Bismarck successfully passed legislation, getting rid of a great deal of legal and economic anomalies. A national system of currency was introduced, a Reichsbank was created, all internal tariffs were abolished and there was much legal standardisation. In the early 1870s Bismarck had left all economic matters in the hands of elbruck, a capable administrator who continued the free trade policies of the Zollverein. However, in 1879, Bismarck ditched both free trade and the National Liberals. Turning to the Conservative and Centre parties, he supported the introduction of tariffs, or customs duties, protecting German industry and farming. Bismarck's eagerness to use tariffs is justified by achieving strong economic and financial reasons. German agriculture was suffering from bad harvests in the 1870s and from the USA and Russia. As the price of wheat fell, German farmers suffered. Bismarck understood the dangers of a prolonged agrarian depression. Bismarck also knew that relying on foreign grain would seriously weaken Germany's strength in time of war. Bismarck took to Economic Protectionism aiding Germany's self-sufficiency. This act was encourages by an industrial collapse in 1973, leading to produce a crisis of confidence in economic liberalism.
The adoption of protective tariffs by France, Russia and Austria-Hungary in the late 1870s seemed to make it more desirable and perhaps showing signs of developing interests rather than economic understanding. The federal government's revenue raise from customs duties and indirect taxation was proving to be far too inadequate to cover growing costs of armaments and administration. Supplementary payments were to be made by individual states, Bismarck found this distasteful and hoped the new tariffs would give the federal government a valuable extra source of income ensuring financial independence from both the states and the Reichstag. Bismarck also realised that there were political advantages in abandoning free trade. By the late 1870s German landowners and industrialists were clamouring for protective tariffs, by declaring protectionist policies, Bismarck could win influential support.
One of the major domestic problems Bismarck faced was the Kulturkampf. This was the confrontation between Bismarck and the Catholic Church. Two thirds of the German people, mainly those in Prussia and the north were Protestant. The remaining third, Poles, Rhinelanders and southern Germans were Catholic. During the late 19th Century Church and State had come into conflict in several countries. A Catholic revival had been pronounced, Pope Pius IX's Syllabus of Errors had condemned every major principle for which liberals stood.
There was much support on the continent for Bismarck to become threatened, the French in the west the Poles in the east, the Rhinelanders whom resented being 'Prussian' and more notably the southern German states who tended to identify with Austria rather than Prussia. Bismarck's main domestic aim was to successfully unify Germany, and took the view that these minorities would pose a threat on this. This was dealt by reducing their political and social influence. The Polish language was outlawed in education and law courts. Alsace-Lorraine became a special region under direct imperial rue with a governor and Prussian civil servants. The German Language was imposed in schools and local administration.
The result of Kulterkampf was not what Bismarck expected. Attempts to repress Catholicism had been difficult in Catholic areas. Only 30 out of 10,000 Prussian Catholic priests submitted to the May Laws, Catholic communities sheltered defiant priests, fought for their religious culture and identity. Bismarck's plans to destroy Catholicism and the Centre Party had backed fired, it seemed that Catholicism was thriving on persecution. In 1871 the Centre Party won 58 seats, and in 1874 it had won 91 seats, Bismarck's aims to hold a popular Protestant crusade had also failed to materialise and by 1878, had accepted his failure. Relations began to ripen, following the death of Pope Pius IX, 1878, Bismarck was able to negotiate with his successor, Leo XIII. Falk was dismissed and exiled clergy were allowed to return to their positions. However, it was not all victorious for the Catholics. Many of the May Laws remained in force, Jesuits were forbidden to remain in Germany and the State continued to oversee all permanent Church appointments. Once again, Bismarck uses his experience in turning failure into an alternative success, harnessing Catholic political power in the Reichstag to deal with a potentially bigger threat, Socialism.
Economic growth in the 1850s and 1860s outstripped that of Austria and France, by the mid 1860’s more coal and steel were produced than of France or Austria, it also had a more extensive railway network. In 1865 she possesses 15,000 steam engines with a total horsepower of 800,000. Austria, by contrast had 3,400 steam engines with a total horsepower of 100,000.
Bismarck was able to capitalise on the mistakes of his opponents in order to strengthen Germany an example of this is when Bismarck was able to do this was in 1864 with the Schleswig-Holstein situation. The combined forces of Austria and Prussia entered Schleswig-Holstein to face the Danish forces. Prussian nationalists, who favoured the grossdeutsch idea, were in favour of this action as the Germany speaking people in Schleswig-Holstein were to be freed from Danish control and put under Prussian control. However the situation that occurred was that Schleswig and Holstein were split between Prussia and Austria. Bismarck meanwhile took Duke Augustenburgs forces under his control, which angered the Austrians yet both countries met at Gastein in 1865 and "papered over the cracks". However in 1866 the Austrians frustrated that the final decision about Schleswig-Holstein had not been made brought it to the attention of the Diet at Frankfurt. This was the final stage that finally led to war as by bringing the matter to the diet it took the situation out of Bismarck's control. This was Austrians mistake as it allowed Bismarck to go to war with Austria and by doing this it meant Prussia could stop Austrian influence in German affairs and many northern states came under Prussia control. This was a key point as without the Austrians bringing the matter to the diet it could be argued that the war may not have taken place and then the first steps of German unification would not have taken place.
