BRITISH VERSUS AMERICAN BICYCLE TRADE.

In his annual report, to be printed in Commercial Relations, Consul Parker, of Birmingham, England, under date of October 9, 1897, says:

The one marked development in this district during the past year has been in the cycle trade. From July 1, 1896, to January 1, 1897, this was very rapid. Productive power was immensely increased. Small establishments developed almost without notice into large ones, with an unsuspected capacity for turning out bicycles. The result was that the speculative interest became so dominant as to confuse the result, and produced an overdevelopment not only of manufacturing facilities, but of company promoting. This induced some neglect of selling effort and a disposition to underrate the possibility of competition, especially from the United States. In spite of the increased use of bicycles all over the world, the result of this was soon apparent in the comparative decline of exports. This did not affect the trade with the United States, because hardly any complete bicycles have been sent since the beginning of 1894. There was a determined maintenance of prices, but very little effort to make a good bicycle at such a cheap price as would bring it within the reach of workingmen. The British foreign trade in bicycles for the calendar year 1895 was $6,747,012.93; for 1896, it was $9,056,420.23; for 1897, the returns are not yet complete, but from January to September, inclusive, the most important portion for the bicycle trade, there was a falling off of more than 13 per cent. If this rate should continue over the whole year, the exports would amount to about $7,877,275.22.

So rapid was the growth of the bicycle industry during the period mentioned that large numbers of workmen were drawn from other lines, and the rate of wages advanced very rapidly in this and allied trades. This drew into the bicycle industry a large number of men who had had no training in this particular branch, to the temporary injury of others. Some of the latter found themselves, almost without notice, losing trained and experienced workmen, or were compelled greatly to increase the rate of wages paid them. It would probably be safe to say that the predominance of the bicycle manufacture in this district during the past two years resulted in an increase of probably 10 per cent in the wages of skilled laborers in many of the established metal branches. Some of this advance will now probably be lost, because, as the making of bicycles becomes a settled business, it will not require the services of such a

large number of men, so that many of the new ones will be compelled to seek employment at their old trades. Besides, the use of the best American machinery has increased very rapidly, thus displacing hand labor more and more.

This apparent neglect of opportunity, with its failure to recognize existing conditions, was coincident with a remarkable export movement from the United States. During the past two years, ending in each on June 30, the total exports of cycles and parts from the United States and those to the United Kingdom are shown in the following brief table:

Exports of cycles and parts from the United States.

Not only has the total export of American cycles increased by nearly 300 per cent in one year, and that to the United Kingdom in about the same ratio, but the demand from British colonies or markets, heretofore held almost exclusively by British manufacturers of cycles, was greater by more than 175 per cent during the period named.

Thus the export of bicycles from the United States, insignificant two years ago, has grown to proportions almost as great as those of the United Kingdom, in spite of its earlier development and immense capital and facilities. There are indications that the conditions are now fairly appreciated by the British manufacturer, and that he will not so easily be caught again; but, as the manufacturers of the United States are not likely to surrender without a struggle the advantages incident to two years of successful trading, the former must now fight to retain what he has, to say nothing of getting back what he has lost.

MISCELLANEOUS GOODS.

The exports from the United States of other manufactures which, without exception, show an increase, but are not classified by countries of destination, are brass goods, clocks and watches, glass and glassware, lead and its manufactures, steel rails, iron and steel plates and sheets, wire, printing presses, typewriters, nickel, tin, and zinc. An analysis of the exports from the United States also shows that our manufacturers are rapidly increasing the sale of the above-enumerated products in the British colonies, especially in Canada and Australasia. In addition to the increase in these articles, they are also extending their trade in cotton goods, leather, boots and shoes, and furniture in these markets, which the British

manufacturer has hitherto held. In some articles, notably in typewriters, the people of the United Kingdom are no less dependent upon the United States than are the people of the latter, there being no acceptable machine of any other make.

If one might make a suggestion to manufacturers, it would be not to seek to enter a market, especially one where competition is so sharp as it is here and in the larger colonies, without the most careful investigation, made in the most approved manner by the best equipped men in each line of trade. It is only in this way that goods can be sold in an old country. The tastes of the people must be consulted at every turn. It would be useless, for instance, to offer in England bedroom suites which were merely the surplus of those made for the home market, because the demands are entirely different; and yet there is perhaps nothing for which the demand would be more steady than for products in wood.

GERMANY'S EXPORTS TO THE UNITED STATES.

Germany is disturbed. Exports to the United States are dropping off. Nothing so alarming has occurred in twenty years. America was always the best customer in many lines of manufactures. Το lose her is to lose a great deal. Seventeen consular districts of this Empire sent to the United States in the September quarter of 1896, goods worth $16,481,414; the same seventeen districts, in the same quarter of 1897, sent goods worth $7, 189, 112, a difference of $9,292, 302, or 56 per cent. Hamburg fell off from $5,352,506 to $897,568; Chemnitz, from $171,876 to $519,531; Glauchau, from $1,051,709 to $205,036. Berlin and Leipsic lost less; yet the average all over the Empire is nearly 50 per cent. In many cases, this indicates much more than mere money losses to our revenues; it indicates a diminution in exports from this Empire, due to the Dingley bill. The public is told to put little confidence in the newspaper reports, even if accurate. Each issue urges intelligent effort to retain United States markets and to gain others. The following is a fair illustration of newspaper feeling in this regard:

