Following Nietzsche closely, I have sought to demonstrate the difference between the art which comes of inner poverty (realism, or democratic art), and that which is the result of inner riches (Ruler Art). Identifying the first with the reflex actions which respond to external stimuli, I have shown it to be slavishly dependent upon environment for its existence, and, on that account, either beneath reality (Incompetence), on a level with reality (Realism), or fantastically different from reality (Romanticism). I have, moreover, associated these three forms of inferior art with democracy, because in democracy I find three conditions which are conducive to their cultivation, viz.--(1) The right of self-assertion granted to everybody, and the consequent necessary deterioration of world-interpretations owing to the fact that the function of interpretation is claimed by mediocrity; (2) the belief in a general truth that can be made common to all, which seems to become prevalent in democratic times, and which perforce reduces us to the only truth that can be made common to all, namely Reality; and (3) a democratic dislike of recognizing the mark or stamp of any _particular_ human power in the things interpreted, and man's consequent "return to Nature" untouched by man, which, once again, is Reality. Identifying Ruler Art, or the Art of inner riches, with the function of giving, I have shown it to be dependent upon four conditions which are quite inseparable from an aristocratic society, and which I therefore associate, without any hesitation, as Nietzsche does, with Higher Man, with Nature's rare and _lucky strokes_ among men. These conditions are --(1) Long tradition under the sway of noble and inviolable values, resulting in an accumulation of will power and a superabundance of good spirits; (2) leisure which allows of meditation, and therefore of that process of lowering pitchers into the wells of inner riches; (3) the disbelief in freedom for freedom's sake without a purpose or without an aim; and (4) an order of rank according to which each is given a place in keeping with his value, and authority and reverence are upheld. In the course of this exposition, it will be seen that I have to lay realism also at the door of Ruler Art; but I am careful to point out that, although such realism (I call it _militant realism_ in respect to the art both of the Middle Ages and of the later Renaissance, as well as of Greece) is a fault, of Ruler Art which very much reduces the latter's rank among the arts; it is nevertheless above that other realism of mediocrity which, for the want of a better term, I call _poverty realism_. (See Lecture II, Part II, end.)