to do so, the union paying for them, the commissioners using their own discretion in the selecting. Consuls, too, are called on for samples, and often send valuable collections. On one occasion a commission sent by the Germans visited the Orient and collected a great many samples. These were afterwards exhibited for several days in the halls and corridors of the Imperial Parliament. They were then sent to large industrial and commercial centers and put on exhibition for the benefit of the workmen and work women who could not afford a trip to Berlin. They were afterwards divided among the sample museums-textile centers getting textiles and iron districts getting iron and steel products. The sample museum is an excellent auxiliary of the Empire's industrial, industrial-art, and technical schools. While it would be hard to estimate their value in dollars and cents, the German merchant and manufacturer have come to regard them as a part of the popular system of education.

The abstract, of which Mr. Ozmun's report is a résumé, says:

Business in the trans-Atlantic countries was just as quiet as in Germany during the past year, on account of low prices for coffee and the decline in silver, and also on account of political troubles and other unfavorable circumstances; and, although more visitors called at our institution [Stuttgart Musterlager], the total business of 1902 was about 15 per cent smaller than in 1901. Most of our customers bought only what they required for immediate use. North American firms only gave large orders, and it gives us great pleasure to be able to report an increase of trade with the United States.

For the purpose of calling the attention of foreign buyers to our institution and to our continual exhibition of German industrial products, we have mailed a large number of circulars. The domestic as well as the foreign press helped us a great deal by making detailed reports regarding our institution, for which we wish to express our thanks.

The number of firms giving orders at our institution and by mail was as follows:

The orders given at our office and by mail were divided among 506 firms. It has been our principle, ever since this institution was founded, to sell for cash only, and consequently our members suffered no losses.

Seventy catalogues were mailed; the total of catalogues mailed so far is 9,920.

The total number of letters received during the past year was 11,715, against 12,486 in 1901; number of letters mailed, 16,290, against 17,620 in 1901.

Our director visited, during the past year, Vienna, London, Bremen, Düsseldorf, and Frankfort, and made several new connections.

Business with Greece increased a little through the efforts of our agents.

Our branch in Hamburg (Deurer & Kaufmann, Hamburg, Africa house) also felt the general depression to a certain extent.

Business is a little more active since the beginning of the current year, and we expect a larger total this year.

Besides receiving large orders for metal ware of every description-clocks, jewelry, musical instruments, etc.—our branch in Hamburg has extended its machinery department and has succeeded in receiving large orders for machines.

We recommend, therefore, that members handling machinery should send their catalogues to our branch in Hamburg.

Here in Stuttgart there has also been a decided improvement during the first four months of the current year. Exports to Australia especially are steadily increasing. The large stock on hand seems to be sold at last, and the foreign buyers are placing large orders.

MANUFACTURE OF MUSICAL INSTRUMENTS IN

GERMANY.

The manufacture of pianos in Germany has reached a state of perfection attained by no other nation. Admitting that in other countries particular firms produce instruments which in every respect are equal to the best German make, it is claimed that as an industry, considering the number of factories and the high exports to nearly every country in the world, the manufacturers of this Empire are a long distance in advance of all their rivals. In spite of the enormous sale of pianos every year within the limits of the Empire, the manufacturers are dependent upon the markets of foreign countries for the sale of fully one-half of the number produced.

The success of the German pianos is due to the fact that they are cheap, comparatively speaking. Two hundred and fifty dollars will buy a very fine upright piano in this country. The construction is always apace with the latest art designs, special attention being paid to the woodwork; they not only present an elegant appearance, but are solid and durable.

There are 435 piano factories in Germany, which manufacture 80,000 instruments annually. One hundred and forty factories are located in Berlin, 27 in Stuttgart, 21 in Dresden, 16 in Leipzig, 15 in Hamburg, 10 in Leignitz, 9 in Zeitz, while the rest are located in Dresden, Munich, Halle, and Brunswick. During the past twenty years the export of ready-made pianos and parts has increased from $1,900,000 to $6,110,000. Great Britain is at present Germany's best customer, buying over 40 per cent of the total exports. Prior to 1890 Argentina was the best market for German pianos, especially for those made in Halle. Australia is also a chief market, buying

In

nearly $1,000,000 worth of pianos every year. In ten years Belgium has increased her import of German pianos by 100 per cent, while Russia and Holland purchase about $1,000,000 worth a year. addition to these countries, large quantities are sold to almost every country in South America and to Norway, Sweden, and South Africa.

There are some 265 factories for the manufacture of church organs in Germany. The greater number are small establishments, which produce only for home use. There are a few factories, however,

which export to Russia, Great Britain, and Austria-Hungary.

The chief centers for the wholesale manufacture and export of stringed instruments are Markneukirchen and Klingenthal, here in the Saxon Erzgebirge, and Mittenwald, in Upper Bavaria. In Markneukirchen the industry is greatly assisted by the patronage of the State, and an industrial school has been established which is under the supervision of the Saxon government. The export of musical instruments from the Markneukirchen consular district to the United States for the fiscal year ended June 30, 1902, amounted in round numbers to $684,000. The manufacture of the different parts of stringed instruments is carried on chiefly in the worker's own home. The so-called "Hausindustrie " is highly developed, not only in the musical-instrument centers, but in the dress-trimming and kid-glove towns of the Erzgebirge as well. In the manufacture of guitars, zithers, banjos, etc., Markneukirchen is very successful, although the neighboring town of Klingenthal is a close rival. A few years ago two or three firms at Johanngeorgenstadt, in this consular district, started the manufacture of accordions and zithers, which has been attended with considerable success.

