Other important legislative Acts of the first years of the war, which were passed unanimously, were the Reform of the Ad- ministration of Justice (April n 1916), which separated the administrative and judicial systems, and introduced oral pro- ceedings and publicity with trial by jury in criminal and politi- cal cases and the Accident Insurance law (July 6 1916), which made it the duty of all employers to insure their employees. The privileged suffrage in elections to the Amtsraad (county councils) was abolished with the consent of all parties.
In the late summer of 1916 the comparative quiet which had marked political life since 1914 was succeeded by a bitter struggle. The cause was the announcement by the Government that it had concluded a treaty with the United States ceding the Danish West Indies to that country for $25,000,000. Both in the Rigsdag, whose ratification was essential, and outside strong feeling was aroused against the sale. The Left proposed a postponement till after the war or, if an immediate decision was necessary, the holding of fresh elections under the new con- stitution. The only solution of the crisis seemed to be new elections, but the King implored the party leaders to avoid such a situation, which would be a danger to the country. The result was a compromise: the Cabinet was supplemented by representa- tives of each of the political parties (Th. Stanning, the Socialist member, being the first member of the working classes to become a minister), and the sale of the islands was to be decided by the Rigsdag after a plebiscite of the people. At the polls (Dec. 14 1916) 283,670 votes were cast in favour and 158,157 against, and shortly afterwards the Rigsdag ratified the cession.
A contest of like character, but not nearly so far-reaching or bitter, arose in connexion with the rearrangement of the relation of Iceland to Denmark. With increasing force, Iceland demanded political independence and integrity. Despite the opposition of the Conservatives, the support of the other three parties sufficed to pass an Act of Union (Nov. 1918), in which Denmark acknowl- edged the independence of Iceland. The King is joint ruler of both countries and Denmark directs Iceland's foreign policy. The Act of Union is valid till 1940.
From 1917 onwards the unrestricted submarine warfare, com- bined with the stricter measures of the Entente, caused increasing difficulties in the economic life of Denmark. The Government, for whose economic policy the Home Secretary, Ove Rode, was primarily responsible, made further efforts, by means of maxim- um prices, export prohibition, and also by the rationing of certain articles, to create tolerable conditions for the people. It sought to mitigate the effects of the increase in prices by an extensive policy of relief; both the State and the communes rendered direct aid to those without means; public officials received increased pay until their salaries had undergone a thorough revision; and the unemployed, whose number rose to 70,000 in the winter of 1918-9, were given extra support. Through an increase of the succession, income and personal property taxes, and the introduction among others of ataxon exchange business, the Government tried to cover these and the greatly increased military expenses. In the five years of the war 1914-9, the expenditures of the Government were 156, 185, 251, 369, 616 million kr. respectively (in all 1,577 million kr.), and the total revenue for all five years 1,343 million kroner. The deficit was covered by loans. While the indirect taxes 1913-4 amounted to 55% and the direct to 28% of the total revenue, the figures of 1918-9 were 21% and 62% respectively. A radical anti- militaristic Government had from 1914-9 spent more than 500 million kr. on defence more than all the Conservative war ministers together from 1865-1901.
After the spring of 1918 the elections could no longer be postponed. At the elections for the Folkelhing, when women voted for the first time (68% voted to the men's 84%), 72 supporters of the Government were elected, 39 Socialists and 33 Radicals, receiving 263,000 and 196,000 votes respec- tively; and 68 opponents, 45 Left and 23 Conservatives, re- ceiving 273,000 and 168,000 votes respectively. The Landsthing was constituted as follows: 17 Conservatives, 26 Left, 13 Radi- cals and 1 5 Socialists.
At the time of the Armistice the old problems were viewed differently and new questions arose. The troops were quickly demobilized, the special defence works were razed, and on March 17 1920 a law was passed abolishing the land defence and artillery of Copenhagen. In 1919 the special military administration of justice had ceased. The Government's economic policy, which had caused some dissatisfaction, but as a whole had been support- ed by all parties, became the object of very strong criticism, as the Opposition thought it time to abrogate the war-time legislation in this respect. Instead of improving, the economic conditions became worse: small exports, the falling value of the Danish krone both at home and abroad, and numerous strikes, partly caused by the syndicalistic agitation, characterized the industrial and economic situation until near the close of 1920.
The Allied victory affected Denmark chiefly through the prospects of a reunion with the Danish part of Slesvig. On the same day Oct. 23 1918 as the deputy of North Slesvig, H. P. Hanssen-Norremolle, raised the demand of a renunion with the mother country in the German Reichstag, the Danish Rigsdag unanimously passed a resolution " that no other change in Slesvig's present position than an adjustment according to the principles of nationality would harmonize with the wishes, feel- ings and interests of the Danish people." With reference to this and statements made by the leaders of the Danish population in North Slesvig, the Danish Government communicated its wishes to the Allies (Nov. 28 1918), so that, when the Peace Conference in Feb. 1919 reached the discussion of the Slesvig problem, a united Danish North Slesvig delegation was sent to Paris to present the Danish point of view: a plebiscite en Hoc in North Slesvig (Zone i), a community ballot in Central Slesvig and Flensburg (Zone 2), and voting rights to all those who were born in the voting districts. The Peace Treaty was presented to Germany on May 7. The fact that it contained a provision for a plebiscite in South Slesvig (Zone 3), and gave voting rights to natives of the districts without consideration of their present place of residence, caused considerable excitement in Denmark. This departure from the wishes of the Government and the Rigs- dag was due to the influence of a small group of the Danish people who wished the Slesvig question to be solved from a legal and historic point of view. Representations to the Peace Conference by the Danish Government were successful in getting the article providing for a plebiscite in Zone 3 omitted from the Treaty.
On the coming into force of the Peace Treaty on Jan. 10 1920, an international commission, containing among others the am- bassadors of England and France, Sir Charles Marling and M. Paul Claudel, took charge of the plebiscite district. The plebi- scite in Zone i on Feb. 10 gave 75,431 (75%) votes for Denmark and 25,329 (25%) for Germany; even the doubtful Tender Amt had a majority for Denmark of 59%. On March 14 Zone 3 gave 48,148 (79%) German and 13,029 (21%) Danish votes.
While the plebiscite results in Zone i satisfied Danish ex- pectations, this was not the case with the results in Zone 2. In the last years before the war the Danish element had here been yielding in the national struggle, but there seemed to be plain evidence of a change of feeling, especially in Flensburg, during the agitation before the plebiscite. The disappointment over the result was great. The Zahle Ministry had for months been the object of the most vehement attacks, because of its cool attitude towards the national propaganda in Central Slesvig, and the assailants made it responsible for the poor result of the plebiscite. In certain circles it was still hoped to prevent the final union of Central Slesvig with Germany by the so-called " Internationaliza- tion " of Zone 2. A storm of indignation at the national attitude of the Government in connexion with its economic policy began in the weeks after the plebiscite. When the Government refused to order new elections, with reference to the necessity for a new electoral law, the King dismissed it. A Cabinet of non-politicians, formed by Liebe March 30 1920, took the responsibility for the King's action, which was regarded by the supporters of the dismissed Cabinet as unconstitutional, and had caused the threat of a general strike from the Socialists. During this " Easter crisis " Denmark was not, but may have looked as if it were, on
