the good understanding with Austria, which at that time he was
trying to maintain. Since the foundation of the Empire almost the
complete control over the commercial policy of the Empire had been
entrusted to Delbrueck, who held the very important post of President of
the Imperial Chancery, and was treated by Bismarck with a deference and
consideration which no other of his fellow-workers received, except
Moltke and Roon. Delbrueck was a confirmed Free-Trader, and the result
was that, partly by commercial treaties, and partly by the abolition of
customs dues, the tariff had been reduced and simplified. The years
following the war had, however, not been altogether prosperous; a great
outbreak of speculation was followed in 1873 by a serious commercial
crisis. And since that year there had been a permanent decrease in the
Imperial receipts. This was, for political reasons, a serious
inconvenience. By the arrangement made in 1866 the proceeds of the
customs and of the indirect taxation (with some exceptions) were paid
into the Exchequer of the Federation, and afterwards of the Empire. If
the receipts from these sources were not sufficient to meet the Imperial
requirements, the deficit had to be made up by contributions paid (in
proportion to their population) by the separate States. During later
years these contributions had annually increased, and it is needless to
point out that this was sufficient to make the relations of the State
Governments to the central authorities disagreeable, and to cause some
discontent with the new Constitution. This meant also an increase of the
amount which had to be raised by direct taxation. Now Bismarck had
always much disliked direct taxes; he had again and again pointed out
that they were paid with great reluctance, and often fell with peculiar
hardship on that very large class which could only just, by constant and
assiduous labour, make an income sufficient for their needs. Worst of
all was it when they were unable to pay even the few shillings required;
they then had to undergo the hardship and disgrace of distraint, and see
their furniture seized and sold by the tax-collectors. He had therefore
always wished that the income derived from customs and indirect taxation
should be increased so as by degrees to do away with the necessity for
direct taxation, and if this could be done, then, instead of the States
paying an annual contribution to the Empire, they would receive from the
centra
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