This vote was a sign of the increasing disorganization of parties and of
growing parliamentary difficulties which were even more apparent in the
Prussian Landtag. Miquel, as minister of finance, succeeded indeed in
carrying a reform by which the proceeds of the tax on land and buildings
were transferred to the local government authorities, and the loss to
the state exchequer made up by increased taxation of larger incomes and
industry. The series of measures which began in 1891, and were completed
in 1895, won a more general approbation than is usual, and Miquel in
this successfully carried out his policy of reconciling the growing
jealousies arising from class interests.
Commercial treaties.
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 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.
Agrarians.
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 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.
Public-domain text, read in full here on John Shaqi.
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