The fact, however, that there has been no widespread revolt in Russia since the year 1863, shows that democracy has not been the chief influence tending to dissolve or suppress discontent. As we shall see in a later chapter, Russia has defied constitutionalism and ground down alien races and creeds; yet (up to the year 1904) no great rising has shaken her autocratic system to its base. This seems to prove that the immunity of the present age in regard to insurrections is due rather to the triumphs of mechanical science than to the progress of democracy. The fact is not pleasing to contemplate; but it must be faced. So also must its natural corollary: that the minority, if rendered desperate, may be driven to arm itself with new and terrible engines of destruction in order to shatter that superiority of force with which science has endowed the centralised Governments of to-day.

Certain it is that desperation, perhaps brought about by a sense of helplessness in face of an armed nation, was one of the characteristics of the Paris Commune, as it was also of Nihilism in Russia. In fact the Communist effort of 1871 may be termed a belated attempt on the part of a daring minority to dominate France by seizing the machinery of government at Paris. The success of the Extremists of 1793 and 1848 in similar experiments--not to speak of the Communistic rising of Babeuf in 1797--was only temporary; but doubtless it encouraged the "Reds" of 1871 to make their mad bid for power. Now, however, the case was very different. France was no longer a lethargic mass, dominated solely by the eager brain of Paris. The whole country thrilled with political life. For the time, the provinces held the directing power, which had been necessarily removed from the capital; and--most powerful motive of all--they looked on the Parisian experiment as gross treason to la patrie, while she lay at the feet of the Germans. Thus, the very motives which for a space lent such prestige and power to the Communistic Jacobins of 1793 told against their imitators in 1871.

The inmost details of their attempt will perhaps never be fully known; for too many of the actors died under the ruins of the building they had so heedlessly reared. Nevertheless, it is clear that the Commune was far from being the causeless outburst that it has often been represented. In part it resulted from the determination of the capital to free herself from the control of the "rurals" who dominated the National Assembly; and in that respect it foreshadowed, however crudely, what will probably be the political future of all great States, wherein the urban population promises altogether to outweigh and control that of the country. Further, it should be remembered that the experimenters of 1871 believed the Assembly to have betrayed the cause of France by ceding her eastern districts, and to be on the point of handing over the Republic to the Monarchists. A fit of hysteria, or hypochondria, brought on by the exhausting siege and by exasperation at the triumphal entry of the Germans, added the touch of fury which enabled the Radicals of Paris to challenge the national authorities and thereafter to persist in their defiance with French logicality and ardour.

France, on the other hand, looked on the Communist movement at Paris and in the southern towns as treason to the cause of national unity, when there was the utmost need of concord. Thus on both sides there were deplorable misunderstandings. In ordinary times they might have been cleared away by frank explanations between the more moderate leaders; but the feverish state of the public mind forbade all thoughts of compromise, and the very weakness brought on by the war sharpened the fit of delirium which will render the spring months of the year 1871 for ever memorable even in the thrilling annals of Paris.

FOOTNOTES:

[54] See Débidour, Histoire diplomatique de l'Europe, vol. ii. pp. 412-415. For Bismarck's fears of intervention, especially that of Austria, see his Reminiscences, vol. ii. p. 109 (English edit.); Count Beust's Aus drei Viertel-Jahrhunderten, pt. ii. pp. 361, 395; for Thiers' efforts see his Notes on the years 1870-73 (Paris 1904).

[55] M. Grégoire in his Histoire de France, vol. iv. p. 647, states that 64 balloons left Paris during the siege, 5 were captured and 2 lost in the sea; 363 carrier-pigeons left the city and 57 came in. For details of the French efforts see Les Responsabilités de la Défense rationale, by H. Génevois; also The People's War in France, 1870-1871, by Col. L. Hale (The Pall Mall Military Series, 1904), founded on Hönig's Der Volkskrieg an der Loire.

[56] Bazaine gives the details from his point of view in his Episodes de la Guerre de 1870 et le Blocus de Metz (Madrid, 1883). One of the go-betweens was a man Regnier, who pretended to come from the Empress Eugénie, then at Hastings; but Bismarck seems to have distrusted him and to have dismissed him curtly. The adventuress, Mme. Humbert, recently claimed that she had her "millions" from this Regnier. A sharp criticism on Bazaine's conduct at Metz is given in a pamphlet, Réponse au Rapport sommaire sur les Opérations de l'Armée du Rhin, by one of his Staff Officers. See, too, M. Samuel Denis in his recent work, Histoire Contemporaine (de France).

[57] It of course led up to the Communist revolt. Bismarck's relations to the disorderly elements in Paris are not fully known; but he warned Favre on Jan. 26 to "provoke an émeute while you have an army to suppress it with" (Bismarck in Franco-German War, vol. ii. p. 265).

[58] Seignobos, A Political History of Contemporary Europe, vol. i. p. 187 (Eng. edit.).

[59] Busch, Bismarck in the Franco-German War, vol. ii. p. 341.

[60] G. Hanotaux, Contemporary France, vol i. p. 124 (Eng. edit.). This work is the most detailed and authoritative that has yet appeared on these topics. See, too, M. Samuel Denis' work, Histoire Contemporaine.

[61] Débidour, Histoire diplomatique de l'Europe, vol. ii. p. 438-440.

[62] The Autobiography of William Simpson (London, 1903), p. 261.

[63] G. Hanotaux, Contemporary France, p. 225. For further details see Lissagaray's History of the Commune; also personal details in Washburne's Recollections of a Minister to France, 1869-1877, vol. ii. chaps, ii.-vii.

[64] See Turkey in Europe, by "Odysseus" (p. 130), for the parallel instance of the enhanced power of the Sultan Abdul Hamid owing to the same causes.

CHAPTER V

Peace having been duly ratified on the hard terms[65], it remained to build up France almost de nova. Nearly everything was wanting. The treasury was nearly empty, and that too in face of the enormous demands made by Germany. It is said that in February 1871, the unhappy man who took up the Ministry of Finance, carried away all the funds of the national exchequer in his hat. As Thiers confessed to the Assembly, he had, for very patriotism, to close his eyes to the future and grapple with the problems of every day as they arose. But he had faith in France, and France had faith in him. The French people can perform wonders when they thoroughly trust their rulers. The inexhaustible wealth inherent in their soil, the thrift of the peasantry, and the self-sacrificing ardour shown by the nation when nerved by a high ideal, constituted an asset of unsuspected strength in face of the staggering blows dealt to French wealth and credit. The losses caused by the war, the Commune, and the cession of the eastern districts, involved losses that have been reckoned at more than £614,000,000. Apart from the 1,597,000 inhabitants transferred to German rule, the loss of population due to the war and the civil strifes has been put as high as 491,000 souls[66].

