Similar events took place in the South Seas. The acquisition of Samoa, where German interests were most extensive, was prevented (for the time being) by the arrangement made in 1879 with Great Britain and the United States. But in 1884 and The Pacific. 1885 the German flag was hoisted on the north of New Guinea (to which the name Kaiser Wilhelmsland has been given), on several parts of the New Britain Archipelago (which afterwards became the Bismarck Archipelago), and on the Caroline Islands. The last acquisition was not kept. The Spanish government claimed the islands, and Bismarck, in order to avoid a struggle which would have been very disastrous to monarchical government in Spain, suggested that the pope should be asked to mediate. Leo XIII. accepted the offer, which was an agreeable reminiscence of the days when popes determined the limits of the Spanish colonial empire, all the more gratefully that it was made by a Protestant power. He decided in favour of Spain, Germany being granted certain rights in the islands. The loss of the islands was amply compensated for by the political advantages which Bismarck gained by this attention to the pope, and, after all, not many years elapsed before they became German.

Bismarck in his colonial policy had repeatedly explained that he did not propose to found provinces or take over for the government the responsibility for their administration; he intended to leave the responsibility for their material development to the merchants, and even to entrust to them the actual government. He avowedly wished to imitate the older form of British colonization by means of chartered companies, which had been recently revived in the North Borneo Company; the only responsibility of the imperial government was to be their protection from foreign aggression. In accordance with this policy, the territories were not actually incorporated in the empire (there would also have been constitutional difficulties in doing that), and they were officially known as Protectorates (Schutzgebiete), a word which thus acquired a new signification. In 1885 two new great companies were founded to undertake the government. The Deutsch-Ost-Afrika Gesellschaft, with a capital of £200,000, took over the territories acquired by Dr Peters, and for the South Seas the Neu-Guinea Gesellschaft, founded by an amalgamation of a number of firms in 1884, received a charter in 1885. It was not, however, possible to limit the imperial responsibility as Bismarck intended. In East Africa the great revolt of the Arabs in 1888 drove the company out of all their possessions, with the exception of the port of Dar-es-Salam. The company was not strong enough to defend itself; troops had to be sent out by the emperor under Captain Wissmann, who as imperial commissioner took over the government. This, which was at first a temporary arrangement, was afterwards made permanent.

The New Guinea Company had less formidable enemies to contend with, and with the exception of a period of three years between 1889 and 1892, they maintained a full responsibility for the administration of their territory till the year 1899, when an agreement was made and ratified in the Reichstag, by which the possession and administration was transferred to the empire in return for a subsidy of £20,000 a year, to be continued for ten years. The whole of the colonies have therefore now come under the direct administration of the empire. They were at first placed under the direction of a special department of the Foreign Office, and in 1890 a council of experts on colonial matters was instituted, while in 1907 a separate office for colonial affairs was created. In 1887 the two chief societies for supporting the colonial movement joined under the name of the Deutsche Kolonialgesellschaft. This society takes a great part in forming public opinion on colonial matters.

This new policy inevitably caused a rivalry of interests with other countries, and especially with Great Britain. In every spot at which the Germans acquired territory they found themselves in opposition to British interests. The settlement of Angra Germany and Great Britain. Pequeña caused much ill-feeling in Cape Colony, which was, however, scarcely justified, for the Cape ministry was equally responsible with the British government for the dilatoriness which led to the loss of what is now German South-West Africa. In Togoland and Cameroon British traders had long been active, and the proclamation of British sovereignty was impending when the German flag was hoisted. The settlement in East Africa menaced the old-established British influence over Zanzibar, which was all the more serious because of the close connexion between Zanzibar and the rulers of the Persian Gulf; and Australia saw with much concern the German settlement in New Guinea, especially as a British Protectorate (which in the view of Australians should have included the whole of what Germany was allowed to take) had previously been established in the island. In Africa Britain and France proceeded to annex territory adjacent to the German acquisitions, and a period followed during which the boundaries of German, French and British possessions were determined by negotiation. The overthrow of Jules Ferry and the danger of war with France made a good understanding with Great Britain of more importance. Bismarck, by summoning a conference to Berlin (1884-1885) to discuss African questions, secured for Germany a European recognition which was very grateful to the colonial parties; and in 1888, by lending his support to the anti-slavery movement of Cardinal Lavigerie, he won the support of the Centre, who had hitherto opposed the colonial policy. Finally a general agreement for the demarcation of Africa was made in 1890 (see [Africa], § 5). A similar agreement had been made in 1886 regarding the South Seas. It was made after Bismarck had retired from office, and he, as did the colonial party, severely criticized the details; for the surrender of Zanzibar and Witu cut short the hopes which had been formed of building up a great German empire controlling the whole of East Africa. Many of the colonial party went further, and criticized not only the details, but the principle. They were much offended by Caprivi’s statement that no greater injury could be done to Germany than to give her the whole of Africa, and they refused to accept his contention that “the period of flag-hoisting was over,” and that the time had come for consolidating their possessions. It must, however, be recognized that a continuation of the ambitious policy of the last few years might easily have involved Germany in dangerous disputes.

