— 56 — I 



Lemon Oil. In my spring-report I expressed the view, adducing 

 detailed grounds for the statement, that the statistical position of lemon 

 oil was very unfavourable, and pointed to high prices. The course of 

 events has not only shown that I was not mistaken, but has considerably 

 and in an unforeseen manner outrun my anticipations. 



At the beginning of March, when oil of lemon stood at about 15 tM 

 per kilo, the great coal-strike commenced in Great Britain, and not only 

 completely suspended the whole system of intercommunications in that 

 country, but, owing to the enormous rise in the coal-prices, made its 

 effects felt to the furthest ends of the earth. The suspension of all industry 

 and traffic in one of the greatest industrial countries of the world natu- 

 rally brought about a declining tendency in many articles, and it did so 

 specially in the prices of lemon oil. At any rate, the fact that the quo- 

 tations of this oil during April and May gave way to no greater extent 

 than about 15 p. c. was a proof of the intrinsically healthy position of 

 the article. This fact is the more worthy of note because the downward 

 tendency of the prices was supported at the same time by the local 

 speculators in Sicily. 



For it so happened that the flat period of business during the British 

 coal-strike synchronised with the principal flowering season of the lemon 

 trees in Sicily. The profusion of flowers held out hopes of a good 

 harvest in the forthcoming season, and the conjunction of dulness in 

 business and good crop-prospects induced numerous manufacturers and 

 speculators to sell some portion of their stocks. Naturally it was only 

 possible to do so at falling rates, and the downward grade of prices was 

 further accentuated by the passive attitude of the foreign consumers. In 

 this way the value of lemon oil gradually receded to 12.50 c4i^ but in the 

 first days of June it again advanced to 13.50 ojl. 



This revival in the article was fostered by the circumstance that 

 throughout the spring and the early summer the climatic conditions pre- 

 vailing in Sicily were injurious to the setting, and afterwards to the 

 development, of the fruit. The small fruit dropped in a wholesale manner 

 and the two subsequent flowering periods of the lemon tree, towards the 

 end of May and June respectively, also took an unfavourable course. 

 The fears for the result of the new crop put fresh life into the article, 

 and both foreign buyers as well as local speculators again commenced to 

 turn their attention to the market, and afterwards to gain confidence in it. 



Old lemon oil for prompt delivery rushed upwards in the course of 

 the month of June from 13.50 o4i to 16. — cM\ in the first days of the 

 month of August it reached the figure of 17. — &M>> and at the present 

 time it is no longer procurable for less than 17.75 cjt. Oil of the new 

 crop for delivery, January-March shipment, was offered during the month 

 of April at the parity of 11.50 o#, and during the brief slump in the month 

 of May had fallen to 10.50 o4i. As the prospects of the new crop grew 



