Miltitz near Leipzig, October, 191 1 1 ). 



The course of business during the past half-year affords but slight 

 occasion for detailed comment. In almost all branches, in which our 

 manufactures are used, trade has been decidedly animated and healthy, 

 and our expectations of a normal development of industry and commerce, 

 as expressed in our last Report, have therefore been fulfilled in every 

 respect. During the past summer our turnover has continued to show a 

 very marked increase, and even the unprecedented tropical heat and 

 drought, which have carried in their train such serious consequences for 

 the whole economic life of the German nation, have not seriously affected 

 the volume of our own trade. It goes without saying, however, that owing 

 to the abnormal want of rain the crops of most of the raw materials which 

 are employed in our industry have been failures, and that as a result 

 we have to record considerable advances in price in almost all our oils, 

 especially in those which are distilled from home-grown material, and 

 of these advances particulars are given under the various headings of the 

 present Report. The increase in the cost of food-stuffs which has been 

 brought about by the abnormal climatic conditions, and the heavy burdens 

 which are thereby laid upon the shoulders of the people, especially the 

 working classes, are matters of serious concern for the whole of our 

 German Industries, and the final results of the harvest in the principal corn- 

 producing countries of the world are therefore awaited with grave anxiety. 



In addition to these troubles there is the Morocco crisis. Within the 

 past few weeks this has entered upon a stage which has given all Europe 

 a political attack of nerves, — brought about chiefly by the unjustifiable 

 mischief-making of the jingo-press everywhere, — which may have in- 

 calculable consequences. The wildest rumours of a rupture of the ne- 

 gotiations were set afoot, and suddenly caused a veritable war-panic, 

 which found expression in a downright slump on the Bourse such as had 

 not been experienced for years, and, in certain towns, in a wild rush on 

 the Savings-Banks. Unfortunately, at the moment when this Report goes 

 to press, the negotiations have not yet reached a definite result, and we 

 are therefore unable to comment upon their outcome, and to give a 

 forecast of the further development of affairs. But there is scarcely 



x ) The Introduction to the present Report, as well as the Commercial part, were written 

 in the month of September. 



