Each coat must dry thoroly before the next coat is applied.
Varnish polishing consists in rubbing off the varnish, not in rubbing it on, as in French polishing.

To polish varnish, rub with a felt pad, powdered pumice-stone and water.

Rub till the surface is smooth, unpitted and even, being careful not to rub thru the edges.

Wipe clean with a wet sponge and chamois skin.

This gives a dull or "egg-shell" finish.