It appeared a small compensation that Great Britain surrendered to Germany the island of Heligoland, which she had Heligoland. taken from the Danes in the Napoleonic wars. It was annexed to Prussia; the natives born before the year 1880 were exempted from military service, and till the year 1901 no additional import duties were to be imposed. It has been strongly fortified and made a naval station.

It was easy for the Opposition to criticize the colonial policy. They could point out that, with the exception of parts of South-West Africa, no territory had been acquired in which any large number of German emigrants could live and rear families. They went as a rule to the United Progress of German colonial expansion. States and South America, or to territories under the British flag. As markets for German products the colonies remained of small importance; in 1907 the whole value of the trade, import and export, between Germany and her colonies was less than £3,300,000, and the cost of administration, including the grant to the shipping companies, often exceeded the total trade. Many mistakes were made in the administration, and cases of misconduct by individual officials formed the text for attacks on the whole system. Generally, however, these criticisms were premature; it was surely wise, while the opportunity was still open, to take care that Germany, in the partition of the world among European races, should not alone go entirely without a share. The lack of colonial experience, and, often, the lack of sympathy with, or understanding of, the negro and other races over whom they had assumed a protectorate, were contributory causes in the slow development of Germany’s African colonies. The unwillingness of the Reichstag to sanction the expenditure of any large sums on railways and other public works also hindered the exploitation of the economic resources of very large areas. Yet at the close of the first twenty-five years’ existence of the colonial empire it might be said that the initial difficulties had been overcome, and sufficient knowledge gained to ensure Germany a return fairly commensurate with the efforts she had put forth. The necessity to enlist the interests of the natives on the side of the government, if any progress was to be made in industry or trade, was a lesson slowly learned. After the Arab Colonial wars. The Herero rising. opposition had been crushed on the east coast of Africa, there still remained the native states to be dealt with, and few tribes voluntarily submitted to European control. There was a serious rising in 1905-1906, when thousands of lives were lost. In Togoland there were disturbances of a comparatively minor character; in the Cameroon hinterland campaigns were undertaken against the Fulu and Bornuese princes. It was, however, in South-West Africa that the Germans had their chief and most bitter experience in colonial warfare. Though “annexed” in 1884 it was not till ten years later, after protracted fighting, that the Hottentots of Namaqualand recognized Germany. After another decade of comparative peace war again broke out (1903) and spread from the Hottentots to the Herero. The Anglo-Boer War had then but recently ended, and in Germany generally, and especially in military circles, it had provoked much adverse criticism on the inability of the British to bring the contest to a speedier conclusion. To their surprise the Germans now found that, against an inferior foe operating in a more restricted area, they were unable to do as well as the British army had done. The story of the war is told elsewhere (see [German South-West Africa]); it lasted well into 1908 and the Germans were indebted to the Cape Mounted Police for material help in bringing it to an end. As it progressed the Germans adopted many of the methods employed by the British in their colonial wars, and they learned to appreciate more accurately the immensity of the task which Lord Kitchener accomplished in overcoming the guerrilla warfare in the Boer republics.

