Caprivi’s administration was further remarkable for the arrangement of commercial treaties. In 1892 treaties with Austria-Hungary, Italy, Belgium and Switzerland for twelve years bound together the greater part of the Commercial treaties. continent, and opened a wide market for German manufactures; the idea of this policy was to secure, by a more permanent union of the middle European states, a stable market for the goods which were being excluded owing to the great growth of Protection in France, Russia and America. These were followed by similar treaties with Rumania and Servia, and in 1894, after a period of sharp customs warfare, with Russia. In all these treaties the general principle was a reduction of the import duties on corn in return for advantages given to German manufactures, and it is this which brought about the struggle of the government with the Agrarians which after 1894 took the first place in party politics.
The agricultural interests in Germany had during the middle of the 19th century been in favour of Free Trade. The reason of this was that, till some years after the foundation of the empire, the production of corn and food-stuffs Agrarians. was more than sufficient for the population; as long as they exported corn, potatoes and cattle, they required no protection from foreign competition, and they enjoyed the advantages of being able to purchase colonial goods and manufactured articles cheaply. Mecklenburg and Hanover, the purely agricultural states, had, until their entrance into the Customs Union, followed a completely Free Trade policy. The first union of the Agrarian party, which was formed in 1876 under the name of the Society for the Reform of Taxation, did not place protection on their programme; they laid stress on bimetallism, on the reform of internal taxation, especially of the tax on land and buildings, and on the reform of the railway tariff, and demanded an increase in the stamp duties. These last three points were all to some extent attained. About this time, however, the introduction of cheap corn from Russia began to threaten them, and it was in 1879 that, probably to a great extent influenced by Bismarck, they are first to be found among those who ask for protection.
After that time there was a great increase in the importation of food-stuffs from America. The increase of manufactures and the rapid growth of the population made the introduction of cheap food from abroad a necessity. In the youth of the empire the amount of corn grown in Germany was sufficient for the needs of its inhabitants; the amount consumed in 1899 exceeded the amount produced by about one-quarter of the total. At the same time the price, making allowance for the fluctuations owing to bad harvests, steadily decreased, notwithstanding the duty on corn. In twenty years the average price fell from about 235 to 135 marks the 1000 kilo. There was therefore a constant decrease in the income from land, and this took place at a time when the great growth of wealth among the industrial classes had made living more costly. The agriculturists of the north and east saw themselves and their class threatened with loss, and perhaps ruin; their discontent, which had long been growing, broke out into open fire during the discussion of the commercial treaties. As these would inevitably bring about a large increase in the importation of corn from Rumania and Russia, a great agitation was begun in agricultural circles, and the whole influence of the Conservative party was opposed to the treaties. This brought about a curious situation, the measures being only carried by the support of the Centre, the Radicals, and the Socialists, against the violent opposition of those classes, especially the landowners in Prussia, who had hitherto been the supporters of the government. In order to prevent the commercial treaty with Russia, a great agricultural league was founded in 1893, the Bund der Landwirte; some 7000 landowners joined it immediately. Two days later the Peasants’ League, or Deutsche Bauernbund, which had been founded in 1885 and included some 44,000 members, chiefly from the smaller proprietors in Pomerania, Posen, Saxony and Thuringia, merged itself in the new league. This afterwards gained very great proportions. It became, with the Social Democrats, the most influential society which had been founded in Germany for defending the interests of a particular class; it soon numbered more than 200,000 members, including landed proprietors of all degrees. Under its influence a parliamentary union, the Wirtschaftsvereinigung, was founded to ensure proper consideration for agricultural affairs; it was joined by more than 100 members of the Reichstag; and the Conservative party fell more and more under the influence of the Agrarians.
Having failed to prevent the commercial treaties, Count Kanitz introduced a motion that the state should have a monopoly of all imported corn, and that the price at which it was to be sold should be fixed by law. On the first occasion, in 1894, only fifty members were found to vote for this, but in the next year ninety-seven supported the introduction of the motion, and it was considered worth while to call together the Prussian council of state for a special discussion. The whole agitation was extremely inconvenient to the government. The violence with which it was conducted, coming, as it did, from the highest circles of the Prussian nobility, appeared almost an imitation of Socialist methods; but the emperor, with his wonted energy, personally rebuked the leaders, and warned them that the opposition of Prussian nobles to their king was a monstrosity. Nevertheless they were able to overthrow the chancellor, who was specially obnoxious to them. In October 1894 he was dismissed suddenly, without warning, and almost without cause, while the emperor was on a visit to the Eulenburgs, one of the most influential families of the Prussian nobility.
Caprivi’s fall, though it was occasioned by a difference between him and Count Eulenburg, and was due to the direct act of the emperor, was rendered easier by the weakness of his parliamentary position. There was no party on whose Fall of Caprivi. help he could really depend. The Military Bill had offended the prejudices of conservative military critics; the British treaty had alienated the colonial party; the commercial treaties had only been carried by the help of Poles, Radicals and Socialists; but it was just these parties who were the most easily offended by the general tendencies of the internal legislation, as shown in the Prussian School Bill. Moreover, the bitter and unscrupulous attacks of the Bismarckian press to which Caprivi was exposed made him unpopular in the country, for the people could not feel at ease so long as they were governed by a minister of whom Bismarck disapproved. There was therefore no prospect of forming anything like a stable coalition of parties on which he could depend.
