Of the two above-mentioned elements of the newer culture, commerce naturally preceded colonization. Of all civilized peoples, the Semitic race was the first to open up great channels of trade. Phœnician commerce dates back to the earliest records of history. Even the Mycenian graves of Greece contain gold jewelry of Phœnician workmanship. Spacially, the trade relations of the ancient Phœnicians extended over the whole of the known Occident. It is characteristic of the Semitic race, however, that they rarely undertook actual colonization. Trade and all that is connected with it, the industrial ardour necessary to supply the objects of trade and to exchange them for grain and other natural products, has always been their chosen sphere. The Indo-Germanic races, on the other hand, have naturally inclined to colonization from early times on. In the foremost rank were the Greeks, with their colonies in Thrace, Asia Minor, Southern Italy, and Sicily. These colonial groups, moreover, always retained their connection with the mother people. Thus, the earliest culture of the Greeks was that of the colonies in Asia Minor. Later, the colonies of southern Italy exercised a strong reaction on the mother country in science and art. It was not until relatively late that the highest cultural development of the mother country followed upon that of these outposts of Greek culture. 3. THE DEVELOPMENT OF POLITICAL SOCIETY. The fundamental characteristics of totemic society appear to be purely a product of nature. This is especially true of totemic tribal organization. Its simple regularity and the constant recurrence of essentially the same characteristics are the natural result of original conditions of life that were universally prevalent. A horde split up into two halves. In the simplest cases, such as we have noticed in our account of the Australians, tribal organization remained limited to this dual division. The condition that brought about this organization arose as soon as a horde that spoke the same language spread out over a fairly broad territory. The same process of division might then repeat itself in the case of each of the two halves. This gave rise to a clan organization of four or eight divisions, as found among most of the Australian tribes, and frequently also in Melanesia. Such an organization was developed also by the original inhabitants of North America, although the totemic basis here degenerated and became essentially an external form. Totemic tribal organization is unquestionably a phenomenon that arises with immanent necessity; indeed, one might almost say that its appearance involves no co-operation on the part of man himself. The division takes place of itself; it is a result of the natural conditions underlying the propagation and growth of society.