The finances of the realm have attained a firm position. On the basis of definitely calculated contributions from the states, we have succeeded in establishing a balance in the imperial economy, and by the help of the surplus which resulted we have relieved the excess of the budget. By holding fast to the rigorous policies in vogue up to the present, the empire will within a short time arrive at a complete restoration of its finances.

It fills me with satisfaction when I think to what a point the free spirit of enterprise has attained in industry and crafts, in trade, and in commerce, and how, through the increasing perfection of its technic, agriculture has gradually blossomed forth again. In view of this gratifying progress, the affiliated governments will henceforth not neglect to strengthen the foundation of our customs policy by means of alterations and the addition of new trading regulations.

A project which will be shortly put before you is to serve for the strengthening of the German interests in foreign countries. It regulates dependence upon the empire and the state in such a way that it will be easier for natives of Germany in foreign parts to remain citizens of the empire, or, in case they have lost their imperial rights, to recover them again.[47]

[47] This project resulted in a law promulgated by the Emperor July 22, 1913. It has been made the subject of considerable hostile comment in foreign countries, as it would seem under certain conditions, not definitely fixed, to permit a German subject to divide his allegiance.

Article 17 of this law asserts that (German) citizenship is lost through the acquiring of citizenship in a foreign country. It, however, refers to Article 25, which makes the following conditions:

Art. 25, Sec. 2. Citizenship [German] shall not be lost by him who, before acquiring citizenship in a foreign country, shall, on his request, have received the written permission to retain [German] citizenship from the proper authority in his home state. The German consul is to be consulted before granting this permission.

Art. 25, Sec. 3. The Imperial Chancellor, on a vote of the Bundesrat, can decree that the permission specified in Section 2, shall not be granted to persons who wish to acquire citizenship in a specified foreign state.

On the face of it, this decree would seem to be open to the interpretation that it lies within the power of the German Bundesrat to allow a man who has ostensibly acquired citizenship in a foreign country to be counted as a German citizen.

The success of our work of peace at home and overseas depends upon the empire’s remaining powerful enough to stand for and protect its national honor, its possessions, and its rightful interests in the world at all times. On this account it is my continual duty and care to maintain and strengthen by land and by sea the armies of the German people, which does not lack young men capable of bearing arms. Bills to this end are in preparation and will be laid before you together with proposals which will provide for the increased expenditure. If, Honored Sirs, you help to carry out this great project you will be doing the Fatherland a great service.

We have given a new proof of our willingness to settle international points of dispute amicably wherever this can be done in accordance with the dignity and the interests of Germany, through the conclusion of our agreements with France. In addition to strengthening our alliances with the Austro-Hungarian monarchy and the kingdom of Italy, my policy is directed toward the maintenance of friendly relationships with all powers on the basis of mutual respect and good-will.