Miltitz, near Leipzig, April/May 1906. 



In looking back on the year 1905, we can rejoice in the fact that 

 the economic situation of Germany shows a further favourable develop- 

 ment. The industrial activity was in part exceptionally animated, having 

 largely recourse to the money market, — although the surprising increase 

 of the bank-rate at the close of the year, as compared with the low 

 rates at other of the world's principal exchanges, may perhaps have 

 been due, not so much to a healthy development of industry, as to 

 important financial engagements on the exchange, and speculative pur- 

 chases of goods in view of the increases in the import-duties about 

 to come into force. This state of extreme exertion gives food for 

 thought, and may possibly lead to an increase in the resources of 

 the Imperial Bank. 



The new Tariffs naturally claimed the largest amount of interest. 

 Since these Tariffs have become an established fact, each individual 

 branch of industry will have to make for itself the best of the bargain. 



In our own branch, the alterations are' not of any very considerable 

 importance. It is to be appreciated (because it adds to our capacity 

 of competing with foreign countries), that after struggles lasting for 

 many years, seeds for the production of essential oils are now at last 

 to be admitted free, subject to official control, and the distillation- 

 residues are likewise to be free, whilst at the same time the import- 

 duty of these materials, in so far as they are used for other purposes, 

 is raised from 3 to 4 marks per 100 kilos. 



The duty on essential oils imported from Tariff countries (such 

 as Italy, Russia, Bulgaria) has remained as hitherto at 20 marks, but 

 for the other countries has been raised to 30 marks. 



Vanillin, which up to now paid 50 marks duty, has been raised 

 to 80 marks; oils of rosemary and juniper-berries have been advanced 

 from 12 to 30 marks per 100 kilos. On the other hand, oils of tur- 

 pentine, pine-needles, camphor, and juniper -tar (ol. cadin.) remain 

 as before free of duty. We will return to the details when discussing 

 the individual articles in the following pages. 



In spite of the internal disturbances in Russia, our trade v with 

 that country was unusually brisk, to which the various alterations in 

 the tariff also contributed. The importance of this market for our 



