Introduction. 1 1 



of the silk industry in the markets of the world by Japanese competition, and the 

 poor corn- and oil-harvests. It is only since the war has been brought to a close 

 that business-confidence has begun to revive, and we have no doubt that henceforth 

 the country will steadily progress towards a complete restoration of healthy commercial 

 conditions. 



In Switzerland and Holland business has been normal and no events calling for 

 special notice have occurred. The favourable situation of the Dutch colonial market 

 has not been without its effect upon the economic development of the Mother-country. 



The commercial condition of Russia has given little cause for congratulation. 

 The official statistics for the year 1912 show that the foreign trade of this country, 

 which is such an important market for our manufactures, has by no means equalled 

 the expectations which might justifiably have been entertained in view of the actual 

 developments of the past few years. Both the imports and the exports of Russia 

 have suffered a not inconsiderable decline in the year 1912 as compared with the 

 previous year, and unless the export-trade revives we shall be compelled to take a 

 not very favourable view of the probable increase in the purchasing power of the 

 Russian nation within the immediate future. Suspensions of payment have increased 

 at a truly alarming rate during the year 1912, and the most recent reports give no 

 indication of any improvement in the situation. Caution in the granting of credit has 

 been more necessary than ever before, even at the risk of an occasional loosening 

 of the commercial bonds between ourselves and our Eastern neighbour. Fortunately, 

 those branches of industry in which our products are consumed have escaped without 

 serious losses, and if it were not that unfavourable reports of the situation are coming 

 to hand from all quarters, we should not be at all disposed, in the light of our own 

 experience, to take a pessimistic view. It is obvious, however, that the Russian mili- 

 tary preparations on the Western and Southern frontiers of the Empire were bound 

 to provoke a certain nervous tension in all departments of commerce, and in the 

 interest of all parties concerned it is a matter for rejoicing that on the initiative of 

 Austria the troops in the frontier-districts have in the meantime been demobilised. 



Among the Balkan States business with Roumania alone has afforded occasion for 

 a certain degree of satisfaction, although in this country, too, coming events cast their 

 shadows before, and the war in which the neighbouring States were involved inflicted 

 severe injury upon trade and industry. Bulgaria, Servia, Greece and that distressful 

 country, Turkey, have been more or less blotted out from the list of selling-markets 

 since the beginning of the war, and from the moment when the moratoria (the official 

 suspensions of cash-payments), were proclaimed, commercial intercourse with them 

 has been almost entirely at a standstill. How long it will take after the conclusion 

 of peace before the nations concerned in the struggle have sufficiently recovered from 

 their grave financial sacrifices to make it possible to speak again of regular com- 

 mercial intercourse, and whether, in fact, Turkey will ever surmount the consequences 

 of her defeat, are problems which must be allowed to repose in the lap of the future. 



The remaining European consuming markets offer no occasion for remark; we will 

 only place on record the fact that during the past year the Scandinavian Kingdoms, 

 in so far as they make use of our products in their industries, have been extremely 

 good buyers, and that our turnover with these countries has shown a normal growth. 



According to reports from the German Consulate at Alexandria, the economic 

 condition of Egypt in the year 1912 has been satisfactory, the cotton-crop having 

 yielded a good result. During the closing months of the year, however, the Balkan 

 war and the uncertainty of the political situation in Europe have had an unfavour- 



