These events had a very unfortunate effect on the character of the parliament. From 1878 to 1887 there was no strong party on which Bismarck could depend for support. After 1881 the parties of opposition were considerably strengthened. Alsatians Political reaction. and Poles, Guelphs, Clericals and Radicals were joined in a common hostility to the government. Parliamentary history took the form of a hostile criticism of the government proposals, which was particularly bitter because of the irreconcilable opposition of the Free Traders. Few of the proposals were carried in their entirety, many were completely lost; the tobacco monopoly and the brandy monopoly were contemptuously rejected by enormous majorities; even an increase of the tax on tobacco was refused; the first proposals for a subsidy to the Norddeutsche Lloyd were rejected. The personal relations of the chancellor to Parliament were never so bitter. At the same time, in Prussia there was a tendency to make more prominent the power of the king and to diminish the influence of the parliament. A proposal to introduce biennial budgets was for this reason regarded with great suspicion by the Opposition as a reactionary measure, and rejected. The old feelings of suspicion and jealousy were again aroused; the hostility which Bismarck encountered was scarcely less than in the old days of the conflict. After the elections of 1881 a protest was raised against the systematic influence exercised by Prussian officials. Puttkammer, who had now become minister of the interior, defended the practice, and a royal edict of 4th January 1882 affirmed the monarchical character of the Prussian constitution, the right of the king personally to direct the policy of the state, and required those officials who held appointments of a political nature to defend the policy of the government, even at elections.
One result of the new policy was a reconciliation with the Centre. Now that Bismarck could no longer depend on the support of the Liberals, it would be impossible to carry on the government if the Catholics maintained their End of the Kulturkampf. policy of opposition to all government measures. They had supported him in his commercial reform of 1878, but by opposing the Septennate in 1880 they had shown that he could not depend upon them. It was impossible to continue to treat as enemies of the state a party which had supplied one of the vice-presidents to the Reichstag, and which after the election of 1881 outnumbered by forty votes any other single party. Moreover, the government, which was now very seriously alarmed at the influence of the Social Democrats, was anxious to avail itself of every influence which might be used against them. In the struggle to regain the adherence of the working men it seemed as though religion would be the most valuable ally, and it was impossible to ignore the fact that the Roman Catholic priests had alone been able to form an organization in which hundreds of thousands of working men had been enlisted. It was therefore for every reason desirable to remedy a state of things by which so many parishes were left without incumbents, a condition the result of which must be either to diminish the hold of Christianity over the people, or to confirm in them the belief that the government was the real enemy of Christianity. It was not easy to execute this change of front with dignity, and impossible to do so without forsaking the principles on which they had hitherto acted. Ten years were to pass before the work was completed. But the cause of the conflict had been rather in the opinions of the Liberals than in the personal desire of Bismarck himself. The larger political reasons which had brought about the conflict were also no longer valid; the fears to which the Vatican decrees had given rise had not been fulfilled; the failure of the Carlists in Spain and of the Legitimists in France, the consolidation of the new kingdom in Italy, and the alliance with Austria had dispelled the fear of a Catholic league. The growth of the Catholic democracy in Germany was a much more serious danger, and it proved to be easier to come to terms with the pope than with the parliamentary Opposition. It would clearly be impossible to come to any agreement on the principles. Bismarck hoped, indeed, putting all questions of principle aside, to establish a modus vivendi; but even this was difficult to attain. An opportunity was given by the death of the pope in 1878. Leo XIII. notified his accession to the Prussian government in a courteous despatch; the interchange of letters was followed by a confidential discussion between Bismarck and Cardinal Franchi at Kissingen during the summer of 1878. The hope that this might bring about some agreement was frustrated by the sudden death of the cardinal, and his successor was more under the influence of the Jesuits and the more extreme party. Bismarck, however, was not discouraged.
The resignation of Falk in July 1879 was a sign of the change of policy; he was succeeded by Puttkammer, who belonged to the old-fashioned Prussian Conservatives and had no sympathy with the Liberal legislation. The way was further prepared by a lenient use of the penal laws. On the 24th of February 1880 the pope, in a letter to the ex-archbishop of Cologne, said he was willing to allow clerical appointments to be notified if the government withdrew the obnoxious laws. In 1880 a provisional Bill was submitted to parliament giving the crown discretionary power not to enforce the laws. It was opposed by the Liberals on the ground that it conceded too much, by the Clericals that it granted too little, but, though carried only in a mutilated form, it enabled the priests who had been ejected to appoint substitutes, and religious worship was restored in nearly a thousand parishes. In the elections of 1881 the Centre gained five more seats, and in 1883 a new law was introduced prolonging and extending that of 1881. Meanwhile a Prussian envoy had again been appointed at the Vatican; all but three of the vacant bishoprics were filled by agreement between the pope and the king, and the sequestrated revenues were restored. Finally, in 1886, a fresh law, besides other concessions, did away with the Kultur Examen, and exempted seminaries from state control. It also abolished the ecclesiastical court, which, in fact, had proved to be almost unworkable, for no priests would appeal to it. By this, the real Kulturkampf, the attempt of the state to control the intellect and faith of the clergy, ceased. A further law of 1887 permitted the return to Prussia of those orders which were occupied in charitable work.
