Part 15

The attempt to reconcile the inhabitants of Alsace-Lorraine to their condition proved equally difficult. The provinces had been placed under the immediate rule of the emperor and the chancellor, who was minister for them; laws were to be passed by the Reichstag. In accordance with the treaty of Frankfort, the inhabitants were permitted to choose between French and German nationality, but all who chose the former had to leave the country; before the 1st of October 1872, the final day, some 50,000 had done so. In 1874, for the first time, the provinces were enabled to elect members for the Reichstag; they used the privilege to send fifteen _Elsasser_, who, after delivering a formal protest against the annexation, retired from the House; they joined no party, and took little part in the proceedings except on important occasions to vote against the government. The same spirit was shown in the elections for local purposes. It seemed to be the sign of a change when a new party, the _Autonomisten_, arose, who demanded as a practical concession that the dictatorship of the chancellor should cease and local self-government be granted. To some extent this was done in 1879; a resident governor or _Statthalter_ was appointed, and a local representative assembly, which was consulted as to new laws. All the efforts of Field marshal Edwin von Manteuffel, the first governor, to win the confidence of the people failed; the anti-German feeling increased; the party of protestors continued in full numbers. The next governor, Prince Hohenlohe, had to use more stringent measures, and in 1888, to prevent the agitation of French agents, an imperial decree forbade any one to cross the frontier without a passport. Since 1890 there has been, especially in the neighbourhood of Strassburg, evidence of a spread of national German feeling, probably to a great extent due to the settlement of Germans from across the Rhine.

The presence of these anti-German parties, amounting sometimes to one-tenth of the whole, in the Reichstag added greatly to the difficulty of parliamentary government. Gradually, however, as a new generation grew up their influence declined. In the Reichstag of 1907, Guelphs, Alsace-Lorrainers and Danes together could muster only five members.

The period 1870 to 1878.

The great work since 1870 has been that of building up the institutions of the empire. For the first time in the history of Germany there has been a strong administration ordering, directing and arranging the life of the whole nation. The unification of Germany was not ended by the events of 1866 and 1871; it was only begun. The work has throughout been done by Prussia; it has been the extension of Prussian principles and Prussian administrative energy over the whole of Germany. It naturally falls into two periods; the first, which ends in 1878, is that in which Bismarck depended on the support of the National Liberals. They were the party of union and uniformity. The Conservatives were attached to the older local diversities, and Bismarck had therefore to turn for help to his old enemies, and for some years an alliance was maintained, always precarious but full of results.

Legal reform.

The great achievement of the first period was legal reform. In nothing else was legislation so much needed. Forty-six districts have been enumerated, each of which enjoyed a separate legal system, and the boundaries of these districts seldom coincided with the frontiers of the states. Everywhere the original source of law was the old German common law, but in each district it had been wholly or partly superseded by codes, text-books and statutes to a great extent founded on the principles of the Roman civil law. Owing to the political divisions, however, this legislation, which reached back to the 14th century, had always been carried out by local authorities. There had never been any effective legislation applicable to the whole nation. There was not a state, not the smallest principality, in which some authoritative but imperfect law or code had not been published. Every free city, even an imperial village, had its own "law," and these exist down to the present time. In Bremen the foundation of the civil code was still the statutes of 1433; in Munich, those of 1347. Most of the states by which these laws had been published had long ago ceased to exist; probably in every case their boundaries had changed, but the laws remained valid (except in those cases in which they had been expressly repealed) for the whole of the district for which they had been originally promulgated. Let us take a particular case. In 1591 a special code was published for the upper county of Katzellenbogen. More than a hundred years ago Katzellenbogen was divided between the neighbouring states. But till the end of the 19th century this code still retained its validity for those villages in Hesse, and in the Prussian province of Hesse, which in old days had been parts of Katzellenbogen. The law, however, had to be interpreted so as to take into consideration later legislation by the kingdom of Westphalia, the electorate of Hesse, and any other state (and they are several) in which for a short time some of these villages might have been incorporated.

