Although the declining tendency of commerce in England ap- 

 pears to have reached its nadir towards the end of May, and 

 the Board of Trade returns published since June have again re- 

 corded considerable increases both in imports and exports, it would 

 nevertheless be hardly justifiable to talk of a healthy revival of in- 

 dustry generally in the British Isles. Business transactions continue 

 to be on a small scale, and much split up, and all along the line 

 competition is exceedingly severe; nor is it possible to give any very 

 cheerful reports of the condition of the wholesale soap manufacturing 

 industry. Albeit that within the last few months this branch has shown 

 a little more life, it still remains necessary to take into account an evil 

 to which we have already called attention on previous occasions, viz., the 

 prevalence of price-cutting, which continues to flourish most luxuriantly 

 in this country (perhaps more so than in any other), and which renders 

 trading in really pure articles almost incredibly difficult. The textile 

 industry of Lancashire and Yorkshire, which is of such supreme impor- 

 tance for Britain from an economic standpoint, appears to show some 

 improvement as regards the conditions of labour, but in other industries 

 the complaints of lack of work still remain very strong; and as a further 

 troublesome factor the agitation against the budget of the present govern- 

 ment (a measure which has not yet been passed) must also be mentioned. 



The sale of our manufactures in the British Colonies, especially 

 in Australia and India, has moved within normal limits. In the process 

 of fusion of the two Liberal parties in Australia, which has been 

 effected by the new Prime -minister, Mr. Deakin, the death-knell of 

 free -trade ideas has unfortunately been sounded, and the high 

 protectionists have gained the victory. Although this development of 

 affairs may have caused no surprise, yet so far as German business 

 circles are concerned the disillusionment is not small, because the 

 change naturally means that for Germany as well as for other countries 

 business will be rendered more difficult, if indeed it is not diminished, 

 in this market, which has become such a favourite outlet for many 

 branches of manufacture. Unfortunately Germany is without any 

 ways or means of averting the dangers of the ever-increasing pro- 

 tectionism, which fosters Australian industry by all imaginable means, 

 and as the Australian Labour Party is also thoroughly protectionist, 

 it cannot be said that pleasant times appear to be in store for German 

 exporters. Fortunately the German chemical industry as well as our 

 own branch produce a series of articles which must of necessity con- 

 tinue to be purchased in Germany, because as regards quality they 

 stand above competition, and it is therefore to be expected that the 

 term "Warranted to be of German manufacture" which is so often 

 heard, will continue to exert its good repute and its power of attraction 

 in spite of the increasing difficulties of business relations. 



