Miltitz near Leipzig, April 1912 1 ). 



The development of German industry — especially in our own branch 

 of Chemistry — , has made further important progress in the year 1911, 

 and the decided strengthening of the commercial situation which has now 

 been noticeable for two years has stamped upon the past twelvemonth, 

 as upon that which preceded it, the imprint of an allround wholesome 

 and satisfactory economic period. The general retrospect would doubtless 

 have been more favourable still if the close of the commercial year had 

 not been seriously disturbed by difficulties and complications in foreign 

 politics, complications of which in some instances the full extent could 

 only be surveyed after they had been removed. The negotiations con- 

 cerning Morocco, which gave rise to all manner of grave apprehensions 

 for the relations between Germany and France, the acute tension, in the 

 course of the autumn, between Germany and Great Britain, the Italian 

 war with Turkey, which might easily have led to serious disturbance of 

 the peace of Europe, and finally the troubles in China and in Persia 

 were incidents which at times called forth a certain feeling of nervousness 

 which affected the whole commercial life of Germany, and this of course 

 was not without its effect upon the development of trade and industry. 

 To these disturbing elements must be added the general rise in food-prices 

 (partly the result of abnormal climatic conditions), which seriously impaired 

 the purchasing-power of the whole nation, especially during the second 

 half of the year, while the chronic labour-unrest also exercised a para- 

 lysing effect upon the spirit of enterprise in many branches of industry. 

 In respect of the last-named feature we fully endorse the following passage 

 in the Report of the Hamburg Chamber of Commerce: "These conditions 

 not only weigh heavily upon German industry as a permanent danger; 

 they also impede its further extension and development, and afford fresh 

 proof of the necessity of closer union between the work-givers with the 

 object of defending themselves against an agression which is becoming 

 f well-nigh insupportable". It is true that during the past year Germany 

 has happily remained free from great strike-movements, but it is evident 

 that labour-disturbances such as those which have been experienced 

 in France, and such as the coal-strike in Britain, which far several weeks 



*) The introduction to the present Report and the Commercial part were written 

 during March, 



