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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.

Nationali zation 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 AlsaceLorraine 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 Jähde canal from the Ems to the Elbe, which enables Westphalian coal to reach the sea, and so to compete better with English coal. In addition to this, however, a large number of smaller works were undertaken, such as the canalization of the Main from Frankfort to the Rhine, and a new canal from the Elbe to Lübeck. The great ship canal from Kiel to the Elbe, which was begun in 1887 and completed in 1896, has perhaps even more importance for naval than for commercial purposes. The Rhine, so long the home of romance, has become one of the great arteries of traffic, and lines of railways on both sides have caused small villages to become large towns. The Prussian government also planned a great scheme by which the Westphalian coal-fields should be directly connected with the Rhine in one direction and the Elbe in the other by a canal which would join together Minden, Hanover and Magdeburg. This would give uninterrupted water communication from one end of the country to the other, for the Elbe, Oder and Vistula are all navigable rivers connected by canals. This project, which was a natural continuation of Bismarck's policy, was, however, rejected by the Prussian parliament in 1899. The opposition came from the Agrarians and extreme Conservatives, who feared that it would enable foreign corn to compete on better terms with German corn; they were also jealous of the attention paid by the government to commercial enterprise in which they were not immediately interested. The project was again laid by the government before the 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.

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 Hamburg 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 agree ment 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 HohenloheLangenburg, 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. Lüderitz, a Bremen tobacco merchant, approached Bismarck on the question of establishing a trading station on the coast at Angra Pequeña. The chancellor, while not discouraging Lüderitz, acted with perfect fairness to Great Britain, and throughout 1883 that country might have acted had she known her mind. She did not, and in the summer of 1884 Bismarck decided no longer to await her pleasure, and the south-west coast of Africa from the frontier of the Portuguese possessions to the Orange river, with the exception of Walfish Bay, was taken under German protection. During the same year Dr Nachtigal was despatched to the west coast, and stealing a march on his British and French rivals he secured not only Togoland but Cameroon for the Germans. On the east coast Bismarck acted decisively without reference to British interests. A company, the Gesellschaft für deutsche Kolonization, was founded early in 1884 by Dr Carl Peters, who with two companions went off to the east coast of Africa and succeeded in November of that year in negotiating treaties with various chiefs on the mainland who were alleged to be independent of Zanzibar.

In this region British opposition had to be considered, but in February 1885 a German protectorate over the territory acquired by Peters was proclaimed.

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 govern ment. The Deutsch-Ost-Afrika Gesellschaft, with a capital of £200,000, 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 £20,000 a year, to be continued for ten years. The whole of the colonies have therefore now come under the direct administration of the empire. They were at first placed under the direction of a special department of the Foreign Office, and in 1890 a council of experts on colonial matters was instituted, while in 1907 a separate office for colonial affairs was created. In 1887 the two chief societies for supporting the colonial movement joined under the name of the Deutsche Kolonialgesellschaft. This society takes a great part in forming public opinion on colonial matters.

This new policy inevitably caused a rivalry of interests with other countries, and especially with Great Britain. In every spot at which the Germans acquired territory they found themselves in opposition to British interests. The settlement of Angra

Herero

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, Colonial
there still remained the native states to be dealt with, wars.
and few tribes voluntarily submitted to European The
control. There was a serious rising in 1905-1906, rising.
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 ex-
perience in colonial warfare. Though " annexed" in 1884 it was
not till ten years later, after protracted fighting, that the Hotten-
tots 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
inability of the British to bring the contest to a speedier con-
clusion. 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 war-
fare in the Boer republics.

Pequeña caused much ill-feeling in Cape Colony, which was, however, scarcely justified, for the Cape ministry was equally responsible with the British government for the dilaGermany and toriness which led to the loss of what is now German Great South-West Africa. In Togoland and Cameroon British Britain. 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-military circles, it had provoked much adverse criticism on the 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 (sce AFRICA, § 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.

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It was easy for the Opposition to criticize the colonial policy. They could point out that, with the exception of parts of SouthProgress West Africa, no territory had been acquired in which of German any large number of German emigrants could live colonial and rear families. They went as a rule to the United expansion. States and South America, or to territories under the British flag. As markets for German products the colonies remained of small importance; in 1907 the whole value of the trade, import and export, between Germany and her colonies was less than £3,300,000, and the cost of administration, including the grant to the shipping companies, often exceeded the total trade. Many mistakes were made in the administration, and cases of misconduct by individual officials formed the text for attacks on the whole system. Generally, however, these criticisms were premature; it was surely wise, while the opportunity was still open, to take care that Germany, in the partition of the world among European races, should not alone go entirely without a share. The lack of colonial experience, and, often, the lack of sympathy with, or understanding of, the negro and other races over whom they had assumed a protectorate, were contributory causes in the slow development of Germany's African colonies. The unwillingness of the Reichstag to sanction the expenditure of any large sums on railways and other public works also

industrial

It was obviously little use acquiring colonies and creating manufactures if German foreign trade was to be in the hands of other nations. As early as 1881 the government had published a proposal for a subvention to German shipping; Enlarged it was criticized with peculiar energy by Bamberger policy. 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.

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.

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.

