Miltitz near Leipzig, April, 1913 5 ). 



Notwithstanding its warlike guise, the year 1912 has again brought ample successes 

 to German industry, and the statistical data now before us indicate a continued develop- 

 ment of such magnitude as perhaps no one would have thought possible in view of 

 the course of events in the Balkans, and of the fact that the friendly relationships 

 between the great Powers of Europe were at times disturbed to a critically dangerous 

 point. The world's commerce has increased to an extent far exceeding its average 

 yearly growth during the last decade. The value of the imports of commodities into 

 almost all European countries has risen; Russia and France alone show a decrease. 

 The prosperous condition of German industries in general, and foremost among them 

 of the chemical industry, has been even more clearly in evidence than was the case 

 in the two years immediately preceding. There can be no doubt that the mainspring 

 of this exceptionally favourable development (a development which the warlike operations 

 themselves were powerless to check) was the bountiful harvests throughout the world. 

 Everywhere the plenteous yield of the crops increased the purchasing power of the 

 agricultural classes, with the result that all products of industry were in strong demand. 

 Another cause, and one which has powerfully helped to the advance of the world's 

 trade, was the exceedingly satisfactory development of certain oversea markets, such 

 as Argentina, Brazil, Canada, Japan and others. The importance of these markets is 

 steadily on the increase. The enhanced output of gold, especially in South Africa, 

 has been another favourable factor. Those events of the year 1912 which have disturbed 

 the economic life of nations may be briefly summarised as follows: — the Italo-Turkish 

 war, lasting until October; the outbreak of the as yet unfinished Balkan war and the 

 tension between Austria and Russia which, had it spread to the neighbouring and allied 

 Powers, would have meant danger of a European war. It is due to the cool common- 

 sense of the Governments concerned that the torch of war has not been carried into 

 the territories of the Great Powers and that at the present moment we are able to look 

 to the future with far greater confidence than was possible a few months ago. Only 

 the future, however, can reveal whether the Balkan war will have for its sequel a turn 

 in the favourable tide of the markets, or whether it will only result in their temporary 

 weakening, followed by a renewed improvement as soon as the warlike operations 

 have reached a close, a consummation which, it is to be hoped, may soon come to 

 pass. To what extent the treasure of Peace is valued by the German nation is shown 

 by the unanimity with which Germany is preparing to find the means to defray the 

 cost of increased armaments, the necessity for which is thoroughly appreciated by all 

 classes of the German people. 



Closely connected with the political events, and with the dangers that threaten 

 the economic structure of society, was the convulsion of the Exchanges and of the 



l ) The Introduction to the present Report, and the Commercial part, were written in the month of iMarch. 



