Miltitz near Leipzig, April I, 1907. 



With feelings of satisfaction we are able to place on record that 

 the year 1906, from a commercial point of view, has run an eminently 

 favourable course, and that the hopes to which we gave expression 

 in our last Report, have been realised in every respect. It was granted 

 to the German industry to enjoy a continuation of the blessings of 

 peace among civilised peoples, and in the peaceful contest of the 

 nations on the World's market not only to maintain its position, but 

 also to advance a mighty step on the road of economic progress. 

 The fears entertained in many quarters with regard to the new German 

 Commercial Treaties and Tariffs which came into force on March 1, 

 1906, have fortunately not come true, and our branch of industry in 

 particular has every reason to rejoice in the renewed strength which 

 has thereby been given to commercial intercourse. The sales have 

 reached figures which have put the results of the most favourable 

 years of commerce in the shade, and although the profits have been im- 

 paired to a not inconsiderable extent by the constantly growing ex- 

 penses, the results can nevertheless be characterised as magnificent. 

 The strained financial situation has no doubt on occasion acted as an 

 impediment, but on the other hand it has also imposed a check on 

 the speculative elements from which the healthy development of com- 

 merce has benefitted. Thanks to the quiet political situation which 

 has been greatly consolidated by the new German Reichstag, and to the 

 splendid employment of all branches of industry, the future prospect 

 appears to be no less promising, in spite of the still strained condition 

 of the money market, and the growing output of the first quarter 

 points to the fact that the favourable state of affairs has by no means 

 reached its zenith. The imports of chemical raw material and manu- 

 factured products from abroad amounted in 1906 to 430,8 million marks, 

 against 377,6 million in the previous year; it therefore shows an in- 

 crease of 14,1 °/ , against j°/ in 1905. The exports rose from 473,5 

 to 542,3 million marks, and consequently advanced by 14,5 °/ , whilst 

 in 1905 the exports had only advanced 5°/ over those of 1904, 

 although at that time the situation was also by no means unfavour- 

 able. These figures speak for themselves so plainly that they require 

 no further comment. 