Yet France flung herself with triumphant energy into the task of paying off the invaders. At the close of June 1871, a loan for two milliards and a quarter (£90,000,000) was opened for subscription, and proved to be an immense success. The required amount was more than doubled. By means of the help of international banks, the first half milliard of the debt was paid off in July 1871, and Normandy was freed from the burden of German occupation. We need not detail the dates of the successive payments. They revealed the unsuspected vitality of France and the energy of her Government and financiers. In March 1873, the arrangements for the payment of the last instalment were made, and in the autumn of that year the last German troops left Verdun and Belfort. For his great services in bending all the powers of France to this great financial feat, Thiers was universally acclaimed as the Liberator of the Territory,

Yet that very same period saw him overthrown. To read this riddle aright, we must review the outlines of French internal politics. We have already referred to the causes that sent up a monarchical majority to the National Assembly, the schisms that weakened the action of that majority, and the peculiar position held by M. Thiers, an Orleanist in theory, but the chief magistrate of the French Republic. No more paradoxical situation has ever existed; and its oddity was enhanced by the usually clear-cut logicality of French political thought. Now, after the war and the Commune, the outlook was dim, even to the keenest sight. One thing alone was clear, the duty of all citizens to defer raising any burning question until law, order, and the national finances were re-established. It was the perception of this truth that led to the provisional truce between the parties known as the Compact of Bordeaux. Flagrantly broken by the "Reds" of Paris in the spring of 1871, that agreement seemed doomed. The Republic itself was in danger of perishing as it did after the socialistic extravagances of the Revolution of 1848. But Thiers at once disappointed the monarchists by stoutly declaring that he would not abet the overthrow of the Republic: "We found the Republic established, as a fact of which we are not the authors; but I will not destroy the form of government which I am now using to restore order. . . . When all is settled, the country will have the liberty to choose as it pleases in what concerns its future destinies[67]." Skilfully pointing the factions to the future as offering a final reward for their virtuous self-restraint, this masterly tactician gained time in which to heal the worst wounds dealt by the war.

But it was amidst unending difficulties. The Monarchists, eager to emphasise the political reaction set in motion by the extravagances of the Paris Commune, wished to rid themselves at the earliest possible time of this self-confident little bourgeois who seemed to stand alone between them and the realisation of their hopes. Their more unscrupulous members belittled his services and hinted that love of power alone led him to cling to the Republic, and thus belie his political past. Then, too, the Orleans princes, the Duc d'Aumale and the Prince de Joinville, the surviving sons of King Louis Philippe, took their seats as deputies for the Oise and Haute-Marne Departments, thus keeping the monarchical ideal steadily before the eye of France. True, the Duc d'Aumale had declared to the electorate that he was ready to bow before the will of France whether it decided for a Constitutional Monarchy or a Liberal Republic; and the loyalty with which he served his country was destined to set the seal of honesty on a singularly interesting career. But there was no guarantee that the Chamber would not take upon itself to interpret the will of France and call from his place of exile in London the Comte de Paris, son of the eldest descendant of Louis Philippe, around whom the hopes of the Orleanists centred.

Had Thiers followed his earlier convictions and declared for such a Restoration, it might quite conceivably have come about without very much resistance. But early in the year 1871, or perhaps after the fall of the Empire, he became convinced that France could not heal her grievous wounds except under a government that had its roots deep in the people's life. Now, the cause of monarchy in France was hopelessly weakened by schisms. Legitimists and Orleanists were at feud ever since, in 1830, Louis Philippe, so the former said, cozened the rightful heir out of his inheritance; and the efforts now made to fuse the claims of the two rival branches remained without result, owing to the stiff and dogmatic attitude of the Comte de Chambord, heir to the traditions of the elder branch. A Bonapartist Restoration was out of the question. Yet all three sections began more and more to urge their claims. Thiers met them with consummate skill. Occasionally they had reason to resent his tactics as showing unworthy finesse; but oftener they quailed before the startling boldness of his reminders that, as they constituted the majority of the deputies of France, they might at once undertake to restore the monarchy--if they could. "You do not, and you cannot, do so. There is only one throne and it cannot have three occupants[68]." Or, again, he cowed them by the sheer force of his personality: "If I were a weak man, I would flatter you," he once exclaimed. In the last resort he replied to their hints of his ambition and self-seeking by offering his resignation. Here again the logic of facts was with him. For many months he was the necessary man, and he and they knew it.

But, as we have seen, there came a time when the last hard bargains with Bismarck as to the payment of the war debt neared their end; and the rapier-play between the Liberator of the Territory and the parties of the Assembly also drew to a close. In one matter he had given them just cause for complaint. As far back as November 13, 1872 (that is, before the financial problem was solved), he suddenly and without provocation declared from the tribune of the National Assembly that it was time to establish the Republic. The proposal was adjourned, but Thiers had damaged his influence. He had broken the "Compact of Bordeaux" and had shown his hand. The Assembly now knew that he was a Republican. Finally, he made a dignified speech to the Assembly, justifying his conduct in the past, appealing from the verdict of parties to the impartial tribunal of History, and prophesying that the welfare of France was bound up with the maintenance of the Conservative Republic. The Assembly by a majority of fourteen decided on a course of action that he disapproved, and he therefore resigned (May 24, 1873).

It seems that History will justify his appeal to her tribunal. Looking, not at the occasional shifts that he used in order to disunite his opponents, but rather at the underlying motives that prompted his resolve to maintain that form of government which least divided his countrymen, posterity has praised his conduct as evincing keen insight into the situation, a glowing love for France before which all his earliest predilections vanished, and a masterly skill in guiding her from the abyss of anarchy, civil war, and bankruptcy that had but recently yawned at her feet. Having set her upon the path of safety, he now betook himself once more to those historical and artistic studies which he loved better than power and office. It is given to few men not only to write history but also to make history; yet in both spheres Thiers achieved signal success. Some one has dubbed him "the greatest little man known to history." Granting even that the paradox is tenable, we may still assert that his influence on the life of France exceeded that of many of her so-called heroes.

In fact, it would be difficult to point out in any country during the Nineteenth Century, since the time of Bonaparte's Consulate, a work of political, economic, and social renovation greater than that which went on in the two years during which Thiers held the reins of power. Apart from the unparalleled feat of paying off the Germans, the Chief of the Executive breathed new vigour into the public service, revived national spirit in so noteworthy a way as to bring down threats of war from German military circles in 1872 (to be repeated more seriously in 1875), and placed on the Statute Book two measures of paramount importance. These were the reform of Local Government and the Army Bill.

