All the experiences of the present time make it plain, that what is socially needed is, for the spiritual life free self-administration, and for the economic life associative labour. Industrial economy in modern human life is made up of the production of commodities, circulation of commodities and consumption of commodities. These are the processes for satisfying human wants; and human beings and their activities are involved in these processes. Each has his own part-interest in them; each must take such a share in them as he is able. What any individual actually needs, only he himself alone can know and feel. As to what he himself should perform, this will be judged by him according to his measure of insight into the mutual life of the whole. It was not always so; nor is it so to-day all the world over; but in the main it is so amongst the at present civilised portion of the Earth's inhabitants. Economic evolution has kept widening its circles in the course of mankind's evolution. Household economy, once self-contained, has developed into town economy, and this again into State economy. To-day we stand before world economy. No doubt, in the New much still lingers on of the Old; and much that existed in the Old was already a forecast of the New but the above evolutionary order is the one that has become paramount in certain relations of life, and the destinies of mankind are conditioned by it. It is altogether a wrong-headed notion to aim at organising the economic forces into an abstract world-community. Private economic organisations have, in the course of evolution, become to a very great extent merged in State economic organisations. But the State communities were created by other forces than the purely economic ones; and the endeavour to transform the State communities into economic communities is just what has brought about the social chaos of these latter times. Economic life is struggling to take the form its own peculiar forces give it, independent of State institutions, and independent also of State lines of thought. It is only possible through the growth of Associations, having their rise in purely economic considerations, and drawn jointly from circles of consumers, traders and producers. The actual conditions of life will of themselves regulate the size and scope of these Associations. Over-small Associations would prove too expensive in the working; over-large ones would get beyond economic grasp. The needs of life as they arise will shew each Association the best way of establishing interconnections with the others. There need be no fear, that anyone, who has to spend his life moving about from place to place, will be in any way hampered by Associations of this kind. He will find removing from one group to another quite easy, when it is not managed by the State-organisations, but by the economic interests. One can conceive possible arrangements within such an associative system,