possibilities of development such as not merely to permit but actively to further the development of others. Now, the older economists conceived a natural harmony, such that the interests of each would, if properly understood and unchecked by outside interference, inevitably lead him in courses profitable to others and to society at large. We saw that this assumption was too optimistic. The conception which we have now reached does not assume so much. It postulates, not that there is an actually existing harmony requiring nothing but prudence and coolness of judgment for its effective operation, but only that there is a possible ethical harmony, to which, partly by discipline, partly by the improvement of the conditions of life, men might attain, and that in such attainment lies the social ideal. To attempt the systematic proof of this postulate would take us into the field of philosophical first principles. It is the point at which the philosophy of politics comes into contact with that of ethics. It must suffice to say here that, just as the endeavour to establish coherent system in the world of thought is the characteristic of the rational impulse which lies at the root of