are properly represented by the horticultural division of the Agricultural Society of Rhenish Prussia and the Association of German Jelly Manufacturers, and also with respect to the aims of both of these organizations, since they had petitioned for the issuance of an order prohibiting the importation of American fruit waste. We have replied that the division of the Agricultural Society of Rhenish Prussia should not be regarded as the proper representatives of the German jelly manufacturers, but as the representatives of the German fruit growers, and that they therefore had an interest in preventing the importation of American fruit waste to the utmost of their ability. Nor can the Association of German Jelly Manufacturers be regarded as the proper representative of their branch of industry, as several important manufacturers among them Rath & Co., the largest concern in the business-are not members of that combine and do not approve the position taken by said association. The petition of the Agricultural Society of Rhenish Prussia must therefore be regarded only in so far as it aims to protect the interests of the Rhenish fruit growers, who, however, are not prepared to meet the entire demand by their own products. This is illustrated by the fact that the two factories in this city, even if they abstain from using dried American fruit, are consuming from 3,000 to 5,000 centners (339,000 to 550,000 pounds avoirdupois) of German fruit and 19,000 to 21,000 centners (2,090,000 to 2,310,000 pounds) of fruit from Holland. While we by no means deny the danger of bringing in the San José scale, we believe that this peril is being greatly exaggerated by the fruit growers. The American drying methods, exposing the fruit to a heat reaching 100° Celsius, guarantees a thorough destruction of the pernicious insect. This is confirmed by the fact that in the examinations ordered to be made at the boundary for the San José scale, none have as yet been found. We will not omit to mention that these examinations, as well as the police order of the Rhine province of May 16 last, compelling jelly manufacturers using American fruit and fruit waste to burn all packing materials of these goods, have already overrated the use of American fruit waste.

A total prohibition of the importation would greatly harm our domestic commerce and would merely transfer the manufacture of jelly from American fruit waste to foreign countries, and the demand would no doubt be supplied with the foreign-finished product, instead of from the raw material purchased outside. This would have as a consequence another drawback which would affect our agriculturists, for there would soon be a reduction in the sale of their potatoes, employed for the manufacture of glucose, extensively used in making several brands of jelly. A prohibitive order would therefore mean a restriction of the nation's labor, and we would beg that the proposal submitted by the Agricultural Society of Rhenish Prussia be rejected.

The importance of this report will be better understood when it is stated that the manufacture of jelly from American fruit waste in Germany is confined exclusively to Rhenish Prussia.

Mr. Pettit adds, on July 20:

In the report of the chamber of commerce on the fruit market for the year 1898-99, further comments of interest to United States exporters are made. The report says:

Prunes.—After a long interval there was a heavy crop in France (about 400,000 double centners*), which gave cheap prices and active trade in French prunes. California sent only small lots of big fruit, the prices being too high on account of the small crop. Servia and Bosnia had gigantic crops, which made prices very low and the demand for the goods very heavy. Business was satisfactory.

88,184,000 pounds.

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.

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. Prices were 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 ascer

tain, 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 $1,107,414,000 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.

J. C. MONAGHAN,

Consul.