Stahel[810] has definitely established the same results in cultures of other filamentous fungi. In an artificial culture medium in which nitrogen was almost wholly absent, the cells of the mycelium seemed to be entirely occupied by oil-drops, and this fatty condition he considered to be a symptom of degeneration due to the lack of nitrogen. These experiments enable us to understand how the hyphae of calcicolous lichens, buried deep in the substratum, deprived of nitrogen and overweighted with carbonic acid, may suffer from fatty degeneration as shown by the formation of “sphaeroid-cells.” The connection between cause and effect is more obscure in the case of lichens growing on the surface of the soil, such as _Baeomyces roseus_, or of tree lichens such as the brown _Parmeliae_, but the same influence—lack of sufficient nitrogenous food—may be at work in those as well as in the endolithic species, though to a less marked extent. It seems probable that the capacity to form oil- or fat-cells has become part of the inherited development of certain lichen species and persists through changes of habitat as exemplified in _Lecanora calcarea_[811]. In considering the question of the formation and the function of fat in plant cells, it must be remembered that the service rendered to the life of the organism by this substance is a very variable one. In the higher plants (in seeds, etc.) fat undoubtedly functions in the same way as starch and other carbohydrates as a reserve food. It is evidently not so in lichens, and in one of his early researches, Pfeffer[812] proved that similarly oil was only an excretion in the cells of hepatics. He grew various species in which oil-cells occurred in the dark and then tested the cell contents. He found that after three months of conditions in which the formation of new carbohydrates was excluded, the oil in the cells, instead of having served as reserve material, was entirely unchanged and must in that instance be regarded as an excretion. D. LICHEN-ACIDS _a._ HISTORICAL. The most distinctive and most universal of lichen products are the so-called lichen-acids, peculiar substances found so far only in lichens. They occur in the form of crystals or minute granules deposited in greater or less abundance as excretory bodies on the outer surface of the hyphal cells. Though usually so minute as scarcely to be recognized as crystals, yet in a fairly large series their form can be clearly seen with a high magnification. Many of them are colourless; others are a bright yellow, orange or red, and give the clear pure tone of colour characteristic of some of our most familiar lichens.