The development of the powers of the central government has been less than that of the functions of local governing authorities. This, again, is a movement much more likely to extend than to be checked. Local governing authorities now discharge economic functions of enormous importance and complexity, involving sums of money larger than sufficed to run important states a generation ago. The scientific study of the economics of local administration is, however, in its infancy, and requires to be taken up in earnest by economists. These questions of commercial policy and local government are closely bound up with the scientific study of the transport system. Although the British Empire contains within itself every known species of railway enterprise, the study of railways and other means of transport, and their relation to the business, the commerce and the social life of the country, is deplorably backward. It is obvious that no inquiry into commercial policy, or into such social questions as the housing of the poor, can be effective unless this deficiency is remedied. The whole social and political fabric of the British Empire depends upon the efficiency of its industrial system. On this subject many monographs and larger works have been published in recent years, but dealing rather with such questions as trade unionism, co-operation and factory legislation, than the structure and organization of particular industries, or the causes and the results of the formation of the great combinations, peculiarly characteristic of the United States, but not wanting in England, which are amongst the most striking economic phenomena of modern times. These are some of the questions which must absorb the energies of the rising generation of economists. The claim of economics for recognition as a science and as a subject of study must be based on its relevance to the actual life of the economic world, on its ability to unravel the practical difficulties of each generation, and so contribute to the progress of nations.