Bundesrat
,
which constituted the middle layer and was made up of delegations from the
separate states. As the largest state, Prussia possessed effective veto power in the
Federal Council and was able to block any measures or constitutional
amendments deemed inimicable to Prussian interests. Finally, the real
concentration of power was in a few hands at the top of the pyramid: with the
emperor, the chancellor, ministers, senior officials, and leading figures in the
army. Nominally, the emperor – or his chancellor, depending on the interplay of
personalities – possessed great power. But a power vacuum (with a weak
emperor and chancellor) would in effect entail rule by the bureaucracy. Nor was
the army entirely accountable. Initially, the war minister was partially
answerable to the Reichstag, although the Prussian war minister was not
responsible to the Reichstag on matters concerning the largest contingent of the
armed forces, the Prussian army. In 1883, the Reichstag lost what minimal
control it had possessed over military matters through control of the military
budget, and subsequently – into the First World War and well beyond – the
German army was to play a highly ambiguous, and eventually fatal, role in
German politics.
Bismarck had designed this constitution to ensure his own and Prussia’s
powers, but in the event proved less than committed to it in principle himself.
Later on, when it no longer appeared to suit his purposes, he even considered
jettisoning it. Retrospectively, it can also be seen that Bismarck, the moving
force behind the unification of Germany, had bequeathed a highly problematic
legacy for the future.
Map 8.
The unification of Germany, 1867–71
GERMANY UNDER BISMARCK
At the beginning, there was a period of enthusiastic economic activity,
characterised by a great speculative boom, the founding of new companies and
large enterprises, the rapid expansion of railway construction and other building
projects. With a currency reform in 1871, a great deal of paper money began to
circulate in addition to the money flooding into the economy as a result of
France’s speedy payment of reparations. The bubble of what was known as the
Gründerzeit
(‘founders’ years’) burst in 1873, when a collapse of confidence
brought an inevitable economic crash. After 1873, the early free trade policies
supported by the liberals, under the influence of Rudolf von Delbrück, were
repudiated in favour of an increased protectionism. Depression set in, with
worsening economic conditions for many Germans. With the competition of
cheap foreign grain, as well as manufactured goods, both industrialists and
landowners began to clamour for import tariffs. The shift to protectionism was
consolidated in 1879, with the introduction of tariffs and an increase in indirect
taxes. While liberals were increasingly divided, from the 1880s onwards a
conservative coalition of agrarian and industrial interests developed – although
not without tensions and frictions along the way – which was to dominate
Imperial Germany into the early twentieth century.
The crash of 1873 also stimulated a revival of anti-semitism in Germany.
There had long been a tradition of popular hostility to Jews, and denigration of
‘inferior’ eastern Jews. But with assimilation in the course of the nineteenth
century, certain Jews had been rising to increasingly prominent positions in
German society. Jewish families were particularly visible in the field of banking:
Bismarck’s own banker, Bleichröder, was a Jew, while names such as Rothschild
were achieving international renown. Big banks survived the crash of 1873,
inaugurating an era of large financial capitalism; and Jews in particular were
resented by those small enterprises and lower-middle class individuals who had
suffered economic losses. In addition, anti-semitism was being given intellectual
respectability by prominent academics, such as the nationalist historian Professor
von Treitschke. Such views were not uniquely German – there were influential
English and French racial theorists at the time – but these developments were to
provide a favourable background to the more virulent forms of political anti-
semitism which later developed.
The shift away from liberalism in the late 1870s was connected with the
resolution of what was known as the
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