Miltitz near Leipzig, April I, 1909 1 ). 



It is unfortunately impossible to say much that is cheerful about 

 the period reviewed in the pages of the present Report. As we were 

 already compelled to place on record in November last, the year 1 908 

 moved under the sign of economic depression, which in the nature 

 of things made itself especially severely felt in the principal industrial 

 countries, viz., Germany, Great Britain, and the United States. The con- 

 tinual decline in value of raw materials hampered enterprise in all 

 circles where our products are consumed, and the mere fact that in 

 spite of the favourable conditions which prevailed in the money 

 market, important transactions in the staple articles of our trade were 

 entirely wanting, should be sufficient proof that among those concerned 

 confidence in the proximate revival of the general state of trade 

 was still looked for in vain. In any case, those optimists have been 

 proved to be mistaken who prognosticated from the return of sounder 

 economic conditions in the United States an immediate reaction upon 

 our European markets ; for in spite of the favourable reports which 

 have been received from America since the beginning of the present 

 year (especially as regards transactions in our branch of industry) it 

 is unfortunately true that as yet there can be no question of any 

 noticeable improvement in business in this particular quarter. 



So far, the wounds which have been caused by the financial 

 crisis in all circles where our goods are consumed have only been 

 partly healed, and the consequences of the general falling off in values, 

 which have found expression in serious losses on the stocks remaining 

 over from the record year 1907, are being felt everywhere. It is only 

 within the last few months that the sales have again reached figures 

 denoting a tolerably healthy demand for consumption, and no doubt 

 many more weeks will elapse before it will be possible to report of 

 a genuine revival of interest on the part of consumers. 



The decline in the exchange of commodities belonging to our 

 branch of business with foreign countries finds expression in the fact 

 that the imports of essential oils 2 ) into Germany in the year 1908 



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

 2 ) German Official Statistics of Merchandise, No. 353 b and c. 



