litarism is in no sense necessarily economic. But the strength of
Germany for war was rapidly increased by her success in peace. From
the date of the great financial crisis of 1874, and the consequent
reorganization of her entire banking system, Germany entered upon that
determined and well-thought-out attempt to attain pre-eminence in the
trade and commerce of the world of which we have not yet seen the end.
From 1878, when the German High Commissioner, von Rouleaux,
stigmatized the exhibits of his countrymen as 'cheap and nasty,'
special efforts were made to use the excellent education and admirable
powers of organization of Germany in this field. The Government
rendered official and financial help in both agriculture and
manufacture. Scientific training, good and cheap before, was made
cheaper and better each year. Railways were used not to foster foreign
competition, as in Great Britain, by excessive rates of home freight,
but to give the greatest possible advantage to German industry in
every department. In more than one rural district the railways were
worked at an apparent loss in order to foster home production, from
which the nation derived far greater advantage than such apparent
sacrifice entailed. The same system of State help was extended to
shipping until the great German liners, one of which, indeed, was
actually subsidized by England, were more than holding their own with
the oldest and most celebrated British companies.

"Protection, alike in agriculture and in manufacture, bound the whole
empire together in essentially Imperial bonds. Right or wrong in
theory--which it is not here necessary to discuss--there can be no
doubt whatever that this policy entirely changed the face of Germany,
and rendered her our most formidable competitor in every market.
Emigration, which had been proceeding on a vast scale, almost entirely
ceased. The savings banks were overflowing with deposits. The position
of the workers was greatly improved. Not only were German Colonies
secured in Africa and Asia, which were more trouble than they were
worth, but very profitable commerce with our own Colonies and
Dependencies was growing by leaps and bounds, at the expense of the
out-of-date but self-satisfied commercialists of Old England. Hence
arose a trade rivalry, against which we could not hope to contend
successfully in the long run, except by a complete revolution in our
methods of education and business, to which neither the