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Our important and extensive trade with France is unfortunately 

 threatened with serious disturbance by the new Customs Tariff Bill, 

 the discussion of which is to be commenced after the reassembling of the 

 Chamber of Deputies in October at the conclusion of the summer vacation. 

 The result of these deliberations is the subject of justifiable anxiety. 



In Italy industrial activity has been somewhat more pronounced. 

 There are still firms in our branch of business which have especially 

 selected the Italian market in order to show what they can do in the way 

 of cutting prices, and these firms make the hearts of their Italian custo- 

 mers rejoice with goods of a quality which does not reflect much credit 

 upon our German essential oil industry. Fortunately the appreciation of 

 the value of unimpeachable service is gradually beginning to penetrate 

 in this country also. 



Nothing special can be reported as regards Spain. The spirit 

 industry, which is the chief outlet for our manufactures, continues to 

 suffer from the feeling of uncertainty which has been engendered by 

 the new Spirit Act, and will only gradually be able to adapt itself 

 to the new conditions. The burdens with which importers of our 

 articles in Spain have been saddled by the revolution in the business 

 conditions of this branch of industry have considerably diminished 

 the profits and may possibly, before long, induce this or that firm to 

 retire from the field. The extent of the disturbances which were 

 caused in the month of July by the outbreak of fury of the masses 

 against popish misgovernment, has been in many instances greatly over- 

 estimated abroad as a result of newspaper exaggeration, and as this 

 season also the harvest in Spain promises to yield a favourable result, 

 there is every ground for regarding the economic development of the 

 country with confidence, nor is it likely that the somewhat costly 

 adventure in Morocco, the issue of which can hardly be doubtful, 

 will make any difference in this respect. 



Russia has recently again been inclined to purchase more freely. 

 The excellent crop prospects in most of the agricultural districts have 

 exercised a reviving effect upon business generally, and there is every 

 justification for cherishing high hopes of the future, judging by the 

 result of the annual fair at Nijni Novgorod, when, as a rule, the 

 general tendency of business finds its clearest expression so far as the 

 prospects for the ensuing season are concerned. According to all 

 reports, this fair has resulted in excellent business with an exceedingly 

 strong demand for all articles of consumption. It is true that we are 

 prevented from taking a too optimistic view of the position because 

 of the projected revision of the Russian Customs Tariff. This revision, 

 however, is not to be carried out purely for protective purposes, but 

 is chiefly intended to benefit the national finances, which have been 

 weakened by the events of the past few years. 



