Part 1 — CHAPTER IV. LESSER STATES OF WESTERN AND NORTHERN EUROPE. (continued 2)

On June 13 the Government introduced the Bill imposing a special tax for national defence. This tax is charged on income and capital jointly, according to a comprehensive sliding scale, the taxed sum comprising 10 per cent of capital; an income of at least 5,000 kr. is taxed on its full amount; on smaller incomes the tax is degressive, on larger it is progressive, the limit being reached at incomes exceeding 250,000 kr. (13,888l.), a sum which is increased, for purposes of taxation, by 1,250 per cent. The tax is 1 per cent. of the taxed amount; in other words, instead of increasing the percentage, the amount is increased. The measure in question devoted about 37,000,000 kr. (2,055,555l.) to land defence and 24,000,000 kr. (1,333,333l.) to naval defence, the expenditure being non-recurrent. The entire revenue from the defence tax was estimated to amount to 75,000,000 kr. (4,166,666l.).

Eventually the Liberals went a considerable way towards meeting the Government, declaring themselves ready to accept the ironclads of the Sverige type and to extend the "summer-line" drill period from 280 to 310 days, the additional thirty days to be applied, ten for the extension of winter drill and the balance to the drill of the older classes in accordance with the Ministerial proposal. The Ministerial party, or rather the distinctly Conservative section, declined to accept this offer, which gave a month less for the period of drill than that of the Government. The offer of the Liberals to go beyond the Karlskrona programme was made just as the European War began; the Social Democrats now also rallied to the support of the Government. Their leader, M. Branting, at a large meeting of his party, telegraphed to M. Hammarskjöld, offering his support in the efforts to preserve and defend the neutrality of Sweden, and assuring the Premier that he might "reckon upon the confidence of a united people." M. Hammarskjöld at once telegraphed back an appreciative acknowledgment.

An interesting incident of the controversy was the exchange between M. Staaff and M. Hammarskjöld of open and exceedingly friendly letters, truly Swedish in tone and essence. The former gave hopes of a speedy settlement of the defence question, which soon were to be realised. Towards the end of August the delegates of the different parties, who had discussed the question with the Premier, arrived at an understanding; it only remained for the entire Defence Committee to give its sanction, which was a foregone conclusion, and on September 12 the great and all-important defence question was happily solved, the Government proposal, with immaterial modifications, was passed in the First Chamber without any division, and in the Second by 127 to 70, 23 votes being void. When fully established the new scheme will involve an annual expenditure on the Army of some 64,500,000 kr. (3,583,333l.) as against 55,250,000 kr. (3,069,444l.) and on the Navy of 26,000,000 kr. (1,444,444l.), an increase of some 4,000,000 kr. (or 222,222l.); besides this, some 4,000,000 kr. were applied to the coast artillery.

At the same time as the defence question engrossed the interest of the Riksdag, the necessary measures were passed to emphasise and support the neutrality of Sweden. On August 12 the Riksdag unanimously voted 50,000,000 kr. as extraordinary expenditure for defence on account of the international situation, and the Ministerial declaration as to the observance of strict neutrality met with the fullest support.

The dissolution of the Second Chamber and the consequent election were followed by a general election in September, the existing Riksdag, however, remaining in function. This general election confirmed the trend of the spring election by further reducing the Liberal members; the seats they lost were gained by the Social Democrats, who now constituted the largest party, 87, the Right remaining at 86 and the Liberals being reduced to 57. As a result the Social Democrats at a party congress somewhat vaguely declared, by 90 votes against 58, their willingness to accept the responsibility of government, jointly with the Left.

Some other military measures were disposed of, as were several railway bills, a Schools Inspection Bill, and other legislation. The most important bill passed was one making the tobacco industry and trade a State monopoly, calculated to yield a very material revenue. The scheme is to be worked through a huge limited company, beginning operations about the middle of 1915, and in which the State is to be heavily interested financially and will exercise the necessary control. The great total abstinence reform, which had a warm defender in M. Staaff, was frustrated through the inability of the Chambers to agree upon the question of local veto, but the temperance movement is being furthered in many ways. The same fate befell the Women's Suffrage Bill; the Second Chamber had passed it by 107 to 84, whilst the First Chamber negatived it by 76 votes to 46.

