The North German Confederation was now con stituted under Prussian leadership. Bavaria, Wurttemberg, and Baden allied themselves with the new body, though they did not enter it. Their treaties with Prussia provided for an of fensive and defensive alliance, and acceptance of Prussian leadership in case of war. The Con stituent Diet of the new Confederation met Feb ruary 24, 1867, and proceeded to frame a consti tution, which forms the basis of that of the present Empire. The aspirations of Prussia looked to the completion of German unity and the es tablishment of the paramount influence of the new German State in European affairs. Bismarck was well aware that the consolidation of Germany meant eventual war with Germany's ancient enemy, and be prepared for it as thoroughly as he had for the conflict with Austria. War was nar rowly averted in 1867, when France sought to occupy Luxemburg as a compensation for the ter ritorial acquisitions of Prussia, and in 1869, when France showed unequivocally her desire to annex Belgium. The intention of Spain to seat a Hohen zollern prince on the vacant throne offered an op portunity for her quarrel which France was now seeking, and the injudicious conduct of Benedet ti, the French Minister at Berlin, the fatuous insistence of the French Foreign Minister, Gra mont, upon an impossible apology from King William, and the shrewd and unscrupulous use made by Bismarck of the dispatch relating there to, stirred a feeling in both countries that could only result in war, which was declared by France July 19, 1870. The French, not realizing that the day of Napoleonic conquests had passed, still less that the day of United Germany had come, expected to invade Germany, win over the South ern German States, and to march straight on Berlin. Instead, they found the German Army mobilized on the frontier, and the South German States loyal to their alliance. A quick succession of German victories was followed by the surren der of MacMahon's army and the capture of Napoleon himself at Sedan (September 2, 1870), the investment of Paris, and the capitulation of Bazaine at Metz (October While the united armies of Germany were still besieging Paris, King William, at Versailles, in the Ga lerie des Glaces, amid a brilliant assemblage of princes and officers, received from the people of Germany, in pursuance of the decree of the North German Diet of December 10, 1870, the title of German Emperor, hereditary in the Prussian Dynasty (January 18, 1871). On the 16th of April the• Constitution of the Empire, which was substantially that of the North German Confed eration, with the addition of certain special provi sions for the South German States, was promul gated. By the treaty of peace with France, signed on the 10th day of May, at Frankfort-on' the-Main, Germany received the provinces of Al sace, with the exception of Belfort, and the German-speaking part of Lorraine, including Metz and Thionville, and an indemnity of five milliards of francs ($1,000,000,000). See FRAN CO-GERMAN WAR.
The southern States had entered the new Em pire, and the King of Bavaria, the largest Ger man State outside of Prussia, had acted as spokes man in proffering the crown of United Germany to King William. The military preponderance of France on the Continent of Europe was at an end. Secure in its position as a dominant power, the new Germany was free to develop its national genius. But Bismarck's internal policy during the first years of the Empire was not as success ful as his State-building process had been. He became involved in a conflict with the Roman Church, and this became the leading issue in Imperial politics for six years. from 1873 to 1879. ( See KULTURKAMPF.) The preponderat ing position of Germany in the affairs of Europe was asserted at the time of the Russo-Turkish War when the Congress of Berlin was convened for the settlement of the Eastern Ques tion. After the attempts upon the life of the Emperor in 1878, attributed to Socialist fanatics, vigorous legislative measures were taken to sup press Socialism as an organized force, while at the same time the Government undertook legisla tion for the benefit of the working classes, such AR compulsory State insurance. An extensive system of canals was begun in 1886, including the great Kaiser Wilhelm Canal, connecting the North Sea and the Baltic, which was opened June 19, 1895, with imposing ceremonies. As soon as Austria had been expelled from the Germanic body it became Bismarck's policy to cultivate friendly relations with that country, as Ger many's closest neighbor and kin, and in 1883 the Triple Alliance (q.v.), comprising Austria, Ger many, and Italy, was formed, with the object of maintaining the balance against France and Rus sia. In 1884 Germany embarked upon her career as a colonizing power. (See GERMAN EAST AFRI CA; GERMAN SOUTHWEST AFRICA; ICAMERUN.) Emperor William I. died in 1888, and was suc ceeded by his son, Frederick III., who was then
