for insurance purposes. It is significant that, in spite of the prevailing monetary stringency, the percentage of premium cancellations has been much less than was anticipated, a phenomenon which is curiously attributed to the circumstance that, owing to greatly reduced profits, traders cannot afford to be without insurance protection. The insurance on buildings has undergone little change owing to the fact that comparatively few new buildings have been erected during the past year or two. There have been no very outstanding insurance losses during the past year, and the general situation may be regarded as comparatively satisfactory.

There are very good prospects for British companies to effect re-insurance business on a large scale in Sweden, provided that they will take the necessary trouble to send representatives out to study local conditions. There is certainly force in the complaint, commonly made, that British Insurance Companies are reluctant to examine the possibilities of foreign business, and give the impression that they regard it as too small to trouble about. On the other hand, directors of German Insurance Companies pay regular visits to Sweden and familiarise themselves with conditions on the spot. Of late, also, representatives of American Insurance Companies have visited Sweden, with a view, principally, to establishing re-insurance connections. Nevertheless, the great strength and reputation of British Insurance are fully appreciated in Sweden, and with a display of interest and the spirit of accommodation there is every reason to believe that British companies could greatly improve their position on the Swedish market. The position of the large German companies is much stronger than might have been anticipated, a position which is due to the fact that large credits in Swedish crowns have always been kept on deposit in Stockholm for the conduct of local business, thus eliminating the derogatory factor of the rate of exchange.

Marine Insurance.-Swedish Marine Insurance is suffering severely from the universal stagnation owing to the laying up of tonnage, low freights and abnormal losses due to pilferage which latter is said to account for nearly 50 per cent. of the claims, compared to about 5 per cent. before the War. It is nevertheless characteristic of the conservatism which prevails in Swedish Insurance circles that, in spite of the alluring temptations to extend their business during the War, only four new Marine Insurance companies were established between 1914 and 1919. There are at present in Sweden 15 Marine Insurance companies and three Mutual Clubs writing direct Marine Insurance business, and the general stability which on the whole characterises these undertakings may be ascribed to the maintenance of a cautious policy during a period when concerns in other countries incontinently branched out in every direction where there was a chance of reaping a commission. Sweden is rapidly becoming an important maritime country, as may be readily perceived from the figures showing the number of vessels trading under the Swedish flag, as well as by the port extensions which are being carried out at Gothenburg, Stockholm and Malmö. Before the War,

most of the re-insurance business was done through Germany, but this channel is now gradually being cut off owing to the depreciation of the mark. A considerable portion of Swedish re-insurances are at present being placed with Danish and Norwegian companies, There is, however, every reason to believe that, if British companies would consent to accept at least facultative re-insurances in Swedish currency and on the conditions which prevail in this country, a much larger amount of re-insurance business could be effected.

III.-INDUSTRY AND TRADE.

Standardisation.-The question of standardisation in industry is engaging the serious attention of manufacturers. The Swedish Engineering Standardisation Bureau, for instance, is working in collaboration with standardisation organisations in other countries and has taken part in international conferences. The Swedish electrical industry also possesses its standardisation Committee, and is engaged in fixing standards for a large number of electrical materials. Much progress has also been accomplished in the standardisation of wood goods, such as windows, doors, frames, etc. Schemes are also being discussed for the standardisation of grades and sizes of paper, printing papers, writing papers, etc. There exists in Sweden a body called Svenska Slöjdföreningen (the Swedish Industrial Art Association), attached to which is a special Committee composed of artists, manufacturers and traders whose object is to examine new articles of commerce, which, if they conform to the canons of art and can be manufactured technically and marketed commercially, are entitled to the stamp or hall-mark of Association, viz., " SSF." The public. are presumably thereby protected against spurious productions or inartistic designs. The stamp" SSF" is at present confined to pottery and wallpaper, but it is hoped to embrace other commodities in due course.

