lloyd, one clause of which was that all the new steamers were to be built in Germany; in 1890 a further vote was passed for a line to Delagoa Bay and Zanzibar. This far from exhausts the external activity of the nation and the government: the establishment of studentships for the study of oriental languages enabled Germans to make their way in the Turkish and Persian empires, and to open up a fresh market for German goods; by the great excavations at Pergamum and Olympia Germany entered with great distinction on a field in which the way had been shown by France and Great Britain. The progress of technical studies and industrial enterprise enabled Germany to take a leading place in railway and shipbuilding, in the manufacture of military weapons, in chemical experiments, and in electrical work.
It was a part of the new policy not only to combat Social Democracy by repression, but to win the confidence of the working men by extending to them the direct protection of the state. Recent legislation, culminating in theSocial reforms.Gewerbeordnungof 1869, had, in accordance with the principles of the Liberal Economists, or, as the Germans called it, the Manchester School, instituted freedom from state control in the relations between employers and workmen. The old gilds had been destroyed, compulsory apprenticeship had ceased; little protection, however, was given to the working men, and the restrictions on the employment of women and children were of little use, as there was no efficient system of factory inspection.It was difficult for the men by their own exertions to improve their condition, for the masters had full liberty of association, which the law refused to the workmen. Even before 1870 a protest was raised against this system among the Roman Catholics, who were chiefly concerned for the preservation of family life, which was threatened by the growth of the factory system and also by the teaching of the Social Democrats. Baron von Ketteler, archbishop of Mainz, had maintained that it was the duty of the state to secure working men work and provision during sickness and old age. The general interest of the Church in the social question was recognized by a congress of the bishops at Fulda. Ketteler’s work was continued by Canon Moufang, and Catholics brought forward motions in the Reichstag demandingChristian socialism.new factory legislation. The peculiar importance of the Catholic movement is that it alone was able to some extent to meet the Socialists on their own ground. The Catholics formed societies which were joined by large numbers of workmen. Originated by Father Kolping on the Rhine, they soon spread over the whole of Catholic Germany. Herr von Schorlemer-Ast, a Catholic landed proprietor from Westphalia, formed similar associations among the peasants. The result of this has been that the Social Democrats have failed to conquer the Catholic as they have the Protestant districts. A similar movement began among the Protestants after the commercial crisis of 1873, which forms an epoch in German thought, since it was from that year that men first began to question the economic doctrines of Liberalism, and drew attention to the demoralization which seemed to arise from the freedom of speculation and the influence of the stock exchange—a movement which in later years led to some remarkable attempts to remedy the evil by legislation. A minister, Rudolph Todt, and Rudolph Meyer criticized the moral and economic doctrines of Liberalism; his writings led to the foundation of theChristlich-Soziale-Arbeiterverein, which for a few years attained considerable notoriety under the leadership of Adolph Stöcker. The Protestant movement has not succeeded in attaining the same position as has the Catholic among the working men; but it received considerable support among the influential classes at court, and part of the programme was adopted by the Conservative party, which in 1876 demanded restriction of industrial liberty and legislation which would prevent the ruin of the independent artizans.
In a country where learned opinion has so much influence on public affairs it was of especial importance that several of the younger teachers separated themselves from the dominant Manchester School and asserted the duty of the state actively to promote the well-being of the working classes. At a congress held in Erfurt in 1873, Schmoller, Wagner, Brentano and others founded theVerein für Sozial-Politik, which by its publications has had much influence on German thought.
The peculiar social conditions brought it about that in many cases the Christian Social movement took the form of Anti-Semitism (q.v.). Nearly all the bankers and stockbrokers in Germany were Jews. Many of the leadersAnti-Semites.of the Liberal parties,e.g.Bamberger and Lasker, were of Jewish origin; the doctrines of Liberalism were supported by papers owned and edited by Jews; hence the wish to restore more fully the avowedly Christian character of the state, coinciding with the attack on the influence of finance, which owed so much to the Liberal economic doctrines, easily degenerated into attacks on the Jews. The leader in this was Stöcker. During the years 1879 to 1881 the anti-Semite agitation gained considerable importance in Berlin, Breslau and other Prussian cities, and it culminated in the elections of that year, leading in some cases to riots and acts of violence.
