for the purpose (and one for electric lighting) in a single year (Local Government Board Report, 1887-8, c--5526, pp. 319-367). With equal rapidity is the water supply becoming a matter of commercial organization, the public expenditure already reaching nearly a million sterling annually. Sixty-five local authorities borrowed money for water supply in 1887-8, rural and urban districts being equally represented (c--5550, pp. 319-367). Tramways and ferries are undergoing the same development. About thirty-one towns, including nearly all the larger provincial centres, own some or all of their own tramways. Manchester, Bradford, Birmingham, Oldham, Sunderland and Greenock lease their undertakings; but among the municipalities Huddersfield has the good sense to work its lines without any “middleman” intervention, with excellent public results. The tramway mileage belonging to local authorities has increased five-fold since 1878, and comprises more than a quarter of the whole (House of Commons Return, 1887-8, No. 347). The last important work completed by the Metropolitan Board of Works was the establishment of a “free steam ferry” on the Thames, charged upon the rates. This is, in some respects, the most significant development of all. The difference between a free steam ferry and a free railway is obviously only one of degree. A few more cases are worth mentioning. Glasgow builds and maintains seven public “common lodging houses”; Liverpool provides science lectures; Manchester builds and stocks an art gallery; Birmingham runs schools of design; Leeds creates extensive cattle markets; and Bradford supplies water below cost price. There are nearly one hundred free libraries and reading rooms. The minor services now performed by public bodies are innumerable.[34] This “Municipal Socialism” has been rendered possible by the creation of a local debt now reaching over £181,000,000.[35] Nearly £10,000,000 is annually paid as interest and sinking fund on the debt; and to this extent the pecuniary benefit of municipalization is diminished. The full advantages[36] of the public organization of labor remain, besides a considerable pecuniary profit; whilst the objective differentiation of the economic classes (by the separation of the idle _rentier_ from the manager or _entrepreneur_) enormously facilitates popular comprehension of the nature of the economic tribute known as interest. To the extent, moreover, that additional charges are thrown upon the rates, the interest paid to the capitalist is levied mainly at the cost of the landlord, and we have a corresponding “nationalization” of so much of the economic rent. The increase in the local rates has been 36 per cent, or nearly £7,000,000, in eleven years, and is still growing. They now amount to over twenty-six millions sterling in England and Wales alone, or about 17 per cent of the rental of the country (C--5550, p. clxxiv).