Miltitz, near Leipzig, October I, 1907 *). 



Although in the past half-year business in our industrial branch 

 of the essential oils has throughout been very brisk, and a considerable 

 increase in the turnover can be recorded even as compared with the 

 previous year, we believe that the cause of this will be found less 

 in a continuation of the flourishing state of the trade, than in the 

 extraordinary movements in the prices which some of our articles 

 have experienced. As a matter of fact, for some considerable time 

 the voices of those who count upon an imminent reaction in the 

 commercial situation have predominated, and it cannot be denied that 

 without doubt numerous arguments in support of the pessimistic 

 outlook upon the future might be brought forward. Above all, the 

 money market which remains in a state of tension in spite of a 

 certain relaxation which has taken place during the last few weeks, 

 justifies a feeling of anxiety, and.it is impossible to give at once an 

 affirmative answer to the question whether a brisk business is likely 

 to develop during the autumn months. Meetings of monarchs, and 

 the Peace Conference, fortunately are a guarantee that a disturbance 

 of the continued peaceful development of our German commerce 

 need not be feared, and that the unrest in Morocco will not lead 

 to international complications of a serious character. In the Anglo - 

 Russian agreement just concluded, we also see an important factor 

 for the maintenance of the world's peace, as it serves above all to 

 reduce to a large extent the tension between the two principal powers 

 in the Far East which threatened to assume a somewhat serious aspect. 



In Germany, the trade with all the branches which come under 

 consideration for the consumption of our articles was brisk, and proved 

 satisfactorily that for the present here at least no real grounds existed 

 for the pessimistic outlook upon the future. In the commercial inter- 

 course, the lack of definite official regulations dealing with the use 

 of essential oils, essences, etc., in the trade of foodstuffs, is felt more 

 and more, because (as has been proved by the numerous matters in 

 dispute in recent times) the opinions of experts on such questions 

 are occasionally absolutely contradictory. We hope, in the interest 

 of the affected industries, that the German Government may soon find 

 occasion to provide a lasting remedy. 



*) The commercial part of this Report has been compiled during September. 



