inhabitants, and in 1905 19 per cent lived in cities of more than 100,000 inhabitants. In the agricultural districts, however, conditions continued to be healthy — 31 per cent being cultivated by peasants, 24 per cent being held in large estates, and the remainder in lots of less than 20 hectares (roughly 50 acres). The woodland area still includes one-fourth of the total area.
During this period the national standard of living became more luxurious; revolutionary and anarchistic tendencies began appreciably to disappear. The whole nation was seized by a burning tendency towards the formation of new associations, a spirit to which we owe the foundation of the Catholic People's Union (der Volksverein: members in 1908, 600,000), the Farmers' League (1908: 300,000 members), the free (Socialistic) guilds (1908: over 750,000 members), the Christian Endeavour guilds (1908: over 200,000 members), etc. In Parliament, the great political parties (Conservatives, National Liberals, and the Centre) drew closer together; the presidency devolved on the Centre in consequence of its numerical preponderance and the ability of its leaders. In 1899, the constantly recurring conflict between the Crown and the Reichstag on the subject of appropriations for military expenditure was settled by an agreement on the part of the legislative assembly to vote supplies henceforth for the parliamentary period, which had been increased from three to five years in 1888. Among the important measures passed were the completion of the unified legal codes (1896) and the Naval Acts (1898, 1901), which had in view the raising of Germany to a maritime power of the first rank. In 1902 the resolution to restore the high protective duties on agricultural products was passed in the face of the bitter opposition maintained by the Social Democrats for many months (Tariff Bills, on the basis of which the commercial treaties were renewed in 1905). Prussia's project of constructing a canal through her own territory from the Oder to the Rhine met with obstinate resistance, not indeed in the Reichstag, but in the Prussian Diet (rejected in 1899, approved in 1903). In the midst of this era of prosperity Bismarck died (1898).
In foreign politics, however, there came a change for the worse after England's subjugation of the Boers. Under Edward VII, Great Britain forced Germany back from almost all the positions which she had recently occupied. Meanwhile, William II devoted himself to a line of policy calculated to win temporary favour (journey to Jerusalem, 1898; intervention in the Chinese complications, 1900; landing in Tangier, 1905). Prince Buelow, who replaced Hohenlohe in 1900, was unable to stem the ebbing tide. In the Moroccan controversy between Germany and France, Germany, who appealed to an international conference (at Algeciras, 1906), suffered a severe rebuff. By his efforts to separate Austria and Italy from the Triple Alliance and by his ententes with the other Powers of Europe, Edward VII isolated his rival (1907, Triple-Entente between England, Russia, and France). Buelow's Polish policy, which was more drastic even than Bismarck's (cf. the Expropriation Act of 1908), resulted only in disappointments without effectually checking the Polish disturbances. In 1907, owing in part to the financial crisis in America, Germany's commercial prosperity markedly declined. Favoured by the customs tariff, agriculture alone continued to flourish. The revenue of the empire decreased with the commercial profits. At the same time the rising of the Herreros in South-Western Africa in 1904 called for large unforeseen expenditures, while the troubled aspect of the foreign situation necessitated a tremendous increase in the outlay on armaments (cf. Naval statutes of 1908. The "ordinary" expenditure in 1907 was 2329 millions of marks; National debt in 1873: 1800 millions, and in 1908, 4400 millions of marks.) One attempt after another was made at fiscal reform [1904, relaxation of the Franckenstein clause; 1906, 150 million marks ($35,250,000) yearly taxes were voted; in 1908-09, 500 millions were demanded by the government], but the government is still carried on with a deficit. Thorough recovery has been prevented by the renewed violent dissensions in the nation by party spirit (since 1892) and the clash of opposing ideals.
The coalition, which had formed the majority during the nineties, broke up in 1903. Its most important factor was the Centre, the number of whose seats in the Reichstag and supporters in the constituencies remained stationary even during the period of its parliamentary ascendancy. Therein lay its weakness, since meanwhile its allies, the official Liberal and Conservative parties, gained ground. The Liberals gained in consequence of a movement towards concentration among the Liberals of the Left soon after the beginning of the century (Fusion of the Liberal of the Left, 1906), and of a reconciliation between the National Liberals and the Liberals of the Left by means of a "Young Liberal" movement in their ranks. The Conservatives, who had been growing as a party almost uninterruptedly since 1876, especially after the founding of the "Farmers' League" in 1893, gained by gradually invading the agrarian territory in the west and south-west.
Up to 1906, the Protestant League, founded in 1886, maintained a fanatical agitation amongst the populace to frustrate the endeavours of the Catholics, directed through the Centre, to secure recognition of their equal rights as citizens in the public life of the nation. Yielding to this agitation, first the National Liberals then the Conservatives dissociated themselves from the Centre. Despite its utmost efforts, the Centre failed in 1906 to secure the repeal of the remainder of the Kulturkampf Laws, except to the extent of the two paragraphs of the Jesuit law (i.e., the expulsion clauses). Furthermore, the so-called "toleration bills," in which the Centre strove by imperial legislation to fix the minimum of rights to be conceded to Catholics in the separate states, although repeatedly presented to the Reichstag after 1900, always met with defeat. When, in 1906, the Christian character of the national schools was finally established by statute in Prussia after an interval of 13 years, the Government drafted the bill in accordance with the wishes of the Conservatives and the National Liberals, and left to the Centre only the right of voting for it.
Another important factor in bringing about the cleavage between the parties was the spread among the wealthier classes, both Liberal and Conservative, of a strong feeling of opposition to further social legislation. This feeling found an outlet in the formation of influential syndicates, and was most bitterly directed against the Centre, as the principal promoter of social remedial measures. An open breach between the parties took place on the question of a relatively insignificant colonial budget. The Government immediately disowned the Centre, and dissolved the Reichstag (13 December, 1906). Since then the situation has been very complicated. As a result of the elections the Centre retained its former voting strength, but was isolated. The Government formed a new coalition, called "the Block," consisting of the Conservatives and the united Liberal party — the Liberals of the Left had hitherto been in opposition. In this it relied on the feelings of hostility towards the Centre which animated the Protestants and the propertied classes. When the administration, however, made concessions to Liberal principles (extension of the right of association, partial repeal of the stock exchange legislation, promise to introduce popular suffrage into Prussia), the Conservatives, after some hesitation, decided to oppose the Government so again sought an alliance with the Centre. They are
