One essential element in the commercial reform was the improvement of the railways.  Bismarck’s attention had long been directed to the inconveniences which arose from the number of private companies, whose duty it was to regard the dividends of the shareholders rather than the interests of the public.  The existence of a monopoly of this kind in private hands seemed to him indefensible.  His attention was especially directed to the injury done to trade by the differential rate imposed on goods traffic; on many lines it was the custom to charge lower rates on imported than on exported goods, and this naturally had a very bad effect on German manufactures.  He would have liked to remedy all these deficiencies by making all railways the property of the Empire (we see again his masterful mind, which dislikes all compromise); in this, however, he was prevented by the opposition of the other States, who would not surrender the control of their own lines.  In Prussia he was able to carry out this policy of purchase of all private lines by the State; by the time he laid down the Ministry of Commerce hardly any private companies remained.  The acquisition of all the lines enabled the Government greatly to improve the communication, to lower fares, and to introduce through communications; all this of course greatly added to the commercial enterprise and therefore the wealth of the country.

He was now also able to give degrees his encouragement and support to those Germans who for many years in countries beyond the sea had been attempting to lay the foundations for German commerce and even to acquire German colonies.  Bismarck’s attitude in this matter deserves careful attention.  As early as 1874 he had been approached by German travellers to ask for the support of the Government in a plan for acquiring German colonies in South Africa.  They pointed out that here was a country fitted by its climate for European occupation; the present inhabitants of a large portion of it, the Boers, were anxious to establish their independence of England and would welcome German support.  It was only necessary to acquire a port, either at Santa Lucia or at Delagoa Bay, to receive a small subsidy from the Government, and then private enterprise would divert the stream of German emigration from North America to South Africa.  Bismarck, though he gave a courteous hearing to this proposal, could not promise them assistance, for, as he said, the political situation was not favourable.  He must foresee that an attempt to carry out this or similar plans would inevitably bring about very serious difficulties with England, and he had always been accustomed to attach much importance to his good understanding with the English Government.  During the following years, however, the situation was much altered.  First of all, great enterprise had been shewn by the German merchants and adventurers in different parts of the world, especially in Africa and in the Pacific.  They, in those difficulties which will always occur when white traders settle in half-civilised lands, applied for support to the German Government.  Bismarck, as he himself said, did not dare to refuse them this support.