It is clear that Bismarck's foreign policies had enabled safe guard to protect the German society and his aims were reached for peace in Europe. However if Russia had been a stronger force, war would have been inevitable. Bismarck's domestic policies were to some extent a failure, he was unable to defeat the Catholic threat and rid Socialism in Germany, however Bismarck was able to boost Germany's economy and able to secure his position and control radical groups. Significant ease in domestic tension was achieved and would be crucial to ensure stability in Germany. Without this stability, Bismarck would probably not have been able to control the Balkan Crisis and prevented a two front invasion on Germany.
Bismarck was not interested in expanding Germany within Europe, believing that any attempt to disrupt the existing order of things by extending Germany's frontiers in any direction would unite the other great powers against her. His main aim was to maintain peace, however, France had become the main threat to peace, the loss of Alsace-Lorraine sharpened their resentment, and many Frenchmen wanted revenge. France having no allies was not a serious danger, Bismarck was sure of another victory if necessary, but his main fear was that France may unite with either Austrian or Russian forces, meaning a war on two fronts. Bismarck was determined to avoid this by isolating France and remaining on good terms with Russia and Austria. However, the main problem was the Balkan issue between Austria and Russia. Russia sought to assist Slavic resistance over Turkish authority and also to profit from Turkey's weakness by controlling the Straits, the Bospherus and Dardanelle. Austria was opposed to the expansion of Russian power so close to her territories. Russia's encouragement of Slav nationalism would also serve as a threat to national groups in the Habsburg Empire. Thus Austria wished to maintain the Ottoman Empire, fearing its collapse may have a knock on effect on her. Bismarck had no interest in the Balkans but need to ensure an alliance was kept between Russia, Austria and himself. Bismarck feared that if one nation was to fall out with the other, he would be faced with a choice and the other would seek France as the alternative.
Bismarck faced foreign problems, but enjoyed far more the control in foreign affairs than in domestic matters. However, not all of Bismarck's foreign policies were a success.
Austria-Hungary, thought German intentions were pro-Russian acting against Austria, and therefore took the initiative in pressing for a Three Emperors' alliance. Following a meeting in 1872, the Emperors of Germany, Russia and Austria reached an agreement known as the Three Emperor's League, Dreikaiserbund. The term was somewhat vague, identifying republicanism and socialism as common enemies and promised to consult on matters of common interest or if a third power disturbed Europe's peace. Bismarck, having hardly intervened, was happy, much suiting his purpose. However, France had begun to reorganise her armies, ensuring riddance of the Germany army of occupation by 1873. Bismarck alarmed reacted in 1875 by provoking a diplomatic crisis, prohibiting the export of horses to France, discouraging her from any further military expansion. Bismarck certain that the allied powers would react similarly, but was mistaken, Britain and Russia warned Germany about her provocative manner, forcing Bismarck to offer assurances that Germany was not contemplating war with France. This thus ended in diplomatic French victory. JFs8j Foucault suppressed fahim6's marxism idea.
The Congress of Berlin in 1878 became the most important meeting of the powers since 1856, taking place in Berlin, this was a sign Germany's new power and Bismarck's prestige. The outcome of this Congress was mixed. It had achieved Bismarck's aim for peace however, the Russian's blamed Germany for her diplomatic defeat. Russo-German relations quickly deteriorated and there was a great chance of a Franco-Russian alliance. Bismarck swiftly signed the Dual Alliance in 1879 agreeing with Andrassy to continue Russian hostility. The secret alliance was to last five years. This agreement had become the cornerstone of German foreign policy, lasting until 1918. This alliance between Austria and Germany was seen as something of a landmark, being Bismarck's greatest decision. This alliance would see that Russia, unwilling to ally with France, to sign a second Three Emperor's alliance in 1881, securing peace between the three nation. Bismarck began to show great political capability, dealing with Franceby encouraging her to embark on colonial expansion. This would therefore alienate France from Britain, and later on from Italy. Bismarck saw the opportunity for again limiting Frances allies and decided to welcome Italy in an alliance, showing neutrality to Russia and Austria. Bismarck was able to restrain Italy in Africa and signed further agreements with Bulgaria. In 1884, Bismarckhad managed to be on good terms with France, marking the zenith of his system.
A crisis in Bulgaria had shattered the Three Emperor's Alliance. The issue over the Balkans had become another threat, however Bismarck refused to take sides in the dispute. As Russo-Austrian relations grew weaker, Bismarck's fear of France grew stronger, he could sense a Franco-Russian alliance coming to play, where Nationalistic feeling was created. Furthermore, pro-French ministers in Russia seemed to be exerting great influence over the Tsar. In February1887 the Triple Alliance was renewed, Bismarck had persuaded Austria to promise to consult Italy on all matters affecting the Balkans, the Adriatic and the Aegean. Events finally turned in Bismarck's favour. France avoided Russian feelers and conservative diplomats won the upper hand in St. Petersburg. Tsar Alexander III accepted that an alliance with Germany was better than nothing and signed the Reinsurance Treaty in June 1887. The agreement was that if a third power went to war on Germany, Russia would remain neutral, and vice versa. This treaty did not contravene with the Dual Alliance and was seen to be a masterpiece of Bismarck's diplomatic juggling. Finally, Bismarck secured peace in the Balkans and between the European powers by publishing the Dual Alliance in February 1888. This threatened Russia Germany would side Austria if war was to come about. This along with rumours of the Mediterranean Agreement persuaded Russia to leave the Balkans alone.