These measures claim a brief notice. The former of them naturally falls into two parts, dealing severally with the Commune and the Department. These are the two all-important areas in French life. In rural districts the Commune corresponds to the English parish; it is the oldest and best-defined of all local areas. In urban districts it corresponds with the municipality or township. The Revolutionists of 1790 and 1848 had sought to apply the principle of manhood suffrage to communal government; but their plans were swept away by the ensuing reactions, and the dawn of the Third Republic found the Communes, both rural and urban, under the control of the préfets and their subordinates. We must note here that the office of préfet, instituted by Bonaparte in 1800, was designed to link the local government of the Departments closely to the central power: this magistrate, appointed by the Executive at Paris, having almost unlimited control over local affairs throughout the several Departments. Indeed, it was against the excessive centralisation of the prefectorial system that the Parisian Communists made their heedless and unmeasured protest. The question having thus been thrust to the front, the Assembly brought forward (April 1871) a measure authorising the election of Communal Councils elected by every adult man who had resided for a year in the Commune. A majority of the Assembly wished that the right of choosing mayors should rest with the Communal Councils, but Thiers, browbeating the deputies by his favourite device of threatening to resign, carried an amendment limiting this right to towns of less than 20,000 inhabitants. In the larger towns, and in all capitals of Departments, the mayors were to be appointed by the central power. Thus the Napoleonic tradition in favour of keeping local government under the oversight of officials nominated from Paris was to some extent perpetuated even in an avowedly democratic measure.

Paris was to have a Municipal Council composed of eighty members elected by manhood suffrage from each ward; but the mayors of the twenty arrondissements, into which Paris is divided, were, and still are, appointed by the State; and here again the control of the police and other extensive powers are vested in the Préfet of the Department of the Seine, not in the mayors of the arrondissements or the Municipal Council. The Municipal or Communal Act of 1871, then, is a compromise--on the whole a good working compromise--between the extreme demands for local self-government and the Napoleonic tradition, now become an instinct with most Frenchmen in favour of central control over matters affecting public order[69].

The matter of Army Reform was equally pressing. Here, again, Thiers had the ground cleared before him by a great overturn, like that which enabled Bonaparte in his day to remodel France, and the builders of Modern Prussia--Stein, Scharnhorst, and Hardenberg--to build up their State from its ruins. In particular, the inefficiency of the National Guards and of the Garde Mobile made it easy to reconstruct the French Army on the system of universal conscription in a regular army, the efficiency of which Prussia had so startlingly displayed in the campaigns of Königgrätz (Sadowa) and Sedan. Thiers, however, had no belief in a short service system with its result of a huge force of imperfectly trained troops: he clung to the old professional army; and when that was shown to be inadequate to the needs of the new age, he pleaded that the period of compulsory service should be, not three, but five years. On the Assembly demurring to the expense and vital strain for the people which this implied, he declared with passionate emphasis that he would resign unless the five years were voted. They were voted (June 10, 1872). At the same time, the exemptions, so numerous during the Second Empire, were curtailed and the right of buying a substitute was swept away. After five years' service with the active army were to come four years with the reserve of the active army, followed by further terms in the territorial army. The favour of one year's service instead of five was to be accorded in certain well-defined cases, as, for instance, to those who had distinguished themselves at the Lycées, or highest grade public schools. Such was the law which was published on July 27, 1872[70].

The sight of a nation taking on itself this heavy blood-tax (heavier than that of Germany, where the time of service with the colours was only for three years) aroused universal surprise, which beyond the Rhine took the form of suspicion that France was planning a war of revenge. That feeling grew in intensity in military circles in Berlin three years later, as the sequel will show. Undaunted by the thinly-veiled threats that came from Germany, France proceeded with the tasks of paying off her conquerors and reorganising her own forces; so that Thiers on his retirement from office could proudly point to the recovery of French credit and prestige after an unexampled overthrow.

In feverish haste, the monarchical majority of the National Assembly appointed Marshal MacMahon to the Presidency (May 24, 1873). They soon found out, however, the impossibility of founding a monarchy. The Comte de Paris, in whom the hopes of the Orleanists centred, went to the extreme of self-sacrifice, by visiting the Comte de Chambord, the Legitimist "King" of France, and recognising the validity of his claims to the throne. But this amiable pliability, while angering very many of the Orleanists, failed to move the monarch-designate by one hair's-breadth from those principles of divine right against which the more liberal monarchists always protested. "Henri V." soon declared that he would neither accept any condition nor grant a single guarantee as to the character of his future rule. Above all, he declared that he would never give up the white flag of the ancien régime. In his eyes the tricolour, which, shortly after the fall of the Bastille, Louis XVI. had recognised as the flag of France, represented the spirit of the Great Revolution, and for that great event he had the deepest loathing. As if still further to ruin his cause, the Count announced his intention of striving with all his might for the restoration of the Temporal Power of the Pope. It is said that the able Bishop of Orleans, Mgr. Dupanloup, on reading one of the letters by which the Comte de Chambord nailed the white flag to the mast, was driven to exclaim, "There! That makes the Republic! Poor France! All is lost."

Thus the attempts at fusion of the two monarchical parties had only served to expose the weaknesses of their position and to warn France of the probable results of a monarchical restoration. That the country had well learnt the lesson appeared in the bye-elections, which in nearly every case went in favour of Republican candidates. Another event that happened early in 1873 further served to justify Thiers' contention that the Republic was the only possible form of government. On January 9, Napoleon III. died of the internal disease which for seven years past had been undermining his strength. His son, the Prince Imperial, was at present far too young to figure as a claimant to the throne.

It is also an open secret that Bismarck worked hard to prevent all possibility of a royalist Restoration; and when the German ambassador at Paris, Count Arnim, opposed his wishes in this matter, he procured his recall and subjected him to a State prosecution. In fact, Bismarck believed that under a Republic France would be powerless in war, and, further, that she could never form that alliance with Russia which was the bugbear of his later days. A Russian diplomatist once told the Duc de Broglie that the kind of Republic which Bismarck wanted to see in France was "une République dissolvante."

Everything therefore concurred to postpone the monarchical question, and to prolong the informal truce which Thiers had been the first to bring about. Accordingly, in the month of November, the Assembly extended the Presidency of Marshal MacMahon to seven years--a period therefore known as the Septennate.