It was obviously little use acquiring colonies and creating manufactures if German foreign trade was to be in the hands of other nations. As early as 1881 the government had published a proposal for a subvention to German shipping; Enlarged industrial policy. it was criticized with peculiar energy by Bamberger and the Free Traders; a Bill introduced in 1884 was abandoned, but in 1885 Bismarck succeeded in carrying a vote by which, for fifteen years, four million marks could annually be devoted to helping a line of mail steamers to the Pacific and Australia and a branch line in the Mediterranean. An agreement was made with the Norddeutsche Lloyd, one clause of which was that all the new steamers were to be built in Germany; in 1890 a further vote was passed for a line to Delagoa Bay and Zanzibar. This far from exhausts the external activity of the nation and the government: the establishment of studentships for the study of oriental languages enabled Germans to make their way in the Turkish and Persian empires, and to open up a fresh market for German goods; by the great excavations at Pergamum and Olympia Germany entered with great distinction on a field in which the way had been shown by France and Great Britain. The progress of technical studies and industrial enterprise enabled Germany to take a leading place in railway and shipbuilding, in the manufacture of military weapons, in chemical experiments, and in electrical work.

It was a part of the new policy not only to combat Social Democracy by repression, but to win the confidence of the working men by extending to them the direct protection of the state. Recent legislation, culminating in the Social reforms. Gewerbeordnung of 1869, had, in accordance with the principles of the Liberal Economists, or, as the Germans called it, the Manchester School, instituted freedom from state control in the relations between employers and workmen. The old gilds had been destroyed, compulsory apprenticeship had ceased; little protection, however, was given to the working men, and the restrictions on the employment of women and children were of little use, as there was no efficient system of factory inspection. It was difficult for the men by their own exertions to improve their condition, for the masters had full liberty of association, which the law refused to the workmen. Even before 1870 a protest was raised against this system among the Roman Catholics, who were chiefly concerned for the preservation of family life, which was threatened by the growth of the factory system and also by the teaching of the Social Democrats. Baron von Ketteler, archbishop of Mainz, had maintained that it was the duty of the state to secure working men work and provision during sickness and old age. The general interest of the Church in the social question was recognized by a congress of the bishops at Fulda. Ketteler’s work was continued by Canon Moufang, and Catholics brought forward motions in the Reichstag demanding Christian socialism. new factory legislation. The peculiar importance of the Catholic movement is that it alone was able to some extent to meet the Socialists on their own ground. The Catholics formed societies which were joined by large numbers of workmen. Originated by Father Kolping on the Rhine, they soon spread over the whole of Catholic Germany. Herr von Schorlemer-Ast, a Catholic landed proprietor from Westphalia, formed similar associations among the peasants. The result of this has been that the Social Democrats have failed to conquer the Catholic as they have the Protestant districts. A similar movement began among the Protestants after the commercial crisis of 1873, which forms an epoch in German thought, since it was from that year that men first began to question the economic doctrines of Liberalism, and drew attention to the demoralization which seemed to arise from the freedom of speculation and the influence of the stock exchange—a movement which in later years led to some remarkable attempts to remedy the evil by legislation. A minister, Rudolph Todt, and Rudolph Meyer criticized the moral and economic doctrines of Liberalism; his writings led to the foundation of the Christlich-Soziale-Arbeiterverein, which for a few years attained considerable notoriety under the leadership of Adolph Stöcker. The Protestant movement has not succeeded in attaining the same position as has the Catholic among the working men; but it received considerable support among the influential classes at court, and part of the programme was adopted by the Conservative party, which in 1876 demanded restriction of industrial liberty and legislation which would prevent the ruin of the independent artizans.

In a country where learned opinion has so much influence on public affairs it was of especial importance that several of the younger teachers separated themselves from the dominant Manchester School and asserted the duty of the state actively to promote the well-being of the working classes. At a congress held in Erfurt in 1873, Schmoller, Wagner, Brentano and others founded the Verein für Sozial-Politik, which by its publications has had much influence on German thought.

The peculiar social conditions brought it about that in many cases the Christian Social movement took the form of Anti-Semitism (q.v.). Nearly all the bankers and stockbrokers in Germany were Jews. Many of the leaders Anti-Semites. of the Liberal parties, e.g. Bamberger and Lasker, were of Jewish origin; the doctrines of Liberalism were supported by papers owned and edited by Jews; hence the wish to restore more fully the avowedly Christian character of the state, coinciding with the attack on the influence of finance, which owed so much to the Liberal economic doctrines, easily degenerated into attacks on the Jews. The leader in this was Stöcker. During the years 1879 to 1881 the anti-Semite agitation gained considerable importance in Berlin, Breslau and other Prussian cities, and it culminated in the elections of that year, leading in some cases to riots and acts of violence.