Chapter VII: Part 7

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Everywhere the original source of law was the old German common law, but in each district it had been wholly or partly superseded by codes, text-books and statutes to a great extent founded on the principles of the Roman civil law.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case their boundaries had changed, but the laws remained valid (except in those cases in which they had been expressly repealed) for the whole of the district for which they had been originally promulgated.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 parties and the Ultramontanes, who taught that the pope was greater than the emperor and the Church than the nation. The conflict had already begun in Baden. As in every other country, the control of the schools was the chief object of contention, but the government also claimed a control over the education and training of the clergy. With the formation of the empire the conflict was transferred from Baden to Prussia, where there had been for thirty years absolute peace, a peace gained, indeed, by allowing to the Catholics complete freedom; the Prussian constitution ensured them absolute liberty in the management of ecclesiastical affairs; in the ministry for religion and education there was a separate department for Catholic affairs, and (owing to the influence of the great family of the Radziwills) they enjoyed considerable power at court.

Old Catholics.

The latent opposition was aroused by the Vatican decrees. A small number of Catholics, including several men of learning and distinction, refused to accept Papal Infallibility. They were encouraged by the Bavarian court, which maintained the Febronian tradition and was jealous of any encroachment of the Papacy (see FEBRIONIANISM); but besides this the Protestants throughout Germany and all opponents of the Papacy joined in the agitation. They made it the occasion for an attack on the Jesuits; even in 1869 there had been almost a riot in Berlin when a chapel belonging to a religious order was opened there. During 1870 and 1871 meetings were held by the Gustavus Adolphus Verein, and a great Protestant conference was called, at which resolutions were passed demanding the expulsion of the Jesuits and condemning the Vatican decrees. As the leaders in these meetings were men like Virchow and Bluntschli, who had been lifelong opponents of Catholicism in every form, the result was disastrous to the Liberal party among the Catholics, for a Liberal Catholic would appear as the ally of the bitterest enemies of the Church; whatever possibility of success the Old Catholic movement might have had was destroyed by the fact that it was supported by those who avowedly wished to destroy the influence of Catholicism. No bishop joined it in Germany or in Austria, and few priests, though the governments were ready to protect them in the enjoyment of the privileges secured to Catholics, and to maintain them in the use of the temporalities. There was no great following among the people; it was only in isolated places that priests and congregation together asserted their rights to refuse to accept the decrees of the Church. Without the help of the bishops, the leaders had no legal basis; unsupported by the people, they were generals without an army, and the attempt to use the movement for political purposes failed.

None the less this was the occasion for the first proceedings against the Catholics, and curiously enough the campaign began in Bavaria. The archbishop of Munich had published the Vatican decrees without the _Regium placetum_, which was required by the constitution, and the government continued to treat Old Catholics as members of the Church. In the controversy which ensued, Lutz, the chief member of the ministry, found himself confronted by an Ultramontane majority, and the priests used their influence to stir up the people. He therefore turned for help to the imperial government, and at his instance a clause was added to the penal code forbidding priests in their official capacity to deal with political matters. (This law, which still exists, is popularly known as the Kanzlei or Pulpit-paragraph.) It was of course opposed by the Centre, who declared that the Reichstag had no right to interfere in what was after all a religious question, and the Bavarian Opposition expressed much indignation that their government should turn for help to the Protestants of the North in order to force upon the Catholics of Bavaria a law which they could not have carried in that state.

For twenty years the Old Catholics continued to be a cause of contention in Bavaria, until the struggle ended in the victory of the Ultramontanes. In 1875 the parliament which had been elected in 1869 for six years came to an end. In order to strengthen their position for the new elections, the Liberal ministry, who owed their position chiefly to the support of the king, by royal ordinance ordered a redistribution of seats. By the constitution this was within their power, and by clever manipulation of the constituencies they brought it about that the Ultramontane majority was reduced to two. It does not appear that this change represented any change of feeling in the majority of the people. The action of the government, however, caused great indignation, and in a debate on the address an amendment was carried petitioning the king to dismiss his ministry. They offered their resignation, but the king refused to accept it, publicly expressed his confidence in them, and they continued in office during the lifetime of the king, although in 1881 the growing reaction gave a considerable majority to the Ultramontane party. After the death of the king the prince-regent, Luitpold, still retained the old administration, but several concessions were made to the Catholics in regard to the schools and universities, and in 1890 it was decided that the claim of the Old Catholics to be regarded officially as members of the Church should no longer be recognized.