suffering from cancer of the throat, and died in a few months. He was succeeded by his son, William II. The history of Germany since his accession has been characterized by the social and economic movements common to all of the Western nations at the close of the nineteenth and at the opening of the twentieth century, while as a growing world power Germany has be come one of the chief factors in the questions arising from the colonial enterprises of the' na tions of the West and the increasing solidarity of mankind. Differences very early developed between the Kaiser and the great Chancellor, and an issue having been made on the Govern ment's policy toward the Socialists, Bismarck was ordered to resign, and his resignation was accepted March 20, 1890. He was succeeded by General von Caprivi (q.v.). The Emperor himself, after his plan of an international labor conference had failed, became a bitter .opponent of the Socialists. After 1879 Germany main tained a protective tariff, and duties were con siderably increased in several directions, though the operation of the fixed tariff was much modi fied by tariffs based upon reciprocity treaties. The steady development of German industry and commerce checked the stream of emigration, and the population has continued to increase at an undiminished rate. Caprivi retired from the Chancellorship in 1894, giving place to Prince Hohenlohe. Of recent years very active interest has been taken in the development of the mer chant marine and navy. The Naval Bill of 1898 pointed in its preamble to the increased volume of imports and exports, colonial expansion, in creasing population, and the investment of large amounts of capital abroad as indications of the need of a strong navy. The bill (passed March 28, 1898) provided for an expenditure of an amount equivalent to $102,000,000, of which $89. 000,000 was to be expended on fleets and arma ment. This was expected to bring the strength of the navy up to 19 battle-ships, 8 coast-de fense vessels, 9 large and 26 small cruisers, and numerous smaller craft. A bill passed with some difficulty in June, 1900, practically doubled this programme, extending the period of opera tion over twenty years, and providing for 33 battle-ships and a corresponding complement of cruisers and smaller vessels. As iii all the consti tutiorYal countries of Continental Europe, strong party organization is made impossible in Ger many by the numerous factions and the lack of a responsible Ministry. (See POLITICAL PARTIES, paragraph on Germany.) Prince Bismarck had been reluctantly forced into a colonial policy by the growth of German commercial interests, and William II. actively promoted this development in various parts of the world. In 1898 he seized the pretext of the murder of two German mis sionaries in China to exact from that country the cession of the port of Kiao-chau and 200 square miles of adjacent territory, and to estab lish a sphere of influence in Shantung, one of the richest Chinese provinces. He then attempted, the outbreak of 1900 and in the events which followed the Boxer movement, to claim for Germany in the Far East the same pre dominant role that Bismarck had sought to win for her in Europe. (See CHINESE EMPIRE.) Prince Hohenlohe resigned the Chancellorship in 1900, partly because of disagreement with the Emperor's Chinese policy, and was succeeded by Count von Billow. German commercial and in dustrial activities are now world-wide. The actual territorial possessions of the Empire out side of its own borders are in Africa, in the partition of which Germany has had a large share (see AFRICA), and a few islands in the Pacific ; but German settlements, merchants, and factories are found in Mexico, Central and South America, and in Asiatic Turkey, and German banks in many parts of the world are the stable foundation of activity in trade and industry. German colonization and commercial societies, well supported financially and managed with skill and energy, support these enterprises, and are actively fostered by the home Government. Such associations are found operating in Central and South America, in Senegambia, on the Gold Coast, in Australia, Tahiti, and Sumatra, as well as in the countries under the German flag. Par allel with this activity in the world's industrial competition has been a very intelligent policy of subsidizing steamship lines to Oriental and Afri can ports, intended to snake Germany independent in its carrying trade. In every way the German Government supports its citizens in spreading German influence, and it has never failed to defend the interest of German merchants where these have been threatened by disorder or revolu tion in weakly governed countries, as in Haiti at the end of 1902, or in Venezuela (q.v.), in conjunction with Great Britain and Italy, in the early part of 1903.