So long as the government was under the influence of the National Liberals, it was indifferent, if not hostile to these movements. The Peasants’ Union had actually been forbidden by the police; Bismarck himself was violently attacked for his reputed connexion with a great Jewish firm of bankers. He had, however, kept himself informed regarding these movements, chiefly by means of Hermann Wagener, an old editor of theKreuzzeitung, and in the year 1878 he felt himself free to return in this matter to his older opinions. The new policy suggested in that year was definitely announced at the opening of the session in the spring of 1881, and at the meeting of the new Reichstag in November 1881. It was explained in a speech from the throne, which, as the emperor could not be present, became an imperial message. This is generally spoken of as the beginning of a new era. The help of the Reichstag was asked for “healing social evils by means of legislation ... based on the moral foundation of Christianity.” Compulsory insurance, the creation of corporate unions among working men under the protection of the state, and the introduction of indirect taxes, were the chief elements in the reform.
The condition of parties was such that Bismarck could not hope to win a majority for his schemes, especially as he could not obtain the monopoly on tobacco on which he depended to cover the expense. The first reform was the restoration of the gilds, to which the Conservatives attached great importance. Since 1869 they continued to exist only as voluntary associations with no public duties; many had been dissolved, and this is said to have brought about bad results in the management of lodging-houses, the condition of apprentices, support during illness, and the maintenance of labour bureaus. It was supposed that, if they could be restored, the corporate spirit would prevent the working men from falling under the influence of the Socialists. The law of 1881, while it left membership voluntary, gave to them many duties of a semi-public nature, especially that of arbitration between masters and men. These were extended by a further law in 1884.
The really important element was the scheme for a great imperial system by which all working men and women should be provided for in case of sickness, accident or old age. Bismarck hoped by this to relieve the parishes of theCompulsory insurance.burden of the poor-rate, which would be transferred to the empire; at the same time the power of the government would be greatly extended. The first proposal in March 1881 was for compulsory insurance against accidents. Every one employed on railways, mines and factories was to be insured in an imperial office; the premium was to be divided equally between masters, workmen and the state. It was bitterly opposed by the Liberals, especially by Bamberger; all essential features were altered by the Reichstag, and it was withdrawn by the government after it had passed the third reading.
In 1882 a fresh scheme was laid before the newly elected Reichstag dealing with insurance against accident and against sickness. The two parts were separated by the Reichstag; the second, which was the necessary prelude to the other, was passed in 1883. The law was based on an old Prussian principle; insurance was made compulsory, but the state, instead of doing the work itself, recognized the existing friendly and other societies; they were still to enjoy their corporate existence and separate administration, but they were placed under state control, and for this purpose an imperial insurance department was created in the office of the secretary of state for the interior. Uniform regulations were to be followed in all trades and districts; one-third of the premium was paid by the employer, two-thirds by the workmen.
The Accident Law of 1883 was rejected, for it still included the state contribution to which the Reichstag would not assent, and also contributions from the workmen. A new law, drafted according to their wishes, was passed in 1884. It applied only to those occupations, mines and factories, in which the use of machinery was common; it threw the whole burden of compensation on to the masters; but, on the other hand, for the first thirteen weeks after an accident the injured workman received compensation from the sick fund, so that the cost only fell on the masters in the more serious cases. The masters were compelled to insure themselves against the payments for which they might become liable, and for this purpose had to form trades associations, self-governing societies, which in each district included all the masters for each particular trade. The application of this law was subsequently extended to other trades.It was not till 1889 that the greatest innovation, that of insurance against old age, was carried. The obligation to insure rested on all who were in receipt of wages of not more than two pounds a week. Half the premium, according to the wages received, was paid by the master. The pension began at the age of seventy, the amount varying by very complicated rules, but the state paid a fixed sum of two pounds ten shillings annually in addition to the pension. These measures worked well. They were regarded with satisfaction by masters and men alike. Alterations have been made in detail, and further alterations demanded, but the laws have established themselves in practice. The large amount of self-administration has prevented an undue increase of bureaucratic power. The co-operation of masters and men in the administration of the societies has a good effect on the relations of the classes.
Except in the matter of insurance, the total result, however, for the moment was small. The demands repeatedly made by the Centre and the Conservatives for effective factory legislation and prohibition of Sunday labour were not successful. Bismarck did not wish to lay heavier burdens on the capitalists, and it was not till a later period that they were carried out.
