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, 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 with 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.

State contributions.

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 constitutional 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 celebrated _Franckenstein 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.

Party changes.

Secessionists.

Freisinnige.

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 complete 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 other matters. They took the name of the

_Liberale Vereinigung_, but were generally known as the

_Sezessionisten_; 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, the _Deutschfreisinnige_, 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 for _Bismarck

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.

Political reaction.

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. Alsatians 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.

End of the Kulturkampf.

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 their 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 a _modus 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 in

a 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 the _Kultur 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.

Nationalization of railways.

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 so 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 the _Zollverein_

was 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.

Canals.

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, Westphalia 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 Jahde 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 Lubeck. 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 Prussian _Landtag_ on 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.

Hamburg and Bremen.

Equally important was the action of the government in developing foreign

trade. The first step was the inclusion of Hamburg and Bremen in the

_Zollverein_; this was necessary if German maritime enterprise was to

become 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 the _Zollverein_; a part of the harbour 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.

Colonies.

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 itself 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,

the _Deutscher 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.

Africa.

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 Cape 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.

Luderitz, a Bremen tobacco merchant, approached Bismarck on the question

of establishing a trading station on the coast at Angra Pequena. The

chancellor, while not discouraging Luderitz, 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, the _Gesellschaft fur 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.

The Pacific.

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 and 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. The _Deutsch-Ost-Afrika Gesellschaft_, with a

capital of L200,000, took over the territories acquired by Dr Peters,

and for the South Seas the _Neu-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 L20,000 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 the _Deutsche Kolonialgesellschaft_.

This society takes a great part in forming public opinion on colonial

matters.

Germany and Great Britain.

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 Angra Pequena 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 (see AFRICA, S 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.

Heligoland.

It appeared a small compensation that Great Britain surrendered to

Germany the island of Heligoland, which she had 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.

Progress of German colonial expansion.

Colonial wars. The Herero rising.

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

United 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 L3,300,000, 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 Arab 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 (see GERMAN 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.

Enlarged industrial policy.

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; 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.

Social reforms.

Christian socialism.

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 the _Gewerbeordnung_ of 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 demanding 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

the _Christlich-Soziale-Arbeiterverein_, which for a few years attained

considerable notoriety under the leadership of Adolph Stocker. 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 the _Verein fur Sozial-Politik_,

which by its publications has had much influence on German thought.

Anti-Semites.

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

leaders 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 Stocker. 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

the _Kreuzzeitung_, 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.

Compulsory insurance.

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 the 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.

Foreign affairs: the Triple Alliance.

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 establish 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 Andrassy 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.

Elections of 1887.

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

proposal 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 or _Cartel_ by

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_).

Relations with Russia.

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 the 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 L14,000,000 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.

Secret treaty with Russia.

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. 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; the _Hamburger Nachrichten_ of 24th October in the same

year; and Schulthess, _Europaisches Geschichtskalendar_, 1896.)

Reign of Frederick III.

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 not 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 lasted only ninety-nine days, have

chiefly a personal interest, and are narrated under the articles

FREDERICK III. and BISMARCK. 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.

William II.

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 determination 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.

Fall of Bismarck.

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 of 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.

Chancellorship of Count von Caprivi.

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, 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 for _lese-majeste_ became 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 the

_Reichsanzeiger_. 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 called

_Byzantinismus_; 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.

Factory laws.

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 through 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 the _Gewerbeordnung_ was 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.

Progress of Socialism.

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 Democrat 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 employes 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 old _intransigeant_ spirit. 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.

Military legislation.

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 increase 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 the _Freisinnige

Vereinigung_, the others who remained under the leadership of Richter

forming the _Freisinnige 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.

Commercial treaties.

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 the 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.

Agrarians.

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-stuffs was more than sufficient for the population; as long as

they exported corn, potatoes and cattle, they required no protection

from 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, the _Bund der Landwirte_; some 7000

landowners joined it immediately. Two days later the Peasants' League,

or _Deutsche 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, the

_Wirtschaftsvereinigung_, 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.

