— 9 — 



It need hardly be said that the reactionary parties are scheming with 

 all their force to bring about the fall of such a minister. For instance, 

 the recent strike-agitations throughout Spain were in reality fomented 

 with ulterior political motives rather than for the improvement of the 

 conditions of the workmen, and were chiefly intended to serve the interests 

 of the clerical parties, by embarrassing the Government as muchas possible, 

 and thus making it more amenable to the demands of the Vatican. Na- 

 turally, the whole Spanish nation is under the stress of this struggle bet- 

 ween State and Priesthood, watching and waiting to see which will emerge 

 as the victor. Already, in the few months since the commencement of 

 Sr. Canalejas' administration, it has become evident, and is proved by 

 statistics, that the work of reorganisation which he is carrying out so 

 energetically has infused a new spirit in the ranks of Civil Service, and 

 is bearing fruit in the more conscientious execution of its duties. For 

 instance, the official Gaceta publishes figures showing that the national 

 revenue in the month of August alone has risen by 54 132 423 Pesetas 

 as compared with that of August 1909, thus affording striking evidence 

 that a good deal of the leakage of revenue of the past is being stopped 

 and recovered. The great majority of the people, therefore, ardently wish 

 success to the new Prime Minister, but (mindful of past clerical tyranny), 

 without perhaps altogether believing in the possibility of his being 

 victorious. 



The world of business is also, for the present, suffering from this 

 attitude of doubt; everybody buys only that which he absolutely needs 

 for his most pressing requirements, being obsessed by feelings of insecurity 

 and fear of what the coming days may have in store, and thus capital 

 continues to lie unemployed at the banks. The immediate future, however, 

 must bring a decision, and it may be regarded as beyond doubt that, if 

 Sr. Canalejas should succeed in carrying out the whole, or even the principal 

 items of his programme, the influence of the new policy will manifest 

 itself in an enormous development in the economic life of the country. 



Nothing new is to be reported from Italy, Switzerland and Holland. 

 Our trade there has moved within normal limits, and the business out- 

 look gives no occasion for special remarks. 



In Russia also our turnover has been satisfactory, and in view of 

 the fact that the corn harvest has on the whole been favourable, it is 

 pretty certain that the state of trade during the winter will be a 

 healthy one. 



Among the Scandinavian countries Sweden alone calls for notice, 

 that country being engaged in preparing a new Customs Tariff, which is 

 to come into force on January 1, 1912. So far as we can gather from 

 the published draft-scheme, it is not proposed to introduce any drastic 

 changes in the treatment of the articles belonging to our branch. 



