I 
Miltitz, near Leipzig, April/May 1904. 
We are unable to place on record any decided change in the 
general economic condition of the German Empire since the date of 
our last Report. The Chemical Industry shows the same picture of 
great prosperity as in the preceding years, as evidenced by the ex- 
cellent results of the leading houses. The branch comprising the 
essential oils and artificial perfumes, in so far as we are able to judge 
about the network of wide-spread ramifications, also appears to have 
reason to be satisfied with the result of last year's working. 
The warlike events in the Far East do not as yet appear to 
exert any pronounced influence on trade and industry. The in- 
cidents are localised in such a small area that outside this area they 
are hardly noticed. The German steamship - lines carry on their 
services without hindrance, under the protection of neutrality, and no 
pronounced influence on the value of Japanese products, in which we 
are largely interested, has up to now become apparent. 
In the commercial intercourse with France, the difficulties in the 
clearance of terpineol and similar products make themselves felt very 
acutely. The French Tariff demands in the case of terpineol i fr. 60 c. 
for 2 litres alcohol which, in the opinion of the French Customs 
Authorities, are supposed to be used in the manufacture of this pre- 
paration. 
This view is totally erroneous! Not a single drop of alcohol is 
used in the manufacture of this article, and the duty on it is con- 
sequently charged unjustly. It would only be necessary to refer the 
matter to a scientific expert, to demonstrate the correctness of our 
protests, — which in a general way is already proved by the price of 
the article. For how could 2 litres alcohol of a value of about 2/6 
be taken into consideration, where the price of terpineol is only 4/-? 
In Brazil a new Bankruptcy Act has come into force on 7*^ June 
1903, in which the remarkable provision occurs (par. 134), that every 
merchant is compelled to submit every year his ledger {diario) to 
the judge, as soon as the balance sheet, as required by Art. 12 of 
the Commercial Law Code, has been entered, when the presence 
thereof on the day in question is to be certified by the judge by his 
visa and signature. 