Having failed to prevent the commercial treaties, Count Kanitz

introduced a motion that the state should have a monopoly of all

imported corn, and that the price at which it was to be sold should be

fixed by law. On the first occasion, in 1894, only fifty members were

found to vote for this, but in the next year ninety-seven supported the

introduction of the motion, and it was considered worth while to call

together the Prussian council of state for a special discussion. The

whole agitation was extremely inconvenient to the government. The

violence with which it was conducted, coming, as it did, from the

highest circles of the Prussian nobility, appeared almost an imitation

of Socialist methods; but the emperor, with his wonted energy,

personally rebuked the leaders, and warned them that the opposition of

Prussian nobles to their king was a monstrosity. Nevertheless they were

able to overthrow the chancellor, who was specially obnoxious to them.

In October 1894 he was dismissed suddenly, without warning, and almost

without cause, while the emperor was on a visit to the Eulenburgs, one

of the most influential families of the Prussian nobility.

Fall of Caprivi.

Caprivi's fall, though it was occasioned by a difference between him and

Count Eulenburg, and was due to the direct act of the emperor, was

rendered easier by the weakness of his parliamentary position. There was

no party on whose help he could really depend. The Military Bill had

offended the prejudices of conservative military critics; the British

treaty had alienated the colonial party; the commercial treaties had

only been carried by the help of Poles, Radicals and Socialists; but it

was just these parties who were the most easily offended by the general

tendencies of the internal legislation, as shown in the Prussian School

Bill. Moreover, the bitter and unscrupulous attacks of the Bismarckian

press to which Caprivi was exposed made him unpopular in the country,

for the people could not feel at ease so long as they were governed by a

minister of whom Bismarck disapproved. There was therefore no prospect

of forming anything like a stable coalition of parties on which he could

depend.

Chancellor Prince v. Hohenlohe.

The emperor was fortunate in securing as his successor Prince Chlodwig

von Hohenlohe. Though the new chancellor once more united with this

office that of Prussian minister-president, his age, and perhaps also

his character, prevented him from exercising that constant activity and

vigilance which his two predecessors had displayed. During his

administration even the secretary of state for foreign affairs, Baron

Marschall von Bieberstein, and afterwards Count von Bulow, became the

ordinary spokesman of the government, and in the management of other

departments the want of a strong hand at the head of affairs was often

missed. Between the emperor, with whom the final direction of policy

rested, and his subordinates, the chancellor often appeared to evade

public notice. The very first act of the new chancellor brought upon him

a severe rebuff. At the opening of the new buildings which had been

erected in Berlin for the Reichstag, cheers were called for the emperor.

Some of the Socialist members remained seated. It was not clear that

their action was deliberate, but none the less the chancellor himself

came down to ask from the House permission to bring a charge of

_lese-majeste_ against them, a request which was, of course, almost

unanimously refused.

The Agrarians still maintained their prominent position in Prussia. They

opposed all bills which would appear directly or indirectly to injure

agricultural interests. They looked with suspicion on the naval policy

of the emperor, for they disliked all that helps industry and commerce.

They would only give their support to the Navy Bills of 1897 and 1900 in

return for large concessions limiting the importation of margarine and

American preserved meat, and the removal of the _Indemnitats Nachweis_

acted as a kind of bounty on the export of corn. They successfully

opposed the construction of the great canal from Westphalia to the Elbe,

on the ground that it would facilitate the importation of foreign corn.

They refused to accept all the compromises which Miquel, who was very

sympathetic towards them, suggested, and thereby brought about his

retirement in May 1901.

