It was difficult for the men by their own exertions to improve their condition, for the masters had full liberty of association, which the law refused to the workmen. Even before 1870 a protest was raised against this system among the Roman Catholics, who were chiefly concerned for the preservation of family life, which was threatened by the growth of the factory system and also by the teaching of the Social Democrats. Baron von Ketteler, archbishop of Mainz, had maintained that it was the duty of the state to secure working men work and provision during sickness and old age. The general interest of the Church in the social question was recognized by a congress of the bishops at Fulda. Ketteler’s work was continued by Canon Moufang, and Catholics brought forward motions in the Reichstag demanding Christian socialism. new factory legislation. The peculiar importance of the Catholic movement is that it alone was able to some extent to meet the Socialists on their own ground. The Catholics formed societies which were joined by large numbers of workmen. Originated by Father Kolping on the Rhine, they soon spread over the whole of Catholic Germany. Herr von Schorlemer-Ast, a Catholic landed proprietor from Westphalia, formed similar associations among the peasants. The result of this has been that the Social Democrats have failed to conquer the Catholic as they have the Protestant districts. A similar movement began among the Protestants after the commercial crisis of 1873, which forms an epoch in German thought, since it was from that year that men first began to question the economic doctrines of Liberalism, and drew attention to the demoralization which seemed to arise from the freedom of speculation and the influence of the stock exchange—a movement which in later years led to some remarkable attempts to remedy the evil by legislation. A minister, Rudolph Todt, and Rudolph Meyer criticized the moral and economic doctrines of Liberalism; his writings led to the foundation of the Christlich-Soziale-Arbeiterverein, which for a few years attained considerable notoriety under the leadership of Adolph Stöcker. The Protestant movement has not succeeded in attaining the same position as has the Catholic among the working men; but it received considerable support among the influential classes at court, and part of the programme was adopted by the Conservative party, which in 1876 demanded restriction of industrial liberty and legislation which would prevent the ruin of the independent artizans.
In a country where learned opinion has so much influence on public affairs it was of especial importance that several of the younger teachers separated themselves from the dominant Manchester School and asserted the duty of the state actively to promote the well-being of the working classes. At a congress held in Erfurt in 1873, Schmoller, Wagner, Brentano and others founded the Verein für Sozial-Politik, which by its publications has had much influence on German thought.
The peculiar social conditions brought it about that in many cases the Christian Social movement took the form of Anti-Semitism (q.v.). Nearly all the bankers and stockbrokers in Germany were Jews. Many of the leaders Anti-Semites. of the Liberal parties, e.g. Bamberger and Lasker, were of Jewish origin; the doctrines of Liberalism were supported by papers owned and edited by Jews; hence the wish to restore more fully the avowedly Christian character of the state, coinciding with the attack on the influence of finance, which owed so much to the Liberal economic doctrines, easily degenerated into attacks on the Jews. The leader in this was Stöcker. During the years 1879 to 1881 the anti-Semite agitation gained considerable importance in Berlin, Breslau and other Prussian cities, and it culminated in the elections of that year, leading in some cases to riots and acts of violence.
So long as the government was under the influence of the National Liberals, it was indifferent, if not hostile to these movements. The Peasants’ Union had actually been forbidden by the police; Bismarck himself was violently attacked for his reputed connexion with a great Jewish firm of bankers. He had, however, kept himself informed regarding these movements, chiefly by means of Hermann Wagener, an old editor of the Kreuzzeitung, and in the year 1878 he felt himself free to return in this matter to his older opinions. The new policy suggested in that year was definitely announced at the opening of the session in the spring of 1881, and at the meeting of the new Reichstag in November 1881. It was explained in a speech from the throne, which, as the emperor could not be present, became an imperial message. This is generally spoken of as the beginning of a new era. The help of the Reichstag was asked for “healing social evils by means of legislation ... based on the moral foundation of Christianity.” Compulsory insurance, the creation of corporate unions among working men under the protection of the state, and the introduction of indirect taxes, were the chief elements in the reform.
The condition of parties was such that Bismarck could not hope to win a majority for his schemes, especially as he could not obtain the monopoly on tobacco on which he depended to cover the expense. The first reform was the restoration of the gilds, to which the Conservatives attached great importance. Since 1869 they continued to exist only as voluntary associations with no public duties; many had been dissolved, and this is said to have brought about bad results in the management of lodging-houses, the condition of apprentices, support during illness, and the maintenance of labour bureaus. It was supposed that, if they could be restored, the corporate spirit would prevent the working men from falling under the influence of the Socialists. The law of 1881, while it left membership voluntary, gave to them many duties of a semi-public nature, especially that of arbitration between masters and men. These were extended by a further law in 1884.
The really important element was the scheme for a great imperial system by which all working men and women should be provided for in case of sickness, accident or old age. Bismarck hoped by this to relieve the parishes of the Compulsory insurance. burden of the poor-rate, which would be transferred to the empire; at the same time the power of the government would be greatly extended. The first proposal in March 1881 was for compulsory insurance against accidents. Every one employed on railways, mines and factories was to be insured in an imperial office; the premium was to be divided equally between masters, workmen and the state. It was bitterly opposed by the Liberals, especially by Bamberger; all essential features were altered by the Reichstag, and it was withdrawn by the government after it had passed the third reading.
In 1882 a fresh scheme was laid before the newly elected Reichstag dealing with insurance against accident and against sickness. The two parts were separated by the Reichstag; the second, which was the necessary prelude to the other, was passed in 1883. The law was based on an old Prussian principle; insurance was made compulsory, but the state, instead of doing the work itself, recognized the existing friendly and other societies; they were still to enjoy their corporate existence and separate administration, but they were placed under state control, and for this purpose an imperial insurance department was created in the office of the secretary of state for the interior. Uniform regulations were to be followed in all trades and districts; one-third of the premium was paid by the employer, two-thirds by the workmen.
The Accident Law of 1883 was rejected, for it still included the state contribution to which the Reichstag would not assent, and also contributions from the workmen. A new law, drafted according to their wishes, was passed in 1884. It applied only to those occupations, mines and factories, in which the use of machinery was common; it threw the whole burden of compensation on to the masters; but, on the other hand, for the first thirteen weeks after an accident the injured workman received compensation from the sick fund, so that the cost only fell on the masters in the more serious cases. The masters were compelled to insure themselves against the payments for which they might become liable, and for this purpose had to form trades associations, self-governing societies, which in each district included all the masters for each particular trade. The application of this law was subsequently extended to other trades.
