favourable, and in some districts even excellent harvest with high prices 

 of grain ruling on the world's markets, assists in further raising 

 the confidence in this powerfully absorptive country. Satisfactory 

 prospects of the harvest not only increase the purchasing power of 

 the country in the interior, but also pacify the minds of the country 

 population, and enable one to forget the dark stains left in so many 

 places in the course of last year by robbery, murder, and pillage. 



The relations with the Balkan States were regular, and although 

 occasionally, and especially in Turkey, difficulties arose in the payment 

 of accounts, these countries are also gradually becoming more important. 



With regard to the other European countries, nothing of import- 

 ance is to be said. 



The state of affairs in Morocco, disturbed by the Franco- 

 Spanish intervention, calls for no special comment, as our products 

 are only consumed on a very modest scale in that country. But we 

 regret to have to put on record that the financial crisis prevailing in 

 Egypt has not been without injurious effect on the sales to that 

 country. In a report of the German Consulate of Cairo it is particularly 

 recommended to exercise great caution in granting credit for new orders, 

 but where the goods have already been supplied, not to insist too 

 strongly, in the present difficult times, on the strict carrying out of 

 the terms of payment. In the opinion of the International Chamber 

 of Commerce in Cairo, there are absolutely no grounds for serious 

 fears, as the financial crisis will probably retain a local character, and 

 not permanently affect the prosperity of the country. Algeria con- 

 tinues to occupy a place among the most valued markets. 



Among the Central American republics, Mexico now as heretofore 

 demands the greatest amount of interest; the prosperity of that country 

 continues to grow, and its purchasing power justifies the most sanguine 

 hopes. A less pleasant picture afford the neighbouring States, which 

 are all more or less ruined in consequence of the internal and ex- 

 ternal disorders, and which for the present cannot come under con- 

 sideration for business of any importance. 



In the Argentine, the overloading of the markets with imported 

 goods has lately given rise to serious anxiety. Although a section of 

 the Argentine commercial world had in recent times, through several 

 heavy failures, been somewhat seriously affected, the imports have in- 

 creased further under the effect of good harvest results, and this may 

 possibly soon lead to further critical consequences if the pace of the 

 importation does not slacken to some extent. In our own goods we 

 can report a brisk business during the past half-year, but no unhealthy 

 increase in the inclination to buy has been observed by us. It would 

 therefore appear that the purchasers who come under consideration for 

 our articles, have remained more or less unaffected by the crisis. 