May Laws.

Meanwhile at Berlin petitions to the Reichstag demanded the expulsion of the Jesuits, and in 1872 an imperial law to this effect was carried; this was again a serious interference with the control over religious matters reserved to the states. In Prussia the government, having determined to embark on an anti-Catholic policy, suppressed the Catholic division in the ministry, and appointed a new minister, Falk, a Liberal lawyer of uncompromising character. A law was carried placing the inspection of schools entirely in the hands of the state; hitherto in many provinces it had belonged to the clergy, Catholic or Protestant. This was followed by the measures to which the name _Kulturkampf_ really applied (an expression used first by Virchow to imply that it was a struggle of principle between the teaching of the Church and that of modern society). They were measures in which the state no longer, as in the school inspection law or in the introduction of civil marriage, defended its prerogatives against the Church, but assumed itself a direct control over ecclesiastical matters.

At the end of 1872 and the beginning of 1873 Falk laid before the Prussian Lower House the draft of four laws. Of these, one forbade ministers of religion from abusing ecclesiastical punishment; the second, which was the most important, introduced a law already adopted in Baden, that no one should be appointed to any office in the Church except a German, who must have received his education in a German gymnasium, have studied for three years in a German university, and have passed a state examination in philosophy, history, German literature and classics; all ecclesiastical seminaries were placed under the control of the state, and all seminaries for boys were forbidden. Moreover, every appointment to an ecclesiastical benefice was to be notified to the president of the province, and the confirmation could be refused on the ground that there were facts which could support the assumption that the appointment would be dangerous to public order. The third law appointed a court for trying ecclesiastical offences, to which was given the right of suspending both priests and bishops, and a fourth determined the procedure necessary for those who wished to sever their connexion with the Roman Catholic Church.

As these laws were inconsistent with those articles of the Prussian constitution which guaranteed to a religious corporation the independent management of its own affairs, it was therefore necessary to alter the constitution. This was done, and a later law in 1875 repealed the articles altogether.

The opposition of the bishops to these laws was supported even by many Protestants, especially by the more orthodox Lutherans, who feared the effect of this increased subjection of all churches to the state; they were opposed also by the Conservative members of the Upper House. All, however, was unavailing. Bismarck in this case gave the Liberals a free hand, and the laws eventually were carried and proclaimed on the 15th of May 1873; hence they got the name of the May laws, by which they are always known. The bishops meanwhile had held a meeting at Fulda, at the tomb of St Boniface, whence they addressed a protest to the king, and declared that they would be unable to recognize the laws as valid. They were supported in this by the pope, who addressed a protest personally to the emperor. The laws were put into force with great severity. Within a year six Prussian bishops were imprisoned, and in over 1300 parishes the administration of public worship was suspended. The first sufferer was the cardinal archbishop of Posen, Count Ledochowski. He refused to report to the president of the province appointments of incumbents; he refused also to allow the government commissioners to inspect the seminaries for priests, and when he was summoned before the new court refused to appear. He was then deprived of the temporalities of his office; but the Polish nobles continued to support him, and he continued to act as bishop. Heavy fines were imposed upon him, but he either could not or would not pay them, and in March 1874 he was condemned to imprisonment for two years, and dismissed from his bishopric. The bishop of Trier, the archbishop of Cologne, and other bishops soon incurred a similar fate. These measures of the government, however, did not succeed in winning over the Catholic population, and in the elections for the Reichstag in January 1874 the party of the Centre increased in number from 63 to 91; 1,443,170 votes were received by them. In Bavaria the Ultramontanes won a complete victory over the more moderate Catholics. The Prussian government proceeded to further measures. According to the ordinary practice towards parties in opposition, public meetings were broken up on the smallest pretence, and numerous prosecutions for insult to government officials (_Beamtenbeleidigung_) were brought against members of the party. The Catholic agitation was, however, carried on with increased vigour throughout the whole empire; over a hundred newspapers were founded (three years before there had been only about six Catholic papers in the whole of Germany), and great numbers of pamphlets and other polemical works were published. The bishops from their prisons continued to govern the dioceses; for this purpose they appointed representatives, to whom they transferred their rights as ordinary and secretly authorized priests to celebrate services and to perform the other duties of an incumbent. To meet this a further law was passed in the Prussian parliament, forbidding the exercise of ecclesiastical offices by unauthorized persons, and it contained a provision that any one who had been convicted under the law could be deprived of his rights of citizenship, ordered to live in a particular district, or even expelled from the kingdom. The result was that in numerous parishes the police were occupied in searching for the priest who was living there among the people; although his habitation was known to hundreds of people, the police seldom succeeded in arresting him. Bismarck confesses that his doubts as to the wisdom of this legislation were raised by the picture of heavy but honest _gens d'armes_ pursuing light-footed priests from house to house. This law was followed by one authorizing the government to suspend, in every diocese where the bishop continued recalcitrant, the payment of that contribution to the Roman Catholic Church which by agreement had been given by the state since 1817. The only result of this was that large sums were collected by voluntary contribution among the Roman Catholic population.