It is hard to tell how much the rush of goods to get in ahead of the bill's going into effect has had to do with the unhappy results indicated above. Still, no one who knows anything about business begins to believe we will escape very material losses through this latest protective and revenue-raising legislation. The United States have a right to raise revenues and protect industries; but it is hard to believe the action justified that differentiates against German sugar. Against this differentiation, Germany protested. Of this, the United States took no notice. Germany has no apparent purpose to push the matter to a decision. We, too, can raise our import duties. It may be wise to make use of this right as a weapon with which to win concessions, or, in the event of an industrial war, to retaliate. We can

break off now because of America's inconsiderate, almost hostile, action and attitude. If we wait, we must notify. The most-favored-nation clause has been violated. No one, surely not America, could find fault were we to retaliate, as so many desire, and as America's action would justify. The universal opinion favors retaliation. We use, but we do not need, American meats, cotton, corn, and petroleum. The United States asked us to enter into a treaty of reciprocity, so said someone two weeks ago. Up to date, no one has heard anything more definite. What use have we for such a treaty? Does any one imagine that America will make concessions favorable to an Empire her manufacturers fear? If he does, he mistakes both the temper and mental make-up of the tariff makers. All America would want would be reduction of our duties on agricultural products, and these can not be conceded. Does anybody familiar with the agrarian questions believe that they could? If we are to win concessions, it must be by battling with her own weapons. We must fight her inch by inch over every line of goods that go out into markets to meet ours. The Government must be given full power to put reprisals in operation. Patience is one of the poorest of political weapons in cases of this kind. The hour calls for others. We were patient too long. We submit too easily. When the Reichstag and Landtag get together this fall, ways and means must be found for forcing the United States from its present position. Governments are not given to hasty actions. It is best so. We must wait and find out how much damage Mr. Dingley's bill has done or will do. The time to measure by is not an abnormal three, six, nine, or twelve months. No one knows what is to be the result. Mr. McKinley's bill was as bad in its way as Dingley's. It did little real damage. We are not sure that its effects, inasmuch as they stimulated the Empire to almost incredible efforts, were not good. To decide now, with unreliable data, might do irreparable damage. We can not counsel it; we warn against it. The consciousness that we can count upon weapons with which to make war, aggressive or defensive, is enough now. Corn, cotton, and petroleum they must sell. It is not so certain that we must buy-from them. Russia, India, and Egypt are as near to us. They have cotton, corn, and petroleum. We will wait. Cool, collected, courageous, never cowardly, cautious but not timid-these must be our watchwords. Not timid, because the only way to have any effect on Americans is by a display of sharp teeth. J. C. MONAGHAN,

CHEMNITZ, October 28, 1897.

Consul.

TECHNICAL MERCHANT SCHOOLS.

Efforts are being made to improve the business education of those who are to build up the Empire's mercantile future. This is the one weak spot in Germany's school system. Her art, industrial, industrial art, and technical schools are all that any nation needs; her commercial schools or business colleges are by no means so good as ours. Every energy is to be exercised in bettering these. Schools are growths; hence it is that the methods to be employed look to a permanent and healthy, though slow, rather than a hasty or hothouse development. In a school system, a day or year is only a very small factor. Such schools must be built and must belong to the state. Inasmuch as the teaching material and scholars, eager for such instruction, are not numerous enough just now, the nation must make

experiments, such as Frankfort is trying. Frankfort's Chamber of Commerce is to begin an academical course or courses for young men destined for a mercantile career. It is hoped that this will prove to be the foundation stone for future schools of the same kind with the same or similar courses. The course might be called a commercial high school course. It takes in political economy, industrial and patent laws, railroading, shipping, the post, telegraphy, banking, exchange, coinage, a digest of industrial history, commercial geography, etc. Each course is to be covered by from three to six lectures, given evenings. Mercantile clerks, capable of profiting by such a course, are to be admitted upon payment of a moderate tuition fee. This is a step forward. Two years ago this system of schools was gone over at a national conference. American commercial schools were talked of as models of this kind. From this humble beginning, a new system of commercial education will go out all over the Empire. In a very short time other cities, then the states, and finally the Empire will take up this question, gather facts and figures, and end by giving the world the very best technical commercial schools to be had. I subjoin extracts, published in the London Standard, taken from the report of the technical instruction committee of the council of the city of Manchester. It says so well what our consuls have been saying for so many years that I send it to the Department:

TECHNICAL EDUCATION ABROAD.

The technical instruction committee of the council of the city of Manchester recently presented a report of the deputation appointed to visit technical schools, institutions, and museums in Germany and Austria in July and August last, which is now under the consideration of the Chamber of Commerce. In the course of this, the committee observe: "It is interesting to note with what discrimination and judgment the educational authorities of Prussia pursue their objects. There are no less than thirteen schools in Prussia devoted to textile training, each with its own peculiar conditions. This enables a certain elasticity and variety of method to be established and tried, and the evils of undue educational competition and rivalry which are found in England, and which go so far to prevent the establishment of really efficient institutions attended by competent students, are obviated. An instance of this differentiation is seen at Aix la Chapelle, whose textile school was also visited by the deputation. This school is devoted to the worsted and woolen industries of the district, and is a good instance of what is called 'fachschule,' or special school. It includes spinning, weaving, dyeing, and finishing. The feature which specially characterizes it and differentiates it from Crefeld and other like schools is that the spinning and weaving school is conducted upon the principles and, with obvious limitations, on a similar scale to that of a woolen factory. A considerable number of ordinary workmen are employed in the spinning, weaving, and finishing of woolen cloth, and these men instruct, and are assisted by the 60 students in attendance upon the studies of the school. The mantle and ladies' clothing trade of Berlin, in which small wares are largely used, is exceedingly important; of mantles alone, it is said that upwards of £1,000,000 worth are annually exported to this country. The Municipal Textile School of Berlin is attended by 50 regular day students and 300