Having now briefly shown the causes of the helplessness of the monarchical majority in the matter that it had most nearly at heart, we must pass over subsequent events save as they refer to that crowning paradox--the establishment of a Republican Constitution. This was due to the despair felt by many of the Orleanists of seeing a restoration during the lifetime of the Comte de Chambord, and to the alarm felt by all sections of the monarchists at the activity and partial success of the Bonapartists, who in the latter part of 1874 captured a few seats. Seeking above all things to keep out a Bonaparte, they did little to hinder the formation of a Constitution which all of them looked on as provisional. In fact, they adopted the policy of marking time until the death of the Comte de Chambord--whose hold on life proved to be no less tenacious than on his creed--should clear up the situation. Accordingly, after many diplomatic delays, the Committee which in 1873 had been charged to draw up the Constitution, presented its plan, which took form in the organic laws of February 25, 1875. They may be thus summarised:--

The Legislature consists of two Assemblies--the Chamber of Deputies and the Senate, the former being elected by "universal" (or, more properly, manhood) suffrage. The composition of the Senate, as determined by a later law, lies with electoral bodies in each of the Departments; these bodies consist of the national deputies for that Department, the members of their General Councils and District Councils, and delegates from the Municipal Councils. Senators are elected for nine years; deputies to the Chamber of Deputies for four years. The President of the Republic is chosen by the Senate and the Chamber of Deputies sitting together for that purpose. He is chosen for seven years and is eligible for re-election; he is responsible to the Chambers only in case of high treason; he enjoys, conjointly with the members of the two Chambers, the right of proposing laws; he promulgates them when passed and supervises their execution; he disposes of the armed forces of France and has the right of pardon formerly vested in the Kings of France. Conformably to the advice of the Senate he may dissolve the Chamber of Deputies. Each Chamber may initiate proposals for laws, save that financial measures rest solely with the Chamber of Deputies.

The Chambers may decide that the Constitution shall be revised. In that case, they meet together, as a National Assembly, to carry out such revision, which is determined by the bare majority. Each arrondissement, or district of a Department, elects one deputy. From 1885 to 1889 the elections were decided by each Department on a list, but since that time the earlier plan has been revived. We may also add that the seat of government was fixed at Versailles; four years later this was altered in favour of Paris, but certain of the most important functions, such as the election of a new President, take place at Versailles.

Taken as a whole, this Constitution was a clever compromise between the democratic and autocratic principles of government. Having its roots in manhood suffrage, it delegated very extensive powers to the head of the State. These powers are especially noteworthy if we compare them with those of the Ministry. The President commissions such and such a senator or deputy to form a Ministry (not necessarily representing the opinions of the majority of the Chambers); and that Ministry is responsible to the Chambers for the execution of laws and the general policy of the Government; but the President is not responsible to the Chambers, save in the single and very exceptional case of high treason to the State. Obviously, the Assembly wished to keep up the autocratic traditions of the past as well as to leave open the door for a revision of the Constitution at any time favourable to the monarchical cause. That this Constitution did not pave the way for the monarchy was due to several causes. Some we have named above.

Another and perhaps a final cause was the unwillingness or inability of Marshal MacMahon to bring matters to the test of force. Actuated, perhaps, by motives similar to those which kept the Duke of Wellington from pushing matters to an extreme in England in 1831, the Marshal refused to carry out a coup d'état against the Republican majority sent up to the Chamber of Deputies by the General Election of January 1876. Once or twice he seemed on the point of using force. Thus, in May 1877, he ventured to dissolve the Chamber of Deputies; but the Republican party, led by the impetuous Gambetta, appealed to the country with decisive results. That orator's defiant challenge to the Marshal, either to submit or to resign (se soumettre ou se démettre) was taken up by France, with the result that nearly all the Republican deputies were re-elected. The President recognised the inevitable, and in December of that year charged M. Dufaure to form a Ministry that represented the Republican majority. In January 1879 even, some senatorial elections went against the President, and he accordingly resigned, January 30, 1879.

In the year 1887 the Republic seemed for a time to be in danger owing to the intrigues of the Minister for War, General Boulanger. Making capital out of the difficulties of France, the financial scandals brought home to President Grévy, and his own popularity with the army, the General seemed to be preparing a coup d'état. The danger increased when the Ministry had to resign office (May 1887). A "National party" was formed, consisting of monarchists, Bonapartists, clericals, and even some crotchety socialists--in fact, of all who hoped to make capital out of the fell of the Parliamentary regime. The malcontents called for a plebiscite as to the form of government, hoping by these means to thrust in Boulanger as dictator to pave the way for the Comte de Paris up to the throne of France. After a prolonged crisis, the scheme ignominiously collapsed at the first show of vigour on the Republican side. When the new Floquet Ministry summoned Boulanger to appear before the High Court of Justice, he fled to Belgium, and shortly afterwards committed suicide.

The chief feature of French political life, if one reviews it in its broad outlines, is the increase of stability. When we remember that that veteran opportunist, Talleyrand, on taking the oath of allegiance to the new Constitution of 1830, could say, "It is the thirteenth," and that no régime after that period lasted longer than eighteen years, we shall be chary of foretelling the speedy overthrow of the Third Republic at any and every period of Ministerial crisis or political ferment. Certainly the Republic has seen Ministries made and unmade in bewilderingly quick succession; but these are at most superficial changes--the real work of administration being done by the hierarchy of permanent officials first established by the great Napoleon. Even so terrible an event as the murder of President Sadi Carnot (June 1894) produced none of the fatal events that British alarmists confidently predicted. M. Casimir Périer was quietly elected and ruled firmly. The same may be said of his successors, MM. Faure and Loubet. Sensible, businesslike men of bourgeois origin, they typify the new France that has grown up since the age when military adventurers could keep their heels on her neck provided that they crowned her brow with laurels. That age would seem to have passed for ever away. A well-known adage says: "It is the unexpected that happens in French politics." To forecast their course is notoriously unsafe in that land of all lands. That careful and sagacious student of French life, Mr. Bodley, believes that the nation at heart dislikes the prudent tameness of Parliamentary rule, and that "the day will come when no power will prevent France from hailing a hero of her choice[71]."

Doubtless the advent of a Napoleon the Great would severely test the qualities of prudence and patience that have gained strength under the shelter of democratic institutions. Yet it must always be remembered that Democracy has until now never had a fair chance in France. The bright hopes of 1789 faded away ten years later amidst the glamour of military glory. As for the Republic of 1848, it scarcely outlived the troubles of infancy. The Third Republic, on the other hand, has attained to manhood. It has met and overcome very many difficulties; at the outset parts of two valued provinces and a vast sum of treasure were torn away. In those early days of weakness it also crushed a serious revolt. The intrigues of Monarchists and Bonapartists were foiled. Hardest task of all, the natural irritation of Frenchmen at playing a far smaller part in the world was little by little allayed.