The government tried to find priests to occupy the vacant parishes; few consented to do so, and the _Staatskatholiken_ who consented to the new laws were avoided by their parishioners. Men refused to attend their ministrations; in some cases they were subjected to what was afterwards called boycotting, and it was said that their lives were scarcely safe. Other laws excluded all religious orders from Prussia, and civil marriage was made compulsory; this law, which at first was confined to Prussia, was afterwards passed also in the Reichstag.

These laws were all peculiar to Prussia, but similar legislation was carried out in Baden and in Hesse, where in 1871, after twenty-one years of office, the particularist and Conservative government of Dalwigk[6] had come to an end and after the interval of a year been succeeded by a Liberal ministry. In Wurttemberg alone the government continued to live peaceably with the bishops.

The government had used all its resources; it had alienated millions of the people; it had raised up a compact party of nearly a hundred members in parliament. The attempt of the Liberals to subjugate the Church had given to the Papacy greater power than it had had since the time of Wallenstein.

Reaction against Liberalism.

The ecclesiastical legislation and other Liberal measures completed the alienation between Bismarck and the Conservatives. In the Prussian parliament seventy-three members broke off from the rest, calling themselves the "old Conservatives"; they used their position at court to intrigue against him, and hoped to bring about his fall; Count Arnim (q.v.) was looked upon as his successor. In 1876, however, the party in Prussia, reunited on a programme which demanded the maintenance of the Christian character of the schools, cessation of the Kulturkampf, limitation of economic liberty, and repression of social democracy, and this was accepted also by the Conservatives in the Reichstag. This reunion of the Conservatives became the nucleus of a great reaction against Liberalism. It was not confined to any one department of life, but included Protection as against Free Trade, State Socialism as against individualism, the defence of religion as against a separation of Church and State, increased stress laid on the monarchical character of the state, continued increase of the army, and colonial expansion.

The causes of the change in public opinion, of which this was to be the beginning, are too deep-seated to be discussed here. We must note that it was not peculiar to Germany; it was part of that great reaction against Liberal doctrine which marked the last quarter of the 19th century in so many countries. In Germany, however, it more rapidly attained political importance than elsewhere, because Bismarck used it to carry out a great change of policy. He had long been dissatisfied with his position. He was much embarrassed by the failure of his ecclesiastical policy. The alliance with the Liberals had always been half-hearted, and he wished to regain his full freedom of action; he regarded as an uncontrollable bondage all support that was not given unconditionally. The alliance had been of the nature of a limited co-operation between two hostile powers for a definite object; there had always been suspicion and jealousy on either side, and a rupture had often been imminent, as in the debates on the military bill and the law reform. Now that the immediate object had been attained, he wished to pass on to other projects in which they could not follow him. Political unity had been firmly established; he desired to use the whole power of the imperial government in developing the material resources of the country. In doing this he placed himself in opposition to both the financial and the economic doctrines of the Liberals.

