GERMAN CHAMBERS OF COMMERCE.

Vice-Consul-General Hanauer transmits from Frankfort, under dates of July 19, 21, and 28, 1899, extracts translated from recent reports of German chambers of commerce. The annual reports of

the chambers of commerce, Mr. Hanauer says, are received by the manufacturing and financial classes in Germany with great interest, and have the importance of the findings of an expert commission. In Europe generally, and more especially in Germany, chambers of commerce exercise great influence in political and mercantile affairs. They are efficiently constituted, have a large staff of able and well-trained officials, and are frequently called upon by the government to inquire into matters appertaining to internal improvements or bearing on the foreign policy of the nation.

The following extracts are from the report for 1898 of the Chamber of Commerce at Frankfort:

The year 1898 has been even more favorable to German trade and industry than the prosperous years preceding it. This is to be attributed to the pacific state of Europe, to our favorable commercial relations with those European countries with which we have trade treaties, to the increasing volume of our exports—particularly to transoceanic countries-to good crops, to that spirit of enterprise which has developed almost to an extreme degree, and to the confidence in German industrial undertakings. The boom may be considered general, although a few solitary lines of trade do not participate therein. The more important branches of industry, such as work in iron and coal, the building trades, machine works, and chemical factories, have achieved most satisfactory results. The larger consumption, not only of necessaries of life, but also of articles of luxury, denotes the general improvement of economic conditions. Special conditions retarded development in some branches of industry. The textile industry, especially cotton spinning, suffered from overproduction. The trade in cereals was affected by the mad grain speculations in the United States. Indigo trade was handicapped by the growing competition of the artificially made article, the tobacco trade by the war in Cuba; the sale of clothing declined in consequence of the unseasonable weather last summer.

Taken as a whole, the business of the year has been satisfactory, though complaints of small profits, owing to increasing competition, are heard in many reports; the export trade especially has a hard fight to maintain its position in foreign countries. But the recent efforts of the Imperial Government to obtain new footholds in transoceanic lands promise that the success of our export trade will continue. This, however, depends upon a strict adherence to our policy of amicable trade relations, based upon commercial treaties.

It is easy to understand that the progress of our exports has caused envy among foreign nations, which has induced them to establish national trade barriers against Germany's competition. The newly established central bureau for the preparation of trade treaties reports to the Government all cases where German commercial and industrial interests appear to be threatened. This activity is very opportune, and we consider it to be the duty of all economic bodies to support this and like institutions whose object it is to promote a reciprocal trade policy.

For years past, the United States of America has been one of our most important trading fields. The cultivation of this field has become the greatest of our economic anxieties, and the most thorough and liberal examination should be given the matter ere we apply tariff measures to this country or treat it in a politicoeconomic way.

To-day, the United States looms up as the greatest producer of breadstuffs, and with all the factors of gigantic development in metal production. It has already attained such a position in all branches of industrial power as to enable it to boldly take up the gauntlet of competition in the international arena. Germany has no special treaty with the United States; the most-favored-nation clause is the basis of the mutual trade, but this presupposes that both nations maintain toward each other such tariffs as not to make the exchange of goods prohibitory. The Dingley tariff has affected German exports inimically. Germany's imports from the United States in 1898 exceeded those of the previous year in twenty-five leading lines, whereas she exported to the United States considerably less in twenty important lines than in 1897. The question arises, Is the most-favored-nation clause without a tariff reduction on the part of the United States of any value to us?

The report, adds Mr. Hanauer, notices the increasing imports from the United States of building timber and woods for manufacture of furniture, saying that pitch pine, Carolina pine, cottonwood, and other woods are much in demand and have a regular market in Germany. Complaint is made about the unsatisfactory state of the German bicycle manufacture, which is said to have suffered severely from the competition of American makes of a cheap sort.

The report of the Dresden Chamber of Commerce says, in part:

Though Great Britain occupies first place in German import statistics, these imports, mainly consisting of raw and finished materials, attract little notice. But the competition of the United States, especially in finished industrial products, stands out in bold relief.

The American enterprises, working with immense capital in every branch of trade and assisted by a corps of consular officials of genuine American cleverness, operate with extraordinary activity in all markets, including Germany. Owing to these advantages, and in consequence of the advance in specializing and subdividing the manufacture of articles, the United States is enabled to sell at lower prices, though paying higher wages than its European rivals.

With the exception of a few lines, our trade with the United States in 1898 was unfavorable. The Spanish-American war acted as an extinguisher to the export of many German industrial products; the tariff handicapped others. The opinion is prevalent in various quarters that if the present tariff continues, we must familiarize ourselves with the thought that our export to the United States will some day cease altogether, and that if we want to do business with that country we must establish branch factories there.

Reports from other German chambers of commerce, continues Mr. Hanauer, urge the necessity of a trade policy having for its aim the continuation of existing commercial treaties with foreign countries and the avoidance of a tariff war. The manufacturing, commercial, and banking interests in Germany are politically stronger than the Agrarian party, which favors repressive measures against American products entering Germany.

