- 4 8 - 



Under these circumstances it will be readily understood that the 

 majority of the exporters, in spite of the bad experience of last year, 

 thought it an opportune time for concluding heavy engagements for 

 export, at the average price of 8 marks which was high as compared 

 with that of the last ten years, as the opinion prevailed generally that 

 the bulk of the coming new oil would have a depressing effect on the 

 above quotation. This would also have taken place, if a large portion 

 of the new oil had not been kept away from the market and excluded 

 from sale by artificial means, i. e. by buying up and warehousing on 

 the part of the two Syndicates. 



These Syndicates have succeeded, by their dexterous interference 

 without consideration for others, in forcing the local speculators and 

 the export firms, who had to cover large blank sales, to pay constantly 

 increasing prices, by affording them no opportunity of covering more 

 than the most urgent requirements. In this manner the two Syndicates 

 were able to keep the prices of the new oil in December at 6 marks, 

 to drive them up in January to i o marks, and finally to screw them 

 up with all sorts of despotic means in the course of February to 1 2 marks 

 and at the present moment to 13,50 marks. 



It is clear that this could only be done with the greatest loss to 

 the export firms of this town. The total lack of old oil, the necessity 

 of carrying out the engagements towards buyers abroad, had removed 

 from the hand of the exporters every weapon with which they could 

 have defended themselves against the intervention of the Syndicates. 



The question naturally arises, whether this can and will continue, 

 and what will become of this article? 



Unfortunately this question must remain unanswered; all depends 

 upon circumstances which do not allow of being taken into account 

 as factors in the calculations. 



The market has at its disposal a large harvest, and a large quantity 

 of oil resulting from it, which under other circumstances could and 

 would have been placed on the world's market at comparatively 

 low prices. 



On the one side stand the two Syndicates and many manufacturers 

 who make common cause with them; these, excited by the results 

 attained up to the present and by the profit already made, hold their 

 stocks firmly and intend disposing of them only at continuously 

 advancing prices. 



On the other side, opposed to these pretensions, we see the 

 speculators and the export firms with their requirements for uncovered 

 sales, and possibly also the foreign buyers whose wants for the whole 

 season may perhaps not yet be entirely covered. 



As already mentioned, the shipments up to the present have been 

 extraordinarily heavy; America has bought as much essence during the 



