GERMAN AFFAIRS.

Evening Post, Volume LXXV, Issue 23, 28 January 1908, Page 6

GERMAN AFFAIRS.

— — «» The idea that Germany by her science, her patriotism, her protective tariff, and her elaborate system of State-aid to private enterprise, has succeeded in evading the evils to which Britain, is exposed by her closer adherence to the theory of "laissez fairo," and in establishing a sort of Utopian condition of general prosperity, has been sedulously fosterod by Mr. Chamberlain and those who have followed his lead on tho fiscal question. It would be absurd to deny that, especially in her educational and municipal methods, Germany has much to teach us ; but without accepting too literally the contentions which the British freetraders have based upon the black bread and, horse-flesh diet of the German workmen, it has long been obvious to the discerning eye that the prosperity of Germany, like that of over,Y othor country, has its seamy side. Tho wealthiest and best administered country in tho world — and Germany is at any rate far from the wealthiest — could not possibly bear tho cost of her enormous military and naval expenditure, of her useless colonies, of her beneficent workmen's insurance scheme, i and of all the other branches of her State enterprise without a severe strain, and there have been many indications during the last few months that it is being actually felt. We referred recently to Colonel Gadke's colculation that the German taxpayer is far more heavily burdened than the taxpayer of Franco or Britain, and his conclusion that Germany has reached a point beyond which it would be dangerous to go. As a military critic Colonel Gadke stands in tho front rank, and on the financial side his fears are confirmed by equally high authority in that special department. Speaking in the Reichstag, at the beginning of last month, th? Prussian Minister of Finance indulged in a similar contrast between the indebtedness of Britain and France on the one hand and that of Germany on the other. "England," he said, "emerged from the Napoleonic wars with a national debt of £1,000,000,000, and redeemed no less than one-quarter of this indebtedness durirg the course of last century. From 1856 to 1901 England issued no loan on the public market. France, again, notwithstanding the enormous cost of her armaments, issued no loan between 1881 and 1901. During this same period the German Imperial debt had increased from £11,000,000 to over £120,000,000, and from 1901 onwards it had risen to £200,000,000. This uninterrupted increase in the Imperial debt unquestionably impaired Germany's commercial prestige." This is plain language from a high authority, yibt the determination of the Kaiser and his advisers that the Fatherland shall be supremo both by land and by sea prevents any slackening of the pace at which the debt is accumulating. The Imperial estimates for 1908 provide foi an expenditure of £137,502,920, an increase of £7,683,338 on those of last year, and for new loans to the amount of £13,000,000. "In view of the total of over £200,00j),000, which the debt has reached," safd the Berlin correspondent of The Times in his comments on the Budget, "and seeing that the annual sorvice of the debt requires a sum of nearly £7,500,000, the situation can only be described as serious." It is noteworthy that the increase for the present year is almost entirely due to increased appropriation for army, navy, and colonies ; and that during the next ten years the naval programme alone is to account for £208,600,000. From the side of the people the Socialists'complain bitterly of the increased cost of living. According to one of their leaders in the Reichstag the average increase in this item during the last ten years — the period of Germany^ most rapid expansion— is estimated at 33 1-3 per cent. Rye with an advance of 62.7 per cent., wheat 45 pei cent, mutton 50 per cent, and beef 36 per cent., were among the items mentioned, some of these increases being tho work of the last two or three years. For this serious addition to the burden of the poor the Socialists blame the Agrarian Tariff, but the Government holds out no hope of any modification, and point to the rise in wagea which has also taken place during tho last few years as a setoif. Add to these troubles the expected collapse of Germany's industrial "boom," and the gravity of the news which has reached us last week from Berlin will* be apparent. At a meeting of 12,000 unemployed the demand was formulated "that tho State should undertake building work at trade union wages, the removal of fQod taxes, and also the immediate institution of municipal relief works. They repudiated the acceptance of charity." Through what appears to have been quite unprovoked brutality on the part of the police, a collision unfortunately; occurred between them and the mob. Sabres were drawn and freely used, and there were pools of blood in the streets before the timid majesty bf the law had adequately asserted itself. The Imperial Chancellor has, of course, championed the polico, and declared that tho Government is determined at all costß to maintain law and order. These remarks, to which was added a warning to the workers not to follow agitators, were naturally received with groans and hisses from the Socialists in the Reichstag. According to tho Vorwaerts, there are 60,000 unemployed in Berlin, and it is impossible to suppose that the treatment which they have received from the polico with the approval of the Government will not greatly strengthen the hands of the one political party which the Government i has to fear. Such a premature vote as that of the Hull Conference, especially when, as now proves to be the case, it has the appearance of a snatch vote, only does harm to the cause of Socialism. But the kind of argument which the Berlin police tyiave been applying to a peaceful meeting of unemployed will hurt Prince Bulow and his master, and help their opponents.