Part I] Lindsay and Harlow : Lac and Shellac S 7 
demand. Chart No. II illustrates the close relation between London 
stocks and Calcutta prices, which rise as the stocks decline and fall 
as they expand. 
As London stocks through the medium of London prices 
affect the Calcutta TN rate, so do Calcutta rates affect the prices 
paid up-country for lac entering the stick-lac and manufacturing 
markets. These markets are in close telegraphic communication 
with Calcutta, and every fluctuation in the Calcutta prices gives rise 
to up-country estimates of fluctuations to follow. 
Fluctuations in the Calcutta TN rate are thus due chiefly to the 
inter-action of demand and supply in foreign markets, which are 
handicapped, moreover, by uncertain information as to the volume of 
forthcoming supplies. Speculation is bound to flourish in this atmos¬ 
phere. It may, and certainly does, accentuate the fluctuations of 
price of which, however, it cannot be described as the primary cause. 
As education spreads, the disturbing factors will undoubtedly dimi¬ 
nish, but this is a matter of time. The more direct remedies sug¬ 
gested, the departmental propagation and distribution of brood-lac 
and demonstration of improved methods, the preparation and distri¬ 
bution of accurate crop forecasts, the organization of research work 
and publication of results should undoubtedly contribute to steady 
the trade. 
ts; 
1 
