Apricots and pears.-A failure of crops in California necessitated high prices. The consumption of the goods was much reduced, and the trade small and much hampered by the measures against the San José scale. On a few lots of fancy and choice crop pears there were found some scales, and the eminent authorities could not tell whether the insects were alive or dead. The importations were forbidden, and the goods had to be returned under great expense, whereby the German dealers sustained heavy losses. Some of the foremost American firms guarantee now that no live scales are contained in their fruit. If our authorities exclude from importation lots on which no living but only dead scales can be found, one asks why it is that the importer has to bear all of these losses. It is absolutely necessary to change existing regulations, so that only those lots on which live scales are found will be refused.

American evaporated apples.-This year America had only a small crop, and prices, which opened at 33 marks ($7.85) in the summer, went up to 43 and 45 marks ($10.23 and $10.71) per 50 kilograms (110 pounds) c. i. f. Rotterdam in autumn, and remained at those figures during the winter.

Prices were

American sun-dried apples.—There was a total failure of crops, and it was difficult to secure the most trifling lots to meet the most urgent demands. therefore high and the goods not widely consumed.

GERMAN VIEW OF AMERICAN AGRICULTURAL EXPORTS.

I translate below extracts from a recent book written by the Roumanian consul-general in Germany, Mr. Carl Simon. This gentleman ranks high as an economist, and his book has created a deep impression among thinking men of all classes and political parties.

It is noteworthy that these views, favoring the Agrarian party, emanate from a highly respected member of the commercial community. The book bears the title The Export of Products of Agriculture and Agricultural Industries from the United States of America; Agriculture in Germany. The author says, in part:

It would be of great economic advantage to Germany if our agricultural class could increase its cultivation of grain and other products, such as fruit, meat, etc., in order that we might become independent of other nations and save the many millions that now go abroad. Agricultural products from the United States compete severely with those of native growth. The competition of the United States does not, like that of other grain-exporting countries, confine itself to cereals alone, but is a dangerous rival in all fields, as the country exports all kinds of agricultural machines, etc.

The competition of other countries is, further, not as hurtful as that of the great Republic, because their methods of production and commercial handling of the products are primitive, and our agriculturists can more easily compete with them. The methods of the Americans, on the other hand, are perfect.

The author says that as the American agricultural classes are able to sell their produce in Germany at cheaper rates than are asked for the domestic article, the tariff on imports must be made high

enough to protect German producers. The rate, he says, can be ascertained only by thoroughly studying the respective conditions existing in the two countries. Mr. Simon continues:

It were a national disaster if Germany's agricultural conditions were to conform to those now existing in England. Americans have practiced the doctrines of the great French statesman Colbert, which made France rich and caused her agriculture, industry, and commerce to attain an unexampled stage of prosperity. This system suits the United States, but Germany does not occupy a like position, as she can not raise sufficient food products for her population. This condition might be ameliorated by a thorough reform of the agricultural system. Germany's import of food articles for the year 1897 amounted to over $250,000,000. This figure is alarming and should induce her statesmen to adopt every measure calculated to foster home production, so as to change the adverse trade balances which for the past years have existed in German commerce with foreign nations. In this respect, the Americans ought to be looked upon as teachers of national economy. SIMON W. HANAUER,

FRANKFORT, July 14, 1899.

Vice-Consul-General.

UNITED STATES EXPORTS TO GERMANY.

Those who read the German press can not entertain the slightest doubt that German industrial circles look upon the enormous development of the industries of the United States, during the last few years, with apprehension.

Several meetings of representatives of industrial branches have taken place in Germany within the last few days, and the main point of their discussions was, in every instance, the ever-growing exports of the United States.

The meeting of German manufacturers of tool-making machines which was held at Düsseldorf last week asks for protection against the increasing American importation; so does the convention of German shoe manufacturers which took place at Breslau a few days ago. The association of German cycle manufacturers means to fight American competition even more keenly than the representatives of the branches just named. The agrarians, as is well known, would. like to exclude American grain, meat, and fruit.

I am of the opinion that our exports to Germany will continue to increase, if we take the trouble to study the wants of these people; and, above all, if we maintain the quality of our goods.

Whoever enters a shoe store in Germany where American goods are to be had knows that he there gets the best, the most comfortable, and the most elegant shoes that are to be obtained; and, knowing this, he willingly pays a higher price than for the German article. To keep this reputation is of the highest importance to American exporters. One of the leading retail merchants of this city, who has branches in several towns of Bavaria, and who handles American

articles, called my attention to some American shoes for ladies which retail at $1.25. "If you want to kill your export trade to Germany, you must continue to sell such goods," he said. Quantities of cheap and unreliable American shoes thrown upon the German market would do endless harm to our exports in this article.

The same is true of machinery and tools, in which branches of manufacture our country stands unrivaled at the present day, and it applies with still more force to cycles. So far as I could ascertain, out of 2,100 cycles now in use at Bamberg, a quiet place of 40,000 inhabitants, about 60 are of American origin; but they represent the best that is made in our country, and the two local dealers who keep American machines tell me that the demand for them is very good, although the prices are higher than for the best native article. As in the boot and shoe trade, this reputation can be lost to us only by the exportation of cycles of inferior make. My attention was called the other day to an advertisement in the Frankfurter Zeitung, which read as follows: "One hundred American cycles to be sold at any price." Soon afterwards, a local dealer in German bicycles put in an advertisement in which his machines were represented as "good, cheap, and reliable," compared with the "poor American make. The result of my inquiries was that there were no American bicycles of inferior quality to be had, and that one had never been sold at this place. This insignificant incident shows how anxious people are to lower the reputation of the excellent American wheels. It lies entirely in the hands of our export firms to make such efforts unsuccessful, by withholding inferior goods from the German market.