In spite of these difficulties, the Third Republic has now lasted a quarter of a century. That is to say, it rests on the support of a generation which has gradually become accustomed to representative institutions--an advantage which its two predecessors did not enjoy. The success of institutions depends in the last resort on the character of those who work them; and the testimony of all observers is that the character of Frenchmen has slowly but surely changed in the direction which Thiers pointed out in the dark days of February 1871 as offering the only means of a sound national revival--"Yes: I believe in the future of France: I believe in it, but on condition that we have good sense; that we no longer use mere words as the current coin of our speech, but that under words we shall place realities; that we have not only good sense, but good sense endowed with courage."

These are the qualities that have built up the France of to-day. The toil has been enormous, and it has been doubled by the worries and disappointments incident to Parliamentarism when grafted on to a semi-military bureaucracy; but the toil and the disappointments have played their part in purging the French nature of the frothy sensationalism and eager irresponsibility that naturally resulted from the Imperialism of the two Napoleons. France seems to be outgrowing the stage of hobble-de-hoyish ventures, military or communistic, and to have taken on the staid, sober, and self-respecting mien of manhood--a process helped on by the burdens of debt and conscription resulting from her juvenile escapades. In a word, she has attained to a full sense of responsibility. No longer are her constructive powers hopelessly outmatched by her critical powers. In the political sphere she has found a due balance between the brain and the hand. From analysis she has worked her way to synthesis.

NOTE TO THE SECOND EDITION

The following are the Ministries of the Republic in 1870-1900:--1870, Favre; 1871, Dufaure (1); 1873, De Broglie (1); 1874, Cissey; 1875, Buffet; 1876, Dufaure (2); 1876, Simon; 1877, De Broglie (2); 1877, De Rochebouet; 1877, Dufaure (3); 1879, Waddington; 1879, Freycinet (1); 1880, Ferry (1); 1881, Gambetta; 1882, Freycinet (2); 1882, Duclerc; 1883, Fallières; 1883, Ferry (2); 1885, Brisson; 1886, Freycinet (3); 1886, Goblet; 1887, Rouvier; 1887, Tirard (1); 1888, Floquet; 1889, Tirard (2); 1890, Freycinet (4); 1892, Loubet; 1892, Ribot (1); 1892, Dupuy (1); 1893, Casimir Périer; 1894, Dupuy (2); 1895, Ribot (2); 1895, Bourgeois; 1896, Méline; 1898, Brisson; 1898 Dupuy (3); 1899, Waldeck-Rousseau.

FOOTNOTES:

[65] They included the right to hold four more Departments until the third half milliard (£20,000,000, that is, £60,000,000 in all) had been paid. A commercial treaty on favourable terms, those of the "most favoured nation," was arranged, as also an exchange of frontier strips near Luxemburg and Belfort. Germany acquired Elsass (Alsace) and part of Lorraine, free of all their debts.

We may note here that the Anglo-French Treaty of Commerce arranged in 1860 with Napoleon largely by the aid of Cobden, was not renewed by the French Republic, which thereafter began to exclude British goods. Bismarck forced France at Frankfurt to concede favourable terms to German products. England was helpless. For this subject, see Protection in France, by H.O. Meredith (1905).

[66] Quoted by M. Hanotaux, Contemporary France, vol. i. pp. 323-327.

[67] Speech of March 27, 1871.

[68] De Mazade, Thiers, p. 467. For a sharp criticism of Thiers, see Samuel Denis' Histoire Contemperaine (written from the royalist standpoint).

[69] On the strength of this instinct see Mr. Bodley's excellent work, France, vol. i. pp. 32-42. etc. For the Act, see Hanotaux op. cit. pp. 236-238.

[70] Hanotaux, op. cit. pp. 452-465.

[71] Mr. Bodley, France, vol. i. ad fin.

CHAPTER VI

The men who had won this long-deferred boon were of no common stamp. King William himself, as is now shown by the publication of many of his letters to Bismarck, had played a far larger share in the making of a united Germany than was formerly believed. His plain good sense and unswerving fortitude had many times marked out the path of safety and kept his country therein. The policy of the Army Bill of 1860, which brought salvation to Prussia in spite of her Parliament, was wholly his. Bismarck's masterful grip of the helm of State in and after 1862 helped to carry out that policy, just as von Roon's organising ability perfected the resulting military machine; but its prime author was the King, who now stood triumphant in the hall of his ancestral foes. Beside and behind him on the dais, in front of the colours of all the German States, were the chief princes of Germany--witnesses to the strength of the national sentiment which the wars against the First Napoleon had called forth, and the struggle with the nephew had now brought to maturity. Among their figures one might note the stalwart form of the Crown Prince, along with other members of the House of Prussia; the Grand Duke of Baden, son-in-law of the Prussian King; the Crown Prince of Saxony, and representatives of every reigning family of Germany. Still more remarkable were some of the men grouped before the King and princes. There was the thin war-worn face of Moltke; there, too, the sturdy figure of Bismarck: the latter, wrote Dr. Russell, "looking pale, but calm and self-possessed, elevated, as it were, by some internal force[72]."

The King announced the re-establishment of the German Empire; and those around must have remembered that that venerable institution (which differed so widely from the present one that the word "re-establishment" was really misleading) had vanished but sixty-four years before at the behests of the First Napoleon. Next, Bismarck read the Kaiser's proclamation, stating his sense of duty to the German nation and his hope that, within new and stronger boundaries, which would guarantee them against attacks from France, they would enjoy peace and prosperity. The Grand Duke of Baden then called for three cheers for the Emperor, which were given with wild enthusiasm, and were taken up by the troops far round the iron ring that encircled Paris.

Few events in history so much impress one, at first sight, with a sense of strength, spontaneity, and inevitableness. And yet, as more is known of the steps that led up to the closer union of the German States, that feeling is disagreeably warped. Even then it was known that Bavaria and Würtemberg strongly objected to the closer form of union desired by the northern patriots, which would have reduced the secondary States to complete dependence on the federal Government. Owing to the great reluctance of the Bavarian Government and people to give up the control of their railways, posts and telegraphs, these were left at their disposal, the two other Southern States keeping the direction of the postal and telegraphic services in time of peace. Bavaria and Würtemberg likewise reserved the control of their armed forces, though in case of war they were to be placed at the disposal of the Emperor--arrangements which also hold good for the Saxon forces. In certain legal and fiscal matters Bavaria also bargained for freedom of action.

