As regards the wider influences exerted by Germany’s new protective policy, we can here allude only to one; and that will be treated more fully in the chapter dealing with the Partition of Africa. That policy gave a great stimulus to the colonial movement in Germany, and, through her, in all European States. As happened in the time of the old Mercantile System, Powers which limited their trade with their neighbours, felt an imperious need for absorbing new lands in the tropics to serve as close preserves for the mother-country. Other circumstances helped to impel Germany on the path of colonial expansion; but probably the most important, though the least obvious, was the recrudescence of that “Mercantilism” which Adam Smith had exploded. Thus, the triumph of the national principle in and after 1870 was consolidated by means which tended to segregate the human race in masses, regarding each other more or less as enemies or rivals, alike in the spheres of politics, commerce, and colonial expansion.
We may conclude our brief survey of German constructive policy by glancing at the chief of the experiments which may be classed as akin to State Socialism.
In 1882 the German Government introduced the Sickness Insurance Bill and the Accident Insurance Bill, but they were not passed till 1884, and did not take effect till 1885. For the relief of sickness the Government relied on existing institutions organised for that object. This was very wise, seeing that the great difficulty is how to find out whether a man really is ill or is merely shamming illness. Obviously a local club can find that out far better than a great imperial agency can. The local club has every reason for looking sharply after doubtful cases as a State Insurance Fund cannot do. As regards sickness, then, the Imperial Government merely compelled all the labouring classes, with few exceptions, to belong to some sick fund. They were obliged to pay in a sum of not less than about fourpence in the pound of their weekly wages; and this payment of the workman has to be supplemented by half as much, paid by his employer—or rather, the employer pays the whole of the premium and deducts the share payable by the workman from his wages.
Closely linked with this is the Accident Insurance Law. Here the brunt of the payment falls wholly on the employer. He alone pays the premiums for all his work-people; the amount varies according to (1) the man’s wage, (2) the risk incidental to the employment. The latter is determined by the actuaries of the Government. If a man is injured (even if it be by his own carelessness) he receives payments during the first thirteen weeks from the ordinary Sick Fund. If his accident keeps him a prisoner any longer, he is paid from the Accident Fund of the employers of that particular trade, or from the Imperial Accident Fund. Here of course the chance of shamming increases, particularly if the man knows that he is being supported out of a general