— 9 — 



been added. The advantages of the Act are the conversion of the 

 varying duties which formerly prevailed, into a uniform duty, which 

 has been reduced to 20 pesetas for spirits of wine, and 50 pesetas 

 for industrial alcohol per 100 liters of 90 to 95 , the previous duties 

 having averaged about 60 and no pesetas respectively. On the other 

 hand, however, the Act has created untenable conditions, and has 

 caused great confusion, by prohibiting pharmacists, druggists, etc., from 

 purchasing or retailing essences and oils which are used in the manu- 

 facture of brandy and liqueurs, and compelling the distillers to buy 

 such articles directly from the manufacturers. As a result of protests, 

 concessions were made to pharmacists, perfumers and confectioners, 

 and as it seems hardly likely that druggists can be permanently kept 

 from sharing in these concessions, it follows that the prohibition above 

 referred to has in point of fact become a dead letter even at the 

 present time. But the complications and delays remain in existence 

 to their fullest extent, and these are increased by the fact that often 

 the Authorities themselves do not know how to interpret the letter 

 of the Act. Through our General Agency in Madrid we immediately 

 took the necessary steps to be able to do justice to the requirements 

 of the trade in our articles in Spain under the new conditions pre- 

 vailing, and we hope soon to be able to report a satisfactory improve- 

 ment in business. 



The provisions of the new German Commercial Treaty with Por- 

 tugal have not yet been published, but in the meantime the un- 

 animous opinion with regard to it is one of disapprobation. It would 

 really be incomprehensible if German diplomacy should surprise the 

 Nation with a treaty, the advantages of which, as is said to be the 

 case, are entirely on the side of the other party. 



Our Eastern neighbour Russia has further recovered from the 

 wounds of the war and the now suppressed revolution. The gallows, 

 however, continues to do its work there, and the prisons are over- 

 crowded; but if the Duma should succeed in acquiring the confidence 

 of the country, the economic revival of this mighty Empire may perhaps 

 be assured. Unfortunately, the political situation in Russia is very 

 closely connected with the Balkan question, and it will depend 

 upon the solution of the Servian conflict whether the blessings of 

 Peace abroad and at home — which have been attained at such 

 heavy sacrifices — will or will not continue to be enjoyed. 



With regard to the Scandinavian countries, all that has to be 

 reported is that preliminary steps have been taken in Sweden for 

 subjecting the Customs Tariff to revision before negotiations are com- 

 menced for the renewal of the Commercial Treaty with Germany of 

 I 905? which expires next year. Unfortunately, this revision is not 

 likely to be carried out without a number of increases in Customs 



