Part 36
From 1848 to 1868 the increase of the navy was slow. In 1851 it consisted of 51 vessels, including 36 small gunboats of 2 guns each. In 1868 it consisted of 45 steamers (including 2 ironclads) and 44 sailing vessels, but during the various wars of the period 1848-1871, only a few minor actions were fought at sea, and for many years after the French War the development of the navy did not keep pace with that of the empire's commercial interests beyond the seas, or compete seriously with the naval power of possible rivals. But towards the end of the 19th century Germany started on a new naval policy, by which her fleet was largely and rapidly increased. Details of this development will be found in the article NAVY (see also _History_ below, _ad fin._). It will be sufficient here to give the statistics relating to the beginning of the year 1909, reference being made only to ships effective at that date and to ships authorized in the construction programme of 1907:
Modern battleships 20 effective, 4 approaching completion. Old battleships and coast defence ships 11 effective (4 non-effective). Armoured cruisers 9 effective, 1 approaching completion. Protected cruisers 31 effective, 2 approaching completion. Torpedo craft of modern types 130 effective, 3 approaching completion.
_Administration._--In 1889 the administration was transferred from the ministry of war to the imperial admiralty (_Reichsmarineamt_), at the head of which is the naval secretary of state. The chief command was at the same time separated from the administration and vested in a naval officer, who controls the movements of the fleet, its personnel and training, while the maintenance of the arsenals and dockyards, victualling and clothing and all matters immediately affecting the _materiel_, fall within the province of the secretary of state. The navy is divided between the Baltic (Kiel) and North Sea (Wilhelmshaven) stations, which are strategically linked by the Kaiser Wilhelm Canal (opened in 1895), across the Schleswig-Holstein peninsula. Danzig, Cuxhaven and Sonderburg have also been made naval bases.
_Personnel._--The German navy is manned by the obligatory service of the essentially maritime population--such as sailors, fishermen and others, as well as by volunteers, who elect for naval service in preference to that in the army. It is estimated that the total seafaring population of Germany amounts to 80,000. The active naval personnel was, in 1906, 2631 officers (including engineers, marines, medical, &c.) and 51,138 under-officers and men, total 53,769. In addition, there is a reserve of more than 100,000 officers and men. (P. A. A.)
_Finance._--The imperial budget is voted every year by the Reichstag. The "extraordinary funds," from which considerable sums appear annually in the budget, were created after the Franco-German War. Part of the indemnity was invested for definite purposes. The largest of these investments served for paying the pensions of the invalided, and amounted originally to L28,000,000. Every year, not only the interest, but part of the capital is expended in paying these pensions, and the capital sum was thus reduced in 1903 to L15,100,000, and in 1904 to L13,200,000. Another fund, of about L5,200,000, serves for the construction and armament of fortresses; while L6,000,000, known as the _Reichskriegsschatz_--or "war treasure fund"--is not laid out at interest, but is stored in coined gold and bullion in the Juliusturm at Spandau. In addition to these, the railways in Alsace-Lorraine, which France bought of the Eastern Railway Company for L13,000,000, in order to transfer them to the control of Germany, are also the property of the empire.
During the years 1908 and 1909 considerable public discussion and political activity were devoted to the reorganization of German imperial finance, and it is only possible here to deal historically with the position up to that time, since further developments of an important nature were already foreshadowed.
In 1871 the system accepted was that the imperial budget should be financed substantially by its reliance on the revenue from what were the obvious imperial resources--customs and excise duties, stamp duties, post and telegraph receipts, and among minor sources the receipts from the Alsace-Lorraine railways. But it was also provided that, for the purpose of deficits, the states should, in addition, if required by the imperial minister of finance, contribute their quotas according to population--_Matrikular Beitrage_. It was not expected that these would become chronic, but in a few years, and emphatically by the early 'eighties, they were found to be an essential part of the financial system, owing to regular deficits. It had been intended that, in return for the _Matrikular Beitrage_, regular assignments (_Uberweisungen_) should be returned to the states, in relief of their own taxation, which would practically wipe out the contribution; but instead of these the _Uberweisungen_ were considerably less. Certain reorganizations were made in 1887 and 1902, but the excess of the _Matrikular Beitrage_ over the _Uberweisungen_ continued; the figures in 1905 and 1908 being as follows (in millions of marks):--
+------+-------------+---------------+---------+ | | Matrikular- | Uberweisungen.| Excess. | | | Beitrage. | | | +------+-------------+---------------+---------+ | 1905 | 213 | 189 | 24 | | 1908 | 346 | 195 | 150 | +------+-------------+---------------+---------+
These figures show how natural it was to desire to relieve the states by increasing the direct imperial revenue.
