James Wycliffe Headlam

“ In this others could not follow him; quite apart from the difficulties of organisation and the unknown effect of the law on all those who gained their livelihood by the growth, preparation, and sale of tobacco, there was a deep feeling that it was not safe to entrust the Government with so enormous a power. Men did not wish to see so many thousands enrolled in the army of officials, already too great; they did not desire a new check on the freedom of life and occupation, nor that the Government should have the uncontrolled use of so great a sum of money. ”

“ And it is curious to notice Bismarck's extreme caution in diplomacy, where he was a recognised master, and his rashness in legislation, where the ground was often new to him. In foreign affairs a false move may easily be withdrawn, a change of alliance quickly made; it often happens that speed is more important than wisdom. In internal affairs it is different; there, delay is in itself of value; moreover, false legislation cannot be imposed with impunity, laws cannot be imposed and repealed. ”

“ You are often too stormy for us; you are always coming with something new and we cannot always follow you in it, but you must not take that amiss. We are both old men and the Emperor is much older than we are, but we should like ourselves in our lifetime to see some of these reforms established. That I wish for all of us and for our German country, and we will do our best to help in it."
Opinions may differ as to the wisdom of Bismarck's social and financial policy; nobody can deny their admiration for the energy and patriotism which he displayed. ”

“ In the arena of commerce England was the strongest. This was why she advocated Free Trade, for Free Trade was really the right of the most powerful. English interests were furthered under the veil of the magic word Freedom, and by it German enthusiasts for liberty were enticed to bring about the ruin and exploitation of their own country.
If we look at the matter purely from the economic point of view, it is indeed difficult to see what benefits Germany would gain from a policy of Free Trade. ”

“ It was a poor country; if it was to maintain itself in the modern rivalry of nations, it must become rich. It could only become rich through manufactures, and manufactures had no opportunity of growing unless they had some moderate protection from foreign competition.
The effect of Bismarck's attention to finance was not limited to these great reforms; he directed the whole power of the Government to the support of all forms of commercial enterprise and to the removal of all hindrances to the prosperity of the nation. ”

“ It is indeed strange to notice how we find reproduced in Germany that same feeling which a few years before had in England nearly led to the loss of the colonies and the destruction of the Empire.
It is too soon even now to consider fully the result of this new policy; the introduction of Protection has indeed, if we are to judge by appearances, brought about a great increase in the prosperity of the country; whether the scheme for old-age pensions will appease the discontent of the working man seems very doubtful. ”

“ A watchful and provident Government really acts as an incentive to each individual. Let us also recognise that Bismarck was acting exactly as in the old days every English Government acted, when the foreign policy was dictated by the interests of British trade and the home policy aimed at preserving, protecting, and assisting the different classes in the community. ”

“ After this year the understanding with Russia breaks down; instead of it the peace of Europe is preserved by the Triple Alliance with Austria and Italy. In internal affairs the change is even more marked; the rising power of the Socialists is the enemy to be fought against; for this conflict, peace has to be made with the Catholics—the May laws are modified or repealed. The alliance with Liberalism breaks down, and the efforts of the Government are devoted to a far-reaching scheme of financial reform and social legislation. ”

“ Bismarck himself did not spare his enemies, but we find no events which shew violence beyond what is, if not legitimate, at least inevitable in all Parliamentary assemblies. The main objects of the Government were always attained; the military Budgets were always passed, though once not until after a dissolution. In the contest with the Clerical party and the Socialists the Government had the full support of a large majority. Even in the hostile Reichstag of 1884, in which the Socialists, Clericals, and Progressives together commanded a majority, a series of important laws were passed. ”

“ The drafting of Government bills was often badly done; the first proposals for the Socialistic law, the original drafts of many of his economic reforms, were all the better when they had been once rejected and were again brought forward in a modified form. More than this, we must confess that Bismarck did not possess that temperament which would make it wise to entrust him with absolute dictatorial power in internal matters. He attempted to apply to legislation habits he had learnt in diplomacy. ”

“ In the first years of the Empire Bismarck had hoped that German traders would find sufficient protection from the English authorities, and anticipated their taking advantage of the full freedom of trade allowed in the British colonies; they would get all the advantages which would arise from establishing their own colonies, while the Government would be spared any additional responsibility. ”

“ The results of Free Trade had not been satisfactory. In 1876 there was a great crisis in the iron trade; owing to overproduction there was a great fall of prices in England, and Germany was being flooded with English goods sold below cost price. Many factories had to be closed, owners were ruined, and men thrown out of work; it happened that, by a law passed in 1873, the last duty on imported iron would cease on the 31st of December, 1876. Many of the manufacturers and a large party in the Reichstag petitioned that the action of the law might at any rate be suspended. ”

