Introduction of protection 1879, building of a large navy from 1898 to 1914

Under the guidance of Bismarck, the Reichstag passed the German tariff of 1879 which imposed duties on industrial and agricultural imports of the empire.

As a consequence of cultivation in the American Midwest and development of railways in Russia, prices of grain in the world decreased in the late 1870s. Due to cheaper wheat and rye, Germany began to import grains.

The tariff imposed the following rates:

Agricultural Product	Duties per 100 kg
Wheat, rye and oat	1 mark
Barley and maize	50 pfennings
Flour	2 marks
Meat	12 marks
Oxen	20 marks
Sheep	1 mark
Pig	25 marks

Industrial Product	Duties
Pig iron	1 mark
Semi-manufactured goods made from iron/steel	2 to 2.5 marks
Other iron and steel goods	7.5 to 15 marks
Machinery	3 to 8 marks

The protection law primarily benefitted wealthy landowners east of the Elbe. Their products were greatly protected by cheap grain imports from the US. In addition to saving the economy from decline, it also expanded the political influence of the Junker class.

On the contrary, the tariff law alienated the working class. They believed that taxes were levied on them, the consumer class.

Tariff cartoon by Thomas Nast,1879

Introduced by secretary of state for the navy, Alfred von Tirpitz, the building of the German navy under the Navy Law of 1898 had a decisive effect on Anglo-German relations. The Kaiser, Hollweg and Tirpitz believed that a huge navy was necessary for imperial greatness. Tirpitz easily gained the support of many liberals in the Reichstag who opposed anti-British policy. Moreover, compared to the army, the navy was more German than Prussian.

(From left to right) William II, Alfred von Tripitz, and Helmuth von Moltke on the battleship Friedrich der Grosse, 1912

By 1900, the Second Navy Law was passed, which doubled the German navy to 38 ships. Between 1898 and 1912, five Fleet Acts were passed to expand the German High Seas Fleet. In summary, the Germans aimed to build a fleet similar to the British Navy.

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Following the outbreak of the Second Boer War, the Reichstag passed the Second Naval Act in June 1900. This act alarmed the British policymakers and First Lord of the Admiralty Selborne. In February 1906, the British navy launched HMS Dreadnought, which was described by many as a monster ship equivalent to two to three regular battleships.

• five torpedo tubes
• maximum belt armour 11 inches
• top speed 21.6 knots

HMS Dreadnought

• five torpedo tubes
• maximum belt armour 11 inches
• top speed 21.6 knots In response, Tirpitz submitted a proposal for the increase of naval spending. After great opposition from the Reichstag, the Third Naval Law was passed in May 1906. The passage of the law was due to rising nationalist sentiment in German following the First Moroccan Crisis. Tirpitz' proposal included the annual production of two dreadnoughts and one armoured cruiser.

In March 1908, the Reichstag passed the Fourth Naval bill which increased naval production to four battleships per year, over the next four years. Due to massive naval spending in the recent years, Germany's national debt doubled (1900-1908), while the majority of the national budget was also spent on the military. Internationally, it increased Germany's diplomatic isolation.

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Despite the alarming rate of the German navy, Britain had largely ignored the buildup. In 1907, Britain's Liberal government under Prime Minister Herbert Asquith focussed on reducing government spending, while increasing the budget for social programmes. However, the passage of the 1908 bill alarmed the government and public in Britain. Proposals to expand the British navy were largely opposed by Chancellor of the Exchequer David Lloyd George and President of the Board of Trade Winston Churchill. They both argued that increased military expenditures would threaten the Liberal Party's welfare reforms. Meanwhile, advocates of military spending included the Conservative Party, the Navy League, arms industry in Britain and King Edward VII.

SMS Pommern, II Squadron, May 1908

SMS Westfalen, I Squadron

Figures of the Anglo-German race, 1906-1914

Year	dread-noughts	battle cruisers	dread-noughts	battle cruisers
1906	0	0	1	0
1907	0	0	3	3
1908	4	0	2	0
1909	3	0	2	1
1910	1	2	3	1
1911	3	1	5	2
1912	2	2	3	1
1913	3	2	7	1
1914	1	0	3	0

When WWI broke out in 1914, dreadnoughts per countries were as follows:

• Russia - 4
• France - 10
• Germany - 17
• Austria-Hungary - 3
• Britain - 29

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Glossary of Terms

GERMAN EMPIRE

It refers to the Second Reich or the Imperial State of Germany established after German unification in 1918.

JUNKER

Members of the wealthy landed noble class in Prussia.

JUNKER

Lower house parliament of the German Empire. Representatives were elected by males over 25 years old.

LӒNDER

Also known as Bundesländer, the German federal states were commonly ruled by royal families. Representatives composed the Bundesrat.

KAISERREICH

Also known as the Second Reich, the Kaiserreich was a period in Germany following the unification in 1871 until the abdication of Kaiser Wilhelm II in 1918.

BUNDESRAT

The upper house parliament of the German Empire. Delegates were traditional princes and nobles of the states.

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