What was not known then, and has leaked out in more or less authentic ways, was the dislike, not only of most of the Bavarian people, but also of its Government, to the whole scheme of imperial union. It is certain that the letter which King Louis finally wrote to his brother princes to propose that union was originally drafted by Bismarck; and rumour asserts, on grounds not to be lightly dismissed, that the opposition of King Louis was not withdrawn until the Bavarian Court favourite, Count Holstein, came to Versailles and left it, not only with Bismarck's letter, but also with a considerable sum of money for his royal master and himself. Probably, however, the assent of the Bavarian monarch, who not many years after became insane, was helped by the knowledge that if he did not take the initiative, it would pass to the Grand Duke of Baden, an ardent champion of German unity.

Whatever may be the truth as to this, there can be no doubt as to the annoyance felt by Roman Catholic Bavaria and Protestant democratic Würtemberg at accepting the supremacy of the Prussian bureaucracy. This doubtless explains why Bismarck was so anxious to hurry through the negotiations, first, for the imperial union, and thereafter for the conclusion of peace with France.

Even in a seemingly small matter he had met with much opposition, this time from his master. The aged monarch clung to the title King of Prussia; but if the title of Emperor was a political necessity, he preferred the title "Emperor of Germany"; nevertheless, the Chancellor tactfully but firmly pointed out that this would imply a kind of feudal over-lordship of all German lands, and that the title "German Emperor", as that of chief of the nation, was far preferable. In the end the King yielded, but he retained a sore feeling against his trusted servant for some time on this matter. It seems that at one time he even thought of abdicating in favour of his son rather than "see the Prussian title supplanted[73]." However, he soon showed his gratitude for the immense services rendered by Bismarck to the Fatherland. On his next birthday (March 22) he raised the Chancellor to the rank of Prince and appointed him Chancellor of the Empire.

It will be well to give here an outline of the Imperial Constitution. In all essentials it was an extension, with few changes, of the North German federal compact of the year 1866. It applied to the twenty-five States of Germany--inclusive, that is, of Hamburg, Bremen, and Lubeck, but exclusive, for the present, of Elsass-Lothringen (Alsace-Lorraine). In those areas imperial law takes precedence of local law (save in a few specially reserved cases for Bavaria and the Free Cities). The same laws of citizenship hold good in all parts of the Empire. The Empire controls these laws, the issuing of passports, surveillance of foreigners and of manufactures, likewise matters relating to emigration and colonisation. Commerce, customs dues, weights and measures, coinage, banking regulations, patents, the consular service abroad, and matters relating to navigation also fall under its control. Railways, posts and telegraphs (with the exceptions noted above) are subject to imperial supervision, the importance of which during the war had been so abundantly manifested.

The King of Prussia is ipso facto German Emperor. He represents the Empire among foreign nations; he has the right to declare war, conclude peace, and frame alliances; but the consent of the Federal Council (Bundesrath) is needed for the declaration of war in the name of the Empire. The Emperor convenes, adjourns, and closes the sessions of the Federal Council and the Imperial Diet (Reichstag). They are convened every year. The Chancellor of the Empire presides in the Federal Council and supervises the conduct of its business. Proposals of laws are laid before the Reichstag in accordance with the resolutions of the Federal Council, and are supported by members of that Council. To the Emperor belongs the right of preparing and publishing the laws of the Empire: they must be passed by the Bundesrath and Reichstag, and then receive the assent of the Kaiser. They are then countersigned by the Chancellor, who thereby becomes responsible for their due execution.

The members of the Bundesrath are appointed by the Federal Governments: they are sixty-two in number, and now include those from the Reichstand of Elsass-Lothringen (Alsace-Lorraine)[74]

The Prussian Government nominates seventeen members; Bavaria six; Saxony and Würtemburg and Alsace-Lorraine four each; and so on. The Bundesrath is presided over by the Imperial Chancellor. At the beginning of each yearly session it appoints eleven standing committees to deal with the following matters: (1) Army and fortifications; (2) the Navy; (3) tariff, excise, and taxes; (4) commerce and trade; (5) railways, posts and telegraphs; (6) civil and criminal law; (7) financial accounts; (8) foreign affairs; (9) Alsace-Lorraine; (10) the Imperial Constitution; (11) Standing Orders. Each committee is presided over by a chairman. In each committee at least four States of the Empire must be represented, and each State is entitled only to one vote. To this rule there are two modifications in the case of the committees on the army and on foreign affairs. In the former of these Bavaria has a permanent seat, while the Emperor appoints the other three members from as many States: in the latter case, Prussia, Bavaria, Saxony, and Würtemberg only are represented. The Bundesrath takes action on the measures to be proposed to the Reichstag and the resolutions passed by that body; it also supervises the execution of laws, and may point out any defects in the laws or in their execution.

The members of the Reichstag, or Diet, are elected by universal (more properly manhood) suffrage and by direct secret ballot, in proportion to the population of the several States[75]. On the average, each of the 397 members represents rather more than 100,000 of the population. The proceedings of the Reichstag are public; it has the right (concurrently with those wielded by the Emperor and the Bundesrath) to propose laws for the Empire. It sits for three years, but may be dissolved by a resolution of the Bundesrath, with the consent of the Emperor. Deputies may not be bound by orders and instructions issued by their constituents. They are not paid.

As has been noted above, important matters such as railway management, so far as it relates to the harmonious and effective working of the existing systems, and the construction of new lines needful for the welfare and the defence of Germany, are under the Control of the Empire--except in the case of Bavaria. The same holds good of posts and telegraphs except in the Southern States. Railway companies are bound to convey troops and warlike stores at uniform reduced rates. In fact, the Imperial Government controls the fares of all lines subject to its supervision, and has ordered the reduction of freightage for coal, coke, minerals, wood, stone, manure, etc., for long distances, "as demanded by the interests of agriculture and industry." In case of dearth, the railway companies can be compelled to forward food supplies at specially low rates.

Further, with respect to military affairs, the central authority exercises a very large measure of control over the federated States. All German troops swear the oath of allegiance to the Emperor. He appoints all commanders of fortresses; the power of building fortresses within the Empire is also vested in him; he determines the strength of the contingents of the federated States, and in the last case may appoint their commanding officers; he may even proclaim martial law in any portion of the Empire, if public security demands it. The Prussian military code applies to all parts of the Empire (save to Bavaria, Würtemberg, and Saxony in time of peace); and the military organisation is everywhere of the same general description, especially as regards length of service, character of the drill, and organisation in corps and regiments. Every German, unless physically unfit, is subject to military duty and cannot shift the burden on a substitute. He must serve for seven years in the standing army: that is, three years in the field army and four in the reserve; thereafter he takes his place in the Landwehr[76].

