Those who are concerned with the establishment of a working basis for economic society must bear constantly in mind the purpose of economic organization--to provide livelihood on the most effective possible terms. The economic system is not called on to perform any other function. Economic function would seem to be most effectively aided by some organization of the economic units that would provide a structurally sound skeleton for the whole economic mechanism. The needs of particular localities, the requirements of larger groups within one industry, the economic relations of continental areas, and finally the world organization of industries must be provided for. In order to meet this situation, it would seem desirable to think in terms of several different grades or classes of economic units. As a working basis, four are suggested: 1. _The local unit, which would be some particular phase of the economic process that normally functions as a whole._ This unit is now a working part of the present economic order, and whether it is a colliery in Wales, a division of the P.L.M. Railroad in France, a mill in Bombay, or a farming community in Saskatchewan, it would continue the process of turning out goods and services under the new economic regime as it does under the present one. 2. _District units composed of a number of neighboring local units in the same industry or in closely related and co-operative industries._ The district is an aggregation of conveniently situated local units, and is organized as a ready means of increasing the efficiency of the groups concerned. It might cover the tobacco factories of Havana, the coal mining industry of the Pennsylvania anthracite fields or the dock working activities of Belfast. 3. _The divisional units which would be designed to cover a convenient geographic area, and to include all of the economic activities in a particular major industry within that area._ The boundaries of the districts would vary from one industry to another. The boundaries of the divisions would be uniform for all industries. The whole world would therefore be partitioned into a number of divisions, such, for example, as: North America, South America, South Africa, the Mediterranean Basin, Northern Europe, Northern Asia, Eastern Asia, Southern Asia and Australia. In setting the boundary lines of these divisions, economic homogeneity, geographic unity, the distribution of the world population and the character of existing civilization would all be called into question. Under such a grouping would fall the agricultural workers of Southern Asia, the transport workers of North Europe, the manufacturing workers of North America. 4. _World industrial units, so designed as to include within their scope all of the producers of the world classified in accordance with their occupations._