In the spring of this year we were already able to observe 

 that business transactions in the United States were bearing the 

 stamp of great animation, and at the present moment we are in 

 a position, from information supplied by our New York branch, to 

 confirm this view so far as the summer months are concerned. In 

 this case the question was not only one of an unwholesome increase 

 in the turnover, such as is always to be observed on the eve of the 

 introduction of a new customs tariff, and which in the main has 

 its foundation in speculative undertakings, but of a sure, albeit slow 

 revival of trade and industry after the severe trials of the last two 

 years. The first stimulus to this improvement was given by favourable 

 harvest prospects in the Western states. The conclusion of the customs 

 tariff question, which occurred on 5 th August by the passing of the 

 Payne Tariff Act, has set aside the uncertainty with regard to the 

 fiscal fate of many important raw materials which prevailed all through 

 the course of the tariff debates, and American industry is at last able 

 to base its calculations once more upon facts. From some sections 

 of this great country, with its immeasurable natural resources, reports 

 have already come in which speak of inclinations to engage in new 

 business such as made themselves felt at the time of the boom which 

 preceded the panic of 1907. Pronounced activity again reigns, par- 

 ticularly in the iron and steel industries, which are usually regarded 

 as the barometer of the American business situation, and in many 

 instances complaints have been heard of want of labourers. For the 

 rest, the fact that the demand upon the banks for the supply of 

 capital required for industrial purposes has not been especially brisk, 

 points to a quiet development of trade. Every reasonable business 

 man will certainly prefer these healthy symptoms to expectations of 

 a boom. 



The alterations in the Customs Tariff which affected our particular 

 branch of industry were insignificant, and business adapted itself to 

 the changes without great disturbances, losses, or profits. 



We are glad to be able to record that in revising the separate 

 items of the tariff, the Legislature allowed itself to be guided by 

 the consideration that the importation of our articles, — the majority 

 of which cannot be produced in the United States and are used 

 exclusively for manufacturing purposes — , should not be made diffi- 

 cult for the consumers. We may, however, point out that, apparently 

 as a result of an oversight, a duty has been placed upon sweet oil 

 of orange, which has hitherto been on the free list, a circumstance 

 which caused great surprise. The advantages which the new Act has 

 given to the U. S. A. in business relations with the Philippine Islands 

 are also deserving of notice. American manufactures shall be admitted 

 into the islands duty-free, whereas upon imports from other countries 



