— 34 — 



in a position to supply the article as advantageously as possible. For 

 large contracts we are in a position to make some slight reduction on 

 our list-prices. 



Citronella Oil. The quotations of Ceylon citronella oil (Schimmel's 

 test) had for a long time been in the neighbourhood of 10 d. cif., but 

 within the last few months a firmer tendency has gradually become per- 

 ceptible, and under its influence the quotations finally advanced to 1/- up 

 to 1/2 d. cif. European ports. This tightening of the prices is somewhat 

 difficult to understand, especially in view of the fact that as a rule July 

 and August are the very months in which the largest arrivals come forward 

 in Ceylon, and also because in our opinion the demand both in Europe 

 and in America has not improved, but on the contrary, has if anything 

 fallen off. It is possible that the parties interested believe themselves 

 justified in raising their quotations on account of the not inconsiderable 

 decrease in the exports during the first 7 months of the present year, 

 for the latest available figures relating to the citronella exports from 

 Ceylon are as follows: — 



From 1 st January to 21 st August 1911 915683 lbs. 

 In the corresponding period of 1910 1070 732 „ 

 ,, „ „ „ „ 1909 1106 731 „ 



The above figures show that the deficiency of the present year's 

 exports compared with those of 1910, to which attention was already 

 drawn in our April Report, has not, as might have been expected, been 

 equalized. The sluggish state of trade which has prevailed in this article 

 in recent months should have beer\ sufficient to show that there could 

 be no question of any increase in the demand, and the raising of the 

 prices could therefore at best be due to artificial manoeuvring, unless 

 indeed the higher requirements as to quality which have been set up 

 within the past few months have caused the native dealers to raise their 

 ideas of the value. However this may be, we are inclined to think that 

 the present firm tendency will not be of long duration, and that if prices 

 should nevertheless rise still higher, the large soap-makers, who are the 

 principal consumers, will find it easy to turn to other articles which 

 after all are not more expensive than citronella oil. 



The pure Estate oil with a geraniol-content of 57 to 62%, which 

 was introduced by us in the spring of the present year, has already 

 secured a number of regular buyers, but generally speaking this exquisite 

 quality is not by far esteemed as it deserves to be. To our regret we 

 have even observed that, curiously enough, the very firms of soap-makers, 

 especially in England, who formerly were always the first to insist upon 

 certain standards of quality, and who were in the habit of referring to 

 the insufficiency of "Schimmel's test", are now, when we have succeeded 

 in procuring at a low rate an oil which answers their requirements, taking 

 ittle or no notice of this new quality. 



