The Naturalistic Theory shows accurately enough that natural phenomena and environment have given direction to the anthropomorphosing of gods, spirits, or fairies, but after explaining this external aspect of the Fairy-Faith it cannot logically go any further. Or if illogically it does attempt to explain the belief in gods, spirits, or fairies as due entirely to material causes, it becomes, in our opinion, like the psychology of fifty years ago, obsolete; for now the new psychology or psychical research has been forced to admit--if only as a working hypothesis--the possibility of invisible intelligences or entities able to influence man and nature. We seem even to be approaching a scientific proof of the doctrines of such ancient philosophical scientists as Pythagoras and Plato,--that all external nature, animated throughout and controlled in its phenomena by daemons acting by the will of gods, is to men nothing more than the visible effects of an unseen world of causes. In the internal aspects of the Fairy-Faith the fundamental fact seems clearly to be that there must have been in the minds of prehistoric men, as there is now in the minds of modern men, a germ idea of a fairy for environment to act upon and shape. Without an object to act upon, environment can accomplish nothing. This is evident. The Naturalistic Theory examines only the environment and its effects, and forgets altogether the germ idea of a fairy to be acted upon; but the Psychological Theory remembers and attempts to explain the germ idea of a fairy and the effect of nature upon it. The second theory may be called the Pygmy Theory, which Mr. David MacRitchie, who is definitely committed to it, has so clearly set forth in his well-known work, entitled _The Testimony of Tradition_. This theory is that the whole fairy-belief has grown up out of a folk-memory of an actual Pygmy race. This race is supposed to have been a very early, prehistoric, probably Mongolian race, which inhabited the British Islands and many parts of Continental Europe. When the Celtic nations appeared, these pygmies were driven into mountain fastnesses and into the most inaccessible places, where a few of them may have survived until comparatively historical times.