18 Report of Schimmel $ Co. April 1913. 



of live stock have risen appreciably. We are therefore justified in cherishing the 

 best hopes of the further expansion of German business-relations with this consuming 

 market. 



There is but little ground for satisfaction with the state of affairs in Peru. The 

 Deutsche Oberseeische Bank, in its commercial report for 1912, states that no improve- 

 ment was noticeable last year in the economic conditions of the country, although the 

 Presidential change in September last took place very quietly. Of course, during the 

 brief period of its existence, the new Government has not yet been able to take all 

 the measures necessary for placing the national finances on a sound footing, but 

 certain economies have already been introduced into the Budget which it is hoped 

 will lead to the future establishment of a better equilibrium between revenue and 

 expenditure. The issue of a foreign loan, which appears to be necessary in order to 

 pay off old debts and to provide for the deficits of previous years, as well as for the 

 execution of certain financial schemes, is planned for the current year. Continued 

 consideration is being given to railway-projects; it would appear that the prospects 

 of the construction of the railway to the river Ucayali, which is to connect the capital 

 with the eastern provinces of Loreto and Iquitos, are now more likely of realisation; 

 at any rate it is stated that the necessary money has been found. Congress has 

 already sanctioned a grandiose scheme for the irrigation and colonisation of the arid 

 coast-strip, and it is reported that American capitalists are interesting themselves in 

 this plan. It deserves to be recorded as a special merit of the new Government that 

 it has set on foot negotiations with the neighbouring Republic of Chile which warrant 

 the hope that the question of Arica and Tacna, so long outstanding between the two 

 countries, is at last on the road to settlement; so much at any rate appears certain 

 that both governments are animated by a genuine desire to remove this ancient cause 

 of dissension. The high prices of copper and silver have assisted in reviving the 

 mining-industry. Agriculture also has undergone a marked development, notwithstanding 

 that the prices of the principal articles of export from Peru, such as sugar, cotton, 

 and rice, have been lower than in the previous year. 



For all these reasons an early improvement in the condition of the country is to 

 be expected, provided that the new Government shows itself able to cope with the 

 requirements of the situation. But it would not be wise to build too high anti- 

 cipations upon the future of the German export-trade to Peru, inasmuch as the 

 population of the country will probably always remain lacking in genuine purchasing- 

 power, unless, indeed, the opening of the Panama Canal should bring about an in- 

 crease in this respect. 



We are once more in a position to give a favourable account of trade with japan; 

 the second half of the year 1912 in particular has seen an appreciable growth in our 

 exports to this important market. The heavy importations of commodities of our 

 branch of manufacture, which came into the country just prior to the increase in the 

 Customs Tariff in July 1911, have in the meantime been consumed, and the more 

 settled state of things in China has not been without a favourable influence upon the 

 export-trade in Japanese soaps and perfumery. 



Generally speaking the high prices of many of our principal oils have somewhat 

 impeded their sale in japan, but we have found some compensation in the increased 

 interest which has been manifested in the excellent substitutes with the introduction 

 of which we have specially occupied ourselves last year. 



The total value of Japanese imports in 1912 was 618 972 578 yen (513 805 705 yen 

 in 1911), and of exports 526 980 842 yen (447 433 888 yen in 1911). The imports have 



