56 
Indian Forest Records. 
[Voi,. VIII 
pay Rs. 10,000 less 5 per cent. Rs. 9,500. During the 
second year foreign demands increase and the average 
TN rate goes up to Rs. 250, a rise of 25 per cent. The 
price payable in the third year is, therefore, Rs. 12,500. 
During the third year there is a slump to Rs. 100, a 
decrease of 50 per cent, which ordinarily would be suffi¬ 
cient to ruin the contractor. He is saved, however, by 
the fact that the price payable during the ensuing year 
goes down to Rs. 5,000, and he can still cultivate lac at 
a profit. The chief claim of this system is that, except 
in the first year, the rate payable at the beginning of 
each year depends entirely on the profits made by the 
contractor during the previous year. He is protected 
against losses due to trade slumps and the owner of 
the forest gets his share of the profits when trade booms. 
It is claimed also that the system will tend to stimulate 
the regular cultivation of lac as the profits will be 
more uniform. 
There may of course be some difficulty in getting the less 
advanced contractors to realize the merit of the agree¬ 
ment. But once realized, the system is likely to appeal 
to both parties. The difficulty of ascertaining the 
correct average price may be overcome by reference 
to published statistics such as those of Messrs. 
Moran and Co. 
[56] 