During all this period Bismarck’s authority was so great, that in the conduct of foreign affairs he was freed from the criticism and opposition which so often hampered him in his internal policy, and he was able to establishForeign affairs: the Triple Alliance.that system of alliances on which for so many years the political system of Europe depended. The close union of the three empires which had existed since the meeting of the emperors in 1872 did not survive the outbreak of disturbances in the East. Bismarck had maintained an attitude of neutrality, but after the congress of Berlin he found himself placed between the alternatives of friendship with Austria or Russia. Movements of Russian troops on the western frontier threatened Austria, and the tsar, in a letter to the German emperor, stated that peace could only be maintained if Germany gave her support to Russia. Bismarck, now that the choice was forced upon him, determined in favour of Austria, and during a visit to Vienna in October, arranged with Count Andrássy an alliance by which in the event of either being attacked by Russia the other was to assist; if either was attacked by any power other than Russia, the other was to preserve benevolent neutrality unless the attacking power was helped by Russia. The effect of this was to protect Austria from attack by Russia, and Germany from the danger of a combined attack by France and Russia. Bismarck with some difficulty procured the consent of the emperor, who by arranging a meeting with the tsar had attempted to preserve the old friendship. From that time the alliance with Austria has continued. In 1883 it was joined by Italy, and was renewed in 1887, and in 1891 for six years, and if not then denounced, for twelve.
In 1882, after the retirement of Gorchakov, the relations with Russia again improved. In 1884 there was a meeting of the three emperors, and at the same time Bismarck came to a close understanding with France on colonial questions. The period of quiet did not last long. The disaster in Tongking brought about a change of ministry in France, and Bulgarian affairs again alienated Austria and Russia. Bismarck with great skill used the growing foreign complications as a means of freeing himself from parliamentary difficulties at the same time that he secured the position of Germany in Europe.
To meet the increase in the French army, and the open menaces in which the Russian press indulged, a further increase in the German army seemed desirable. The Septennate would expire in 1888. In the autumn of 1886 a proposalElections of 1887.was laid before the Reichstag to increase the peace establishment for the next seven years to 468,409 men. The Reichstag would not assent to this, but the opposition parties offered to vote the required increase for three years. Bismarck refused to accept this compromise, and the Reichstag was dissolved. Under his influence the Conservatives and National Liberals formed a coalition orCartelby which each agreed to support the candidates of the other. The elections caused greater excitement than any which had taken place since 1870. The numbers who went to the poll were much larger, and all the opposition parties, except the Catholics, including even the Socialists, suffered severe loss. Bismarck, in order to win the support of the Centre, appealed directly to the pope, but Windthorst took the responsibility of refusing to obey the pope’s request on a matter purely political. The National Liberals again became a government party, but their position was much changed. They were no longer, as in the old days, the leading factor. They had to take the second place. They were subordinate to the Conservatives. They could no longer impose their will upon the government. In the new parliament the government proposals were accepted by a majority of 223 to 48 (seven members of the Centre voted for it, the others abstained). The opposition consisted chiefly of Socialists and Radicals (Freisinnigen).
The fall of Boulanger removed the immediate danger from France, but for the rest of the year the relations with Russia caused serious apprehensions. Anti-German articles appeared in Russian newspapers. The growth of theRelations with Russia.Nationalist party in Russia led to measures injurious to German trade and German settlers in Russia. German vessels were forbidden to trade on the Niemen. The increase of the duties on iron injured German trade. Stringent measures were taken to stamp out German nationality in the Baltic provinces, similar to those used by the Germans against the Poles. Foreigners were forbidden to hold land in Russia. The German government retaliated by a decree of the Reichsbank refusing to deal with Russian paper. Large accumulations of troops on the western frontier excited alarm in Germany and Austria. During a short visit paid by the emperor of Russia to Berlin in November Bismarck discovered that forged despatches misrepresenting the policy of Germany in the Eastern Question had been communicated to him. This did not seem to remove all danger, and in February 1888 the government introduced an amendment to the imperial Military Law extending the obligation for service from twelve to eighteen years. In this way it was possible to increase the war establishment, excluding the Landsturm, by about half a million men without adding to the burden in time of peace. Another law authorized a loan of £14,000,000 for military equipment. At the same time the text of the Triple Alliance was published. The two laws were adopted without opposition. Under the effect of one of Bismarck’s speeches, the Military Bill was unanimously passed almost without debate.