Meanwhile, in spite of the "matricular contributions," the calls on imperial finance had steadily increased, and up to 1908 were continually met to a large extent by loans, involving a continual growth of the imperial debt, which in 1907 amounted to 3643 millions of marks. The imperial budget, like that of most European nations, is divided into two portions, the ordinary and the extraordinary; and the increase under both heads (especially for army and navy) became a recurrent factor. A typical situation is represented by the main figures for 1905 and 1906 (in millions of marks):
+------+-----------------------+----------+-----------+ | | Expenditure. | | | | +-----------+-----------+ Revenue. | Raised by | | | Ordinary. | Extra- | | Loan. | | | | ordinary. | | | +------+-----------+-----------+----------+-----------+ | 1905 | 2002 | 193 | 2053 | 341 | | 1906 | 2157 | 235 | 2118 | 258 | +------+-----------+-----------+----------+-----------+
The same process went on in 1907 and 1908, and it was necessarily recognized that the method of balancing the imperial budget by a regular increase of debt could not be satisfactory in a country where the general increase of wealth and taxable capacity had meanwhile been conspicuous. And though the main proposals made by the government for new taxation, including new direct taxes, resulted in a parliamentary deadlock in 1909, and led to Prince von Bulow's resignation as chancellor, it was already evident that some important reorganization of the imperial financial system was inevitable.
_Currency._--The German empire adopted a gold currency by the law of the 4th of December 1871. Subsequently the old local coinages (_Landesmunzen_) began to be called in and replaced by new gold and silver coins. The old gold coins, amounting to L4,550,000, had been called in as early as 1873; and the old silver coins have since been successively put out of circulation, so that none actually remains as legal tender but the thaler (3s.). The currency reform was at first facilitated by the French indemnity, a great part of which was paid in gold. But later on that metal became scarcer; the London gold prices ran higher and higher, while silver prices declined. The average rate per ounce of standard silver in 1866-1870 was 60-5/8d., in January 1875 only 57-1/2d., in July 1876 as low as 49d. It rose in January 1877 to 57-1/2d., but again declined, and in September 1878 it was 50-5/8d. While the proportion of like weights of fine gold and fine silver in 1866-1870 averaged 1 to 15.55, it was 1 to 17.79 in 1876, 1 to 17.18 in 1877, and, in 1902, in consequence of the heavy fall in silver, the ratio became as much as 1 to 39. By the currency law of the 9th of July 1873, the present coinage system was established and remains, with certain minor modifications, now in force as then introduced. The unit is the mark (1 shilling)--the tenth part of the imperial _gold coin_ (Krone = crown), of which last 139-1/2 are struck from a pound of pure gold. Besides these ten-mark pieces, there are Doppelkronen (double crowns), about equivalent in value to an English sovereign (the average rate of exchange being 20 marks 40 pfennige per L1 sterling), and, formerly, half-crowns (halbe Kronen = 5 marks) in gold were also issued, but they have been withdrawn from circulation. Silver coins are 5, 2 and 1 mark pieces, equivalent to 5, 2 and 1 shillings respectively, and 50 pfennige pieces = 6d. Nickel coins are 10 and 5 pfennige pieces, and there are bronze coins of 2 and 1 pfennige. The system is decimal; thus 100 pfennige = 1 mark, 1000 pfennige = the gold krone (or crown), and 1d. English amounts roughly to 8 pfennige.
