— 29 — 



opinion explained by the fact, that the production in Ceylon is not 

 able to keep pace with the demand which increases from year to year. 

 The exports from Ceylon were: — 



in 1904 1 133068 lbs. 



„ 1905 1309416 „ 



„ 1906 1212771 „ 



The year 1906 consequently closes with a deficiency of nearly 

 1 00 000 lbs. as compared with 1905, which became all the more felt, 

 as New York was constantly on the market with orders, and not only 

 rarely allowed the prices to come to rest, but helped to drive them 

 up to a not inconsiderable extent in the course of a few weeks. 

 Between October and December a certain dullness came over the 

 market, and the prices fluctuated at first between 1/7 1 j 4k cif. in October 

 and 1/8 1 L in November and in December even for a time declined 

 to 1/6 3 / 4 . But this last quotation was clearly of a purely speculative 

 character. At the beginning of January a brisk demand arose for 

 consumption as well as for speculation, so that at the end of that 

 month orders at 1/8 x j 2 to 1/9 cif. scarcely led to business. Since that 

 time the prices have slowy advanced further up to their present level. 

 Although the shipments from Ceylon in 1907, up to the end of 

 February amounted to 137900 lbs. against 116 51 7 lbs. in the same 

 period of the previous year, the reports from over there are very 

 pessimistic, and the exporters are unanimous in declaring that the 

 supplies are too small and that we shall have to reckon on still 

 higher prices. 



The trade in Java citronella oil has been completely paralysed 

 by the speculative action of one interested party, as this person has 

 secured almost the entire production at high prices. The bulk is 

 intended for America, but we fear that the consumers are not parti- 

 cularly edified by the tactics of driving up the prices without cause, 

 which the party in question has adopted. 



With regard to the cultivation of citronella grass in Java, St. Smith 1 ) 

 gives some interesting information based upon a visit to one of the 

 large plantations there, which we will briefly reproduce. If the grass 

 is planted in a good fertile soil, and has received plenty of rain, it 

 grows rapidly and gives a good crop, which, with four cuts in every 

 year, amounts to about 4,8 tons per acre, which means, for 10 acres, 

 with an oil-content of the grass of 0,5 °/ , a quantity of oil of 4,8 cwts. 

 of a value of about j£ 46.16.0. The grass has to be planted out 

 again only after 12 years. As the cost of a distilling plant is also 



*) Agricultural News, vol. 5, p. 335, ace. to Bulletin of Miscellaneous Information, 

 Royal Botanic Gardens, Kew, 1906, No. 8, p. 363. 