The opposition of the Agrarians was for many reasons peculiarly

embarrassing. The franchise by which the Prussian parliament is elected

gave the Conservatives whom they controlled a predominant position. Any

alteration of the franchise was, however, out of the question, for that

would admit the Socialists. It was, moreover, the tradition of the

Prussian court and the Prussian government (and it must be remembered

that the imperial government is inspired by Prussian traditions) that

the nobility and peasants were in a peculiar way the support of the

crown and the state. The old distrust of the towns, of manufacturers and

artisans, still continued. The preservation of a peasant class was

considered necessary in the interests of the army. Besides, intellectual

and social prejudices required a strong Conservative party. In the south

and west of Germany, however, the Conservative party was practically

non-existent. In these parts, owing to the changes introduced at the

revolution, the nobility, who hold little land, are, comparatively

speaking, without political importance. In the Catholic districts the

Centre had become absolutely master, except so far as the Socialists

threaten their position. Those of the great industrialists who belonged

to the National Liberals or the Moderate Conservatives did not command

that influence which men of their class generally hold in Great Britain,

because the influence of Social Democracy banded together the whole of

the working men in a solid phalanx of irreconcilable opposition, the

very first principle of which was the hostility of classes. The

government, therefore, were compelled to turn for support to the Centre

and the Conservatives, the latter being almost completely under the

influence of the old Prussian nobility from the north-east. But every

attempt to carry out the policy supported by these parties aroused an

opposition most embarrassing to the government.

Exchange regulations.

The Conservatives distrusted the financial activity which centred round

the Exchanges of Berlin and other towns, and in this they had the

sympathy of Agrarians and Anti-Semites, as well as of the Centre. The

Agrarians believed that the Berlin Exchange was partly responsible for

the fall of prices in corn; the Anti-Semites laid stress on the fact

that many of the financiers were of Jewish extraction; the Centre feared

the moral effects of speculation. This opposition was shown in the

demand for additional duties on stamps (this was granted by Bismarck),

in the opposition to the renewal of the Bank Charter, and especially in

the new regulations for the Exchange which were carried in 1896. One

clause in this forbade the dealing in "futures" in corn, and at the same

time a special Prussian law required that there should be

representatives of agriculture on the managing committee of the

Exchange. The members of the Exchanges in Berlin and other towns refused

to accept this law. When it came into effect they withdrew and tried to

establish a private Exchange. This was prevented, and after two years

they were compelled to submit and the Berlin Bourse was again opened.

Political bargaining.

Political parties now came to represent interests rather than

principles. The government, in order to pass its measures, was obliged

to purchase the votes by class legislation, and it bought those with

whom it could make the best bargain--these being generally the Centre,

as the ablest tacticians, and the Conservatives, as having the highest

social position and being boldest in declaring their demands. No great

parliamentary leader took the place of Windthorst, Lasker and Bennigsen;

the extra-parliamentary societies, less responsible and more violent,

grew in influence. The Anti-Semites gained in numbers, though not in

reputation. The Conservatives, hoping to win votes, even adopted an

anti-Semite clause in their programme. The general tendency among the

numerous societies of Christian Socialism, which broke up almost as

quickly as they appeared, was to drift from the alliance with the

ultra-Conservatives and to adopt the economic and many of the political

doctrines of the Social Democrats. The _National-Sozialer Verein_

defended the union of Monarchy and Socialism. Meanwhile the extreme

spirit of nationality was fostered by the _All-deutscher Verein_, the

policy of which would quickly involve Germany in war with every other

nation. More than once the feelings to which they gave expression

endangered the relations of Germany and Austria-Hungary. The persecution

of the Poles in Prussia naturally aroused indignation in Austria, where

the Poles had for long been among the strongest elements on which the

government depended; and it was not always easy to prevent the agitation

on behalf of the Germans in Bohemia from assuming a dangerous aspect.

In the disintegration of parties the Liberals suffered most. The unity

of the Conservatives was preserved by social forces and the interests of

agriculture; the decay of the Liberals was the result of universal

suffrage. Originally the opponents of the landed interest and the

nobility, they were the party of the educated middle class, of the

learned, of the officials and finance. They never succeeded in winning

the support of the working men. They had identified themselves with the

interests of the capitalists, and were not even faithful to their own

principles. In the day of their power they showed themselves as

intolerant as their opponents had been. They resorted to the help of the

government in order to stamp out the opinions with which they disagreed,

and the claims of the artisans to practical equality were rejected by

them, as in earlier days the claims of the middle class had been by the

nobles.

