So long as the government was under the influence of the National Liberals, it was indifferent, if not hostile to these movements. The Peasants’ Union had actually been forbidden by the police; Bismarck himself was violently attacked for his reputed connexion with a great Jewish firm of bankers. He had, however, kept himself informed regarding these movements, chiefly by means of Hermann Wagener, an old editor of the Kreuzzeitung, and in the year 1878 he felt himself free to return in this matter to his older opinions. The new policy suggested in that year was definitely announced at the opening of the session in the spring of 1881, and at the meeting of the new Reichstag in November 1881. It was explained in a speech from the throne, which, as the emperor could not be present, became an imperial message. This is generally spoken of as the beginning of a new era. The help of the Reichstag was asked for “healing social evils by means of legislation ... based on the moral foundation of Christianity.” Compulsory insurance, the creation of corporate unions among working men under the protection of the state, and the introduction of indirect taxes, were the chief elements in the reform.
The condition of parties was such that Bismarck could not hope to win a majority for his schemes, especially as he could not obtain the monopoly on tobacco on which he depended to cover the expense. The first reform was the restoration of the gilds, to which the Conservatives attached great importance. Since 1869 they continued to exist only as voluntary associations with no public duties; many had been dissolved, and this is said to have brought about bad results in the management of lodging-houses, the condition of apprentices, support during illness, and the maintenance of labour bureaus. It was supposed that, if they could be restored, the corporate spirit would prevent the working men from falling under the influence of the Socialists. The law of 1881, while it left membership voluntary, gave to them many duties of a semi-public nature, especially that of arbitration between masters and men. These were extended by a further law in 1884.
The really important element was the scheme for a great imperial system by which all working men and women should be provided for in case of sickness, accident or old age. Bismarck hoped by this to relieve the parishes of the Compulsory insurance. burden of the poor-rate, which would be transferred to the empire; at the same time the power of the government would be greatly extended. The first proposal in March 1881 was for compulsory insurance against accidents. Every one employed on railways, mines and factories was to be insured in an imperial office; the premium was to be divided equally between masters, workmen and the state. It was bitterly opposed by the Liberals, especially by Bamberger; all essential features were altered by the Reichstag, and it was withdrawn by the government after it had passed the third reading.
In 1882 a fresh scheme was laid before the newly elected Reichstag dealing with insurance against accident and against sickness. The two parts were separated by the Reichstag; the second, which was the necessary prelude to the other, was passed in 1883. The law was based on an old Prussian principle; insurance was made compulsory, but the state, instead of doing the work itself, recognized the existing friendly and other societies; they were still to enjoy their corporate existence and separate administration, but they were placed under state control, and for this purpose an imperial insurance department was created in the office of the secretary of state for the interior. Uniform regulations were to be followed in all trades and districts; one-third of the premium was paid by the employer, two-thirds by the workmen.
The Accident Law of 1883 was rejected, for it still included the state contribution to which the Reichstag would not assent, and also contributions from the workmen. A new law, drafted according to their wishes, was passed in 1884. It applied only to those occupations, mines and factories, in which the use of machinery was common; it threw the whole burden of compensation on to the masters; but, on the other hand, for the first thirteen weeks after an accident the injured workman received compensation from the sick fund, so that the cost only fell on the masters in the more serious cases. The masters were compelled to insure themselves against the payments for which they might become liable, and for this purpose had to form trades associations, self-governing societies, which in each district included all the masters for each particular trade. The application of this law was subsequently extended to other trades. It was not till 1889 that the greatest innovation, that of insurance against old age, was carried. The obligation to insure rested on all who were in receipt of wages of not more than two pounds a week. Half the premium, according to the wages received, was paid by the master. The pension began at the age of seventy, the amount varying by very complicated rules, but the state paid a fixed sum of two pounds ten shillings annually in addition to the pension. These measures worked well. They were regarded with satisfaction by masters and men alike. Alterations have been made in detail, and further alterations demanded, but the laws have established themselves in practice. The large amount of self-administration has prevented an undue increase of bureaucratic power. The co-operation of masters and men in the administration of the societies has a good effect on the relations of the classes.
Except in the matter of insurance, the total result, however, for the moment was small. The demands repeatedly made by the Centre and the Conservatives for effective factory legislation and prohibition of Sunday labour were not successful. Bismarck did not wish to lay heavier burdens on the capitalists, and it was not till a later period that they were carried out.
