INTRODUCTION. 15 
Business in Russia was more than ever affected last year by embittered competition 
among the German firms in our branch of trade, whereby satisfaction with the increased 
turnover which was effected was seriously curtailed. It is especially to be regretted 
that many Russian customers, in their anxiety to buy cheaply, attach altogether sub- 
sidiary importance to the question of quality. The nefarious consequences of these 
tactics are bound to make themselves felt sooner or later. According to communi- 
cations from the Commercial Treaties Union’), the extraordinarily thorough preliminary 
work in connection with the coming commercial treaties which is being carried out by the 
various Ministries and other authorities, is by no means approved in interested circles 
in Russia. Between the different administrative departments there are standing jealousies 
at work, rendering profitable co-operation impossible and, in fact, making it questionable 
whether a proper preliminary drafting of the Commercial Treaties will be practicable 
at all. There is, in particular, acute antagonism between the Ministries of Commerce 
and of Agriculture. One of these departments has recently prepared a secret memo- 
randum in which it accuses the other of having turned the preparations for the treaty 
into a wrong channel, and of representing industrial interests in an entirely one-sided 
manner. Further, the secrecy of the politico-commercial intentions of the Russian 
Government, which it was desirable to preserve, had been jeopardized by admitting 
private organizations to official conferences. It is suggested that a special, purely 
national authority shall be created which shall not be subject to any Ministry. 
From the German side the taking of expert-evidence on the part of several 
organizations of which the members are interested in trade with Russia, has already 
begun. As the desires of the German essential oil and perfumery industry are in 
general agreement with those of the Russian firms which use our manufactures, it is 
probable that the result of the revision of the Russian Tariff, so far as these industries 
are concerned, will be satisfactory. . 
Now that peace has been re-established in the Balkans, the business life of 
Roumania, which had naturally suffered from the effects of the war, again moves 
within ordered lines. The financial situation of the country is thoroughly satisfactory 
and the economic condition of the people inspires every confidence, the harvest 
having been extremely good. The purchasing power of the agricultural classes, who 
were the first to profit by the bountiful crops, has rarely been so great, and the 
natural result is that commerce and industry are enjoying an increased turnover. 
With the object of opening-up the newly-acquired territories, road-making has been 
taken in hand as the first task, and the carrying-out of the programme of improved 
communications will afford wide opportunities for labour and for the earning of wages 
in the future. The good impression which has been created abroad by the attitude 
of the Roumanian Government during the Balkan war has increased the self-confidence ~ 
of the people, and has spurred it on to deepen this impression still more. Mistakes 
may, Of course, be made in these efforts from time to time, as witness an order 
promulgated by the General Commission of Customs last December, by which agents 
and commission-houses are forbidden to import and to deal in essential oils and 
colours used as condiments and as dyes for comestibles and beverages, and wherein 
the right to carry on this trade is restricted to a few factories which are mentioned 
by name, and to the druggists of the country. This order is all the more surprising 
because it has been the earnest endeavour of the Roumanian Government during the 
last few years to do everything in its power to foster native commerce and industry. 
1) Deutscher Aussenhandel 14, No. 5. 