The Centre alone maintained itself. Obliged by their constitution to

regard equally the material interests of all classes--for they represent

rich and poor, peasants and artisans--they were the natural support of

the government when it attempted to find a compromise between the

clamour of opposing interests. Their own demands were generally limited

to the defence of order and religion, and to some extent coincided with

the wishes of the emperor; but every attempt to introduce legislation in

accordance with their wishes led to a conflict with the educated opinion

of the country, which was very detrimental to the authority of the

government. In the state parliaments of Bavaria, Baden and Hesse their

influence was very great. There was, moreover, a tendency for local

parties to gain in numbers and influence--the _Volkspartei_ in

Wurttemberg, the Anti-Semites in Hesse, and the _Bauernbund_ (Peasants'

League) in Bavaria. The last demanded that the peasants should be freed

from the payment to the state, which represented the purchase price for

the remission of feudal burdens. It soon lost ground, however, partly

owing to personal reasons, and partly because the Centre, in order to

maintain their influence among the peasants, adopted some features of

their programme.

Mittelstandpolitik.

Another class which, seeing itself in danger from the economic changes

in society, agitated for special legislation was the small retail

traders of the large towns. They demanded additional taxation on the

vast shops and stores, the growth of which in Berlin, Munich and other

towns seemed to threaten their interests. As the preservation of the

smaller middle class seemed to be important as a bulwark against

Socialism, they won the support of the Conservative and Clerical

parties, and laws inspired by them were passed in Bavaria, Wurttemberg

and Prussia. This _Mittelstand-Politik_, as it is called, was very

characteristic of the attitude of mind which was produced by the policy

of Protection. Every class appealed to the government for special laws

to protect itself against the effects of the economic changes which had

been brought about by the modern industrial system. Peasants and

landlords, artisans and tradesmen, each formed their own league for the

protection of their interests, and all looked to the state as the proper

guardian of their class interests.

Moral and religious policy.

Umsturz-Vorlage.

Lex Heinze.