During all this period Bismarck’s authority was so great, that in the conduct of foreign affairs he was freed from the criticism and opposition which so often hampered him in his internal policy, and he was able to establish Foreign affairs: the Triple Alliance. that system of alliances on which for so many years the political system of Europe depended. The close union of the three empires which had existed since the meeting of the emperors in 1872 did not survive the outbreak of disturbances in the East. Bismarck had maintained an attitude of neutrality, but after the congress of Berlin he found himself placed between the alternatives of friendship with Austria or Russia. Movements of Russian troops on the western frontier threatened Austria, and the tsar, in a letter to the German emperor, stated that peace could only be maintained if Germany gave her support to Russia. Bismarck, now that the choice was forced upon him, determined in favour of Austria, and during a visit to Vienna in October, arranged with Count Andrássy an alliance by which in the event of either being attacked by Russia the other was to assist; if either was attacked by any power other than Russia, the other was to preserve benevolent neutrality unless the attacking power was helped by Russia. The effect of this was to protect Austria from attack by Russia, and Germany from the danger of a combined attack by France and Russia. Bismarck with some difficulty procured the consent of the emperor, who by arranging a meeting with the tsar had attempted to preserve the old friendship. From that time the alliance with Austria has continued. In 1883 it was joined by Italy, and was renewed in 1887, and in 1891 for six years, and if not then denounced, for twelve.
In 1882, after the retirement of Gorchakov, the relations with Russia again improved. In 1884 there was a meeting of the three emperors, and at the same time Bismarck came to a close understanding with France on colonial questions. The period of quiet did not last long. The disaster in Tongking brought about a change of ministry in France, and Bulgarian affairs again alienated Austria and Russia. Bismarck with great skill used the growing foreign complications as a means of freeing himself from parliamentary difficulties at the same time that he secured the position of Germany in Europe.
To meet the increase in the French army, and the open menaces in which the Russian press indulged, a further increase in the German army seemed desirable. The Septennate would expire in 1888. In the autumn of 1886 a proposal Elections of 1887. was laid before the Reichstag to increase the peace establishment for the next seven years to 468,409 men. The Reichstag would not assent to this, but the opposition parties offered to vote the required increase for three years. Bismarck refused to accept this compromise, and the Reichstag was dissolved. Under his influence the Conservatives and National Liberals formed a coalition or Cartel by which each agreed to support the candidates of the other. The elections caused greater excitement than any which had taken place since 1870. The numbers who went to the poll were much larger, and all the opposition parties, except the Catholics, including even the Socialists, suffered severe loss. Bismarck, in order to win the support of the Centre, appealed directly to the pope, but Windthorst took the responsibility of refusing to obey the pope’s request on a matter purely political. The National Liberals again became a government party, but their position was much changed. They were no longer, as in the old days, the leading factor. They had to take the second place. They were subordinate to the Conservatives. They could no longer impose their will upon the government. In the new parliament the government proposals were accepted by a majority of 223 to 48 (seven members of the Centre voted for it, the others abstained). The opposition consisted chiefly of Socialists and Radicals (Freisinnigen).
The fall of Boulanger removed the immediate danger from France, but for the rest of the year the relations with Russia caused serious apprehensions. Anti-German articles appeared in Russian newspapers. The growth of the Relations with Russia. Nationalist party in Russia led to measures injurious to German trade and German settlers in Russia. German vessels were forbidden to trade on the Niemen. The increase of the duties on iron injured German trade. Stringent measures were taken to stamp out German nationality in the Baltic provinces, similar to those used by the Germans against the Poles. Foreigners were forbidden to hold land in Russia. The German government retaliated by a decree of the Reichsbank refusing to deal with Russian paper. Large accumulations of troops on the western frontier excited alarm in Germany and Austria. During a short visit paid by the emperor of Russia to Berlin in November Bismarck discovered that forged despatches misrepresenting the policy of Germany in the Eastern Question had been communicated to him. This did not seem to remove all danger, and in February 1888 the government introduced an amendment to the imperial Military Law extending the obligation for service from twelve to eighteen years. In this way it was possible to increase the war establishment, excluding the Landsturm, by about half a million men without adding to the burden in time of peace. Another law authorized a loan of £14,000,000 for military equipment. At the same time the text of the Triple Alliance was published. The two laws were adopted without opposition. Under the effect of one of Bismarck’s speeches, the Military Bill was unanimously passed almost without debate.