After an unusually long session, lasting nominally seven months, though from the end of September there had been no regular sittings, the "B Riksdag" was prorogued on December 17.

A Germanophil movement was headed by M. Sven Hedin, the famous explorer (A.R., 1913, p. 386), and found support in the fear inspired by Russian military preparation for some years past in Finland, in the propagation of war news from German sources, and in the close commercial relations subsisting with Germany. But there were indications of a change of feeling before the end of the year.

Sweden, like her Scandinavian neighbours, has jealously guarded her neutrality, large portions of the reserve and other classes being promptly called under arms. Her declaration of neutrality was followed within a few days by an undertaking with Norway that the one country should not take hostile action against the other.

The feeling of cordiality and joint interests between Sweden, Denmark and Norway was further emphasised and consolidated by the meeting of the three Kings, accompanied by their Foreign Ministers, in Malmö (Dec. 18), at the invitation of King Gustaf, an act of the Swedish King which caused the deepest satisfaction in the three countries. It was called partly to deal with the economic hindrances set up by the war to the trade of the three countries, and the official communication announcing its results stated that it had been agreed to continue the co-operation.

King Gustaf underwent a serious operation on April 9, with eminently satisfactory results. His severe illness and subsequent recovery afforded opportunities for the display of their abundant loyalty by his people.

VIII. NORWAY.

The centenary of the recovery by Norway of her independence as a kingdom made the year notable in other respects than the political. The centenary exhibition demonstrated most effectively the wonderful growth of Norway's resources during the past century.

The Storthing assembled on January 12. M. Lövland was re-elected President of the Storthing and M. Mowinckel of the Odelsthing. On the following day the King in person opened the sixty-third ordinary Storthing. After a reference to the centenary and the century of peace enjoyed by the nation, he stated that the past year had been satisfactory in most departments of home enterprise, and announced a number of measures for the furtherance of industry and commerce; the Budget had been framed without resort to fresh taxation. It showed an ordinary expenditure of 154,900,000 kroner (8,605,555l.) and an extraordinary of 15,081,000 kr. (837,833l.), a total of 169,981,000 kr. (9,443,388l.). The ordinary expenditure showed an increase of 12,880,000 kr., reduced by certain counter-items to 7,300,000 kr. On the revenue side certain taxes and other sources of income exhibited an increased yield over that of the previous year. Even thus early M. Castberg, the Minister for Commerce, expressed views diverging from those of his colleagues: he desired a higher income tax and legacy duties and a reduced Customs tariff.

On January 20 the Government introduced a proposal to appoint a Defence Commission of fourteen civilian members, with the right, however, of calling in military experts. The Commission was to investigate all questions connected with national defence, both military and financial, and examine into the possibility of adopting a system on Swiss lines in order to effect a closer connexion between the Army and the nation.

During the debate on the Customs tariff in February the Premier caused some surprise by not attending the Storthing, and it was understood that on this subject M. Castberg had managed to override his chief. In the debate on the Labour Arbitration Bill, again, M. Knudsen, the Prime Minister, had to humour his troublesome colleague by stating that, in view of the undoubted divergences of opinion on the arbitration clause, he felt sure that both the Government and the Storthing would be most careful in resorting to compulsory arbitration. They would let the contest between employers and employed go on until both sides felt that the struggle must be ended and that the authorities must interfere. M. Castberg declared himself much reassured, and hoped that the statement meant that the new institution should be used, when the men themselves demanded it, for the protection of their interests. Nevertheless he continued to emphasise his divergent views as against the more moderate members of the Government, more especially the Premier, not only in the House but at public meetings; and on April 16 this very Radical Social Minister resigned his seat in the Cabinet, preferring to work as a private member for his aims and ideals. He differed also from M. Gunnar Knudsen on the question of maximum working hours, insisting on a nine hours' day and a fifty-one hours' week, whereas the latter would not go beyond a ten hours' day and fifty-four hours' week.

