The Auckland Star: WITH WHICH ARE INCORPORATED The Evening News, Morning News and The Echs. THURSDAY, JUNE 9, 1910. THE GERMAN REACTION.

Auckland Star, Volume XLI, Issue 135, 9 June 1910, Page 4

The Auckland Star: WITH WHICH ARE INCORPORATED The Evening News, Morning News and The Echs.

THURSDAY, JUNE 9, 1910. THE GERMAN REACTION.

Tor the cause that lacXa assistance. For the wrong that needs retUiauce, For the future in ths distance, A.v.d the good that we can-da.

The resignation of the' German Minister for the Colonies has been accepted, not- only in Germany, but .throughout Europe as an event of great political significance and importance. Herr Dern■buxg"is neither a diplomatist nor a landowner, nor an aristocrat; he is simply a, sneeessful ibusiness man, and his elecvationr.to high ministerial rank was thus ■almost, unprecedented and unparalleled in German history. It was understood from, the outset of his career that he •was put in. office to represent the ipolicy of colonial expansion, to which the Kaiser has committed himself. But while as the Kaiser's friend lie stood personally for the autocratic as opposed to the democratic view of Government, as the colleague of Yon Buelow ihe represented the policy of moderate constitutionalism, to which tlie Conservatives and the Centre or Clerical party are most vehementIy opposed. The regime of yon Buelow was on the whole popular and progressive; and it was owing to the sudden revival of Conservatism that -he resigned and 'cleared .the way 'for yon BethmannHolhveg, who has proved himself to be a thoroughgoing reactionary. When yon Buelow withdrew last year from his untenable position, he explained to the Reichstag and the people that, as the "Bloc," or coalition by which lac had striven to hold the halance between the Conservative and the democratic clexnents in Parliament had. broken down, he had no alternative but to retire. And now the resignation of Dernburg may be accepted as a further proof that the reactionary party is in the ascendant in the German Parliament, and for the moment the prospects of Liberalism are gloomy in the extreme.

It may be remembered that the immediate cause of yon Buelow's defeat last year was his attempt to throw a reasonable share of the burden of taxa-

t'ion upon the landowners and the wealthy classes. The Death Duties and the Land Tax, though proposed merely in an experimental iorm, played at least as prominent; a part in yon Beulow's fiscal scheme as in Mr. Lloyd George's Budget, and they roused in Germany even more indignation and dismay among the privileged classes than in England. Up to this point yon Buelow lad been able to rely upon support from the Eight, or Conservative, party, the Centre or Clerical party, and the more moderate section of the National Liberals. But the National laberale were determined that the principle embodied in the Death Duties and the Estate Tax should be established; and as the Right and the Centre stand chiefly for the landed and financial interests in the country, the '"Bloc" was completely rent asunder. The Conservatives and the Clericals joining with tho antiSemites and the Poles, who are generally reactionary, succeeded in rejecting most of yon promised iinaneiul reforms, and so produced the Constitutional crisis which drove the Chancellor from power. At the same time, it was clear that the "forward" policy of colonial expansion which Deraburg represents had received a serious blow. Three years ago yon Buelow hud 'been defeated on a vote for Colonial Supply, i and the knowledge that none of Germany's colonies are a financial success had rendered the wealthy capitalists and landowners in the Reichstag extremely apprehensive. The Centre and the Right have thus combined to check .the policy of colonial expansion, because they are afraid of 'being called upon to bear the cost, and so the alliance that 'brought about the great Chancellor's downfall has achieved a further success in driving from office his Minister for the Colonies.

The German Parliament is divided into so many parties that the political situation in the Keiehstag is never easy to describe in precise terms. However, without entering into a long series of bewildering distinctions, we may say in general terms that the struggle over yon Buelow's financial proposals drew the Centre and the Eight close together, and emphasised the antagonism between the privileged classes and the masses throughout Germany. Now, the Conservative party represents chiefly the landed interest, and the agricultural industries—in other words, it stands for the old feudal aristocracy of the Empire, which is intensely conservative "and tenacious of its privileges. The landowners naturally desire to throw the chief burden of taxation upon other classes, and so what we may term the Country party finds itself invariably opposed to the commercial and industrial interests, whose chief stronghold is the toTvns. It is therefore easy to see why the new Conservative-Clerical alliance has -withstood so obstinately the policy of colonial expansion. In the first place, it is the policy of their political opponents, who look to the foundation of a great colonial empire as an opening for further commercial and industrial progress. But, secondly, the great landowners and proprietors of the Centre and the Eight see clearly that the Empire is looking to them to contribute a larger share of the national revenue, arid they fear that the finn-npJB.I failure of the colonial, policy will xeact injmio'nsly on them. Their position, in fact, is -not unlike that taken

the" House- of Lords in opposition demands. And just- as in. England £he refusal of 'the and the capitalists to accept a. of the national burden has driven the Liberals into ■closer alliance ■vrithf ihe Radicals and the Labour party, so in. Germany the break-up of the "Bloc" has brought the National Liberals and ■bhe Moderate Radicals closer to the Social Democrats than ever before. But for the moment the democratic forces in the Reichstag are - almost powerless against the combined weight of the Rign°t and the Centre; and the recent success of the Prussian Conservative party in checking--the movement in favour of a .liberal franchise is an indication of the authority now exercised by the reactionary parties, not only in the national Parliament, ;but throughout the Empire.