It was probably at the meeting of 1884 that a secret treaty, the existence of which was not known for many years, was arranged between Germany and Russia. The full text has never been published, and the exact date is uncertain.Secret treaty with Russia.Either state pledged itself to observe benevolent neutrality in case the other were attacked by a third power. Apparently the case of an attack by France on Germany, or by Austria on Russia, was expressly mentioned. The treaty lapsed in 1890, and owing to Bismarck’s dismissal was not renewed. Caprivi refused to renew it because it was doubtful whether by increasing the number of treaties the value of them was not diminished. Under this system it was to be apprehended that if war broke out between Austria and Russia, Austria would claim the support of Germany under the Triple Alliance, Russia neutrality under this treaty. The decision of Germany would theoretically have to depend on the question which party was the aggressor—a question which notoriously is hardly ever capable of an answer. (For this treaty see the debate in the Reichstag of the 16th of November 1896; theHamburger Nachrichtenof 24th October in the same year; and Schulthess,Europäisches Geschichtskalendar, 1896.)
The emperor William died on the 9th of March 1888. He was succeeded by his son, who took the title of Frederick III. In Italy the older title of king of Piedmont has been absorbed in the newer kingdom of Italy; this is notReign of Frederick III.the case in Germany, where the title German emperor is merely attached to and not substituted for that of king of Prussia. The events of this short reign, which lastedonly ninety-nine days, have chiefly a personal interest, and are narrated under the articlesFrederick III.andBismarck. The illness and death of the emperor, however, destroyed the last hope of the Liberals that they might at length succeed to power. For a generation they had waited for his accession, and bitter was their disappointment, for it was known that his son was more inclined to follow the principles of Bismarck than those of his own father. The emperor, crippled and dying though he was, showed clearly how great a change he would, had he lived, have introduced in the spirit of the government. One of his first acts was severely to reprimand Puttkammer for misusing government influence at elections. The minister sent in his resignation, which was accepted, and this practice, which had been deliberately revived during the last ten years, was thereby publicly disavowed. Bismarck’s own position would naturally have been seriously affected by the fall of a colleague with whom he was closely connected, and another point of internal policy showed also how numerous were the differences between the chancellor and the emperor. Laws had been passed prolonging the period of both the Prussian and Imperial parliaments from three to five years; when they were laid before the emperor for his signature he said that he must consider them. Bismarck then pointed out that the constitution of the empire did not authorize the emperor to withhold his assent from a law which had passed both the Reichstag and the Bundesrat; he could as king of Prussia oppose it by his representatives in the federal council, but when it had been accepted there, it was his duty as emperor to put the law into execution. The emperor accepted this exposition of the constitution, and after some delay eventually gave his consent also to the Prussian law, which he was qualified to reject.
He was succeeded by his eldest son, William II. (q.v.). The first year of the new reign was uneventful. In his public speeches the emperor repeatedly expressed his reverence for the memory of his grandfather, and his determinationWilliam II.to continue his policy; but he also repudiated the attempt of the extreme Conservatives to identify him with their party. He spent much time on journeys, visiting the chief courts of Europe, and he seemed to desire to preserve close friendship with other nations, especially with Russia and Great Britain. Changes were made in the higher posts of the army and civil service, and Moltke resigned the office of chief of the staff, which for thirty years he had held with such great distinction.
