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Babbage, Charles, 1792-1871

"On the Economy of Machinery and Manufactures"


194. Again, if the commodity itself is of a perishable
nature, such, for example, as a cargo of ice imported into the
port of London from Norway a few summers since, then time will
supply the place of competition; and, whether the article is in
the possession of one or of many persons, it will scarcely reach
a monopoly price. The history of cajeput oil during the last few
months, offers a curious illustration of the effect of opinion
upon price. In July of last year, 1831, cajeput oil was sold,
exclusive of duty, at 7 d. per ounce. The disease which had
ravaged the East was then supposed to be approaching our shores,
and its proximity created alarm. At this period, the oil in
question began to be much talked of, as a powerful remedy in that
dreadful disorder; and in September it rose to the price of 3s.
and 4s. the ounce. In October there were few or no sales: but in
the early part of November, the speculations in this substance
reached their height, and between the 1st and the 15th it
realized the following prices: 3s. 9d., 5s., 6s. 6d., 7s. 6d.,
8s., 9s., 10s., 10s. 6d., 11s. After 15 November, the holders of
cajeput oil were anxious to sell at much lower rates; and in
December a fresh arrival was offered by public sale at 5s.


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