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tendency was still extremely firm, and no oil could be bought below i/io, 

 owing (it was said) to very short supplies which scarcely sufficed for 

 carrying out previous contracts, the prices went down a few weeks 

 afterwards to 1/9, and since then have fallen without intermission 

 The export-figures for January to September are as follows: — 



1906 771 416 lbs. 



1907 855826 „ 



According to these, an excess of 84410 lbs. as compared with 

 the previous year has now to be recorded 1 ). Under normal conditions 

 such a surplus would hardly depress the market, but in the present 

 year the situation is in so far abnormal, that the soap industry, 

 particularly in the United Kingdom, has purchased less than last year, 

 which has led to an accumulation of stocks in the European markets. 



As a consequence the general tendency is weak, and in spite of 

 the approach of the monsoon, which will interrupt the distilling season, 

 we consider cheaper prices not at all impossible. It has lately 

 become more difficult to form an opinion on the probable movement 

 of the prices, owing to the fact that in the last few years the bulk 

 of the trade in citronella oil in Ceylon has become concentrated in 

 the hands of three important native traders, who work almost exclusively 

 with the export firms at Galle. If these three traders should work together, 

 it would of course, under favourable conditions, be possible to keep 

 up the prices artificially. 



Induced by the high prices which, as already reported by us, were 

 due to the speculative action of one firm, a large number of planters in 

 Java have again taken up the distillation, and the sources supplying 

 Java citronella oil, which had given out long since, have recently 

 again commenced to flow. As long as the consumers are able to absorb 

 the supplies straight away, a fall in the prices is out of the question, 

 but signs are not wanting that it is found a difficult matter to interest 

 buyers in forward shipment at the present quotations. 



It may engage the attention of our readers to learn that a factory 

 has recently been established in Java, which is intended to work up 

 the grassy residues resulting from the citronella oil distillation, into 

 paper. Some ten years ago we already occupied ourselves thoroughly 

 with the question of this utilisation, and we are pleased to know that it 

 may now be reasonably expected to see the idea carried into practice. 



Clove oil. The movement of the clove market during the 

 summer months has again proved conclusively that reports on the 

 results of the harvest, and as a matter of fact all information on this 



x ) The shipments from Jan. 1 to Oct. 28, 1907 amounted to 1039774 lbs., 

 against 944153 lbs. in 1906, 1068974 lbs. in 1905, 990598 lbs. in 1904 during 

 the same periods. 



3* 