The secondary States are protected in one important respect. The last proviso of the Imperial Constitution stipulates that any proposal to modify it shall fail if fourteen, or more, votes are cast against it in the Federal Council. This implies that Bavaria, Würtemberg, and Saxony, if they vote together, can prevent any change detrimental to their interests. On the whole, the new system is less centralised than that of the North German Confederation had been; and many of the Prussian Liberals, with whom the Crown Prince of Prussia very decidedly ranged himself on this question, complained that the government was more federal than ever, and that far too much had been granted to the particularist prejudices of the Southern States[77]. To all these objections Bismarck could unanswerably reply that it was far better to gain this great end without bitterness, even if the resulting compact were in some respects faulty, than to force on the Southern States a more logically perfect system that would perpetuate the sore feeling of the past.

Such in its main outlines is the new Constitution of Germany. On the whole, it has worked well. That it has fulfilled all the expectations aroused in that year of triumph and jubilation will surprise no one who knows that absolute and lasting success is attained only in Utopias, never in practical politics. In truth, the suddenness with which German unity was finally achieved was in itself a danger.

The English reader will perhaps find it hard to realise this until he remembers that the whole course of recorded history shows us the Germans politically disunited, or for the most part engaged in fratricidal strifes. When they first came within the ken of the historians of Ancient Rome, they were a set of warring tribes who banded together only under the pressure of overwhelming danger; and such was to be their fate for well-nigh two thousand years. Their union under the vigorous rule of the great Frankish chief whom the French call Charlemagne, was at best nominal and partial. The Holy Roman Empire, which he founded in the year 800 by a mystically vague compact with the Pope, was never a close bond of union, even in his stern and able hands. Under his weak successors that imposing league rarely promoted peace among its peoples, while the splendour of its chief elective dignity not seldom conduced to war. Next, feudalism came in as a strong political solvent, and thus for centuries Germany crumbled and mouldered away, until disunion seemed to be the fate of her richest lands, and particularism became a rooted instinct of her princes, burghers, and peasants. Then again South was arrayed against North during and long after the time of the Reformation; when the strife of creeds was stayed, the rivalry of the Houses of Hapsburg and Hohenzollern added another cause of hatred.

As a matter of fact, it was reserved for the two Napoleons, uncle and nephew, to force those divided peoples to comradeship in arms. The close of the campaign of 1813 and that of 1814 saw North and South, Prussians and Austrians, for the first time fighting heartily shoulder to shoulder in a great war--for that of 1792-94 had only served to show their rooted suspicion and inner hostility. Owing to reasons that cannot be stated here, the peace of 1814-15 led up to no effective union: it even perpetuated the old dualism of interests. But once more the hostility of France under a Napoleon strengthened the impulse to German consolidation, and on this occasion there was at hand a man who had carefully prepared the way for an abiding form of political union; his diplomatic campaign of the last seven years had secured Russia's friendship and consequently Austria's reluctant neutrality; as for the dislike of the Southern States to unite with the North, that feeling waned for a few weeks amidst the enthusiasm caused by the German triumphs. The opportunity was unexampled: it had not occurred even in 1814; it might never occur again; and it was certain to pass away when the war fever passed by. How wise, then, to strike while the iron was hot! The smaller details of the welding process were infinitely less important than the welding itself.

One last consideration remains. If the opportunity was unexampled, so also were the statesmanlike qualities of the man who seized it. The more that we know concerning the narrowly Prussian feelings of King William, the centralising pedantry of the Crown Prince of Prussia, and the petty particularism of the Governments of Bavaria and Würtemberg, the more does the figure of Bismarck stand out as that of the one great statesman of his country and era. However censurable much of his conduct may be, his action in working up to and finally consummating German unity at the right psychological moment stands out as one of the greatest feats of statesmanship which history records.

But obviously a wedded life which had been preceded by no wooing, over whose nuptials Mars shed more influence than Venus, could not be expected to run a wholly smooth course. In fact, this latest instance in ethnical lore of marriage by capture has on the whole led to a more harmonious result than was to be expected. Possibly, if we could lift the veil of secrecy which is wisely kept drawn over the weightiest proceedings of the Bundesrath and its committees, the scene would appear somewhat different. As it is, we can refer here only to some questions of outstanding importance the details of which are fairly well known.

The first of these which subjected the new Empire to any serious strain was a sharp religious struggle against the new claims of the Roman Catholic hierarchy. Without detailing the many causes of friction that sprang up between the new Empire and the Roman Catholic Church, we may state that most of them had their roots in the activity shown by that Church among the Poles of Prussian Poland (Posen), and also in the dogma of Papal infallibility. Decreed by the Oecumenical Council at Rome on the very eve of the outbreak of the Franco-German War, it seemed to be part and parcel of that forward Jesuit policy which was working for the overthrow of the chief Protestant States. Many persons--among them Bismarck[78]--claimed that the Empress Eugénie's hatred of Prussia and the warlike influence which she is said to have exerted on Napoleon III. on that critical day, July 14, 1870, were prompted by Jesuitical intrigues. However that may be (and it is a matter on which no fair-minded man will dogmatise until her confidential papers see the light) there is little doubt that the Pope at Rome and the Roman hierarchy among the Catholics of Central and Eastern Europe did their best to prevent German unity and to introduce elements of discord. The dogma of the infallibility of the Pope in matters of faith and doctrine was itself a cause of strife. Many of the more learned and moderate of the German Catholics had protested against the new dogma, and some of these "Old Catholics", as they were called, tried to avoid teaching it in the Universities and schools. Their bishops, however, insisted that it should be taught, placed some recalcitrants under the lesser ban, and deprived them of their posts.

When these high-handed proceedings were extended even to the schools, the Prussian Government intervened, and early in 1872 passed a law ordaining that all school inspectors should be appointed by the King's Government at Berlin. This greatly irritated the Roman Catholic hierarchy and led up to aggressive acts on both sides, the German Reichstag taking up the matter and decreeing the exclusion of the Jesuits from all priestly and scholastic duties of whatever kind within the Empire (July 1872). The strife waxed ever fiercer. When the Roman Catholic bishops of Germany persisted in depriving "Old Catholics" of professorial and other charges, the central Government retorted by the famous "May Laws" of 1873. The first of these forbade the Roman Catholic Church to intervene in civil affairs in any way, or to coerce officials and citizens of the Empire. The second required of all ministers of religion that they should have passed the final examination at a High School, and also should have studied theology for three years at a German University: it further subjected all seminaries to State inspection. The third accorded fuller legal protection to dissidents from the various creeds.

