Miltitz near Leipzig, October/November 1906. 



The period which has elapsed since the date of our last Report 

 is one of which, on the whole, a favourable description can be given, 

 for we are able to look back upon months of brisk activity, during 

 which the output has been increasing in a healthy proportion. Our 

 own industry of the essential oils has also, generally speaking, parti- 

 cipated in the favourable conditions, and it is satisfactory to note that 

 the new German Tariff, of which the coming into force was looked upon 

 at the beginning of the year with a reasonable feeling of uncertainty, 

 has not had an injurious effect on our branch of industry, in spite 

 of the fact that the resale of foreign products plays such an important 

 part in this branch. The clouds of Algeciras which at the time 

 when our last Report was published, still cast a dark shadow on the 

 political horizon towards the West, have meanwhile disappeared, and 

 the meeting of the monarchs at Friedrichshof, which has produced an 

 entirely favourable impression in the international press, makes it 

 appear as if a state of unrest in the politics of the Great Powers of 

 Europe were out of the question for the near future. Although it 

 cannot be denied that the still thoroughly unsettled state of affairs 

 in Russia may, under certain conditions, exert an injurious influence 

 on our industrial activity, it may be doubted whether, in case it 

 should take a fatal turn, it would cause a serious convulsion of the 

 economic conditions of Germany. 



The sale of our products in France has again increased con- 

 siderably during the last few months, since the chauvinistic spirit has 

 calmed down, and the mutual neighbourly confidence has been re- 

 established by the settlement of the Moroccan question. Our London 

 branch has also been very fully employed, and we can state with 

 satisfaction that our relations with the United Kingdom and its 

 Colonies show a steady and healthy development. 



Our branch in Austria, at Bodenbach o. E., also shows important 

 progress. The commercial situation in Austria-Hungary is not 

 unfavourable for those industries which consume our products, although 

 naturally the political dissensions within that monarchy also cast their 

 shadows on the future. It is to be hoped that an adjustment of the 

 differences between Austria and Hungary may yet be brought about. 



