Part 19

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.