Yes, the rules of capitalization are different.
In English, only the beginning of sentences as well as proper names (of people, of organisations, of "special things" such as specific celebrations, e.g. "Christmas") are generally capitalized.
In German (not only in older text, but also according to the contemporary spelling rules), all of these are capitalized, and in addition, all nouns are capitalized.
The respective statement in Duden is:
Die Grundregel lautet, dass Substantive (Nomen, Hauptwörter), Satzanfänge und Eigennamen mit großem Anfangsbuchstaben geschrieben werden.
The basic rule requires that nouns, beginnings of sentences, and proper names be written with a capital first letter.
As chirlu correctly pointed out, some words that are considered names in English are not considered names in German, however. Notably, this includes toponyms - names of countries and continents ("Frankreich", "Afrika") are capitalized in German when they are used like nouns, but for no other reasons; the adjectives derived from them are not capitalized in German ("französisch", "afrikanisch"). Especially for some toponyms (generally only used on the levels of federal states or smaller), on the other hand, there is a specific form of adjectives that are capitalized, which is created by using the toponym + "er", as in "Berliner Bär", "Reutlinger Ladenstraße".
In your text excerpt, the noun "Text" is an additional example for a word whose English counterpart ("text") would be written with a small letter.