Official changes.

The new period which now begins was introduced by some alterations in the official organization. Hitherto almost the whole of the internal business had been concentrated in the imperial chancery (_Reichskanzleramt_), and Bismarck had allowed great freedom of action to Delbruck, the head of the office. Delbruck, however, had resigned in 1876, justly foreseeing that a change of policy was imminent in which he could no longer co-operate with Bismarck. The work of the office was then divided between several departments, at the head of each of which was placed a separate official, the most important receiving the title of secretary of state. Bismarck, as always, refused to appoint ministers directly responsible either to the emperor or to parliament; the new officials in no way formed a collegiate ministry or cabinet. He still retained in his own hands, as sole responsible minister, the ultimate control over the whole imperial administration. The more important secretaries of state, however, are political officials, who are practically almost solely responsible for their department; they sit in the Bundesrat, and defend their policy in the Reichstag, and they often have a seat in the Prussian ministry. Moreover, a law of 1878, the occasion of which was Bismarck's long absence from Berlin, empowered the chancellor to appoint a substitute or representative (_Stellvertreter_) either for the whole duties of his office or for the affairs of a particular department. The signature of a man who holds this position gives legal validity to the acts of the emperor.

This reorganization was a sign of the great increase of work which had already begun to fall on the imperial authorities, and was a necessary step towards the further duties which Bismarck intended to impose upon them.

Meanwhile the relations with the National Liberals reached a crisis. Bismarck remained in retirement at Varzin for nearly a year; before he returned to Berlin, at the end of 1877, he was visited by Bennigsen, and the Liberal leader was offered the post of vice-president of the Prussian ministry and vice-president of the Bundesrat. The negotiations broke down, apparently because Bennigsen refused to accept office unless he received a guarantee that the constitutional rights of the Reichstag should be respected, and unless two other members of the party, Forckenbeck and Stauffenberg, were given office. Bismarck would not assent to these conditions, and, even if he had been willing to do so, could hardly have overcome the prejudices of the emperor. On the other hand, Bennigsen refused to accept Bismarck's proposal for a state monopoly of tobacco. From the beginning the negotiations were indeed doomed to failure, for what Bismarck appears to have aimed at was to detach Bennigsen from the rest of his party and win his support for an anti-Liberal policy.

Period after 1878.

The session of 1878, therefore, opened with a feeling of great uncertainty. The Liberals were very suspicious of Bismarck's intentions. Proposals for new taxes, especially one on tobacco, were not carried. Bismarck took the opportunity of avowing that his ideal was a monopoly of tobacco, and this statement was followed by the resignation of Camphausen, minister of finance. It was apparent that there was no prospect of his being able to carry through the great financial reform which he contemplated. He was looking about for an opportunity of appealing to the country on some question which would enable him to free himself from the control of the Liberal majority. The popular expectations were expressed in the saying attributed to him, that he would "crush the Liberals against the wall." The opportunity was given by the Social Democrats.

Social democracy.

The constant increase of the Social Democrats had for some years caused much uneasiness not only to the government, but also among the middle classes. The attacks on national feeling, the protest against the war of 1870, the sympathy expressed for the _Communards_, had offended the strongest feelings of the nation, especially as the language used was often very violent; the soldiers were spoken of as murderers, the generals as cut-throats. Attacks on religion, though not an essential part of the party programme, were common, and practically all avowed Social Democrats were hostile to Christianity. These qualities, combined with the open criticism of the institutions of marriage, of monarchy, and of all forms of private property, joined to the deliberate attempt to stir up class hatred, which was indeed an essential part of their policy, caused a widespread feeling that the Social Democrats were a serious menace to civilization. They were looked upon even by many Liberals as an enemy to be crushed; much more was this the case with the government. Attempts had already been made to check the growth of the party. Charges of high treason were brought against some. In 1872 Bebel and Liebknecht were condemned to two years' imprisonment. In 1876 Bismarck proposed to introduce into the Criminal Code a clause making it an offence punishable with two years' imprisonment "to attack in print the family, property, universal military service, or other foundation of public order, in a manner which undermined morality, feeling for law, or the love of the Fatherland." The opposition of the Liberals prevented this from being carried. Lasker objected to these "elastic paragraphs," an expression for which in recent years there has been abundant use. The ordinary law was, however, sufficient greatly to harass the Socialists. In nearly every state there still existed, as survivals of the old days, laws forbidding the union of different political associations with one another, and all unions or associations of working men which followed political, socialistic or communistic ends. It was possible under these to procure decisions in courts of justice dissolving the General Union of Workers and the coalitions and unions of working men. The only result was, that the number of Socialists steadily increased. In 1874 they secured nine seats in the Reichstag, in 1877 twelve, and nearly 500,000 votes were given to Socialist candidates.