This anti-clerical policy is known as the "Kultur-Kampf", a term that denotes a struggle for civilisation against the forces of reaction. For some years the strife was of the sharpest kind. The Roman Catholic bishops continued to ban the "Old Catholics", while the State refused to recognise any act of marriage or christening performed by clerics who disobeyed the new laws. The logical sequel to this was obvious, namely, that the State should insist on the religious ceremony of marriage being supplemented by a civil contract[79]. Acts to render this compulsory were first passed by the Prussian Landtag late in 1873 and by the German Reichstag in 1875.

It would be alike needless and tedious to detail the further stages of this bitter controversy, especially as several of the later "May Laws" have been repealed. We may, however, note its significance in the development of parties. Many of the Prussian nobles and squires (Junkers the latter were called) joined issue with Bismarck on the Civil Marriage Act, and this schism weakened Bismarck's long alliance with the Conservative party. He enjoyed, however, the enthusiastic support of the powerful National Liberal party, as well as the Imperialist and Progressive groups. Differing on many points of detail, these parties aimed at strengthening the fabric of the central power, and it was with their aid in the Reichstag that the new institutions of Germany were planted and took root. The General Election of 1874 sent up as many as 155 National Liberals, and they, with the other groups just named, gave the Government a force of 240 votes--a good working majority as long as Bismarck's aims were of a moderately Liberal character. This, however, was not always the case even in 1874-79, when he needed their alliance. His demand for a permanently large military establishment alienated his allies in 1874, and they found it hard to satisfy the requirements of his exacting and rigorous nature.

The harshness of the "May Laws" also caused endless friction. Out of some 10,000 Roman Catholic priests in Prussia (to which kingdom alone the severest of these laws applied) only about thirty bowed the knee to the State. In 800 parishes the strife went so far that all religious services came to an end. In the year 1875, fines amounting to 28,000 marks (£2800) were imposed, and 103 clerics or their supporters were expelled from the Empire[80]. Clearly this state of things could not continue without grave danger to the Empire; for the Church held on her way with her usual doggedness, strengthened by the "protesting" deputies from the Reichsland on the south-west, from Hanover (where the Guelph feeling was still uppermost), as well as those from Polish Posen and Danish Schleswig. Bismarck and the anti-clerical majority of the Reichstag scorned any thoughts of surrender. Yet, slowly but surely, events at the Vatican and in Germany alike made for compromise. In February 1878, Pope Pius IX. passed away. That unfortunate pontiff had never ceased to work against the interests of Prussia and Germany, while his encyclicals since 1873 mingled threats of defiance of the May Laws with insults against Prince Bismarck. His successor, Leo XIII. (1878-1903), showed rather more disposition to come to a compromise, and that, too, at a time when Bismarck's new commercial policy made the support of the Clerical Centre in the Reichstag peculiarly acceptable.

Bismarck's resolve to give up the system of Free Trade, or rather of light customs dues, adopted by Prussia and the German Zollverein in 1865, is so momentous a fact in the economic history of the modern world, that we must here give a few facts which will enable the reader to understand the conditions attending German commerce up to the years 1878-79, when the great change came. The old order of things in Prussia, as in all German States, was strongly protective--in fact, to such an extent as often to prevent the passing of the necessaries of life from one little State to its Lilliputian neighbours. The rise of the national idea in Germany during the wars against the great Napoleon led to a more enlightened system, especially for Prussia. The Prussian law of 1818 asserted the principle of imposing customs dues for revenue purposes, but taxed foreign products to a moderate extent. On this basis she induced neighbouring small German States to join her in a Customs Union (Zollverein), which gradually extended, until by 1836 it included all the States of the present Empire except the two Mecklenburgs, the Elbe Duchies, and the three Free Cities of Hamburg, Bremen, and Lübeck. That is to say, the attractive force of the highly developed Prussian State practically unified Germany for purposes of trade and commerce, and that, too, thirty-eight years before political union was achieved.

This, be it observed, was on condition of internal Free Trade, but of moderate duties being levied on foreign products. Up to 1840 these import duties were on the whole reduced; after that date a protectionist reaction set in; it was checked, however, by the strong wave of Free Trade feeling which swept over Europe after the victory of that principle in England in 1846-49. Of the new champions of Free Trade on the Continent, the foremost in point of time was Cavour, for that kingdom of Sardinia on which he built the foundations of a regenerated and united Italy. Far more important, however, was the victory which Cobden won in 1859-60 by inducing Napoleon III. to depart from the almost prohibitive system then in vogue in France. The Anglo-French Commercial Treaty of January 1860 seemed to betoken the speedy conversion of the world to the enlightened policy of unfettered exchange of all its products. In 1862 and 1865 the German Zollverein followed suit, relaxing duties on imported articles and manufactured goods--a process which was continued in its commercial treaties and tariff changes of the years 1868 and 1869.

At this time Bismarck's opinions on fiscal matters were somewhat vague. He afterwards declared that he held Free Trade to be altogether false. But in this as in other matters he certainly let his convictions be shaped by expediency. Just before the conclusion of peace with France he so far approximated to Free Trade as to insist that the Franco-German Commercial Treaty of 1862, which the war had of course abrogated--- war puts an end to all treaties between the States directly engaged--should now be again regarded as in force and as holding good up to the year 1887[81]. He even stated that he "would rather begin again the war of cannon-balls than expose himself to a war of tariffs." France and Germany, therefore, agreed to place one another permanently on "the most favoured nation" footing. Yet this same man, who so much desired to keep down the Franco-German tariff, was destined eight years later to initiate a protectionist policy which set back the cause of Free Trade for at least a generation.

What brought about this momentous change? To answer this fully would take up a long chapter. We can only glance at the chief forces then at work. Firstly, Germany, after the year 1873, passed through a severe and prolonged economic crisis. It was largely due to the fever of speculation induced by the incoming of the French milliards into a land where gold had been none too plentiful. Despite the efforts of the German Government to hold back a large part of the war indemnity for purposes of military defence and substantial enterprises, the people imagined themselves to be suddenly rich. Prices rapidly rose, extravagant habits spread in all directions, and in the years 1872-73 company-promoting attained to the rank of a fine art, with the result that sober, hard-working Germany seemed to be almost another England at the time of the South Sea Bubble. Alluding to this time, Busch said to Bismarck early in 1887: "In the long-run the [French] milliards were no blessing, at least not for our manufacturers, as they led to over-production. It was merely the bankers who benefited, and of these only the big ones[82]."

The result happened that always happens when a nation mistakes money, the means of commercial exchange, for the ultimate source of wealth. After a time of inflation came the inevitable collapse. The unsound companies went by the board; even sound ventures were in some cases overturned. How grievously public credit suffered may be seen by the later official admission, that liquidations and bankruptcies of public companies in the following ten years inflicted on shareholders a total loss of more than 345,000,000 marks (£17,250,000)[83].