CHAPTER II.EARLY ECONOMIC POLICY OF PRUSSIA

THUS FAR WE HAVE seen the theoretical side of State Socialism. An important characteristic of this economical system is its recognition of the national idea. As State Socialism is the protest of Collectivism against Individualism, so it is the protest of Nationality against Cosmopolitanism. It proceeds from the axiom that the first duty of the State is to maintain and promote the interests, the well-being of the nation as such. Next in importance, however, to this duty, is the duty of affording help and protection to the subjects of the State according to their necessities. Not only have all citizens to be secured in the possession of their rights, but the weaker classes of the community have a claim to preferential consideration, the State regarding it as its business to help them when they cannot help themselves. Already the theory of State Socialism has received wide application in Germany; but as in legislation theory always keeps far in advance of practice, much remains to be done before the scientific exponents of this system will be satisfied.

It will never be possible to understand and appreciate the State Socialistic measures adopted in Germany since the establishment of the new Empire, unless they are considered in relation to the past social-political policy of Prussia. No mistake could be greater, and yet none is more common amongst the observers of Prince Bismarck’s imperial legislation, than the idea that State Socialism is a new thing in Germany, a purely modern growth owing its origin to accident or the temporary exigencies of a perplexed statesman. To those who regard State Socialism in this light, the series of social, industrial, and commercial measures which the last twenty years have called forth in Germany must indeed seem remarkable, if not inexplicable. But continuity of legislation is as natural to Germany as it is to England, and instead of denoting a completely new departure in economics, these measures are in reality but a continuation of, or a reversion to, traditional policy. Prince Bismarck has done nothing more than develop the social and political system established by the Great Elector, Frederick William I, and Frederick the Great of Prussia. He has taken u