_Banking._--A new banking law was promulgated for the whole empire on the 14th of March 1875. Before that date there existed thirty-two banks with the privilege of issuing notes, and on the 31st of December 1872, L67,100,000 in all was in circulation, L25,100,000 of that sum being uncovered. The banking law was designed to reduce this circulation of notes; L19,250,000 was fixed as an aggregate maximum of uncovered notes of the banks. The private banks were at the same time obliged to erect branch offices in Berlin or Frankfort-on-Main for the payment of their notes. In consequence of this regulation numerous banks resigned the privilege of issuing notes, and at present there are in Germany but the following private note banks, issuing private notes, viz. the Bavarian, the Saxon, the Wurttemberg, the Baden and the Brunswick, in addition to the Imperial Bank. The Imperial Bank (Reichsbank) ranks far above the others in importance. It took the place of the Prussian Bank in 1876, and is under the superintendence and management of the empire, which shares in the profits. Its head office is in Berlin, and it is entitled to erect branch offices in any part of the empire. It has a capital of L9,000,000 divided into 40,000 shares of L150 each, and 60,000 shares of L50 each. The Imperial Bank is privileged to issue bank-notes, which must be covered to the extent of 1s. 3d. in coined money, bullion or bank-notes, the remainder in bills at short sight. Of the net profits, a dividend of 3-1/2% is first payable to the shareholders, 20% of the remainder is transferred to the reserve until this has reached a total of L3,000,000, and of the remainder again a quarter is apportioned to the shareholders and three-quarters falls to the imperial exchequer. If the net profits do not reach 3-1/2%, the balance must be made good from the reserve. Private note banks are not empowered to do business outside the state which has conceded them the privilege to issue notes, except under certain limitations. One of these is that they agree that their privilege to issue private notes may be withdrawn at one year's notice without compensation. But this condition has not been enforced in the case of such banks as have agreed to accept as binding the official rate of discount of the Reichsbank after this has reached or when it exceeds 4%. At other times they are not to discount at more than 1/4% below the official rate of the Reichsbank, or in case the Reichsbank itself discounts at a lower rate than the official rate, at more than 1/8% below that rate.
The following table shows the financial condition of the note-issuing banks, in thousands of marks, over a term of years:
_Liabilities._
+------+-------+----------+---------------+------------+------------------+ | Year.| Banks.| Capital. | Reserve. | Notes in | Total, including | | | | | |Circulation.|other Liabilities.| +------+-------+----------+---------------+------------+------------------+ | 1900 | 8 | 219,672 | 48,329 | 1,313,855 | 2,237,017 | | 1901 | 7 | 231,672 | 54,901 | 1,345,436 | 2,360,453 | | 1902 | 6 | 216,000 | 56,684 | 1,373,482 | 2,353,951 | | 1903 | 6 | 216,000 | 60,131 | 1,394,336 | 2,365,256 | | 1904 | 6 | 216,000 | 64,385 | 1,433,421 | 2,378,845 | +------+-------+----------+---------------+------------+------------------+
_Assets._
+------+-------+----------+----------------+-----------+------------------+ | Year.| Banks.| Coin and | Notes of State | Bills. | Total. | | | | Bullion. |and other Banks.| | | +------+-------+----------+----------------+-----------+------------------+ | 1900 | 8 | 899,630 | 51,931 | 1,036,961 | 2,239,564 | | 1901 | 7 | 990,262 | 60,770 | 990,950 | 2,360,355 | | 1902 | 6 |1,052,391 | 54,389 | 901,408 | 2,354,253 | | 1903 | 6 | 973,953 | 54,231 | 984,604 | 2,356,511 | | 1904 | 6 | 996,601 | 66,372 | 947,358 | 2,379,234 | +------+-------+----------+----------------+-----------+------------------+
The total turnover of the Imperial Bank was, in the first year of its foundation, 1-3/4 milliards pounds sterling; and, in 1899, 90 milliards. Eighty-five per cent of its bank-notes have been, on the average, covered by metal reserve.
The total value of silver coins is not to exceed 10 marks, and that of copper and nickel 2-1/2 marks per head of the population. While the coinage of silver, nickel and copper is reserved to the state, the coinage of gold pieces can be undertaken by the state for the account of private individuals on payment of a fixed charge. The coinage takes place in the six mints belonging to the various states--thus Berlin (Prussia), Munich (Bavaria), Dresden (in the Muldenerhutte near Freiberg, Saxony), Stuttgart (Wurttemberg), Karlsruhe (Baden) and Hamburg (for the state of Hamburg). Of the thalers, the Vereinsthaler, coined until 1867 in Austria, was by ordinance of the Bundesrat declared illegal tender since the 1st of January 1903. No one can be compelled to accept more than 20 marks in silver or more than 1 mark in nickel and copper coin; but, on the other hand, the Imperial Bank accepts imperial silver coin in payment to any amount.
The total value of thalers, which, with the exception of the Vereinsthaler, are legal tender, was estimated in 1894 at about L20,000,000.
