The Housing Question connects itself closely with this matter, for its only possible solution will be found to be along the lines of municipal activity. But, in addition to a free hand for municipalities to build houses when and where they like, it would be well to consider whether in the face of the present house famine it is wise to raise our local revenues by what is in effect a heavy tax on houses. The payment of say half the rates on well-built and sanitary working-class dwellings out of the proceeds of government grants would give a much needed impetus to both municipal and private enterprise in this direction. Meanwhile the Labour men on municipal bodies should make the fullest use of such powers as they already possess and push forward vigorously with their campaign of municipal socialism in such a manner that the workman may perceive its direct benefits. His Housing should be visibly cheaper and better, his trams visibly quicker, less expensive and more comfortable, his gas and water supply visibly improved on account of their transfer to a public body. At the same time of course the labour employed by the municipality in conducting these industries should receive what we may call (to borrow a phrase from diplomacy) “most favoured employé” treatment. It may be remarked that it is not desirable that municipal undertakings should aim at large profits. Theoretically this is indefensible for it means that the consumer pays more than his fair share of the rates; practically it is undesirable, since it tends to obscure the real benefits of municipal enterprise. In national affairs the progress of definite socialism cannot perhaps be so rapid. But the Labour party might well press for the nationalisation of mines, especially of coal fields (already demanded by the Trade Union Congress), the state regulation and ultimate nationalisation of railways, canals and other means of transit, and should insist on government departments doing their own work wherever possible and paying not less than the standard rate of wages.[10] But legislation of this kind has only an indirect effect upon the real problem that confronts the people of this country,--the people of all countries which have developed along the lines of industrial civilisation. With the appalling evidences of physical degeneration confronting us, we cannot, whether we are Socialists or Labourites or only decently humane and patriotic Englishmen, do without a social policy. In the last resort, all progress, all empire, all efficiency depends upon the kind of race we breed. If we are breeding the people badly neither the most perfect constitution nor the most skilful diplomacy will save us from shipwreck.