The beginning of the year 1890 brought a decisive event. The period of the Reichstag elected in 1887 expired, and the new elections, the first for a quinquennial period, would take place. The chief matter for decision was the fate ofFall of Bismarck.the Socialist law; this expired on the 30th of September 1890. The government at the end of 1889 introduced a new law, which was altered in some minor matters, and which was to be permanent. The Conservatives were prepared to vote for it; the Radicals and Centre opposed it; the decision rested with the National Liberals, and they were willing to accept it on condition that the clause was omitted which allowed the state governments to exclude individuals from districts in which the state of siege had been proclaimed. The final division took place on the 25th of February 1890. An amendment had been carried omitting this clause, and the National Liberals therefore voted for the bill in its amended form. The Conservatives were ready to vote as the government wished; if Bismarck was content with the amended bill, they would vote for it, and it would be carried; no instructions were sent to the party; they therefore voted against the bill, and it was lost. The House was immediately dissolved. It was to have been expected that, as in 1878, the government would appeal to the country to return a Conservative majority willing to vote for a strong law against the Socialists. Instead of this, the emperor, who was much interested in social reform, published two proclamations. In one addressed to the chancellor he declared his intention, as emperor, of bettering the lot of the working classes; for this purpose he proposed to call an international congress to consider the possibility of meeting the requirements and wishes of the working men; in the other, which he issued as king of Prussia, he declared that the regulation of the time and conditions of labour was the duty of the state, and the council of state was to be summoned to discuss this and kindred questions. Bismarck, who was less hopeful than the emperor, and did not approve of this policy, was thereby prevented from influencing the elections as he would have wished to do; the coalition parties, in consequence, suffered severe loss; Socialists, Centre and Radicals gained numerous seats. A few days after the election Bismarck was dismissed from office. The difference of opinion between him and the emperor was not confined to social reform; beyond this was the more serious question as to whether the chancellor or the emperor was to direct the course of the government. The emperor, who, as Bismarck said, intended to be his own chancellor, required Bismarck to draw up a decree reversing a cabinet order of Frederick William IV., which gave the Prussian minister-president the right of being the sole means of communication between the other ministers and the king. This Bismarck refused to do, and he was therefore ordered to send in his resignation.
Among those more immediately connected with the government his fall was accompanied by a feeling of relief which was not confined to the Opposition, for the burden of his rule had pressed heavily upon all. There was, however,Chancellorship of Count von Caprivi.no change in the principles of government or avowed change in policy; some uncertainty of direction and sudden oscillations of policy showed the presence of a less experienced hand. Bismarck’s successor, General von Caprivi, held a similar combination of offices, but the chief control passed now into the hands of the emperor himself. He aspired by his own will to direct the policy of the state; he put aside the reserve which in modern times is generally observed even by absolute rulers, and by his public speeches and personal influence took a part in political controversy. He made very evident the monarchical character of the Prussian state, and gave to the office of emperor a prominence greater than it had hitherto had.
One result of this was that it became increasingly difficult in political discussions to avoid criticizing the words and actions of the emperor. Prosecutions forlèse-majestébecame commoner than they were in former reigns, and the difficulty was much felt in the conduct of parliamentary debate. The rule adopted was that discussion was permitted on those speeches of the emperor which were officially published in theReichsanzeiger. It was, indeed, not easy to combine that respect and reverence which the emperor required should be paid to him, with that open criticism of his words which seemed necessary (even for self-defence) when the monarch condescended to become the censor of the opinions and actions of large parties and classes among his subjects. The attempts to combine personal government with representative institutions was one of much interest; it was more successful than might have been anticipated, owing to the disorganization of political parties and the absence of great political leaders; in Germany, as elsewhere, the parliaments had not succeeded in maintaining public interest, and it is worth noting that even the attendance of members was very irregular. There was below the surface much discontent and subdued criticism of the exaggeration of the monarchical power, which the Germans calledByzantinismus; but after all the nation seemed to welcome the government of the emperor, as it did that of Bismarck. The uneasiness which was caused at first by the unwonted vigour of his utterances subsided, as it became apparent how strong was his influence for peace, and with how many-sided an activity he supported and encouraged every side of national life. Another result of the personal government by the emperor was that it was impossible, in dealing with recent history, to determine how far the ministers of state were really responsible for the measures which they defended, and how far they were the instruments and mouthpieces of the policy of the emperor.
The first efforts of the “New course,” as the new administration was termed, showed some attempt to reconcile to the government those parties and persons whom Bismarck had kept in opposition. The continuation of social reform was to win over the allegiance of the working men to the person of the emperor;an attempt was made to reconcile the Guelphs, and even the Poles were taken into favour; Windthorst was treated with marked distinction. The Radicals alone, owing to their ill-timed criticism on the private relations of the imperial family, and their continued opposition to the army, were excluded. The attempt, however, to unite and please all parties failed, as did the similar attempt in foreign policy. Naturally enough, it was social reform on which at first activity was concentrated, and the long-delayed factory legislation was now carried out. In 1887 and 1888 the Clerical and Conservative majority had carried throughFactory laws.the Reichstag laws restricting the employment of women and children and prohibiting labour on Sundays. These were not accepted by the Bundesrat, but after the International Congress of 1890 an important amendment and addition to theGewerbeordnungwas carried to this effect. It was of even greater importance that a full system of factory inspection was created. A further provision empowered the Bundesrat to fix the hours of labour in unhealthy trades; this was applied to the bakeries by an edict of 1895, but the great outcry which this caused prevented any further extension.
