. . . . 82

The simple interest not a moral economy, 82. Satisfaction
the root-value, and intelligence the elementary
virtue, 82. Incapacity, 83. Overindulgence the first
form of materialism, 84. It is due to lack of foresight,
85. Or to the complexity of interests, 86. Overindulgence
as the original sin, 86.

III. THE RECIPROCITY OF INTERESTS . . . . . . . . . . . . . 87

Prudence as a principle of organization, 87. Moderation
and thrift, 87. Honesty, veracity, and tact of the
prudential form, 88. The inherent value of the prudential
economy. Individual and social health, 88. Temperance
and reason, 90. Prudential formalism, or asceticism, 92.
Asceticism illustrated by the Cynics, 92. Prudential
materialism or sordidness, 94. Aimlessness or idleness, 94.

IV. THE INCORPORATION OF INTERESTS . . . . . . . . . . . . . 95

Purpose as a principle of organization. Its
intellectual character, 95. The virtues subsidiary to
purpose, 95. Truthfulness in the purposive economy, 96.
The value of achievement, 97. The formalistic error
of sentimentalism, 98. Deferred living, 98. Nationalism,
99. Egoism and bigotry as types of materialism.
The pride of opinion, 100. Egoism and bigotry involve
injustice, 103. The meaning of injustice, 103.

V. THE FRATERNITY OF INTERESTS . . . . . . . . . . . . . . . 105

Justice as a principle of organization, 105. Justice
conditions rational intercourse, 105. Discussion, freedom,
and tolerance, 106. Anarchism and scepticism, 107.
_Laissez-faire_, 108. Justice and materialism.
Worldliness, 110. Ancient worldliness due to lack of
pity, 110. Modern worldliness due to lack of
imagination, 111.

VI. THE UNIVERSAL SYSTEM OF INTERESTS . . . . . . . . . . . 112

The economy of good-will, 112. Good-will as the
condition of real happiness. Paganism and Christianity,
113. Merely formal good-will is mysticism, 116.
Mysticism perverts life by denying this world, 118.
Quietism, 119. Mystical perversion of moral truth, 120.

VII. SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . 121

The interworking of the formal and the material
principles, 121. Importance of the formal principle.
Manners and worship, 121.

CHAPTER IV

THE MORAL TEST OF PROGRESS . . . . . . . . . . . . . . . . . 123

I. THE GENERAL THEORY OF PROGRESS . . . . . . . . . . . . . 123

The philosophy