A party which is composed for the most part of workingmen, and which has been increasing steadily in the number of its adherents, is utterly opposed to the present policy and organization of the Imperial government; and those Social Democrats have for the most part been treated by the authorities with repressive laws and abusive epithets.

Thus a schism is being created in the German national system which threatens to become a source of serious weakness to the national efficiency and strength.
That the existence of some such domestic opposition is to a certain extent unavoidable must be admitted.

A radical incompatibility exists between the national policy of the Imperial and Prussian governments and the Social Democratic programme; and the Imperial authorities could not conciliate the Social Democrats without abandoning the peculiar organization and policy which have been largely so responsible for the extraordinary increase in the national well-being.

On the other hand, it must also be remembered that the Prussian royal power has maintained its nationally representative character and its responsible leadership quite as much by its ability to meet legitimate popular grievances and needs as by its successful foreign policy.

The test of German domestic statesmanship hereafter will consist in its ability to win the support of the industrial democracy, created by the industrial advance of the country, without impairing the traditional and the existing practice of expert and responsible leadership.