litical violence, is yet a constant source of danger to
domestic peace. The German middle class, that bourgeoisie which is the
backbone and strength of the Empire, is losing its Spartan simplicity
and its content with small and moderate pleasures; and the national
virtues of thrift and self-denial are yielding to the temptations of
wealth and luxury. Business credit is unduly stretched, speculation in
land has attained disturbing proportions, and the banking world is in
too many instances allied with hazardous or doubtful enterprises.
Nevertheless the country as a whole is sound, intellectually, morally,
and financially.

It would be difficult to mention any of the greater tasks of imperial
administration to which the Emperor does not continue to devote
personal attention. He is the life and soul of the army and navy,
though it should not be forgotten that as regards the latter he has in
Admiral Tirpitz an executive talent worthy of his own directive. His
interest in the mercantile marine remains what it was when in 1887, as
Prince William, he drew up an expert opinion which decided the
Hamburg-Amerika Company to build their fast ocean-going steamers at
home instead of abroad, and by the success of the experiment commenced
the modern development of Germany's shipbuilding industry. Indeed, his
attention to the Hamburg line, familiarly known as the "Hapag" line,
from the initial letters of its legal title, "Hamburg-Amerika
Packetfahrt-Aktien Gesellschaft," and to the Norddeutsche line from
Bremen, has given rise to the unfounded belief that he is heavily
interested in their financial success. Herr Albert Ballin, the
Director of the Hamburg line, though a Jew, is among his intimates and
advisers, and the Emperor is said to have caused umbrage more than
once to Court officials and the aristocracy by giving directors of
both lines precedence at his table. Without the Emperor's personal
support it is probable that neither the firm of Krupp at Essen nor the
splendid shipbuilding yards at Hamburg, Bremen, Stettin and elsewhere
would continue to progress as they are doing. He neglects no
opportunity of stimulating Germany's internal and external trade.
He is at all times ready to encourage the introduction of useful
achievements of modern science and invention. And lastly, by
tactful treatment of other German rulers, and a wise policy of
non-interference with their States, he is promoting a feeling of
federal solidarity.

The