In addition to these earlier imperfect laws, three great codes have been published, by which a complete system was applied to a large district: the Prussian Code of 1794, the Austrian Code of 1811 and the Code Napoleon, which applied to all Germany left of the Rhine; for neither Prussia, nor Bavaria, nor Hesse had ever ventured to interfere with the French law. In Prussia therefore the older provinces came under the Prussian Code, the Rhine provinces had French law, the newly annexed provinces had endless variety, and in part of Pomerania considerable elements of Swedish law still remained, a relic of the long Swedish occupation. On the other hand, some districts to which the Prussian Code applied no longer belonged to the kingdom of Prussia--for instance, Anspach and Bayreuth, which are now in Bavaria. In other parts of Bavaria in the same way Austrian law still ran, because they had been Austrian in 1811. In two states only was there a more or less uniform system: in Baden, which had adopted a German translation of the Code Napoleon; and in Saxony, which had its own code, published in 1865. In criminal law and procedure there was an equal variety. In one district was trial by jury in an open court; in another the old procedure by written pleadings before a judge. In many districts, especially in Mecklenburg and some of the Prussian provinces, the old feudal jurisdiction of the manorial courts survived.

The constant changes in the law made by current legislation in the different states really only added to the confusion, and though imperial laws on these points with which the central government was qualified to deal superseded the state laws, it is obvious that to pass occasional acts on isolated points would have been only to introduce a further element of complication. It was therefore convenient, so far as was possible, to allow the existing system to continue until a full and complete code dealing with the whole of one department of law could be agreed upon, and thus a uniform system (superseding all older legislation) be adopted. Legislation, therefore, has generally taken the form of a series of elaborate codes, each of which aims at scientific completeness, and further alterations have been made by amendments in the original code. The whole work has been similar in character to the codification of French law under Napoleon; in most matters the variety of the older system has ceased, and the law of the empire is now comprised in a limited number of codes.

A beginning had been made before the foundation of the empire; as early as 1861 a common code for trade, commerce and banking had been agreed upon by the states included in the Germanic Confederation. It was adopted by the new confederation of 1869. In 1897 it was replaced by a new code. In 1869 the criminal law had been codified for the North German Confederation, and in 1870 there was passed the _Gewerbeordnung_, an elaborate code for the regulation of manufactures and the relations of masters to workmen. These were included in the law of the empire, and the work was vigorously continued.

In 1871 a commission was appointed to draw up regulations for civil and criminal procedure, and also to frame regulations for the organization of the law courts. The draft code of civil procedure, which was published in December 1872, introduced many important reforms, especially by substituting public and verbal procedure for the older German system, under which the proceedings were almost entirely carried on by written documents. It was very well received. The drafts for the other two laws were not so successful. Protests, especially in South Germany, were raised against the criminal procedure, for it was proposed to abolish trial by jury and substitute over the whole empire the Prussian system, and a sharp conflict arose as to the method of dealing with the press. After being discussed in the Reichstag, all three projects were referred to a special commission, which after a year reported to the diet, having completely remodelled the two latter laws. After further amendment they were eventually accepted, and became law in 1877. By these and other supplementary laws a uniform system of law courts was established throughout the whole empire; the position and pay of the judges, the regulations regarding the position of advocates, and costs, were uniform, and the procedure in every state was identical. To complete the work a supreme court of appeal was established in Leipzig, which was competent to hear appeals not only from imperial law, but also from that of the individual states.

By the original constitution, the imperial authorities were only qualified to deal with criminal and commercial law; the whole of the private law, in which the variety was greatest, was withdrawn from their cognizance. Lasker, to remedy this defect, proposed, therefore, an alteration in the constitution, which, after being twice carried against the opposition of the Centre, was at last accepted by the Bundesrat. A commission was then appointed to draw up a civil code. They completed the work by the end of 1887; the draft which they then published was severely criticized, and it was again submitted for revision to a fresh commission, which reported in 1895. In its amended form this draft was accepted by the Reichstag in 1896, and it entered into force on the 1st of January 1900. The new Civil Code deals with nearly all matters of law, but excludes those concerning or arising out of land tenure and all matters in which private law comes into connexion with public law; for instance, the position of government officials, and the police: it excludes also the relations of master and servant, which in most points are left to the control of individual states. It was accompanied by a revision of the laws for trade and banking.

Commercial reform.