Wines and Spirits. The organisation of the "Spritcentral has not undergone any important changes during 1921. In virtue of an Act of Parliament, a Committee was appointed during the year with a view of formulating a scheme for modifying, if desirable, the principles governing the wholesale trade in intoxicating liquors. The proposal of the Committee was laid before the Government at the end of the year, but it did not contain any alteration in the present organisation other than that. the Spritcentral" and its two daughter-companies, by agreement with the State, should be guaranteed the exclusive privilege. of the wholesale trade during five years from the 1st of January, 1922, the companies on the other hand being obliged to earmark not more than certain minor portions of their profit for account of funds" and to invest the balance in the Public Treasury. In addition, the Government is to have the right of appointing a Director to control the activities of the companies. A bill on the subject is to be laid before the Diet this year.

The excise duty on spirituous beverages was increased in July, 1921, to 50 per cent. on the wholesale prices of commodities sold retail and to Kr.4 per litre on commodities consumed in restaurants and the like. The sale of wines and spirituous beverages materially diminished during last year, and owing to the greatly reduced spending capacity of the public there has been a marked tendency to consume the cheaper qualities of wines and spirits in place of the more expensive. In consequence of the unexpected extent of the decline in consumption, stocks, especially in some lines, are heavy. The total sale of spirits for consumption in 1921 amounted to 31,513,457 litres compared with 37,842,442 litres in 1920, the figures for wines being 2,836,912 litres and 4,124,148 litres respectively. It will thus be seen that the consumption of spirits decreased by about one-sixth and that of wine by about one-third.

Coal. The situation in the Swedish Coal Trade during the early part of 1921 was very serious, owing to the fact that overbuying took place the previous year, at extraordinarily high prices. The impelling motive was the shortage of British coal for export and the coal strike in Great Britain, which engendered considerable nervousness in Sweden and led to the placing of large orders in other countries, especially the United States. In course of time, therefore, heavy stocks of coal were accumulated representing a formidable amount of capital, so that, when the coal situation eased in Great Britain and this commodity could be purchased at rapidly diminishing prices, Swedish coal importers and merchants were faced with grave consequences. It was, therefore, generally decided to restrict imports as far as possible until stocks were absorbed; at the same time petitions were lodged for permission to export coal from this country to the Baltic States. In these conditions, many firms were severely hit and some ceased to exist. On the whole, however, it speaks well for the sound organisation of the Swedish coal trade that the majority of the well established firms got safely through the crisis, and many which sustained heavy losses are readjusting their businesses satisfactorily. Owing to the general trade depression and greatly reduced production in the manufacturing industries, the normal consumption of coal has been reduced to about one-half and probably less, with the result that there has been no active buying.

Sweden is an excellent market for British coal provided collieries and exporters pay due attention to local requirements and conditions. The importation of coal into Sweden in 1913 amounted to 4,878,854 tons, of which 95 per cent. came from Great Britain. The imports in 1920 amounted to 2,811,633 tons, of which 51 per cent. only came from Great Britain. The production of coal at Högenäs, in the South of Sweden, is estimated at between 400,000 and 500,000 tons per annum. This coal resembles the lower grades of Scotch coal, and is almost entirely consumed in the Skane industries and by some of the private railways. The coal shipped in 1921 from the Swedish Spitz

bergen Coal Field is assessed at about 40,000 tons, of which 35,000 tons were consigned to the Swedish State Railways, and the remainder consumed as bunker coal by the chartered steamers. There is a sustained controversy as to whether, in view of the greatly reduced prices of British coal, it will be possible to continue working the Spitzbergen Coal Field on an economic basis. There is probably little to fear from United States competition, for though some of the American qualities are excellent, others, especially soft grades, deteriorate during the long voyage across the Atlantic. Moreover, apart from the question of freights, it hardly pays to send large cargoes from the United States to Sweden, owing to the necessity of unloading and stacking thousands of tons of coal, which entails high charges for storage and subsequent reloading in waggons. Swedish importers prefer to obtain coal in small vessels from British ports, so that it can be unloaded directly from the vessel into the railway waggons and, where necessary, despatched without delay to its ultimate destination in the interior.

