(6) Morally, there would be a probable gain in several ways. The elimination of private profit from business would give freer room for the development of a social spirit which is now choked out by the temptation that each owner of a business is under to grab all that he can for himself. There would be no motive, and no fortunes available, for, at least, the most striking forms of that corruption of the press which is such a grave problem today. Municipal theaters would be under no temptation to produce nasty plays. All this exploitation of human weakness and passion is done because it PAYS; if the men at the top were on a salary there would be no such inducement to cater to vicious instincts. The economic pressure that now pushes so many girls in the direction of prostitution would be relieved. The people generally would be dignified and educated by their participation in industrial, as now in political decisions. If some of the tougher strains of character, grit, push, endurance, etc. would be less fostered, the gentler and more social aspects of character would find better soil. Whether all these advantages would actually accrue, in the degree hoped for, it is, of course, impossible to know. There are, however, at least two grave dangers in socialism which must be squarely faced: (1) A certain degree of slackness and consequent inefficiency would almost inevitably result from the relaxing of the pressure of competition and the removal of the opportunity for unlimited personal profit. Employees and managers of state and municipal undertakings are apt to take things easily; and there have been usually waste and inertia and extravagance in such enterprises. The probable loss in grit, push, and endurance, mentioned above, might prove serious. We must admit that, on the whole, private business has been managed much better than public business, both in this country and abroad. To a considerable extent, however, the inefficiency of municipal and state undertakings has been due to the clumsiness and corruption of political systems, and can be cured by political reform. That public affairs can be managed as successfully as private business has been demonstrated on many occasions. The parcel post offers a much more economical service than the express companies ever gave. The most efficient and successful engineering undertaking ever accomplished by man the construction of the Panama Canal was a thoroughgoing socialistic achievement. Moreover, in our criticism of public undertakings, we are apt to forget how slack and inefficient the great bulk of private business has been; our attention is caught by the few concerns that have made a striking success, and we overlook the vast numbers that have failed or barely kept alive. Looking at the matter psychologically, observation does not altogether confirm the statement that men need an unlimited possibility of financial reward to work hard. The vast majority of