4. Secondary sexual characters, usually in the male sex, correspond in their development with the development of maturity and functional activity in the gonads, and it has been proved that the latter influence the former by means of 'hormones' or internal secretions. The evidence concerning sex and sex-linked characters and the localisation of their factors in the chromosomes of the gametes has no bearing on the action of hormones. 5. The facts concerning the action of hormones are beyond the scope of current conceptions of the action of factors or genes localised in the gametes and particularly in the chromosomes. According to these conceptions, characters are determined entirely by the genes in the chromosomes, whereas in certain cases the development of organs or characters depends on a chemical substance secreted in some distant part of the body. 6. It was formerly stated that no process was known or could be conceived by which modifications produced in the soma by external stimuli could affect the determinants in the gametes in such a way that the modifications would be inherited. The knowledge now obtained concerning the nature and action of hormones shows that such a process actually exists, and in modern theory real substances of the nature of special chemical compounds take the place of the imaginary gemmules of Darwin's theory of pangenesis or the 'constitutional units' of Spencer. 7. The theory of the heredity of somatogenic modifications by means of hormones harmonises with and goes far to explain the facts of metamorphosis and recapitulation in adaptive characters, and also the origin of secondary sexual characters, their correlation with the periodical changes in the gonads and the effects of castration. At the same time there are some somatic sex-characters, _e.g._ in insects and birds, which do not appear to be correlated with changes in the gonads, and which are probably gametogenic, not somatogenic in origin. 8. The theory of the heredity of somatogenic modifications is not in opposition to the mutation theory. The author's view is that are two kinds of variation in evolution, one somatogenic and due to external stimuli, acting either directly on passive tissues or indirectly through function, and the other gametogenic and due to changes in the chromosomes of the gametes which are spontaneous and not in any way due to modifications of the soma. Adaptations are due to somatogenic modifications, non-adaptive diagnostic characters to gametogenic mutations. It is a mistake to attempt to explain all the results of evolution by a principle. There are two kinds of congenital, constitutional or hereditary characters in all organisms, namely, the adaptive and the non-adaptive, and every distinct type in classification exhibits a combination of the two. To assert that all characters are adaptive is as erroneous as to state that all characters are blastogenic mutations, and therefore in their origin non-adaptive.