Bismarck and the Foundation of the German Empire

by James Wycliffe Headlam

"It is the duty of the State to provide for the sustenance and support of those of its citizens who cannot procure sustenance themselves"; and again, "work adapted to their strength and capacity shall be supplied to those who lack means and opportunity of earning a livelihood for themselves and those dependent on them."

In the most public way the new policy was introduced by an Imperial message, on November 17, 1881, in which the Emperor expressed his conviction that the social difficulties could not be healed simply by the repression of the exaggerations of Social Democracy, but at the same time the welfare of the workmen must be advanced. This new policy had the warm approval of both the Emperor and the Crown Prince; no one greeted more heartily the change than Windthorst.

"Allow me," he once said to Bismarck, "to speak openly: you have done me much evil in my life, but, as a German patriot, I must confess to you my gratitude that after all his political deeds you have persuaded our Imperial Master to turn to this path of Social Reform."

There were, he said, difficulties to be met; he approved of the end, but not of all the details,

"and," he continued, "something of the difficulty, if I may say so, you cause yourself. You are often too stormy for us; you are always coming with something new and we cannot always follow you in it, but you must not take that amiss. We are both old men and the Emperor is much older than we are, but we should like ourselves in our lifetime to see some of these reforms established. That I wish for all of us and for our German country, and we will do our best to help in it."

Opinions may differ as to the wisdom of Bismarck's social and financial policy; nobody can deny their admiration for the energy and patriotism which he displayed. It was no small thing for him, at his age, to come out of his comparative retirement to bring forward proposals which would be sure to excite the bitterest opposition of the men with whom he had been working, to embark again on a Parliamentary conflict as keen as any of those which had so taxed his energies in his younger years. Not content with inaugurating and suggesting these plans, he himself undertook the immediate execution of them. In addition to his other offices, in 1880 he undertook that of Minister of Trade in Prussia, for he found no one whom he could entirely trust to carry out his proposals. During the next years he again took a prominent part in the Parliamentary debates; day after day he attended to answer objections and to defend his measures in some of his ablest and longest speeches. By his proposals for a duty on corn he regained the support of most of the Conservatives, but in the Reichstag which was elected in 1884 he found himself opposed by a majority consisting of the Centre, Socialists, and Progressives. Many of the laws were rejected or amended, and it was not until 1890 that, in a modified form, the whole of the social legislation had been carried through.

For the monopoly he gained no support; scarcely a voice was raised in its favour, nor can we be surprised at this. It was a proposal very characteristic of his internal policy; he had a definite aim in view and at once took the shortest, boldest, and most direct road towards it, putting aside the thought of all further consequences. In this others could not follow him; quite apart from the difficulties of organisation and the unknown effect of the law on all those who gained their livelihood by the growth, preparation, and sale of tobacco, there was a deep feeling that it was not safe to entrust the Government with so enormous a power. Men did not wish to see so many thousands enrolled in the army of officials, already too great; they did not desire a new check on the freedom of life and occupation, nor that the Government should have the uncontrolled use of so great a sum of money. And then the use he proposed to make of the proceeds: if the calculations were correct, if the results were what he foretold, if from this monopoly they would be able to pay not only the chief expenses of the Government but also assign an old-age pension to every German workman who reached the age of seventy—what would this be except to make the great majority of the nation prospective pensioners of the State? With compulsory attendance at the State schools; with the State universities as the only entrance to public life and professions; when everyone for three years had to serve in the army; when so large a proportion of the population earned their livelihood in the railways, the post-office, the customs, the administration—the State had already a power and influence which many besides the Liberals regarded with alarm. What would it be when every working man looked forward to receiving, after his working days were over, a free gift from the Government? Could not this power be used for political measures also; could not it become a means for checking the freedom of opinions and even for interfering in the liberty of voting?

He had to raise the money he wanted in another way, and, in 1879, he began the great financial change that he had been meditating for three years; he threw all his vigour into overthrowing Free Trade and introducing a general system of Protection.

In this he was only doing what a large number of his countrymen desired. The results of Free Trade had not been satisfactory. In 1876 there was a great crisis in the iron trade; owing to overproduction there was a great fall of prices in England, and Germany was being flooded with English goods sold below cost price. Many factories had to be closed, owners were ruined, and men thrown out of work; it happened that, by a law passed in 1873, the last duty on imported iron would cease on the 31st of December, 1876. Many of the manufacturers and a large party in the Reichstag petitioned that the action of the law might at any rate be suspended. Free-Traders, however, still had a majority, for the greater portion of the National Liberals belonged to that school, and the law was carried out. It was, however, apparent that not only the iron but other industries were threatened. The building of railways in Russia would bring about an increased importation of Russian corn and threatened the prosperity, not only of the large proprietors, but also of the peasants. It had always been the wise policy of the Prussian Government to maintain and protect by legislation the peasants, who were considered the most important class in the State. Then the trade in Swedish wood threatened to interfere with the profits from the German forests, an industry so useful to the health of the country and the prosperity of the Government. But if Free Trade would injure the market for the natural products of the soil, it did not bring any compensating advantages by helping industry. Germany was flooded with English manufactures, so that even the home market was endangered, and every year it became more apparent that foreign markets were being closed. The sanguine expectations of the Free-Traders had not been realised; America, France, Russia, had high tariffs; German manufactured goods were excluded from these countries. What could they look forward to in the future but a ruined peasantry and the crippling of the iron and weaving industries? "I had the impression," said Bismarck, "that under Free Trade we were gradually bleeding to death."

He was probably much influenced in his new policy by Lothar Bucher, one of his private secretaries, who was constantly with him at Varzin. Bucher, who had been an extreme Radical, had, in 1849, been compelled to fly from the country and had lived many years in England. In 1865 he had entered Bismarck's service. He had acquired a peculiar enmity to the Cobden Club, and looked on that institution as the subtle instrument of a deep-laid plot to persuade other nations to adopt a policy which was entirely for the benefit of England. He drew attention to Cobden's words—"All we desire is the prosperity and greatness of England." We may in fact look on the Cobden Club and the principles it advocated from two points of view. Either they are, as Bucher maintained, simply English and their only result will be the prosperity of England, or they are merely one expression of a general form of thought which we know as Liberalism; it was an attempt to create cosmopolitan institutions and to induce German politicians to take their economic doctrines from England, just as a few years before they had taken their political theories. In either case these doctrines would be very distasteful to Bismarck, who disliked internationalism in finance as much as he did in constitutional law or Socialist propaganda.