Preheat the oven to 35F. Cut the gumdrops into small pieces leaving out the black ones. In a small bowl, toss with the raisins and 1/2 c flour. Reserve.
In a separate bowl, combine the baking powder, baking soda, cinnamon, nutmeg, and salt with the remaining flour.
In a large bowl, cream the butter until light and fluffy. Gradually beat in the sugar. Beat in the eggs, one at a time. Stir in the applesauce, flour mixture and lemon rind. Fold in the gumdrop and raisin mixture.
butter a 9 X 5 inch loaf pan and line with buttered wax or parchment paper. Pour in the batter.
Bake for 1 to 1 1/2 hours or till knife inserted comes out clean.
Turn out the cake and let it cool completely. Wrap well with foil and store for 1 to 2 weeks in the refrigerator. Freeze if keeping longer than 2 weeks.
Makes 1 loaf