Clash With the Kaiser
With the Kaiser's drive towards war, the National Liberals were torn by the direction to take. As the second largest party in the Reichstag, and the largest party in the Government of Chancellor von Bulow, they were almost evenly split on the question of military spending, the massive burden that was driving the German economy into the ground. However, the work of the Foreign Secretary von Holstein had convinced the Chancellor that something needed to change. The Kaiser could no longer be trusted; basic reform was necessary to change the old electoral laws and end the domination of the Prussian junkers, to end the militarism and to modernise the German Reich.
On 28 October, 1908, the difficulties of government unity were compounded when an article appeared in Britain's Daily Telegraph, purporting to be an interview with the Kaiser. The Kaiser alleged that there was considerable anti-British sentiment in Germany and that he was struggling to contain it. There was considerable outrage both in Germany and abroad, including France, Russia, Britain and Japan. As Chancellor, it was von Bulow's duty to defend the Kaiser. However, over the past year, his political position had slowly moved away from the Kaiser and he felt he could not do so. After days of building pressure in the Reichstag, he advised his party he would not defend the Kaiser and, in the heated debate that followed, von Bulow announced that he was leaving the party. He took with him nearly half the party's members.
The split of the National Liberal Party meant that the task of building a majority in the Reichstag could only fall to Julius Bachem, the leader of the Catholic Centre Party. As a non-noble and a Catholic, there would traditionally be no possibility that he would ever be appointed Chancellor.
Meanwhile, the Kaiser had sunk into a deep depression, believing himself to have been abandoned. When von Bulow and Bachem visited him on 10 November to advise him of the changes on the Reichstag and to suggest that the Chancellorship be transferred to Bachem, he drove them away in a megalomaniacal rage, screaming that they were "bad, bad, bad", throwing at them the imperial seal.
Uncertain as to what to do next, Prince von Bulow returned to the Reichstag and publicly disassociated himself from the actions of the Kaiser, announcing that he had tendered the Kaiser his resignation, but that the Kaiser was not "sufficiently in his own mind" to accept it. There was outrage among his former party members and among the conservative Junkers, who moved a motion of no confidence but were defeated by eight votes.
Wilhelm II had avoided appointing strong political leaders, not wanting anyone who could interfere with his rule. With the fall of von Bulow, it became clear that another bureaucrat could not exercise the strength necessary to keep the Empire on course. However, the mind of the Kaiser was insufficiently strong for the test as well. With that fact before them, the Reichstag appointed his son, Crown Prince Wilhelm of Germany and Prussia, as Regent.