As permanent results of the conflict there remain only the alteration in the Prussian constitution and the expulsion of the Jesuits; the Centre continued to demand the repeal of this, and to make it the price of their support of government measures; in 1897 the Bundesrat permitted the return of the Redemptorists, an allied order. With these exceptions absolute religious peace resulted; the Centre to a great extent succeeded to the position which the National Liberals formerly held; in Bavaria, in Baden, in Prussia they obtained a dominant position, and they became a government party.
Meanwhile Bismarck, who was not intimidated by the parliamentary opposition, irritating and embarrassing though it was, resolutely proceeded with his task of developing the material resources of the empire. In order to do so Nationalization of railways. the better, he undertook, in addition to his other offices, that of Prussian minister of commerce. He was now able to carry out, at least partially, his railway schemes, for he could afford to ignore Liberal dislike to state railways, and if he was unable to make all the lines imperial, he could make most of them Prussian. The work was continued by his successors, and by the year 1896 there remained only about 2000 kilometres of private railways in Prussia; of these none except those in East Prussia belonged to companies of any great importance. More than this, Bismarck was able to obtain Prussian control of the neighbouring states; in 1886 the Brunswick railways were acquired by the Prussian government, and in 1895 the private lines in Thuringia. The imperial railways in Alsace-Lorraine are managed in close connexion with the Prussian system, and in 1895 an important step was taken towards extending Prussian influence in the south. A treaty was made between Prussia and Hesse by which the two states together bought up the Hesse-Ludwig railway (the most important private company remaining in Germany), and in addition to this agreed that they would form a special union for the joint administration of all the lines belonging to either state. What this means is that the Hessian lines are managed by the Prussian department, but Hesse has the right of appointing one director, and the expenses and profits are divided between the two states in proportion to their population. Thus a nucleus and precedent has been formed similar to that by which the Zollverein was begun, and it was hoped that it might be possible to arrange similar agreements with other states, so that in this way a common management for all lines might be established. There is, however, strong opposition, especially in South Germany, and most of the states cling to the separate management of their own lines. Fearful that Prussia might obtain control over the private lines, they have imitated Prussian policy and acquired all railways for the state, and much of the old opposition to Prussia is revived in defence of the local railways.
A natural supplement to the nationalization of railways was the development of water communication. This is of great importance in Germany, as all the chief coal-fields and manufacturing districts—Silesia, Saxony, Westphalia Canals. and Alsace—are far removed from the sea. The most important works were the canal from Dortmund to the mouth of the Ems, and the Jāhde canal from the Ems to the Elbe, which enables Westphalian coal to reach the sea, and so to compete better with English coal. In addition to this, however, a large number of smaller works were undertaken, such as the canalization of the Main from Frankfort to the Rhine; and a new canal from the Elbe to Lübeck. The great ship canal from Kiel to the Elbe, which was begun in 1887 and completed in 1896, has perhaps even more importance for naval than for commercial purposes. The Rhine, so long the home of romance, has become one of the great arteries of traffic, and lines of railways on both sides have caused small villages to become large towns. The Prussian government also planned a great scheme by which the Westphalian coal-fields should be directly connected with the Rhine in one direction and the Elbe in the other by a canal which would join together Minden, Hanover and Magdeburg. This would give uninterrupted water communication from one end of the country to the other, for the Elbe, Oder and Vistula are all navigable rivers connected by canals. This project, which was a natural continuation of Bismarck’s policy, was, however, rejected by the Prussian parliament in 1899. The opposition came from the Agrarians and extreme Conservatives, who feared that it would enable foreign corn to compete on better terms with German corn; they were also jealous of the attention paid by the government to commercial enterprise in which they were not immediately interested. The project was again laid by the government before the Prussian Landtag on the 14th of April 1901 and was again rejected. In 1904 it was once more introduced in the modified form of a proposal of a canal from the Rhine to Leine in Hanover, with a branch from Datteln to Ham, and also of a canal from Berlin to Stettin. This bill was passed in February 1905.
