— 6 — 



amounted only to 91 1,300 kilos against 1,498,600 kilos in the year 1907, 

 while the exports fell from 491,700 to 445,300 kilos. 



The considerable decline in the imports is traceable to the small 

 demand for those varieties of oils which are imported by Germany 

 from abroad, either for the purpose of manufacturing them into per- 

 fumes, or for refining. The further course of business in the current 

 year will depend in the first place upon the question whether it will 

 be possible to remove finally the state of political tension which has 

 been the chief topic of conversation for many months and which 

 threatens to light the torch of war in Eastern Europe. If diplomacy 

 should succeed in suppressing the danger of war and if our friendly 

 relations with the other European Powers (relations which have recently 

 been improved by our understanding with France in the question of 

 Morocco and by the visit of the King of England) should be main- 

 tained, the hope for a return of better times will doubtless be fulfilled. 

 In such an eventuality, the only thing to be wished for is that the 

 improvement should not occur too rapidly, as otherwise the danger 

 of renewed reaction would be too great. 



Unfortunately the economic condition of Germany continues to 

 be influenced by the unfavourable situation of the Imperial finances 

 and the recurrence of adventurous proposals of financial reform, which 

 are a sequence of this condition. In the interests of our own 

 industry it is especially desirable that a final decision will soon be 

 reached with regard to the Spirit Bill, in order that this much-debated 

 subject may at last be cleared up. 



In spite of the generally unfavourable state of business, our 

 Austrian branch in Bodenbach (Bohemia) was comparatively well 

 at work, and it cannot be said that the ancient race-hatred between 

 Bohemians and Germans has exercised a really unfavourable influence 

 upon business in the districts where it prevails, although, especially 

 within the past few months, it has broken out on repeated occasions. 

 The boycotts proclaimed by either side against the other mostly came 

 to nothing, which is a sign that the movement does not affect all 

 classes of the population to an equal degree. The alarming reports 

 about the conflict with Servia, with all the consequences that might follow 

 from it, have of course occupied the principal place in public interest 

 in Austria recently. Although the result of a warlike conflict between 

 the two States could not for a moment be in doubt, such a solution of 

 the dispute might have effects upon the European Peace, the extent of 

 which it would be impossible to foresee. We are still awaiting the new 

 Austrian Spirit Bill already referred to in our last Report, but it has lately 

 been asserted that it may be expected to come into action next autumn. 



The commercial and industrial depression in Great Britain, to which 

 we referred in our November Report, has unfortunately not undergone 



