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expressed in the autumn Report, had completely disposed of its stocks 

 of old oil before the new harvest commenced, and for this reason the 

 new oil was able to make its appearance under the most favourable 

 circumstances. 



The old oils, in the course of October and November, fetched on 

 the average 5 marks per kilo, and the less valuable new oil could at 

 first not be sold at this figure, but the demand for new oil from all 

 quarters soon became so violent that its value rose already in the 

 middle of December to 5,10 marks, and has since advanced gradually 

 to 5,80 marks per kilo cif. Trieste. 



This movement has been promoted by various circumstances, for 

 example, right at the commencement of the harvest by the exceptionally 

 bad weather which prevailed in Sicily during December and January. 

 Especially in the first half of December, continued rains greatly inter- 

 fered with the work in the lemon-gardens and with the gathering of the 

 fruit, and caused a considerable restriction in the manufacture. It is 

 moreover obvious that the lack of old oil and the brisk demand from 

 abroad have supplied a further lever for raising the prices; but, finally, 

 the most particularly stubborn resistance of the manufacturers should 

 be mentioned who, contrary to their usual habit, endeavoured to keep 

 the market short of oil, and who thereby succeeded in obtaining the 

 result favourable to their interests. 



Since the formation of the Union of Manufacturers, to which 

 reference has already been made on various occasions, the market 

 must be gauged with a different measure than hitherto. Several bad 

 harvest years following one another, and a hare-brained competition 

 among the manufacturers, had brought this class to the verge of 

 destitution. The natural consequence was that they were unable to 

 hold back their products, essence and citrate of lime, but had to turn 

 them immediately into hard cash in order to pay their workmen. 



When last year the common distress had finally brought all the 

 manufacturers together, the consequences of a regular supply corre- 

 sponding to the demand immediately made themselves felt at Messina, 

 and although the people in their excess of zeal took some false steps 

 which finally turned out to their disadvantage, the net result of the 

 combination was excellent for every individual member. Old debts 

 had been paid, and everyone had a larger or smaller balance of cash 

 in hand, so that for the new harvest the people were less dependent 

 upon credit and upon raising money by contracts for forward delivery. 



It will readily be understood that under these circumstances 

 forward business became very difficult for the export firms, and for 

 this reason it is all the more incomprehensible that a large Messina 

 firm entered rashly into engagements with buyers abroad for enormous 

 quantities of new oil at exceedingly low prices. 