The Chamber of Commerce of Hagen, speaking for the iron and steel manufacturing district in Rhenish Prussia, says:

The wire-manufacturing branch has shown no improvement during 1898, nor can such be looked for in the near future. The combination of the factories in 1897 led to a considerable improvement in the price of the goods sold in our country. The wire-tack trust, which was organized last fall, has begun its activity by advancing the prices for domestic consumption. The orders from abroad are carried out at sacrificial prices, but the sacrifice is borne by the combine instead of by individual competitors, as was the case formerly. The syndicates in coal, pig iron, and half-finished goods allow a bounty on all kinds of wire and wire tacks exported, which helps the manufacturers to compete in the international markets. The strained conditions that now exist in this branch are due to the competition of the United States. The iron trade there has developed in a stupefying manner, making the country a productive power of the first class. The condition of this trade in Germany has, during the last year, grown more and more unfavorable, because the Americans have steadily taken possession of the markets in Japan, China, and Australia, which heretofore had been supplied mainly by German products. The prices abroad have at the close of the year declined so low that even German works that produce rolled wire have to give up taking contracts, on account of the cost of the raw material. Nor is the outlook for the lately established wire-tack trust at all auspicious, as it must submit to heavy sacrifices in order to snatch at least a few orders from the claws of American competition.

The Chamber of Commerce of Solingen (Rhenish Prussia district), the center of the manufacture of cutlery, bewails the fact that this industry can not thrive because, owing to the closing of the American market, the competition at home has become so intense as to undermine prices, diminish profits, and produce a decline in the quality of the goods made. The manufacture of scythes, it is noted, was sufficiently active; but in the future this branch is threatened by the increasing import of American grass mowers. The commercial treaty with Russia has had good results, and business with that country has steadily increased.

Germany's exports of cartridges and percussion caps have greatly increased in 1898, as the shipping statistics of Hamburg (the main outlet for these articles) show. The exports during 1898 amountedto 16,125,000 marks ($3,857,000), against 10, 125,000 marks ($2,409,ooo) for the year previous. The largest customer was Chile, which took to the value of 9,000,000 marks ($2,142,000). Turkey took 2,000,000 marks ($476,000); Spain nearly as much. Argentina, China, and Mexico also bought largely.

GERMAN ZINC EXPORTS TO THE UNITED STATES.

I transmit herewith a circular on the zinc industry in the United States, which has been distributed all over Germany and sent to every representative in the Reichstag. It states, among other things, that, on account of the tariff of 12 cents per pound on zinc dust, it is now impossible to export it to the United States.

Upon an examination of the books of this consulate, I find the exports of zinc dust to the United States during the last seven fiscal years to have been as follows:

This table shows that the export for the past fiscal year is the largest on record, not even excepting the year ended June 30, 1897, when the German manufacturers, expecting an increase in the American tariff laws, were flooding the American market with wares of all descriptions.

I immediately called at two of the leading newspaper offices here with the circular and the tabular statement of this consulate, and explained to the commercial editors that the circular was misleading on this point. Each of the editors has published a full correction of the article.

BRESLAU, June 30, 1899.

C. W. ERDMAN,

Consul.

COMMERCIAL POLICY OF HUNGARY.

I wish to call attention to the compact lately agreed upon between the Austrian and Hungarian prime ministers and expected to pass the Hungarian Parliament in a few days, according to which. Hungary's (or Austria's) will alone is sufficient to give notice of termination of any commercial treaty now binding on the Monarchy, among which is included the treaty of 1829 with the United States. The United States recognized the duality of Austria-Hungary in its trade-mark treaty of 1871. This duality, at least in commercial

* Filed for reference in the Bureau of Foreign Commerce.

administration, is becoming pronounced under the new compact. One feature can not be overlooked-the consular service is now arranged by a "convention" between the two ministries, not by an article in the compact legislated by the parliaments, as hitherto.

The administration of commercial affairs in Austria-Hungary has been theoretically separate, though joint in action, since 1867, when the two ministries of commerce were founded. On the 10th of April last I received, in common with other consular officers accredited here, a circular note from the Minister of Foreign Affairs in Vienna announcing the publication of Hungarian commercial statistics in the French language, in a review entitled La Hongrie Économique, about to appear. This appears to indicate that the imperial and royal common Government attaches no small importance to the administration of commerce in Hungary.

By the new compact, unless the Austrian situation (race feud) should change, Hungary is assured the right to cause all commercial relations with foreign countries to conform to a new protective tariff at the end of the year 1903—that is to say, the foreign treaties will all be terminated at that time, and the new tariff, suiting Hungary's agrarian wishes, will be introduced by a special law. The joint administration of commercial affairs will continue, however, until 1907; and by January 1, 1908, Hungary will be able to say whether she cares to continue her union with Austria in commercial and other economic affairs. Hungary would thus attain the position constitutionally held by Egypt and Bulgaria, particularly by the latter, and, like her, make her own commercial treaties independently of the common Government.

The two men who act as referees in the commercial deliberations of the Hungarian Parliament and its "delegation" are Messrs. Julius Rosenberg and Max Falk, respectively, neither of whom is a Hungarian by race.

BUDAPEST, June 28, 1899.

FRANK DYER CHESTER,

Consul.

SILK TRADE IN LYONS.

The Chamber of Commerce of Lyons has just published its annual report of the silk production of this city for the year 1898. The total product of pure silk stuffs was, in round numbers, $30,700,000, or $1,200,000 in excess of 1897. These figures are inferior to those of 1895 and 1896; but they are considered encouraging as marking a resumption of activity. There has been an increase this year in the manufacture of faille, of taffetas, of velvets, of moires, of stuffs for umbrellas, parasols, and muslins. On the other hand,