Equal in importance to the legal was the commercial reform, for this was the condition for building up the material prosperity of the country. Germany was a poor country, but the poverty was to a great extent the result of political causes. Communication, trade, manufactures, were impeded by the political divisions, and though the establishment of a customs union had preceded the foundation of the empire, the removal of other barriers required imperial legislation. A common system of weights and measures was introduced in 1868. The reform of the currency was the first task of the empire. In 1871 Germany still had seven different systems; the most important was the _Thaler_ and the _Groschen_, which prevailed over most of North Germany, but even within this there were considerable local differences. Throughout the whole of the south of Germany and in some North German states the gulden and kreuzer prevailed. Then there were other systems in Hamburg and in Bremen. Everywhere, except in Bremen, the currency was on a silver basis. In addition to this each state had its own paper money, and there were over 100 banks with the right of issuing bank-notes according to regulations which varied in each state. In 1871 a common system for the whole empire was established, the unit being the _Mark_ (= 11-3/4d.), which was divided into a hundred _Pfennige_: a gold currency was introduced (_Doppel-Kronen_ = 20 _M._; _Kronen_ = 10 _M._); no more silver was to be coined, and silver was made a legal tender only up to the sum of twenty marks. The gold required for the introduction of the new coinage was provided from the indemnity paid by France. Great quantities of thalers, which hitherto had been the staple of the currency, were sold. The right of coinage was, however, left to the individual states, and as a special concession it was determined that the rulers of the states should be permitted to have their head placed on the reverse of the gold coins. All paper currency, except that issued by the empire, ceased, and in 1873 the Prussian Bank was converted into the Imperial Bank (Reichsbank).

Banking laws.

Closely connected with the reform of the currency and the codification of the commercial law was the reform of the banking laws. Here the tendency to substitute uniform imperial laws for state laws is clearly seen. Before 1870 there had been over 100 banks with the right of issue, and the conditions on which the privilege was granted varied in each state. By the Bank Act of March 14, 1875, which is the foundation of the existing system, the right of granting the privilege is transferred from the governments of the states to the Bundesrat. The existing banks could not be deprived of the concessions they had received, but unless they submitted to the regulations of the new law their notes were not to be recognized outside the limits of the state by which the concession had been granted. All submitted to the conditions except the Brunswick Bank, which remained outside the banking system of the empire until the Bank Act of June 5, 1906, was passed, when it surrendered its right to issue notes. The experience of Germany in this matter has been different from that of England, for nearly all the private banks have now surrendered their privilege, and there remain only five banks, including the Reichsbank, which still issue bank notes. The other four are situated in Bavaria, Saxony, Wurttemberg and Baden. The total note-issue was fixed by the law of 1875, a proposal being assigned to each bank. Any part of this issue assigned to private banks which might be withdrawn from circulation, owing to a deficiency in the legal reserve funds, was to be transferred to the Reichsbank. The result has been the tendency of the latter gradually to absorb the whole note-issue. By the law of 1906 the Reichsbank was authorized to issue 20 M. and 50 M. notes. Treasury notes (_Reichs-Kassenscheine_) for these amounts were no longer to be issued; but the state reserved the right to circulate notes of the value of 5 M. and 10 M.

The organization of the imperial post-office was carried out with great success by Herr von Stephan (q.v.), who remained at the head of this department from its creation till his death in 1897. Proposals were also made to Bavaria and Wurttemberg to surrender their special rights, but these were not accepted.

Railways.

The unification of the railways caused greater difficulties. Nearly every state had its own system; there was the greatest variety in the methods of working and in the tariffs, and the through traffic, so important for the commercial prosperity of the country, was very ineffective. In Baden, Wurttemberg and Hanover the railways were almost entirely the property of the state, but in all other parts public and private lines existed side by side, an arrangement which seemed to combine the disadvantages of both systems. In 1871 three-quarters of the railway lines belonged to private companies, and the existence of these powerful private corporations, while they were defended by many of the Liberals, was, according to the national type of thought, something of an anomaly. Bismarck always attached great importance to the improvement of the railway service, and he saw that uniformity of working and of tariffs was very desirable. In the constitution of the empire he had introduced several clauses dealing with it. The independent administration of its lines by each state was left, but the empire received the power of legislating on railway matters; it could build lines necessary for military purposes even against the wish of the state in whose territory they lay, and the states bound themselves to administer their lines as part of a common system. In order to carry out these clauses a law was passed on the 27th of June 1873 creating an imperial railway office (_Reichseisenbahnamt_) for the purpose of exercising a general control over the railways. This office has done much in the matter of unifying the systems of various railways and of regulating their relations to the military, postal and telegraph organizations; it also took a leading part in the framing of the international laws regarding goods traffic; but the imperial code of railway law which it drafted has never been laid before the Reichstag. It effectively controls only the privately owned lines in Prussia. Yet, in setting it up, Bismarck had in mind the ultimate acquisition of all the railways by the empire. He found, however, that it was impossible to carry any Bill enforcing this. He therefore determined to begin by transferring to the imperial authority the Prussian state railways; had he been able to carry this out the influence of the imperial railways would have been so great that they would gradually have absorbed those of the other states. The Bill was carried through the Prussian parliament, but the opposition aroused in the other states was so great that he did not venture even to introduce in the Bundesrat a law empowering the empire to acquire the Prussian railways. In many of the state parliaments resolutions were carried protesting against the system of imperial railways, and from that time the preservation of the local railway management has been the chief object towards which, in Saxony, Bavaria and Wurttemberg, local feeling has been directed. The only imperial railways are those in Alsace-Lorraine.

