individual every possible liberty. But Bismarck’s
whole scheme of national industrial organization looked
in a very different direction. He believed that
the nation itself, as represented by its official
leaders, should actively assist in preparing an adequate
national domestic policy, and in organizing the machinery
for its efficient execution. He saw clearly that
the logic and the purpose of the national type of
political organization was entirely different from
that of a so-called free democracy, as explained in
the philosophy of the German liberals of 1848, the
Manchester school in England, or our own Jeffersonian
Democrats; and he successfully transformed his theory
of responsible administrative activity into a comprehensive
national policy. The army was, if anything, increased
in strength, so that it might remain fully adequate
either for national defense or as an engine of German
international purposes. A beginning was made
toward the creation of a navy. A moderate but
explicit protectionist policy was adopted, aimed not
at the special development either of rural or manufacturing
industries, but at the all-round development of Germany
as an independent national economic unit. In
Prussia itself the railways were bought by the government,
so that they should be managed, not in the interest
of the shareholders, but in that of the national economic
system. The government encouraged the spread of
bettor farming methods, which have resulted in the
gradual increase in the yield per acre of every important
agricultural staple. The educational system of
the country was made of direct assistance to industry,
because it turned out skilled scientific experts, who
used their knowledge to promote industrial efficiency.
In every direction German activity was organized and
was placed under skilled professional leadership,
while at the same time each of these special lines
of work was subordinated to its particular place in
a comprehensive scheme of national economy. This
“paternalism” has, moreover, accomplished
its purpose. German industrial expansion surpasses
in some respects that of the United States, and has
left every European nation far behind. Germany
alone among the modern European nations is, in spite
of the temporary embarrassment of Imperial finance,
carrying the cost of modern military preparation easily,
and looks forward confidently to greater successes
in the future. She is at the present time a very
striking example of what can be accomplished for the
popular welfare by a fearless acceptance on the part
of the official leaders of economic as well as political
responsibility, and by the efficient and intelligent
use of all available means to that end.