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Lemon Oil. The position of the lemon oil market in the autumn 

 of 1910 was as follows: — 



There was still in existence an old stock of about 100000 kilos of oil, 

 by far the greater part of which was in the hands of one owner. The 

 new crop promised to reach the same average as that of the previous 

 year, and the general opinion among the exporters was therefore that the 

 price of 7 oM which was ruling for old oil could not be maintained for 

 the new crop. The expectation of lower prices during the first half of 191 1 

 was the greater because of the conviction that a considerable part of the 

 old stock would have to be carried forward into the new season. 



Basing themselves upon this assumption, most of the exporters were 

 making offers for delivery for export at prices lower than those ruling at 

 the time. On the other hand the manufacturers, generally speaking, did 

 not share the view of the exporters, but showed great reluctance to sell 

 new oil for delivery. 



Foreign buyers, on their part, only bought what they absolutely required 

 of the old spot oil, while at the same time showing great willingness to 

 buy the cheaper new oil for delivery. Under these conditions a very 

 considerable shortage was created on the local market, to the disadvantage 

 of the export firms which had sold for delivery at prices ranging from 6 &%, 

 to 6,50 c4i % and which during the late autumn had no opportunity of 

 buying against their uncovered sales. It was hoped everywhere that the 

 existing large stock of old oil would in the balance exercise pressure 

 upon the market, and that as soon as the new oil made its appearance 

 a pronounced decline in the quotations would take place. These expectations 

 and assumptions, although in themselves sufficiently justified, were unfor- 

 tunately destroyed by the influence of the unfavourable weather upon the 

 lemon crop. Drought and heat prevailed for almost 7 months in succession, 

 so that the lemons on the trees could not develop, and while as a rule 

 small quantities of the first new oil are brought to market as early as 

 November, the fruit this season was still so small and insipid by the 

 middle of December, that it was impossible to work it up except at the 

 greatest loss to the manufacturers. 



When the market failed to obtain its customary supplies of new oil 

 in the months of November and December, it found itself restricted ex- 

 clusively to the stocks of old oil for the fulfilment of its obligations; this 

 oil therefore not only maintained its price, but was constantly advanced 

 by the holders. The small size and the late ripening of the fruit had the 

 effect of diminishing the favourable expectations concerning the new crop 

 and of forecasting a considerable shortage of new oil; and at this time 

 a strike of the workmen for higher wages broke out in the important 

 growing districts of Acireale and Giarre. This strike lasted about six 

 weeks, and could only be brought to a termination by the manufacturers 

 making concessions to the workmen. In the meantime the months of 