Legislation against the Socialists.

There was then no ground for surprise that, when in April 1878 an attempt was made on the life of the emperor, Bismarck used the excuse for again bringing in a law expressly directed against the Socialists. It was badly drawn up and badly defended. The National Liberals refused to vote for it, and it was easily defeated. The Reichstag was prorogued; six days later a man named Nobiling again shot at the emperor, and this time inflicted dangerous injuries. It is only fair to say that no real proof was brought that the Socialists had anything to do with either of these crimes, or that either of the men was really a member of the Socialist party; nevertheless, a storm of indignation rose against them. The government seized the opportunity. So great was the popular feeling, that a repressive measure would easily have been carried; Bismarck, however, while the excitement was at its height, dissolved the Reichstag, and in the elections which took place immediately, the Liberal parties, who had refused to vote for the first law, lost a considerable number of seats, and with them their control over the Reichstag.

The first use which Bismarck made of the new parliament was to deal with the Social Democrats. A new law was introduced forbidding the spread of Socialistic opinions by books, newspapers or public meetings, empowering the police to break up meetings and to suppress newspapers. The Bundesrat could proclaim a state of siege in any town or district, and when this was done any individual who was considered dangerous by the police could be expelled. The law was carried by a large majority, being opposed only by the Progressives and the Centre. It was applied with great severity. The whole organization of newspapers, societies and trades unions was at once broken up. Almost every political newspaper supported by the party was suppressed; almost all the pamphlets and books issued by them were forbidden; they were thereby at once deprived of the only legitimate means which they had for spreading their opinions. In the autumn of 1878 the minor state of siege was proclaimed in Berlin, although no disorders had taken place and no resistance had been attempted, and sixty-seven members of the party were excluded from the city. Most of them were married and had families; money was collected in order to help those who were suddenly deprived of their means of subsistence. Even this was soon forbidden by the police. At elections every kind of agitation, whether by meetings of the party or by distribution of literature, was suppressed. The only place in Germany where Socialists could still proclaim their opinions was in the Reichstag. Bismarck attempted to exclude them from it also. In this, however, he failed. Two members who had been expelled from Berlin appeared in the city for the meeting of the Reichstag at the end of 1878. The government at once asked permission that they should be charged with breaking the law. The constitution provided that no member of the House might be brought before a court of justice without the permission of the House, a most necessary safeguard. In this case the permission was almost unanimously refused. Nor did they assent to Bismarck's proposal that the Reichstag should assume power to exclude from the House members who were guilty of misusing the liberty of speech which they enjoyed there. Bismarck probably expected, and it is often said that he hoped, to drive the Socialists into some flagrant violation of the law, of such a kind that it would be possible for him completely to crush them. This did not happen. There were some members of the party who wished to turn to outrage and assassination. Most, a printer from Leipzig, who had been expelled from Berlin, went to London, where he founded the _Freiheit_, a weekly paper, in which he advocated a policy of violence. He was thereupon excluded from the party, and after the assassination of the emperor Alexander II. of Russia had to leave England for Chicago. A similar expulsion befell others who advocated union with the Anarchists. As a whole, however, the party remained firm in opposition to any action which would strengthen the hands of their opponents. They carried on the agitation as best they could, chiefly by distributing reports of speeches made in the Reichstag. A weekly paper, the _Social-Democrat_, was established at Zurich. Its introduction into Germany was of course forbidden, but it was soon found possible regularly to distribute thousands of copies every week in every part of the country, and it continued to exist till 1887 at Zurich, and till 1890 in London. In August of 1880 a congress of Socialists was held at the castle of Wyden, in Switzerland, at which about eighty members of the party met, discussed their policy, and separated before the police knew anything of it. Here it was determined that the members of the Reichstag, who were protected by their position, should henceforward be the managing committee of the party, and arrangements were made for contesting the elections of 1881. A similar meeting was held in 1883 at Copenhagen, and in 1887 at St Gallen, in Switzerland. Notwithstanding all the efforts of the government, though every kind of public agitation was forbidden, they succeeded in winning twelve seats in 1881. The law, which had obviously failed, was renewed in 1881; the state of siege was applied to Hamburg, Leipzig and Stettin, but all to no purpose; and though the law was twice more renewed, in 1886 and in 1888, the feeling began to grow that the Socialists were more dangerous under it than they had been before.