BIBLIOGRAPHY.--Cotta, _Deutschlands Boden_ (2 vols., 1853); H.A. Daniel, _Deutschland_ (1896); J. Kutzen, _Das deutsche Land_ (Breslau, 1900); Von Kloden, _Geographisches Handbuch_, vol. ii. (1875); G. Neumann, _Das deutsche Reich_ (2 vols., 1874); O. Brunckow, _Die Wohnplatze des deutschen Reiches--auf Grund der amtlichen Materialien bearbeitet_ (new ed., Berlin, 1897); _Handbuch der Wirtschaftskunde Deutschlands_ (4 vols., Leipzig, 1901-1905); _Gothaischer genealogischer Hofkalender auf das Jahr 1907_ (Gotha); A. von W. Keil, _Neumanns Ortslexikon des deutschen Reiches_ (3rd ed., Leipzig, 1894); Meyer, _Konversations-Lexikon_ (1902 seqq.); Brockhaus, _Konversations-Lexikon_ (1900 seqq.); J. Kurschner, _Staats- Hof- und Kommunal-handbuch des Reiches und der Einzelstaaten_ (Leipzig, 1900); P. Hage, _Grundriss der deutschen Staats- und Rechtskunde_ (Stuttgart, 1906), and for Statistical matter chiefly the following: _Centralblatt fur das deutsche Reich. Herausgegeben im Reichsamt der Innern_ (Berlin, 1900); _Die deutsche Armee und die kaiserliche Marine_ (Berlin, 1889); _Gewerbe und Handel im deutschen Reich nach der gewerblichen Betriebszahlung, vom 14. Juni 1895_ (Berlin, 1899); _Handbuch fur das deutsche Reich auf das Jahr 1900, bearbeitet im Reichsamt der Innern_ (Berlin); _Handbuch fur die deutsche Handelsmarine auf das Jahr 1900; Statistik des deutschen Reichs_, published by the _Kaiserliches Statistisches Amt_ (including trade, navigation, criminal statistics, sick insurance, &c.); _Statistisches Jahrbuch fur das deutsche Reich_ (Berlin, 1906) and _Vierteljahrshefte fur Statistik des deutschen Reichs_ (including census returns, commerce and railways). See also among English publications on geographical and statistical matter: _Annual Statement of the Trade of the United Kingdom with Foreign Countries and British Possessions for the Year 1899_ (London, 1900); and G.G. Chisholm, _Europe_, being vols. i. and ii. of Stanford's _Compendium of Geography and Travel_ (London, 1899 and 1900). The fullest general account of the geology of Germany will be found in R. Lepsius, _Geologie von Deutschland und den angrenzenden Gebieten_ (Stuttgart, first volume completed in 1892). Shorter descriptions will be found in E. Kayser, _Lehrbuch der geologischen Formationskunde_ (Stuttgart, English edition under the title _Text-book of Comparative Geology_), and H. Credner, _Elemente der Geologie_ (Leipzig).
ARCHAEOLOGY
From an archaeological point of view Germany is very far from being a homogeneous whole. Not only has the development of the south differed from that of the north, and the west been subjected to other influences than those affecting the east, but even where the same influences have been at work the period of their operation has often varied widely in the different districts, so that in a general sketch of the whole country the chronology can only be a very rough approximation. In this article the dates assigned to the various periods in south Germany are those given by Sophus Muller, on the lines first laid down by Montelius. As regards north Germany, Muller puts the Northern Bronze age 500 years later than the Southern, but a recent find in Sweden bears out Montelius's view that southern influence made itself rapidly felt in the North. The conclusions of Montelius and Muller are disputed by W. Ridgeway, who maintains that the Iron age originated in central Europe, and that iron must consequently have been worked in those regions as far back as c. 2000 B.C.
_Older Palaeolithic Period._--The earliest traces of man's handiwork are found either at the end of the pre-Glacial epoch, or in an inter-Glacial period, but it is a disputed point whether the latter is the first of a series of such periods. A typical German find is at Taubach, near Weimar, where almond-shaped stone wedges, small flint knives, and roughly-hacked pieces of porphyry and quartz are found, together with the remains of elephants. There are also bone implements, which are not found in the earliest periods in France.
_Palaeolithic Transition Period_ (_Solutre_).--More highly developed forms are found when the mammoth has succeeded the elephant. Implements of chipped stone for the purposes of boring and scraping suggest that man worked hides for clothing. Ornaments of perforated teeth and shells are found.