In addition to the above-named musical instruments, Germany manufactures large quantities of violins, brass instruments, mouth harmonicas, drums, etc. If we take into consideration all the people employed in the musical-instrument factories and the side lines. which are akin to this industry, the number will easily reach 30,000. ERNEST L. HARRIS, Commercial Agent.

EIBENSTOCK, June 15, 1903.

PORTLAND CEMENT IN GERMANY.

In reply to various inquiries from the United States concerning the present condition and prospects of the Portland-cement industry in Germany, the following report is respectfully submitted:

The cement manufacture may be designated as that one of the great, long-established industries in this country in which the capacity of production is most excessive and disproportionate to the normal consumptive power of the people. There were in operation in

this country at the close of 1899 261 cement factories, and their number has increased rather than diminished since that time.

During the year 1901 there was consumed in Germany 14,600,000 barrels of cement, while the reports of the several syndicates show that the collective productive capacity of all their factories for the same period was 29,000,000 barrels per annum. The power of production had thus, in respect to Portland cement, outgrown the actual home demand by 100 per cent. Just how much cement was really produced in that year is difficult to ascertain. The cement factories of Germany are divided into several syndicates, which fight each other with persistent valor and reveal as little of the inside workings of their several organizations as possible; but from all indications and estimates, there must have been in 1901 a surplus of from 10,000,000 to 12,000,000 barrels, of which there was exported 506,65 2 tons, leaving a large excess, which broke down the market, reduced profits to a pittance, and brought on a crisis in the industry from which it has not yet recovered.

In tracing the causes which led up to this result, it is noticeable that during the ten years from 1890 to 1900 all kinds of construction which use cement were phenomenally active in Germany, and the consumption was enormous and steadily increasing.

Millions of

barrels were used in the construction of the Kaiser Wilhelm and Ems canals and in improvements in the Rhine, Weser, and other rivers. It was expected that the Midland Canal would also be authorized and the cement factories made preparations to meet that additional demand, so that the failure and postponement of the project were among the contributing causes to the overproduction of that period. The situation led to a new effort to unite the several local syndicates and groups into which the cement makers were divided into one national and all-embracing combination, which could restrict the output, shut down superfluous factories, and, by getting the industry thoroughly in hand, restore prices to a profitable basis. All such efforts proved futile, and the war between the competing factories was bitter and unrelenting.

The year 1902 brought no substantial relief. The supply of cement everywhere exceeded the demand. Building operations slackened under the general industrial and financial depression, while labor and fuel-two of the principal factors in cement productionmaintained practically undiminished values since the prosperous years preceding 1900. The only outlet for the surplus was through exports, and these slowly increased from 497,780 metric tons* in 1898 to 528,676 tons in 1899, 543,991 tons in 1900, and 641,520 tons in 1902. Of this large export the United States takes a larger share

* 1 metric ton=2,205 pounds.

than any other nation, the shipments to our country aggregating 197,174 tons in 1900, 108,596 tons in 1901, and 246,726 tons in 1902. Next in order of importance in this respect comes the Netherlands, which last year took 66,837 tons of German cement; British South Africa, 36,720 tons; Great Britain, 33,534 tons; and Brazil, 18, 209

tons.

Under the present tariff, cement is free of duty when imported into Germany, and there was a small influx of 51,947 tons in 1902, which came across the border at points in Belgium, Denmark, France, Austria, and Switzerland, where factories near the frontier were geographically tributary to German territory. To shut out this slight competition the new German tariff imposes a duty of 50 pfennigs (about 12 cents) per 100 kilograms ($1.20 per metric ton) on cement, as against $4.04 per ton duty assessed by Russia, $2.38 in Austria and Switzerland, $1.42 in Sweden, and $1.76 in the United States.

The sum of all recent information is that only the oldest and largest factories in Germany, which enjoy every advantage of location for obtaining raw material and handling their product, are able under present conditions to earn any substantial profit; many of the newer and smaller establishments are working at a loss. Early in the present year there was a meeting in Berlin of cement manufacturers from all parts of the Empire, which, after a long, secret session, appointed a commission to consider and report in April upon a plan for the organization of the entire industry under a cartel, or syndicate, which should control output and manage the market. Thus far it would appear that the commission has not reported, and its continued silence is construed as an indication that the differences between local syndicates and individual factories have again been. found irreconcilable, and that no general basis of combination can be reached.

BERLIN, June 16, 1903.

FRANK H. MASON,

Consul-General.

FRENCH-AMERICAN TRADE REQUIREMENTS. American exporters very often judge the value of their goods and the needs of foreign purchasers by their own standard. This standard may be true as far as the conditions of the United States are concerned, and partly or entirely false when applied to other countries. The American manufacturer should know the requirements of the people whose trade he seeks and should try to satisfy them. The French have fixed habits, from which they do not easily