Eventually the Liberals went a considerable way towards meeting the Government, declaring themselves ready to accept the ironclads of the Sverige type and to extend the "summer-line" drill period from 280 to 310 days, the additional thirty days to be applied, ten for the extension of winter drill and the balance to the drill of the older classes in accordance with the Ministerial proposal. The Ministerial party, or rather the distinctly Conservative section, declined to accept this offer, which gave a month less for the period of drill than that of the Government. The offer of the Liberals to go beyond the Karlskrona programme was made just as the European War began; the Social Democrats now also rallied to the support of the Government. Their leader, M. Branting, at a large meeting of his party, telegraphed to M. Hammarskjöld, offering his support in the efforts to preserve and defend the neutrality of Sweden, and assuring the Premier that he might "reckon upon the confidence of a united people." M. Hammarskjöld at once telegraphed back an appreciative acknowledgment.
An interesting incident of the controversy was the exchange between M. Staaff and M. Hammarskjöld of open and exceedingly friendly letters, truly Swedish in tone and essence. The former gave hopes of a speedy settlement of the defence question, which soon were to be realised. Towards the end of August the delegates of the different parties, who had discussed the question with the Premier, arrived at an understanding; it only remained for the entire Defence Committee to give its sanction, which was a foregone conclusion, and on September 12 the great and all-important defence question was happily solved, the Government proposal, with immaterial modifications, was passed in the First Chamber without any division, and in the Second by 127 to 70, 23 votes being void. When fully established the new scheme will involve an annual expenditure on the Army of some 64,500,000 kr. (3,583,333l.) as against 55,250,000 kr. (3,069,444l.) and on the Navy of 26,000,000 kr. (1,444,444l.), an increase of some 4,000,000 kr. (or 222,222l.); besides this, some 4,000,000 kr. were applied to the coast artillery.
At the same time as the defence question engrossed the interest of the Riksdag, the necessary measures were passed to emphasise and support the neutrality of Sweden. On August 12 the Riksdag unanimously voted 50,000,000 kr. as extraordinary expenditure for defence on account of the international situation, and the Ministerial declaration as to the observance of strict neutrality met with the fullest support.
The dissolution of the Second Chamber and the consequent election were followed by a general election in September, the existing Riksdag, however, remaining in function. This general election confirmed the trend of the spring election by further reducing the Liberal members; the seats they lost were gained by the Social Democrats, who now constituted the largest party, 87, the Right remaining at 86 and the Liberals being reduced to 57. As a result the Social Democrats at a party congress somewhat vaguely declared, by 90 votes against 58, their willingness to accept the responsibility of government, jointly with the Left.
Some other military measures were disposed of, as were several railway bills, a Schools Inspection Bill, and other legislation. The most important bill passed was one making the tobacco industry and trade a State monopoly, calculated to yield a very material revenue. The scheme is to be worked through a huge limited company, beginning operations about the middle of 1915, and in which the State is to be heavily interested financially and will exercise the necessary control. The great total abstinence reform, which had a warm defender in M. Staaff, was frustrated through the inability of the Chambers to agree upon the question of local veto, but the temperance movement is being furthered in many ways. The same fate befell the Women's Suffrage Bill; the Second Chamber had passed it by 107 to 84, whilst the First Chamber negatived it by 76 votes to 46.
After an unusually long session, lasting nominally seven months, though from the end of September there had been no regular sittings, the "B Riksdag" was prorogued on December 17.
A Germanophil movement was headed by M. Sven Hedin, the famous explorer (A.R., 1913, p. 386), and found support in the fear inspired by Russian military preparation for some years past in Finland, in the propagation of war news from German sources, and in the close commercial relations subsisting with Germany. But there were indications of a change of feeling before the end of the year.
Sweden, like her Scandinavian neighbours, has jealously guarded her neutrality, large portions of the reserve and other classes being promptly called under arms. Her declaration of neutrality was followed within a few days by an undertaking with Norway that the one country should not take hostile action against the other.
The feeling of cordiality and joint interests between Sweden, Denmark and Norway was further emphasised and consolidated by the meeting of the three Kings, accompanied by their Foreign Ministers, in Malmö (Dec. 18), at the invitation of King Gustaf, an act of the Swedish King which caused the deepest satisfaction in the three countries. It was called partly to deal with the economic hindrances set up by the war to the trade of the three countries, and the official communication announcing its results stated that it had been agreed to continue the co-operation.