It was difficult for the men by their own exertions to improve | Kreuzzeitung, and in the year 1878 he felt himself free to return 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 Christian of the Catholic movement is that it alone was able to socialism. 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 The really important element was the scheme for a great remedy the evil by legislation. A minister, Rudolph Todt, imperial system by which all working men and women should and Rudolph Meyer criticized the moral and economic doctrines be provided for in case of sickness, accident or old age. of Liberalism; his writings led to the foundation of the Christlich- Bismarck hoped by this to relieve the parishes of the Soziale Arbeiterverein, which for a few years attained considerable burden of the poor-rate, which would be transferred notoriety under the leadership of Adolph Stöcker. The Pro- to the empire; at the same time the power of the testant movement has not succeeded in attaining the same government would be greatly extended. The first proposal in position as has the Catholic among the working men; but it March 1881 was for compulsory insurance against accidents. received considerable support among the influential classes Every one employed on railways, mines and factories was to at court, and part of the programme was adopted by the Con-be insured in an imperial office; the premium was to be divided servative 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 für 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 AntiSemitism (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 Stöcker. During the years 1879 to 1881 the anti-Semite agitation gained considerable importance in Berlin, Breslau and other Prussian cities, and it culminated in the elections of that year, leading in some cases to riots and acts of violence.

So long as the government was under the influence of the National Liberals, it was indifferent if not hostile to these movements. The Peasants' Union had actually been forbidden by the police; Bismarck himself was violently attacked for his reputed connexion with a great Jewish firm of bankers. He had, however, kept himself informed regarding these movements, chiefly by means of Hermann Wagener, an old editor of the

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.

Compul.

sory in surance.

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 | greater excitement than any which had taken place since 1870. 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 mount of self-administration has prevented an undue increase of bureaucratic power. The co-operation of masters and men in the administration of the societies has a good effect on the relations of the classes.

Except in the matter of insurance, the total result, however, for the moment was small. The demands repeatedly made by the Centre and the Conservatives for effective factory legislation and prohibition of Sunday labour were not successful. Bismarck did not wish to lay heavier burdens on the capitalists, and it was not till a later period that they were carried out. During all this period Bismarck's authority was so great, that in the conduct of foreign affairs he was freed from the Foreign criticism and opposition which so often hampered affairs: him in his internal policy, and he was able to establish| the Triple that system of alliances on which for so many years Alllance. the political system of Europe depended. The close union of the three empires which had existed since the meeting of the emperors in 1872 did not survive the outbreak of disturbances in the East. Bismarck had maintained an attitude of neutrality, but after the congress of Berlin he found himself placed between the alternatives of friendship with Austria or Russia. Movements of Russian troops on the western frontier threatened Austria, and the tsar, in a letter to the German emperor, stated that peace could only be maintained if Germany gave her support to Russia. Bismarck, now that the choice was forced upon him, determined in favour of Austria, and during a visit to Vienna in October, arranged with Count Andrássy an alliance by which in the event of either being attacked by Russia the other was to assist; if either was attacked by any power other than Russia, the other was to preserve benevolent neutrality unless the attacking power was helped by Russia. The effect of this was to protect Austria from attack by Russia, and Germany from the danger of a combined attack by France and Russia. Bismarck with some difficulty procured the consent of the emperor, who by arranging a meeting with the tsar had attempted to preserve the old friendship. From that time the alliance with Austria has continued. In 1883 it was joined by Italy, and was renewed in 1887, and in 1891 for six years, and if not then denounced, for twelve.

In 1882, after the retirement of Gorchakov, the relations with Russia again improved. In 1884 there was a meeting of the three emperors, and at the same time Bismarck came to a close understanding with France on colonial questions. The period of quiet did not last long. The disaster in Tongking brought about a change of ministry in France, and Bulgarian affairs again alienated Austria and Russia. Bismarck with great skill used the growing foreign complications as a means of freeing himself from parliamentary difficulties at the same time that he secured the position of Germany in Europe.

To meet the increase in the French army, and the open menaces in which the Russian press indulged, a further increase in the German army seemed desirable. The Septennate Elections would expire in 1888. In the autumn of 1886 a proof 1887. posal 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

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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 Wind-
thorst 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 sub-
ordinate to the Conservatives. They could no longer impose their
will upon the government. In the new parliament the govern-
ment proposals were accepted by a majority of 223 to 48 (seven
members of the Centre voted for it, the others abstained). The op-
position consisted chiefly of Socialists and Radicals (Freisinnigen).
The fall of Boulanger removed the immediate danger from
France, but for the rest of the year the relations with Russia
caused serious apprehensions. Anti-German articles Relations
appeared in Russian newspapers. The growth of the with
Nationalist party in Russia led to measures injurious Russia.
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 Reichs-
bank refusing to deal with Russian paper. Large accumulations
of troops on the western frontier excited alarm in Germany and
Austria. During a short visit paid by the emperor of Russia to
Berlin in November Bismarck discovered that forged despatches
misrepresenting the policy of Germany in the Eastern Question
had been communicated to him. This did not seem to remove
all danger, and in February 1888 the government introduced
an amendment to the imperial Military Law extending the
obligation for service from twelve to eighteen years. In this
way it was possible to increase the war establishment, excluding
the Landsturm, by about half a million men without adding to
the burden in time of peace. Another law authorized a loan
of £14,000,000 for military equipment. At the same time
the text of the Triple Alliance was published. The two laws
were adopted without opposition. Under the effect of one of
Bismarck's speeches, the Military Bill was unanimously passed
almost without debate.

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, Europäisches Geschichtskalendar, 1896.)

The emperor William died on the 9th of March 1888. He was succeeded by his son, who took the title of Frederick III. In Italy the older title of king of Piedmont has been absorbed in the newer kingdom of Italy; this is 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

Reign of Frederick II.

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