Timber and Wood Goods. This industry underwent violent fluctuations during 1921. Manufacturers and exporters, having become accustomed to receive extraordinarily high prices, e.g., £30 to £33 for 7-inch red battens f.o.b. Härnosand during 1920, had settled down to the conviction that this luxurious state of affairs would become permanent. They were, therefore, little prepared for the severe depression which rapidly began to manifest itself about March and April, 1921. This was brought about mainly by the heavy drop in prices in Great Britain, which, in turn, took place owing to the slump in the building and other trades, and the need for ready money on the part of importers. Trade became so bad that a reduction early in May from £30 to £22 for 7-inch red battens failed to produce the desired stimulation. Even in May timber stocks in Great Britain were still high, and the trouble in the coal trade did not improve the situation. In June matters in Sweden became serious, as only about 10 per cent. of the quantity of wood goods sold during the corresponding period in 1920 had been disposed of. Largely on this account no less than about 80 per cent. of the tramp steamers were laid up. It was realised in Sweden that shippers and importers alike were poles apart in their grasp of the actual state of affairs. There was little or no demand in Great Britain, and, with the exception of Holland, Continental markets showed little life; and it is to be feared that conditions were made still more turbulent by the scramble among many of the smaller importers and merchants to procure ready cash. Difficulties in Sweden were still further enhanced by severe competition from Finland, and a certain amount from Germany, Czecho-Slovakia, &c., and by the further fact that German boats began to ship timber from Finland to Great Britain at 40s. to 50s. per standard, as against a minimum rate of 60s. to 65s. for Scandinavian boats from the Baltic to the East Coast. In consequence of the critical situation and the

impossibility of doing trade on the April basis of £22 for 7-inch red battens the Swedish Selling Association, which had controlled export prices since 1918, met in July, and an attempt was made to come to an agreement on the basis of £16. As the members failed to agree, the Association was dissolved on the 14th July, and the market was thus left free to individual exporters. As a result of this move a certain amount of promiscuous buying and selling took place, and prices for a time oscillated between £13 10s. and £15 for 7-inch red battens. These prices ruled, however, for a short time only, and were probably accepted as a temporary expedient in order to get liquid cash and ease the monetary tension, and also to acquire space in the wood yards to carry on sawing during the Winter months. In the Autumn prices hardened at about £16 for 7-inch red battens and £23 to £24 for red deals f.o.b. Härnosand. Generally speaking, prices obtained in 1921 for sizes below 7-inch breadth and for lower quality goods of all breadths such as fifths and sixths show a comparatively much larger reduction that for 7-inch and broader unsorted goods. Production was reduced to a minimum during the Winter, and it is probable that not much more than 30 per cent. of the capacity of the Swedish wood industry has been employed. The conservative attitude adopted by exporters towards the end of the year may be ascribed to anticipations that better prices would be obtained next year. It is said that not only were Autumn prices below cost of production, but that in spite of further reductions in wages, the cost of production even next year will leave little or no margin of profit unless there is a considerable rise in prices. There is reason to believe that there may be a reduced quantity of wood goods available in Sweden during 1922, and consequently exporters are anticipating higher ruling prices, providing no very large quantities are available from other countries. It is estimated that a total of about 540,258 standards were exported during 1921, of which about 252,000 standards were shipped to Great Britain and Ireland, 101,570 to France, 64,100 to Holland, 30,000 to Denmark, 20,500 to Belgium, 13,000 to Spain and 2,000 to Germany. By the middle of February about 100,000 standards. had been sold for 1922.

The exports of pit props in 1921 are estimated at 45,000 cubic fathoms compared with 91,874 cubic fathoms in 1920 and 89,039 in 1913. The prices of pit props in January, 1921, were 220s. to 230s. per standard, and in December, 110s. to 115s. per standard, the price thus having fallen about 50 per cent. The reason of this significant falling off in trade is attributed to the general economic depression and to the coal strike in Great Britain.

Wood Pulp.-Practically the same conditions which characterised the wood goods industry in Sweden in 1921 apply to wood pulp. Sales in 1920 were very large, and high prices were obtained. The result was that when the great slump in trade set in paper makers in Great Britain and other European countries were overstocked with chemical and mechanical pulp, and as