The way to introduce articles into Germany has often been pointed out to the interested parties, viz, send experienced representatives, familiar with the customs and language of this country, establish sample stores, and prepare catalogues giving necessary details in German. The latter point can not be repeated often enough, for the numerous pamphlets and catalogues in English received at the consulates day by day are of no use whatever for German business. Upon my endeavoring the other day to demonstrate the advantages of American tool-making machines to a local firm (Buxbaum Brothers)-one of the most important in this part of Bavariaby means of a catalogue printed in English, I was told that the firm had no time for translations. At the same time, the manager showed me the catalogue of an American manufacturer of agricultural machinery, beautifully prepared, translated into German, brief and to the point; the machines (reapers and mowers) of the firm are to be found in this part of the country by the score. He said: "Our agents always carry these catalogues with them, and they can be found among the best classes of the peasantry."

At the present time, when the German machine industry is so busy that people have, in many cases, to wait twelve months for machines that have been ordered, our manufacturers should gain a firm footing on the German market. It can be done by sending the proper men over, by conforming to the German usage of giving credit, and by carrying out orders promptly and well.

BAMBERG, June 26, 1899.

LOUIS STERN,
Commercial Agent.

GERMANY IN 1898.

Germany's industrial development in 1898 compared favorably with that of any year in the last thirty years. If some falling off is to be recorded in a few textile lines, great gains are noticeable in other directions, notably in machinery. The value of the imports. rose from $1,159,060,000 in 1897 to $1,296, 148,000 in 1898; that of the exports, from $901,547,000 to $962,380,000.

The real significance of these figures is found in the fact that a large part of the imports consists of raw materials, which are made into all kinds of manufactured articles for export as well as for home consumption. The import of raw materials for textiles went up, while the imports of coal and iron fell off. Both facts furnish proof that home industries have been very active, and that the German coal and iron miners can supply almost all that is needed in these two lines. Of the $53,212,000 increase in exports, drugs, iron, instruments and machines, silk and silk goods, stone coal, and agricultural products, particularly rye, were well represented. Exports of sugar and wool fell off.

Prussia's income tax covered $32,368,000 in 1898, against $30,900,000 in 1897, $28,560,000 in 1896, $27,618,000 in 1895, $27,000,000 in 1894, and $26,894,000 in 1893. The increase in the power to pay taxes was greater in 1898 than in any year since the tax reform was introduced.

A still better proof that the entire population has participated in the prosperity recorded is found in the increase in wages throughout the Empire, and the savings banks' reports. Prussia's savings banks show deposits of $1,182,384,000 in 1898, against $1,107,414,ooo in 1897; a gain of $74,970,000. This increase of deposits, most of which were made by working people rather than by merchants and manufacturers, indicates, as nothing else would, the progress of the Empire.

CHEMNITZ, June 23, 1899.

No. 229 2.

J. C. MONAGHAN,

Consul.

EFFORTS TO INCREASE GERMAN EXPORTS.

Vice-Consul-General Hanauer, of Frankfort, under date of June 9, 1899, sends translation of an extract from the Berlin Confectionair, one of the principal organs of the German manufacturing and export trade, especially in such lines as textile goods, ready-made clothing, etc. The German people, adds Mr. Hanauer, are fully alive to the importance of not only maintaining their present position as purveyors to the world's market, but believe it essential to their standing as a great power to make still greater efforts to compete with England, which heretofore had the lead, and with new and energetic rivals, such as Belgium, Japan, and, last but most feared, the United States. The extract reads, in part:

WHAT DOES GERMANY DO FOR HER EXPORT TRADE?

Of late from various sides demands have arisen for the establishment of a central bureau, on the order of a commercial museum, like that in Philadelphia, in order to further Germany's export trade. In view of the mighty efforts which other nations are making to push Germany from the position which she has won in the world's markets, it seems necessary for our Government to use all methods which other nations employ in competing with us. It is a stale truth that hitherto the Imperial Government has done very little in this line.

It is a gratifying change, auguring better results for the needs of our commerce, that considerations are pending to improve our consular system; and the fact that the modest item of 55,000 marks ($13,000) appears in this year's budget of the Foreign Office, to be expended in sending commercial experts abroad, is further evidence that this Government is beginning to use those methods which have in the past been so successfully employed by England, France, and the United States in fostering their foreign trade.

We have a numerous staff of consuls, who promptly and regularly send in their reports, but no one can maintain that these meet the wants of trade. It is a fact long since admitted that the immense mass of information stored up in the monthly publications Handels-Archiv has no direct or practical value to our merchants. How inferior our consular system is to that of other countries is evidenced by the fact that Germany has only five professional consuls in the United States, whereas the latter country is represented by eleven salaried consuls in the Rhenish province of Prussia alone. The institution of chambers of commerce outside of our own country is new to us. Austria, England, France, the United States, Holland, Spain, Italy, and Belgium have these in foreign lands, and even Greece and Turkey are about to establish them.

It is true that our export trade is at present in such good shape that the resort to extraordinary means for its improvement might seem prompted by excessive anxiety; yet we must bear in mind that the growth of our foreign trade does not keep step with the increase of our domestic production.

It has become generally known that while bloody contests between nations are of less frequent occurrence than of yore, struggles in economic fields are gaining in acrimony, internal trade is becoming more complicated, and the constantly growing competition makes it necessary for us to leave no means untried whereby we may not only maintain our present prominent position in the world's trade, but secure it in the future.