The new coures of economic policy (der neue Kurs) Caprivi began to take in the early 1890's corresponded to a new stage of German capitalism. The Great Depression affected German industries adversely and made its growth relatively weaker. The home market was limited by the long agricultural depression. Thus Caprivi chose the only possible way left for further development of German capitalism who had neither so many colonies nor so much free capital as England and France, in enlarging the foreign market through the reduction of customs duties on agricultural products by the commercial treaties. But there were required some measures for agriculture. One of them was the policy of land settlement (die innere Kolonisation). This policy, put into practice over the whole Prussia by the two acts of 1890 and 1891 (Gesetze uber Rentenguter), was the first attempt to reform the agrarian structure that had been kept since the peasant emancipation (die Bauernbefreiung) in Germany. The agriculturaltural depression was accompanied with a fall-down of corn price level by the mass inflow of cheap corn from U.S.A. and Canada into Europe. In Germany Junkers and big peasants, especially the former, who supplied the greatest part of corn demand, suffered most severely with the depression. They could not change the direction so radically from corn to another as English farmers did. Most of them as owner-cultivator were charged with heavy and fixed hypothec rent which did not fall down different from the case with English land rent, in spite of enlarged farm expense. On the other hand exploitatien of small peasants rather showed stability and increased in numder under this depression. They were able to sustain themselves with their corn-growing for their own households besides extra money income by means of their cattle-breeding or dairy-farming, vegetable-gardening, which, however inevitably accompanied their family labour. The settlement policy was a measure in accordance with these agricultural trends to help the estates and capitals of Junkers escape from agriculture and settle small peasant farms upon the former Junker estates. A large number of small peasant farms would act as a social safe-valve in the country and strenglthen cattle, milk and vegetable production in Germany. But this measure was not performed so extensively in Germany. The government remained a mere assistant for land settlement, because there was an anxiety about disturbing the property order and social balance of production. The peasant settlement did not mean the real solution of agrarian problems in Germany revealed in the agricultural depression, but rather admitted the trends under the depression. It intended chiefly to make the agricultural structure more suitable for a expansion outwards of German capitalism.

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In this article the present author intends to clarify the class interests revealed in the course of the Land Tax Reform. Materials out of former Chikuma Prefecture are chosen, because : fisrtly, here among the others land tax reform project can be perceived in the earliest years; secondly, the government accomplished here the target of this reform in securing the tax revenue in the same level as by the contributions under the Shognate; thirdly, in a narrow connection with this reform broke out the Democrats Movement in this area. It is characteristic of this district that the demand of common peasants, whose main agents were middle class peasants, caused a new land survey in order to balance tax burden of large estates with rather smaller acreage registered in the official terrier. The interest of the common peasants, however, did not entirely achieved their end, because in the land evaluation rent was taken as the standard of land value on account of scarcely developed land market among the peasants. Thus new taxation system came to be nothing other than a mere correspondence and legal recognition to the Jinushi-sei landownership grown up under the Shognate regime and further promoted it, in this district too, because the exploitations of peasants remained still unstable in spite of a increased productivity and new acquisition of arables in front of the new tax burden which inherited the previous level. And the principle of equality of tax burden resulted in distortion as seen in the land-evaluation in favour of landlords.

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In the course of break-down of feudalism, we can observe a critical phenomenon of ruralization of industries, especially in Flanders and in England, later in France and the Rhineland, too. But in Holland--and here alone in West Europe--the rural industries were entirely annihilated in their infancy. In this article it is intended to detect a specificum in her economic development which caused this difference. Holland emerged towards the end of 14th century as one of the influencial trading countries, taking advantage of her geographical position where the main traffic route between the Baltic-Norwegian area and West-South Europe, on the other hand between England and West Germany via the Rhine crossed ; furious struggle against the Hanseatic League who had hegemony in trade lasted for two centuries. But Holland won at last, provided with better productive fundament : the herring and cod fisheries in the North Sea, the nursery of her crews and ship-building for her carrying trade. Not only the important trading cities such as Amsterdam, Hoorn, Enkhuizen, Dordrecht or Rotterdam but also small towns and village took part in these foreign trades. And in some inland cities (Leyden, Delft, Haarlem and Gouda) exporting industries of woollen manufacture and beer brewery prospered thanks to her commercial expansion. But in the beginning of 16th century there came a blow upon Holland's economy. Wars and blockades of commerce deprived her of out-let of her industrial products and foreign trade. The cities now pressed Charles V, ruler of the Netherlands and German Emperor, in an attempt to monopolize the rural market, and he could not help admitting their demand in exchange of recognition of new quota of taxes, in spite of strong opposition of nobles and manorial lords. Thus the cities obtained an edict of Emperor to prohibit weaving, leather-tanning and house-construction or illegal tappers and bakers in their direct neighbourhood (De ordre op de buitenneringen in 1531) and furthermore by means of particular letters patent of Emperor or through the purchase of manors nearby they could stop the development in the rural industries. After the Independence War industries were again restored in the cities, and rural industries disappeared or degenerated in a element of traffic industries owing to an unprecedent prosperity of Dutch staple market. It was this special economic structure dependent on the carrying trade which made the rural industries difficult to unfold and the cities strong enough to suppress them.

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