Equally important was the action of the government in developing foreign trade. The first step was the inclusion of Hamburg and Bremen in the Zollverein; this was necessary if German maritime enterprise was to become Hamburg and Bremen. a national and not merely a local concern, for the two Hansa cities practically controlled the whole foreign trade and owned three-quarters of the shipping; but so long as they were excluded for the Customs Union their interests were more cosmopolitan than national. Both cities, but especially Hamburg, were very reluctant to give up their privileges and the commercial independence which they had enjoyed almost since their foundation. As a clause in the constitution determined that they should remain outside the Customs Union until they voluntarily offered to enter it, there was some difficulty in overcoming their opposition. Bismarck, with characteristic energy, proposed to take steps, by altering the position of the imperial customs stations, which would practically destroy the commerce of Hamburg, and some of his proposals which seemed contrary to the constitution aroused a very sharp resistance in the Bundesrat. It was, however, not necessary to go to extremities, for in 1881 the senate of Hamburg accepted an agreement which, after a keen struggle, was ratified by the citizens. By this Hamburg was to enter the Zollverein; a part of the harbour was to remain a free port, and the empire contributed two million pounds towards rearranging and enlarging the harbour. A similar treaty was made with Bremen, the free port of that city being situated near the mouth of the Weser at Bremerhaven; and in 1888, the necessary works having been completed, the cities entered the Customs Union. They have had no reason to regret the change, for no part of the country profited so much by the great prosperity of the following years, notwithstanding the temporary check caused by the serious outbreak of cholera at Hamburg in 1892.
During the first years of the empire Bismarck had occasionally been asked to interest himself in colonial enterprise. He had refused, for he feared that foreign complications might ensue, and that the country might weaken itself Colonies. by dissipation of energy. He was satisfied that the Germans should profit by the commercial liberty allowed in the British colonies. Many of the Germans were, however, not contented with this, and disputes regarding the rights of German settlers in Fiji caused some change of feeling. The acquisition of German colonies was really the logical and almost necessary sequel of a protective policy. For that reason it was always opposed by the extreme Liberal party.
The failure of the great Hamburg house of Godefroy in 1879 threatened to ruin the growing German industries in the South Seas, which it had helped to build up. Bismarck therefore consented to apply to the Reichstag for a state guarantee to a company which would take over its great plantations in Samoa. This was refused, chiefly owing to the influence of the Liberal party. Bismarck therefore, who took this rebuff much to heart, said he would have nothing more to do with the matter, and warned those interested in colonies that they must depend on self-help; he could do nothing for them. By the support of some of the great financial firms they succeeded in forming a company, which carried on the business and undertook fresh settlements on the islands to the north of New Guinea. This event led also to the foundation of a society, the Deutscher Kolonial Verein, under the presidency of the prince of Hohenlohe-Langenburg, to educate public opinion. Their immediate object was the acquisition of trading stations. The year 1884 brought a complete change. Within a few months Germany acquired extended possessions in several parts both of Africa and the South Seas. This was rendered possible owing to the good understanding which at that time existed between Germany and France. Bismarck therefore no longer feared, as he formerly had, to encounter the difficulties with Great Britain which would be the natural result of a policy of colonial expansion.
His conversion to the views of the colonial party was gradual, as was seen in his attitude to the proposed acquisition of German stations in South-West Africa. In Namaqualand and Damaraland, British influence, exercised from Cape Africa. Colony, had long been strong, but the British government had refused to annex the country even when asked so to do by the German missionaries who laboured among the natives. In 1882 F. A. Lüderitz, a Bremen tobacco merchant, approached Bismarck on the question of establishing a trading station on the coast at Angra Pequeña. The chancellor, while not discouraging Lüderitz, acted with perfect fairness to Great Britain, and throughout 1883 that country might have acted had she known her mind. She did not, and in the summer of 1884 Bismarck decided no longer to await her pleasure, and the south-west coast of Africa from the frontier of the Portuguese possessions to the Orange river, with the exception of Walfish Bay, was taken under German protection. During the same year Dr Nachtigal was despatched to the west coast, and stealing a march on his British and French rivals he secured not only Togoland but Cameroon for the Germans. On the east coast Bismarck acted decisively without reference to British interests. A company, the Gesellschaft für deutsche Kolonization, was founded early in 1884 by Dr Carl Peters, who with two companions went off to the east coast of Africa and succeeded in November of that year in negotiating treaties with various chiefs on the mainland who were alleged to be independent of Zanzibar. In this region British opposition had to be considered, but in February 1885 a German protectorate over the territory acquired by Peters was proclaimed.