On February 28 the Storthing rejected the proposal of M. Bryggesaa, the Minister for Ecclesiastical Affairs, to annul Clause 7 of the Constitution, empowering the King to propose a successor, should there be no heir. In the same sitting the Storthing also rejected the proposal to make women eligible as Ministers of State, although M. Abrahamsen, the Minister of Justice, defended the proposal. The adverse minorities were respectively 41 and 44.

On April 23 the Storthing considered the exploitation of the large Nore waterfalls, owned by the State; general disappointment was felt when M. Urbye, the Minister of Public Works, stated that the plans had not yet been finally dealt with, and therefore would not come before the House in the current session.

In the beginning of May the Military Committee of the Storthing handed in their report on the Army Estimates, amounting to 17,550,500 kr., an insignificant fraction less than the sum proposed by the War Department. There were to be no more Generals, the field artillery regiments were each to be divided into three, and the extension of the regimental drills from twenty-four to thirty days would be dealt with in a separate Bill.

On May 13 the Storthing, by 78 votes to 44, decided to divide the Parliamentary session, in accordance with the decision in the Union of the Left, the Government stating that they, too, were in favour of an autumn session, although they did not give their reason. Several Committees were to continue their labours during the recess.

On June 9 the Storthing, by 85 votes to 25, passed a resolution, requesting the Government to see that all alcoholic drinks were prohibited at all military and naval practices, for all ranks alike. The resolution, however, was not acted upon.

On June 26 the Storthing decided that the principal naval dockyard should be extended and that two submarines should be built at Norwegian yards. On July 4 the proposal to appoint a Defence Commission was passed by the Storthing, the adverse minority being 35. The Premier stated that the most important question for the Commission to consider was whether more effective results could not be obtained for the actual military expenditure. More especially the Swiss system should be borne in mind. On July 6 the Storthing unanimously passed the new extraordinary defence tax on income exceeding 4,000 kr. (222l.) and capitals exceeding 100,000 kr. (5,555l.). The tax is to be levied according to a sliding scale, which deals somewhat leniently with incomes not exceeding 10,000 to 15,000 kr. (555l. to 832l.). The measure is subject to revision as regards the fourth term of the tax, and will thus come up for further consideration hereafter.

Just before the close of the session (July 3), the Premier made a Cabinet question of a vote of some 250,000 kr. for the instruction of small holders, a question to which he had given much time and attention. M. Hagerup-Bull, the Conservative spokesman, complained that Cabinet questions were getting rather too frequent. The measure was duly passed.

The session was closed on July 8. The Storthing was to meet again on October 19, but the war altered its arrangements entirely. The results of the six months' work were very moderate, and some of the Government measures were severely criticised and left for subsequent revision.

The war, however, necessitated a short extraordinary session, and the Storthing met again on August 8, a circumstance which was in itself a telling comment on an unfortunate reference by the Premier in the spring "to the cloudless sky of Europe." The War Minister (M. Keilhart) resigned the same day and was succeeded by General Holtfodt, Norway's youngest General. A vote of 10,000,000 kr. (555,555l.) for extraordinary military measures was promptly passed and other measures were adopted in view of the situation. A general moratorium had already been proclaimed; the Government was empowered to extend it, and to render the notes of the Bank of Norway temporarily inconvertible into gold. Much satisfaction was expressed at what might be described as a declaration of confidence between Norway and Sweden. Before the members separated the President emphasised the spirit of unity which had marked the proceedings during the short extraordinary session, all contentious questions being for the present left entirely in abeyance. Under these circumstances the work done later on was confined to some committees which meet in October. All the important measures, including a revision of the law on insurance against sickness, an extension of the Bank for workmen and small holders, and a comprehensive measure of reform of factory legislation, were left for a more favourable season, politically and financially. Naturally a drain on the Treasury is set up in many ways, directly and indirectly, by the war.

The Storthing of 1914 formally closed its session at a meeting on January 8, 1915. In spite of a very active German propaganda, the national feeling tended to favour the cause of the Allies.

The Spitzbergen Conference was opened in Christiania on June 16. Twenty-three representatives were present from nine countries (Great Britain, the United States, Russia, France, Holland, Germany, Denmark, Sweden and Norway). The conference had not completed its labours when the war broke out, and separated with the understanding that it would again meet early in 1915.

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