These acts were, however, accompanied by language of great decision against the Social Democrats, especially on the occasion of a great strike in Westphalia, when the emperor warned the men that for him every Social DemocratProgress of Socialism.was an enemy to the empire and country. None the less, all attempts to win the working men from the doctrinaire Socialists failed. They continued to look on the whole machinery of government, emperor and army, church and police, as their natural enemies, and remained completely under the bondage of the abstract theories of the Socialists, just as much as fifty years ago the German bourgeois were controlled by the Liberal theories. It is strange to see how the national characteristics appeared in them. What began as a great revolutionary movement became a dogmatic and academic school of thought; it often almost seemed as though the orthodox interpretation of Marx’s doctrine was of more importance than an improvement in the condition of the working men, and the discussions in the annual Socialist Congress resembled the arguments of theologians rather than the practical considerations of politicians. The party, however, prospered, and grew in strength beyond all anticipation. The repeal of the Socialist law was naturally welcome to them as a great personal triumph over Bismarck; in the elections of 1890 they won thirty-five, in 1893 forty-four, in 1898 fifty-six seats. Their influence was not confined to the artisans; among their open or secret adherents were to be found large numbers of government employés and clerks. In the autumn of 1890 they were able, for the first time, to hold in Germany a general meeting of delegates, which was continued annually. In the first meetings it appeared that there were strong opposing tendencies within the party which for the first time could be brought to public discussion. On the one side there was a small party,die Jungen, in Berlin, who attacked the parliamentary leaders on the ground that they had lent themselves to compromise and had not maintained the oldintransigeantspirit. In 1891, at Erfurt, Werner and his followers were expelled from the party; some of them drifted into anarchism, others disappeared. On the other hand, there was a large section, the leader of whom was Herr von Vollmar, who maintained that the social revolution would not come suddenly, as Bebel and the older leaders had taught, but that it would be a gradual evolution; they were willing to co-operate with the government in remedial measures by which, within the existing social order, the prosperity and freedom of the working classes might be advanced; their position was very strong, as Vollmar had succeeded in extending Socialism even in the Catholic parts of Bavaria. An attempt to treat them as not genuine Socialists was frustrated, and they continued in co-operation with the other branch of the party. Their position would have been easier were it not for the repeated attempts of the Prussian government to crush the party by fresh legislation and the supervision exercised by the police. It was a sign of most serious import for the future that in 1897 the electoral law in the kingdom of Saxony was altered with the express purpose of excluding the Socialists from the Saxon Landtag. This and other symptoms caused serious apprehension that some attempt might be made to alter the law of universal suffrage for the Reichstag, and it was policy of this kind which maintained and justified the profound distrust of the governing classes and the class hatred on which Social democracy depends. On the other hand, there were signs of a greater willingness among the Socialists to co-operate with their old enemies the Liberals.
In foreign affairs a good understanding with Great Britain was maintained, but the emperor failed at that time to preserve the friendship of Russia. The close understanding between France and Russia, and the constant increaseMilitary legislation.in the armies of these states, made a still further increase of the German army desirable. In 1890, while the Septennate had still three more years to run, Caprivi had to ask for an additional 20,000 men. It was the first time that an increase of this kind had been necessary within the regular period. When, in 1893, the proposals for the new period were made, they formed a great change. Compulsory service was to be made a reality; no one except those absolutely unfit was to escape it. To make enlistment of so large an additional number of recruits possible, the period of service with the colours was reduced to two years. The parliamentary discussion was very confused; the government eventually accepted an amendment giving them 557,093 for five and a half years instead of the 570,877 asked for; this was rejected by 210 to 162, the greater part of the Centre and of the Radicals voting against it. Parliament was at once dissolved. Before the elections the Radical party broke up, as about twenty of them determined to accept the compromise. They took the name of theFreisinnige Vereinigung, the others who remained under the leadership of Richter forming theFreisinnige Volkspartei. The natural result of this split was a great loss to the party. The Liberal opposition secured only twenty-three seats instead of the sixty-seven they had held before. It was, so far as now can be foreseen, the final collapse of the old Radical party. Notwithstanding this the bill was only carried by sixteen votes, and it would have been thrown out again had not the Poles for the first time voted for the government, since the whole of the Centre voted in opposition.