The elections of 1878, by weakening the Liberal parties, enabled Bismarck also to take in hand the great financial reform which he had long contemplated.

Financial reform.

Protection.

At the foundation of the North German Confederation it had been arranged that the imperial exchequer should receive the produce of all customs duties and also of excise. It depended chiefly on the taxes on salt, tobacco, brandy, beer and sugar. So far as the imperial expenses were not covered by these sources of revenue, until imperial taxes were introduced, the deficit had to be covered by "matricular" contributions paid by the individual states in proportion to their population. All attempts to introduce fresh imperial taxes had failed. Direct taxation was opposed by the governments of the states, which did not desire to see the imperial authorities interfering in those sources of revenue over which they had hitherto had sole control; moreover, the whole organization for collecting direct taxes would have had to be created. At the same time, owing to the adoption of free trade, the income from customs was continually diminishing. The result was that the sum to be contributed by the individual states constantly increased, and the amount to be raised by direct taxation, including local rates, threatened to become greater than could conveniently be borne. Bismarck had always regarded this system with disapproval, but during the first four or five years he had left the care of the finances entirely to the special officials, and had always been thwarted in his occasional attempts to introduce a change. His most cherished project was a large increase in the tax on tobacco, which at this time paid, for homegrown tobacco, the nominal duty of four marks per hundred kilo. (about a farthing a pound), and on imported tobacco twenty-four marks. Proposals to increase it had been made in 1869 and in 1878, and on the latter occasion Bismarck for the first time publicly announced his desire for a state monopoly, a project which he never gave up, but for which he never was able to win any support. Now, however, he was able to take up the work. At his invitation a conference of the finance ministers met in July at Heidelberg; they agreed to a great increase in the indirect taxes, but refused to accept the monopoly on tobacco. At the beginning of the autumn session a union of 204 members of the Reichstag was formed for the discussion of economic questions, and they accepted Bismarck's reforms. In December he was therefore able to issue a memorandum explaining his policy; it included a moderate duty, about 5%, on all imported goods, with the exception of raw material required for German manufactures (this was a return to the old Prussian principle); high finance duties on tobacco, beer, brandy and petroleum; and protective duties on iron, corn, cattle, wood, wine and sugar. The whole of the session of 1879 was occupied with the great struggle between Free Trade and Protection, and it ended with a decisive victory for the latter. On the one side were the seaports, the chambers of commerce, and the city of Berlin, the town council of which made itself the centre of the opposition. The victory was secured by a coalition between the agricultural interests and the manufacturers; the latter promised to vote for duties on corn if the landlords would support the duties on iron. In the decisive vote the duty on iron was carried by 218 to 88, on corn by 226 to 109. The principle of protection was thus definitely adopted, though considerable alterations have been made from time to time in the tariff. The result was that the income from customs and excise rose from about 230 million marks in 1878-1879 to about 700 millions in 1898-1899, and Bismarck's object in removing a great burden from the states was attained.

State contributions.