As a result of the Morocco crisis and the increasing imminence of international difficulties, the war footing of the German army had been increased to 3,860,000 men. The navy had been steadily extended, and projects for further increases in both army and navy were to be introduced at this session of the Reichstag and to be granted. The question of taxation was becoming more and more serious. In view of the project for increased armament and higher taxation, Chancellor von Bethmann-Hollweg had earnestly urged all parties to unite against the Social Democrats. His efforts were not nearly so successful as had been those of Bülow in 1907. One hundred and ten Social Democrats were returned. It is perhaps significant that at this session the Reichstag voted a bill creating a German oil company, which was to conduct its operations under the supervision of the government and thus render Germany more independent of foreign countries in this regard. HONORED SIRS: In the name of the affiliated governments, I bid the newly elected Reichstag welcome! To maintain the solid framework of the empire and the order of the state undisturbed, to increase the welfare of the people in all classes and conditions, to protect and raise the strength and credit of the nation is the aim of all my efforts. In this I find myself in accord with my honored colleagues, and I cherish the conviction that you, as the chosen representatives of the nation, will exert your best powers in this common work. For a generation past questions of social regulation have occupied a prominent place in the legislation of the realm. Even at the last session of the previous Reichstag the benefits of insurance were extended to a large portion of the population. The same social spirit with which the work has previously gone forward must prevail even further. For development does not stand still. The finances of the realm have attained a firm position. On the basis of definitely calculated contributions from the states, we have succeeded in establishing a balance in the imperial economy, and by the help of the surplus which resulted we have relieved the excess of the budget. By holding fast to the rigorous policies in vogue up to the present, the empire will within a short time arrive at a complete restoration of its finances. It fills me with satisfaction when I think to what a point the free spirit of enterprise has attained in industry and crafts, in trade, and in commerce, and how, through the increasing perfection of its technic, agriculture has gradually blossomed forth again. In view of this gratifying progress, the affiliated governments will henceforth not neglect to strengthen the foundation of our customs policy by means of alterations and the addition of new trading regulations.