In 1908, near the end of Prince von Bülow's incumbency of the chancellorship, his position became very difficult, because of the general disapproval on the part of the nation of the German emperor's custom to make long speeches concerning foreign affairs. Some of these speeches caused a considerable amount of offense in foreign capitals, and, while this matter, too, may be considered a minor detail in Germany's relations with foreign powers, it had at the same time some influence. Throughout this period the chancellor was supported by a combination of the National-Liberal and Conservative parties. But in 1909 the continuation of this combination became impossible on account of the divergence of opinion existing between these two parties in regard to the Government's financial reforms. The National-Liberal as well as the Social-Democrat and other radical members of the Finance Committee withdrew, and the Conservatives formed a new combination with the Center party. This new majority, however, made so many changes in the original Government bill, and forced through measures which the chancellor so thoroughly disapproved, that he handed his resignation to the emperor. It was not accepted right away, but upon his continued insistence, he finally was permitted to resign in July. His successor was Dr. von Bethmann-Hollweg, up to then Minister of the Interior of Prussia, a member of an old patrician house with strong National-Liberal tendencies.
In 1910 the Far Eastern problem again became acute. Russia, Japan, and England, of course, were most vitally interested in the future of China. Both France and Germany, too, had important commercial interests. For a time it looked as if these great powers would clash about the Chinese question, which each wished to solve in such a manner that the greatest possible advantage and gain would come to itself and none or the least possible to the others. However, in 1910 the United States proposed that the Manchurian railway, just then the principal issue, be financed by an international syndicate, reasserting, thereby, its previous stand for an "open-door" policy in China. Germany supported this attitude, and undoubtedly did not make through this action any friendships among the other powers.
In May, 1911, the Reichstag, after long discussion, accepted a bill giving a separate constitution to Alsace-Lorraine, making, thereby, this territory more equal to the other parts of the German Empire. This action, of course, was welcomed by the inhabitants of Alsace-Lorraine, and was a long step toward reconciling them sometime to the German overlordship. In the same degree in which it accomplished this it caused displeasure in France, where, by this time, every success in the Germanizing of the "lost provinces" was viewed naturally with almost as much disapproval as the original occupation.
It was in the same year, 1911, that the Morocco difficulties arose again with France, as we have already seen, but in spite of the appearance of a German gunboat at the port of Agadir and the threatening attitude of Germany, matters were finally settled amicably. The terms of the settlement, however, pleased neither the German nor the French nation at large, and a considerable feeling of enmity remained.
Late that year, 1911, a determined campaign was started by the German Navy League in an effort to bring about an increase of Germany's naval forces through the force of public opinion. This activity, which met with considerable success, was viewed with alarm and displeasure in England. These sentiments grew and spread to France when in the spring of 1912 the newly elected Reichstag adopted a bill carrying greatly increased expenditures for both army and navy.
In the summer of 1912 the Balkan question, which is treated in detail in a separate chapter, assumed threatening proportions. Germany as well as the other great powers, however, at that time managed to find a common basis and kept all from active participation in the two Balkan wars, restricting their activities to the exertion of their various influences for as just a settlement as was possible under the circumstances when the time for settlement had arrived in 1913. In spite of the inactivity of the powers there can be no doubt that their respective attitudes at that time toward the various Balkan States and their ambitions had an important influence on the latter's attitude toward the various powers after the war of 1914 had broken out.
In December, 1912, the Triple Alliance was renewed, although even then the conflicting interests of Italy and Austria in the Balkans had made such a step somewhat doubtful.
The early spring of 1913 brought with it the uncovering of a rather extensive scandal in connection with the manufacture of guns and other war materials. One of the Socialistic leaders in the Reichstag charged some officials of the great munition firm of Krupp and of other firms with bribery of War Department officials, and with the creation of artificial war scares in other countries for the sake of increasing munition orders. Although the German courts later sustained this contention to a certain extent, and although it resulted in a certain amount of antiwar sentiment, Germany continued with its well-defined program of increased preparedness. That the Government had behind it in its efforts the full support of public opinion was proven in June of the same year, 1913, by the passage in the Reichstag of another bill carrying considerable increases in the peace strength of the army, and by the fact that the necessary expenditures were met by special taxation, which, though severe in its effects alike on poor and rich, was borne cheerfully by the entire nation.