This vote was a sign of the increasing disorganization of parties and of growing parliamentary difficulties which were even more apparent in the Prussian Landtag. Miquel, as minister of finance, succeeded indeed in carrying a reform by which the proceeds of the tax on land and buildings were transferred to the local government authorities, and the loss to the state exchequer made up by increased taxation of larger incomes and industry. The series of measures which began in 1891, and were completed in 1895, won a more general approbation than is usual, and Miquel in this successfully carried out his policy of reconciling the growing jealousies arising from class interests.
Caprivi’s administration was further remarkable for the arrangement of commercial treaties. In 1892 treaties with Austria-Hungary, Italy, Belgium and Switzerland for twelve years bound together the greater part of theCommercial treaties.continent, and opened a wide market for German manufactures; the idea of this policy was to secure, by a more permanent union of the middle European states, a stable market for the goods which were being excluded owing to the great growth of Protection in France, Russia and America. These were followed by similar treaties with Rumania and Servia, and in 1894, after a period of sharp customs warfare, with Russia. In all these treaties the general principle was a reduction of the import duties on corn in return for advantages given to German manufactures, and it is this which brought about the struggle of the government with the Agrarians which after 1894 took the first place in party politics.
The agricultural interests in Germany had during the middle of the 19th century been in favour of Free Trade. The reason of this was that, till some years after the foundation of the empire, the production of corn and food-stuffsAgrarians.was more than sufficient for the population; as long as they exported corn, potatoes and cattle, they required no protectionfrom foreign competition, and they enjoyed the advantages of being able to purchase colonial goods and manufactured articles cheaply. Mecklenburg and Hanover, the purely agricultural states, had, until their entrance into the Customs Union, followed a completely Free Trade policy. The first union of the Agrarian party, which was formed in 1876 under the name of the Society for the Reform of Taxation, did not place protection on their programme; they laid stress on bimetallism, on the reform of internal taxation, especially of the tax on land and buildings, and on the reform of the railway tariff, and demanded an increase in the stamp duties. These last three points were all to some extent attained. About this time, however, the introduction of cheap corn from Russia began to threaten them, and it was in 1879 that, probably to a great extent influenced by Bismarck, they are first to be found among those who ask for protection.
After that time there was a great increase in the importation of food-stuffs from America. The increase of manufactures and the rapid growth of the population made the introduction of cheap food from abroad a necessity. In the youth of the empire the amount of corn grown in Germany was sufficient for the needs of its inhabitants; the amount consumed in 1899 exceeded the amount produced by about one-quarter of the total. At the same time the price, making allowance for the fluctuations owing to bad harvests, steadily decreased, notwithstanding the duty on corn. In twenty years the average price fell from about 235 to 135 marks the 1000 kilo. There was therefore a constant decrease in the income from land, and this took place at a time when the great growth of wealth among the industrial classes had made living more costly. The agriculturists of the north and east saw themselves and their class threatened with loss, and perhaps ruin; their discontent, which had long been growing, broke out into open fire during the discussion of the commercial treaties. As these would inevitably bring about a large increase in the importation of corn from Rumania and Russia, a great agitation was begun in agricultural circles, and the whole influence of the Conservative party was opposed to the treaties. This brought about a curious situation, the measures being only carried by the support of the Centre, the Radicals, and the Socialists, against the violent opposition of those classes, especially the landowners in Prussia, who had hitherto been the supporters of the government. In order to prevent the commercial treaty with Russia, a great agricultural league was founded in 1893, theBund der Landwirte; some 7000 landowners joined it immediately. Two days later the Peasants’ League, orDeutsche Bauernbund, which had been founded in 1885 and included some 44,000 members, chiefly from the smaller proprietors in Pomerania, Posen, Saxony and Thuringia, merged itself in the new league. This afterwards gained very great proportions. It became, with the Social Democrats, the most influential society which had been founded in Germany for defending the interests of a particular class; it soon numbered more than 200,000 members, including landed proprietors of all degrees. Under its influence a parliamentary union, theWirtschaftsvereinigung, was founded to ensure proper consideration for agricultural affairs; it was joined by more than 100 members of the Reichstag; and the Conservative party fell more and more under the influence of the Agrarians.