“ When Berlin was subject to a state of siege, the President of the Police claimed the right of expelling from the capital obnoxious Socialist members. On these occasions the Government found itself confronted by the unanimous opposition of the whole House. In 1884, Bismarck proposed that the meetings of the Reichstag should be biennial and the Budget voted for two years; the proposal was supported on the reasonable grounds that thereby inconvenience and press of work would be averted, which arose from the meeting of the Prussian and German Parliaments every winter. ”

“ He was, indeed, constantly subjected to attacks in the Press, which were often unjust and sometimes unmeasured, but no man who takes part in public life is exempt from calumny. He was himself never slow to attack his opponents, both personally in the Parliament, and still more by the hired writers of the Press. None the less, to defend himself from attacks, he too often brought his opponents into the police court, and Bismarckbeleidigung became a common offence. ”

“ In either case these doctrines would be very distasteful to Bismarck, who disliked internationalism in finance as much as he did in constitutional law or Socialist propaganda.
Bismarck in adopting Protection was influenced, not by economic theory, but by the observation of facts. "All nations," he said, "which have Protective duties enjoy a certain prosperity; what great advantages has America reached since it threatened to reduce duties twice, five times, ten times as high as ours!" England alone clung to Free Trade, and why? ”

“ One thing, however, we must notice: the influence of the new policy is far greater than the immediate results of the actual laws passed. It has taught the Germans to look to the Government not only as a means of protecting them against the attacks of other States, but to see in it a thoughtful, and I think we may say kindly, guardian of their interests. ”

“ Bismarck has often been called a reactionary, and yet we find that by the social legislation he was the first statesman deliberately to apply himself to the problem which had been created by the alteration in the structure of society. ”

“ He was only acting in accordance with the oldest and best traditions of the Prussian Monarchy when he called in the power of the State to protect the poor. His plan was a very bold one; he wished to institute a fund from which there should be paid to every working man who was incapacitated by sickness, accident, or old age, a pension from the State. In his original plan he intended the working men should not be required to make any contribution themselves towards this fund. ”

“ The total sum gained by the State was not a tenth of that which was produced in England by the taxing of tobacco, but no one could maintain that smoking was more common in England than in Germany. In fact tobacco was less heavily taxed in Germany than in any other country in Europe. ”

“ In introducing a monopoly Bismarck intended and hoped not only to relieve the pressure of direct taxation,—though this would have been a change sufficient in its magnitude and importance for most men,—but proposed to use the very large sum which the Government would have at its disposal for the direct relief of the working classes. The Socialist law was not to go alone ”

“ It was one of those cases which will always occur in political struggles, when a young and inexperienced man will be excited by political speeches to actions which no one would foresee, and which would not be the natural result of the words to which he had listened. Nevertheless, Bismarck was not ashamed publicly in the Reichstag to taunt his opponents with the action, and to declare that whether they would or not their party was Kuhlmann's party ”

“ He had therefore always wished that the income derived from customs and indirect taxation should be increased so as by degrees to do away with the necessity for direct taxation, and if this could be done, then, instead of the States paying an annual contribution to the Empire, they would receive from the central Government pecuniary assistance.
The dislike of direct taxation is an essential part of Bismarck's reform ”

“ This alliance, which in the next year was joined by Italy, again gave Germany the ruling position in Europe. During this crisis in foreign affairs Bismarck was occupied by another, which threatened to be equally serious, in home politics. In the spring of 1878 an attempt was made on the life of the Emperor; a young man, named Hobel, a shoemaker's apprentice, shot at him in the streets of Berlin, fortunately without result. The attempt naturally created intense indignation throughout the country. ”

“ All these changes were not introduced without much opposition; the Progressives especially distinguished themselves by their prolonged refusal to assent even to the subsidies for German lines of steamers. In the Parliament of 1884 they were enabled often to throw out the Government proposals. It was at this time that the conflict between Bismarck and Richter reached its height. He complained, and justly complained, that the policy of the Progressives was then, as always, negative. ”

“ It is seldom necessary to meet political assassination by repressive measures, for they must always create a danger which they intend to avert. There was not the slightest ground for supposing that either Hobel or Nobeling had any confederates ”

“ The fact that he himself was not a member of the Parliament deprived him of those opportunities which an English Minister enjoys. He therefore instituted, in 1868, a Parliamentary reception. During the session, generally one day each week, his house was opened to all members of the House. The invitations were largely accepted, especially by the members of the National Liberal and Conservative parties. Those who were opponents on principle, the Centre, the Progressives, and the Socialists, generally stayed away. ”