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dition. At that time there existed a disparity between the production 

 and the consumption, and the latter was unable to absorb the quantity 

 of lemon oil manufactured annually. Starting from the idea of regulating 

 the supplies to the market here, and holding back in warehouses a 

 portion of the harvest, it was hoped that by these means the lemon 

 cultivation could be set on its legs again. This plan would have failed 

 if the demand from abroad had not increased continuously and to 

 such an extent, that it completely absorbed in the course of the last 

 three years not only the large quantities produced each year, but also 

 the stocks of old oil existing both in this country and abroad. Since 

 the quantities produced and consumed do not balance each other 

 and on the contrary the consumption exceeds the production, the 

 lemon cultivation has been placed on a different basis which really 

 renders interference on the part of the Associations unnecessary. It 

 may therefore be assumed that in the coming season the local export 

 trade may be saved from the mad fluctuations and sudden leaps of 

 last season, and that the Associations will only then interfere again, 

 when the price of the oil in their opinion should decline to too 

 low a basis. 



Simultaneous with the price of prompt oil, that of lemons has also 

 advanced here; and influenced by the latter, also the prices of new 

 oil of the coming harvest. When prompt oil reached the level of 

 17 marks, the highest price paid here for forward oil was 14.75 marks. 

 Whilst from that time the price of prompt oil has only declined by 

 0.50 to 0.75 marks, that of forward oil has fallen by about 1.50 marks, 

 and to-day it stands at about 13.25 marks for December- March delivery. 



Under the prevailing conditions it is very difficult, if not impossible, 

 to form a clear opinion as to the manner in which the movement of 

 the price of lemon oil will develop during the next gathering season. 



In view of the high prices of oil on hand, which will no doubt 

 continue in force until the arrival of the new oil; in view of the fact 

 that the stocks of old oil will by that time be cleared completely, 

 and finally that the consumers abroad appear to be as short as the 

 manufacturers here, and have no stocks of any consequence at disposal, 

 so that they will appear on this market with a strong demand as soon 

 as the new manufacturing season commences, — in view of all this 

 it appears probable that the article in the course of the coming year 

 will hardly go back below the approximate average of 12.50 to 

 14. — marks, whilst it does not seem impossible that new lemon oil 

 in the first few months of the manufacturing season will at first occupy 

 a mean position between to-day's prices of old oil, and those of new oil. 



The lack of suitable labour, which is becoming more pronounced, 

 the more feverish the infection of the emigration to America is spread- 

 ing, has increased the wages here nearly three- to fourfold. This fact, 



