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524 General History of Europe away with, and the mark (normally worth about twenty-five cents) became the basis for the currency of the whole empire. A tariff system was introduced to protect the entire country from foreign competition and encourage home industries. So it will be seen that Germany rapidly became a remarkably well-organized and powerful state, with little resemblance to the weak and dis- tracted old Holy Roman Empire out of which it had grown. 935. Bismarck and the Socialists. The Industrial Revolution did not get fully under way in Germany until after the middle of the nineteenth century, but in the period we are describing Ger- many was undergoing a rapid and profound change. Large manu- facturing towns sprang up ; railways were built ; and the working classes began to feel themselves in need of defense against the power of the new factory owners. Socialism developed here as elsewhere as a result of the new conditions of manufacture. In addition to the formation of labor unions a new political party appeared, known as the Social Democratic Labor party, which based its platform upon the teachings of Karl Marx. Bismarck grew alarmed, and in 1878 a law was passed to suppress socialistic agitation and leading socialists were impris- oned. They continued their secret propaganda, however, and Bismarck decided that to allay discontent the government should introduce certain socialistic measures of its own accord. 936. State Socialism in Germany. Bismarck was not opposed to having the government own and operate railroads and mines and conserve the natural resources. So it came about that the state-owned property in Germany amounted to about seven bil- lions of dollars before the World War came, and brought in an income of about three hundred millions of dollars. The Federal government also arranged a system of insurance for workingmen against accident and sickness and required the employers to con- tribute to the expense. Similar laws were' later passed to protect workmen against destitution on account of old age or incapacity to work. In 1913 over twenty-five million persons were insured under these laws.