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Mitcham district, in which prices as high as last year's are talked of. 

 Although at the time when this Report was in preparation the position of the 

 market had not become sufficiently certain to call forth firm offers, it was 

 evident that pure crude oil would not be purchasable for less than 30/- 

 to 32/- per lb. According to some reports, in fact, the harvest is said 

 to be the worst for many years. Dry weather in April and May impeded 

 the planting-out, and the few new plantations developed very badly. Cold 

 weather in June caused rust, which compelled a great many planters to 

 cut their peppermint as early as the third week in July to prevent total 

 loss of the crop. Since the end of July rain has fallen almost daily; in 

 the Mitcham district there were only 4 rainless days out of 36. It is not 

 surprising that under such weather- conditions the plants should have 

 suffered severely, and even if the autumn should turn out fine the situa- 

 tion would not be improved thereby. Nor are the conditions any more 

 favourable in the peppermint districts of Lincolnshire, which have recently 

 been afflicted by such heavy floods that all hopes have been dashed to 

 the ground. 



Peppermint Oil, Japanese. Since the spring there has been a not 

 inconsiderable change in the market for Japanese peppermint products, 

 and our prophecy that higher prices would be seen in the course of the 

 summer has turned out entirely well-founded. The total crop of the year 

 1911, which is said to have amounted to about 320000 kin, to which about 

 20000 kin of 1910 product had to be added, was completely sold out in 

 Japan at the beginning of July, and all accounts now agree that the yield 

 of the first cutting in Bingo Bitchiu, which takes place in the months of 

 July and August, will approximately represent the entire supply in the 

 producing district. Generally speaking, firms in Europe, at least in our 

 branch of business, appear to have bought favourably, for during the last 

 few months a number of firms have been offering recrystallised menthol 

 at prices far below the market-rates for crude menthol, and these cheap 

 offers have only been withdrawn quite recently. Naturally, the Japanese 

 are holding back in order to take the utmost advantage of the high prices 

 for the present and also for the new crop, which, as will be seen below, 

 promises to be abundant. 



For these reasons we regard it as probable that the market will show 

 increased stringency, at any rate until January, and we even believe that g* 

 up to that time materially higher prices may be prognosticated, both for ^ 

 peppermint oil and for menthol. In January the bulk of the crop, con- 

 sisting of the oil produced in Hokkaido, is usually brought to market, and 

 it is not impossible that the position may then veer round. Of course, 

 opinions on this subject vary, and there is no lack of reports which hold 

 out prospects of an earlier reduction in prices. It is thought that if, owing 

 to high cost of rice, there should be a great increase in the prices of 

 necessities in Japan, the farmers might easily be led to abandon their firm 