The result of the legal reform and other laws has been greatly to diminish the duties of the state governments, for every new imperial law permanently deprives the local parliaments of part of their authority. Generally there remains to them the control of education and religion--their most important duty--police, all questions connected with land tenure, local government, the raising of direct taxes, and, in the larger states, the management of railways. The introduction of workmen's insurance, factory legislation, and other measures dealing with the condition of the working classes by imperial legislation, was at a later period still further to limit the scope of state legislation.

Army organization.

Meanwhile the government was busy perfecting the administration of the national defences. From the war indemnity large sums had been expended on coast defence, on fortifications and on replacing the equipment and stores destroyed during the war. A special fund, producing annually about a million pounds, was put aside, from which pensions to the wounded, and to the widows and orphans of those who had fallen, should be provided. It was also desirable to complete the military organization. It must be remembered that technically there is no German army, as there is no German minister of war. Each state, however small, maintains its own contingent, subject to its own prince, who has the right and the obligation of administering it according to the provisions of the treaty by which he entered the federation. Practically they are closely tied in every detail of military organization. The whole of the Prussian military system, including not only the obligation to military service, but the rules for recruiting, organization, drill and uniforms, has to be followed in all the states; all the contingents are under the command of the emperor, and the soldiers have to swear obedience to him in addition to the oath of allegiance to their own sovereign. It is therefore not surprising that, having so little freedom in the exercise of their command, all the princes and free cities (with the exception of the three kings) arranged separate treaties with the king of Prussia, transferring to him (except for certain formal rights) the administration of their contingents, which are thereby definitely incorporated in the Prussian army. The first of these treaties was arranged with Saxe-Coburg Gotha in 1861; those with the other North German states followed at short intervals after 1866. The last was that with Brunswick, which was arranged in 1885; Duke William had always refused to surrender the separate existence of his army. Owing to the local organization, this does not prevent the contingent of each state from preserving its separate identity; it is stationed in its own district, each state contributing so many regiments.

The Septennat.

In 1872 a common system of military jurisprudence was introduced for the whole empire except Bavaria (a revised code of procedure in military courts was accepted by Bavaria in 1898); finally, in February 1874, an important law was laid before the Reichstag codifying the administrative rules. This superseded the complicated system of laws and royal ordinances which had accumulated in Prussia during the fifty years that had elapsed since the system of short service had been introduced; the application to other states of course made a clearer statement of the laws desirable. Most of this was accepted without opposition or debate. On one clause a serious constitutional conflict arose. In 1867 the peace establishment had been provisionally fixed by the constitution at 1% of the population, and a sum of 225 thalers (L33, 15s.) had been voted for each soldier. This arrangement had in 1871 been again continued to the end of 1874, and the peace establishment fixed at 401,659. The new law would have made this permanent. If this had been done the power of the Reichstag over the administration would have been seriously weakened; its assent would no longer have been required for either the number of the army or the money. The government attached great importance to the clause, but the Centre and the Liberal parties combined to throw it out. A disastrous struggle was averted by a compromise suggested by Bennigsen. The numbers were fixed for the next seven years (the so-called _Septennat_); this was accepted by the government, and carried against the votes of the Centre and some of the Progressives. On this occasion the Fortschrittpartei, already much diminished, split up into two sections. The principle then established has since been maintained; the periodical votes on the army have become the occasion for formally testing the strength of the Government.

Kulturkampf.

The influence of Liberalism, which served the government so well in this work of construction, brought about also the conflict with the Roman Catholic Church which distracted Germany for many years. The causes were, indeed, partly political. The Ultramontane party in Austria, France and Bavaria had, after 1866, been hostile to Prussia; there was some ground to fear that it might still succeed in bringing about a Catholic coalition against the empire, and Bismarck lived in constant dread of European coalitions. The Polish sympathies of the Church in Germany made him regard it as an anti-German power, and the formation of the Catholic faction in parliament, supported by Poles and Hanoverians, appeared to justify his apprehensions. But besides these reasons of state there was a growing hostility between the triumphant National