_Later Palaeolithic Period_ (_La Madeleine_).--The next period is marked by the presence of reindeer. In the Hohlefels in the Swabian Achthal there is still no trace of earthenware, and we find the skull of a reindeer skilfully turned into a drinking-vessel. Saws, needles, awls and bone harpoons are found. It is to be noticed that none of the German finds (mostly in the south and west) show any traces of the highly developed artistic sense so characteristic of the dwellers in France at this period.
The gap in our knowledge of the development of Palaeolithic into Neolithic civilization has recently been partially filled in by discoveries in north Germany and France of objects showing rather more developed forms than those of the former period, but still unaccompanied by earthenware. It is a disputed point whether the introduction of Neolithic civilization is due to a new ethnological element.
_Neolithic Age_ (in south Germany till c. 2000 B.C.).--Neolithic man lived under the same climatic conditions as prevail to-day, but amidst forests of fir. He shows advance in every direction, and by the end of the later Neolithic period he is master of the arts of pottery and spinning, is engaged in agricultural pursuits, owns domestic animals, and makes weapons and tools of fine shape, either ground and polished or beautifully chipped. Traces of Neolithic settlements have been found chiefly in the neighbourhood of Worms, in the Main district and in Thuringia. These dwellings are usually holes in the ground, and presumably had thatched roofs. Our knowledge of the later Neolithic age, as of the succeeding periods, is largely gained from the remains of lake-dwellings, represented in Germany chiefly by Bavarian finds. The lake-dwellings in Mecklenburg, Pomerania and East Prussia are of a different type, and it is not certain that they date back to the Stone age. Typical Neolithic cemeteries are found at Hinkelstein, Alzey and other places in the neighbourhood of Worms. In these graves the skeletons lie flat, while in other cemeteries, as at Flomborn in Rhine-Hessen, and near Heilbronn, they are in a huddled position (hence the name _Hockergraber_). Necklaces and bracelets of Mediterranean shells point to a considerable amount of commerce. Other objects found in the graves are small flint knives, stone axes, flint and lumps of pyrites for obtaining fire, and, in the women's graves, hand-mills for grinding corn. The earthenware vessels usually have rounded bottoms. The earliest ornamentation consists of finger-imprints. Later we find two periods of zigzag designs in south Germany with an intermediate stage of spirals and wavy lines, while in north and east Germany the so-called string-ornamentation predominates. Towards the end of the period the inhabitants of north Germany erect megalithic graves, and in Hanover especially the passage-graves.
_Bronze Age_ (in south Germany from c. 2000-1000 B.C.).--In the later Stone age we note the occasional use of copper, and then the gradual appearance of bronze. The bronze civilization of the Aegean seems to have had direct influence along the basins of the Danube and Elbe, while the culture of the western parts of central Germany was transmitted through Italy and France. No doubt the pre-eminence of the north, and especially of Denmark, at this period, was due to the amber trade, causing southern influence to penetrate up the basin of the Elbe to Jutland. The earlier period is characterized by the practice of inhumation in barrows made of clays, stones or sand, according to the district. Bronze is cast, whereas at a later time it shows signs of the hammer. From the finds in Bavarian graves it appears that the chief weapons were the dagger and the long pointed _Palstab_ (palstave), while a short dagger fixed like an axe on a long shaft is characteristic of the North. The women wore two bronze pins, a bracelet on each arm, amber ornaments and a necklace of bronze tubes in spirals. One or two vases are found in each barrow, ornamented with finger-imprints, "string" decoration, &c. The later period is characterized by the practice of cremation, though the remains are still placed in barrows. Swords make their appearance. The women wear more and more massive ornaments. The vases are highly polished and of elegant form, with zigzag decoration.
_Hallstatt Period_ (in Germany 8th-5th century B.C.).--The Hallstatt stage of culture, named after the famous cemetery in upper Austria, is marked by the introduction of iron (see HALLSTATT). In Germany its centre is Bavaria, Baden and Wurttemberg, with the Thuringian forest as the northern boundary. In Brandenburg, Lusatia, Silesia, Posen and Saxony, where there was no strong Bronze age tradition, Hallstatt influence is very noticeable. In west Prussia the urns with human faces deserve notice. The dead are either buried in barrows or cremated, the latter especially in north and east Germany. In Bavaria both practices are resorted to, as at Hallstatt. The pottery develops beautiful form and colour. Fibulae, often of the "kettle-drum" form, take the place of the Bronze age pin.