After the fall of Caprivi the tendency of the German government to revert

to a strong Conservative policy in matters of religion, education, and in

the treatment of political discussions became very marked. The complete

alienation of the working classes from Christianity caused much natural

concern, combined as it was with that indifference to religion which

marks the life of the educated classes in the large towns, and especially

in Berlin. A strong feeling arose that social and political dangers could

only be avoided by an increase in religious life, and the emperor gave

the authority of his name to a movement which produced numerous societies

for home mission work, and (at least in Berlin) led to the erection of

numerous churches. Unfortunately, this movement was too often connected

with political reaction, and the working classes were inclined to believe

that the growth of religion was valued because it afforded an additional

support to the social and political order. The situation was somewhat

similar to that which existed during the last years of Frederick William

IV., when the close association of religion with a Conservative policy

made orthodoxy so distasteful to large sections of society. The

government, which had not taken warning by the fate of the School Bill,

attempted to carry other measures of the same kind. The emperor had

returned to Bismarck's policy of joining social reform with repressive

legislation. In a speech at Konigsberg in November 1894, he summoned the

nobles of Prussia to support him in the struggle for religion, for

morality, for order, against the parties of _Umsturz_, or Revolution,

and shortly afterwards an amendment of the Criminal Code, commonly called

the _Umsturz-Vorlage_, was introduced, containing provisions to check

attempts to undermine the loyalty of the soldiers, and making it a crime

punishable with three years' imprisonment to attack religion, monarchy,

marriage, the family or property by abusive expressions in such a manner

as to endanger public peace. The discussion of this measure occupied most

of the session of 1895; the bill was amended by the Centre so as to make

it even more strongly a measure for the defence of religion; and clauses

were introduced to defend public morality, by forbidding the public

exhibition of pictures or statues, or the sale of writings, which,

"without being actually obscene, might rudely offend the feeling of

modesty." These Clerical amendments aroused a strong feeling of

indignation. It was represented that the freedom of art and literature

was being endangered, and the government was obliged to withdraw the

bill. The tendency towards a stricter censorship was shown by a proposal

which was carried through the Prussian parliament for controlling the

instruction given at the universities by the _Privatdozenten_. Some of

the Conservative leaders, especially Baron von Stumm, the great

manufacturer (one of Bismarck's chief advisers on industrial matters),

demanded protection against the teaching of some of the professors with

whose economic doctrines they did not agree; pastors who took part in the

Christian-Social movement incurred the displeasure of the government; and

Professor Delbruck was summoned before a disciplinary court because, in

the _Preussische Jahrbucher_, which he edited, he had ventured to

criticize the policy of the Prussian government towards the Danes in

Schleswig. All the discontent and suspicion caused by this policy broke

out with greater intensity when a fresh attempt was made in 1900 to carry

those clauses of the old _Umsturz-Vorlage_ which dealt with offences

against public morality. The gross immoralities connected with

prostitution in Berlin had been disclosed in the case of a murderer

called Heinze in 1891; and a bill to strengthen the criminal law on the

subject was introduced but not carried. The measure continued, however,

to be discussed, and in 1900 the government proposed to incorporate with

this bill (which was known as the _Lex Heinze_) the articles from the

_Umsturz-Vorlage_ subjecting art and literature to the control of the

criminal law and police. The agitation was renewed with great energy. A

_Goethe-Verein_ was founded to protect _Kultur_, which seemed to be in

danger. In the end the obnoxious clauses were only withdrawn when the

Socialists used the forms of the House to prevent business from being

transacted. It was the first time that organized obstruction had appeared

in the Reichstag, and it was part of the irony of the situation that the

representatives of art and learning owed their victory to the Socialists,

whom they had so long attacked as the great enemies of modern

civilization.

Law of combination.

These were not the only cases in which the influence of the parties of

reaction caused much discontent. There was the question of the right of

combination. In nearly every state there still existed old laws

forbidding political societies to unite with one another. These laws had

been passed in the years immediately after the revolution of 1848, and

were quite out of place under modern conditions. The object of them was

to prevent a network of societies from being formed extending over large

districts, and so acquiring political power. In 1895 the Prussian police

used a law of 1850 as a pretext for dissolving the Socialist organization

in Berlin, as had been done twenty years before. A large majority of the

Reichstag demanded that an imperial law should be passed repealing these

laws and establishing the right of combination, and they refused to pass

the revised Civil Code until the chancellor promised that this should be

done. Instead of this course being adopted, however, special laws were

introduced in most of the states, which, especially in Prussia and

Saxony, while they gave the right of combination, increased the power of

the police to forbid assemblies and societies. It was apparent that large

and influential parties still regarded political meetings as something

in themselves dangerous and demoralizing, and hence the demand of the

Conservatives that women and young persons should be forbidden to attend.

In Prussia a majority of the Upper House and a very large minority of the

Lower House (193 to 206) voted for an amendment expressly empowering the

police to break up meetings in which anarchistic, socialistic or

communistic doctrines were defended in such a manner as to be dangerous

to society; the Saxon Conservatives demanded that women at least should

be forbidden to attend socialistic meetings, and it remained illegal for

any one under twenty-one years of age to be present at a political

meeting. In consequence of the amendments in the Upper House the Prussian

law was lost; and at last, in 1899, a short imperial law was carried to

the effect that "societies of every kind might enter into union with one

another." This was at once accepted by the chancellor; it was the time

when the Navy Bill was coming on, and it was necessary to win votes. The

general feeling of distrust which this prolonged controversy aroused was,

however, shown by the almost contemptuous rejection in 1899 of a Bill to

protect artisans who were willing to work against intimidation or

violence (the _Zuchthaus-Vorlage_), a vote which was the more significant

as it was not so much occasioned by the actual provisions of the bill,

but was an expression of the distrust felt for the motives by which the

government was moved and the reluctance to place any further powers in

their hands.

Welt-Politik.