craftsman on the one hand and the activities of the adventurer, the criminal, or the prostitute on the other. This feeling of sacredness actually arises only in groups, and an individual can develop the feeling only in association with a group which has definite standards of sacredness. Practically, any plan which gets favorable public recognition is morally good,—for the time being. And this is the only practical basis of judgment of the moral quality of an act,—whether it gets favorable or unfavorable recognition. The problem of the desirable relation of individual wishes to social values is thus twofold, containing (1) the problem of the dependence of the individual upon social organization and culture, and (2) the problem of the dependence of social organization and culture upon the individual. In practice the first problem means: What social values and how presented will produce the desirable mental attitudes in the members of the social group? And the second problem means: What schematizations of the wishes of the individual members of the group will produce the desirable social values, promote the organization and culture of the society? The problem of the individual involves in its details the study of all the social influences and institutions,—family, school, church, the law, the newspaper, the story, the motion picture, the occupations, the economic system, the unorganized personal relationships, the division of life into work and leisure time, etc. But the human wish underlies all social happenings and institutions, and human experiences constitute the reality beneath the formal social organization and behind the statistically formulated mass-phenomena. Taken in themselves statistics are nothing more than symptoms of unknown causal processes. A social institution can be understood and modified only if we do not limit ourselves to the study of its formal organization but analyze the way in which it appears in the personal experience of various members of the group and follow the influence which it has on their lives. And an individual can be understood only if we do not limit ourselves to a cross-section of his life as revealed by a given act, a court record or a confession, or to the determination of what type of life-organization _exists_, but determine the means by which a certain life-organization is _developed_.