The economic change was decided on in the year 1879, when the federated States returned to “the time-honoured ways of 1823-65.”  Bismarck appealed to the Reichstag to preserve at least the German market to German industry.  The chances of having a large export trade were on every ground precarious; but Germany could, at the worst, support herself.  All interests were mollified by having moderate duties imposed to check imports.  Small customs dues were placed on corn and other food supplies so as to please the agrarian party; imports of manufactured goods were taxed for the benefit of German industries, and even raw materials underwent small imposts.  The Reichstag approved the change and on July 7 passed the Government’s proposals by 217 to 117:  the majority comprised the Conservatives, Clericals, the Alsace-Lorrainers, and a few National Liberals; while the bulk of the last-named, hitherto Bismarck’s supporters on most topics, along with Radicals and Social Democrats, opposed it.  The new tariff came into force on January 1, 1880.

On the whole, much may be said in favour of the immediate results of the new policy.  By the year 1885 the number of men employed in iron and steel works had increased by 35 per cent over the numbers of 1879; wages also had increased, and the returns of shipping and of the export trade showed a considerable rise.  Of course, it is impossible to say whether this would not have happened in any case owing to the natural tendency to recovery from the deep depression of the years 1875-79.  The duties on corn did not raise its price, which appears strange until we know that the foreign imports of corn were less than 8 per cent of the whole amount consumed.  In 1885, therefore, Bismarck gave way to the demands of the agrarians that the corn duties should be raised still further, in order to make agriculture lucrative and to prevent the streaming of rural population to the towns.  Again the docile Reichstag followed his lead.  But, two years later, it seemed that the new corn duties had failed to check the fall of prices and keep landlords and farmers from ruin; once more, then, the duties were raised, being even doubled on certain food products.  This time they undoubtedly had one important result, that of making the urban population, especially that of the great industrial centres, more and more hostile to the agrarians and to the Government which seemed to be legislating in their interests.  From this time forward the Social Democrats began to be a power in the land.

And yet, if we except the very important item of rent, which in Berlin presses with cruel weight on the labouring classes, the general trend of the prices of the necessaries of life in Germany has been downwards, in spite of all the protectionist duties.  The evidence compiled in the British official Blue-book on “British and Foreign Trade and Industry” (1903.  Cd. 1761, p. 226) yields the following results.  By comparing the necessary expenditure on food of a workman’s family of the same size and living under the same conditions, it appears that if we take that expenditure for the period 1897-1901 to represent the number 100 we have these results:—­