The emperor was fortunate in securing as his successor Prince Chlodwig von Hohenlohe. Though the new chancellor once more united with this office that of Prussian minister-president, his age, and perhaps also his character, Chancellor Prince v. Hohenlohe. prevented him from exercising that constant activity and vigilance which his two predecessors had displayed. During his administration even the secretary of state for foreign affairs, Baron Marschall von Bieberstein, and afterwards Count von Bülow, became the ordinary spokesman of the government, and in the management of other departments the want of a strong hand at the head of affairs was often missed. Between the emperor, with whom the final direction of policy rested, and his subordinates, the chancellor often appeared to evade public notice. The very first act of the new chancellor brought upon him a severe rebuff. At the opening of the new buildings which had been erected in Berlin for the Reichstag, cheers were called for the emperor. Some of the Socialist members remained seated. It was not clear that their action was deliberate, but none the less the chancellor himself came down to ask from the House permission to bring a charge of lèse-majesté against them, a request which was, of course, almost unanimously refused.
The Agrarians still maintained their prominent position in Prussia. They opposed all bills which would appear directly or indirectly to injure agricultural interests. They looked with suspicion on the naval policy of the emperor, for they disliked all that helps industry and commerce. They would only give their support to the Navy Bills of 1897 and 1900 in return for large concessions limiting the importation of margarine and American preserved meat, and the removal of the Indemnitäts Nachweis acted as a kind of bounty on the export of corn. They successfully opposed the construction of the great canal from Westphalia to the Elbe, on the ground that it would facilitate the importation of foreign corn. They refused to accept all the compromises which Miquel, who was very sympathetic towards them, suggested, and thereby brought about his retirement in May 1901.
The opposition of the Agrarians was for many reasons peculiarly embarrassing. The franchise by which the Prussian parliament is elected gave the Conservatives whom they controlled a predominant position. Any alteration of the franchise was, however, out of the question, for that would admit the Socialists. It was, moreover, the tradition of the Prussian court and the Prussian government (and it must be remembered that the imperial government is inspired by Prussian traditions) that the nobility and peasants were in a peculiar way the support of the crown and the state. The old distrust of the towns, of manufacturers and artisans, still continued. The preservation of a peasant class was considered necessary in the interests of the army. Besides, intellectual and social prejudices required a strong Conservative party. In the south and west of Germany, however, the Conservative party was practically non-existent. In these parts, owing to the changes introduced at the revolution, the nobility, who hold little land, are, comparatively speaking, without political importance. In the Catholic districts the Centre had become absolutely master, except so far as the Socialists threaten their position. Those of the great industrialists who belonged to the National Liberals or the Moderate Conservatives did not command that influence which men of their class generally hold in Great Britain, because the influence of Social Democracy banded together the whole of the working men in a solid phalanx of irreconcilable opposition, the very first principle of which was the hostility of classes. The government, therefore, were compelled to turn for support to the Centre and the Conservatives, the latter being almost completely under the influence of the old Prussian nobility from the north-east. But every attempt to carry out the policy supported by these parties aroused an opposition most embarrassing to the government.
The Conservatives distrusted the financial activity which centred round the Exchanges of Berlin and other towns, and in this they had the sympathy of Agrarians and Anti-Semites, as well as of the Centre. The Agrarians Exchange regulations. believed that the Berlin Exchange was partly responsible for the fall of prices in corn; the Anti-Semites laid stress on the fact that many of the financiers were of Jewish extraction; the Centre feared the moral effects of speculation. This opposition was shown in the demand for additional duties on stamps (this was granted by Bismarck), in the opposition to the renewal of the Bank Charter, and especially in the new regulations for the Exchange which were carried in 1896. One clause in this forbade the dealing in “futures” in corn, and at the same time a special Prussian law required that there should be representatives of agriculture on the managing committee of the Exchange. The members of the Exchanges in Berlin and other towns refused to accept this law. When it came into effect they withdrew and tried to establish a private Exchange. This was prevented, and after two years they were compelled to submit and the Berlin Bourse was again opened.
Political parties now came to represent interests rather than principles. The government, in order to pass its measures, was obliged to purchase the votes by class legislation, and it bought those with whom it could make the best Political bargaining. bargain—these being generally the Centre, as the ablest tacticians, and the Conservatives, as having the highest social position and being boldest in declaring their demands. No great parliamentary leader took the place of Windthorst, Lasker and Bennigsen; the extra-parliamentary societies, less responsible and more violent, grew in influence. The Anti-Semites gained in numbers, though not in reputation. The Conservatives, hoping to win votes, even adopted an anti-Semite clause in their programme. The general tendency among the numerous societies of Christian Socialism, which broke up almost as quickly as they appeared, was to drift from the alliance with the ultra-Conservatives and to adopt the economic and many of the political doctrines of the Social Democrats. The National-Sozialer Verein defended the union of Monarchy and Socialism. Meanwhile the extreme spirit of nationality was fostered by the All-deutscher Verein, the policy of which would quickly involve Germany in war with every other nation. More than once the feelings to which they gave expression endangered the relations of Germany and Austria-Hungary. The persecution of the Poles in Prussia naturally aroused indignation in Austria, where the Poles had for long been among the strongest elements on which the government depended; and it was not always easy to prevent the agitation on behalf of the Germans in Bohemia from assuming a dangerous aspect.