_c._ MEDULLARY TISSUE. The hyphae of the medulla are described by Wainio as having long cells with narrow lumen, and as being encrusted with granulations that may coalesce into more or less detachable granules; in colour they are mostly white, but pale-yellow in _Cl. foliacea_ and blood-red in _Cl. miniata_, a subtropical species. They are connected at the base of the squamules with a filamentous hypothallus which penetrates the substratum and attaches the plant. In a few species rhizinae are formed, while in others the hyphae of the podetium grow downwards, towards and into the substratum as a short stout rhizoid. _d._ SOREDIA. Though frequent on the podetia, soredia are rare on the squamules, and, according to Wainio[391], always originate at the growing region, from which they spread over the under surface—rather sparsely in _Cl. cariosa_, _Cl. squamosa_, etc., but abundantly in _Cl. digitata_ and a few others. In some instances, they develop further into small corticate areolae on the under surface (_Cl. coccifera_, _Cl. pyxidata_ and _Cl. squamosa_). 2. RADIATE OR SECONDARY THALLUS A. ORIGIN OF THE PODETIUM The upright podetium, as described by Wainio[392] and by Krabbe[393], is a secondary product of the basal granule or squamule. It is developed from the hyphae of the gonidial zone, generally where a crack has occurred in the cortex and rather close to the base or more rarely on or near the edge of the squamule (_Cl. verticillata_, etc.). At these areas, certain meristematic gonidial hyphae increase and unite to form a strand of filaments below the upper cortex but above the gonidial layer, the latter remaining for a time undisturbed as to the arrangement of the algal cells. This initial tissue—the primordium of the podetium—continues to grow not only in width but in length: the basal portion grows downwards and at length displaces the gonidial zone, while the upper part as a compact cylinder forces its way through the cortex above, the cortical tissue, however, taking no part in its formation; as it advances, the edges of the gonidial and cortical zones bend upwards and form a sheath distinguishable for some time round the base of the emerging podetium. Even when the primary horizontal thallus is merely crustaceous, the podetia take origin similarly from a subcortical weft of hyphae in an areola or granule. B. STRUCTURE OF THE PODETIUM _a._ GENERAL STRUCTURE. In the early stages of development the podetium is solid throughout, two layers of tissue being discernible—the hyphae forming the centre of the cylinder being thick-walled and closely compacted, and the hyphae on the exterior loosely branching with numerous air-spaces between the filaments.