nation on the planet. These tariffs are set by the highest industrial court after both houses of the industrial congress have ratified the recommendations of the chief executive of economic affairs, who is the joint appointee of these two legislative bodies. The upper industrial house is elected by labor, the lower by capital.

2. Royalties. The federal government encourages invention and original creations in the ten regional laboratories, assisting all types of geniuses—artists, authors, and scientists—and protecting their patents. In return the government takes one half the profits realized from all such inventions and creations, whether pertaining to machines, books, artistry, plants, or animals.

3. Inheritance tax. The federal government levies a graduated inheritance tax ranging from one to fifty per cent, depending on the size of an estate as well as on other conditions.

4. Military equipment. The government earns a considerable sum from the leasing of military and naval equipment for commercial and recreational usages.

5. Natural resources. The income from natural resources, when not fully required for the specific purposes designated in the charter of federal statehood, is turned into the national treasury.

Federal appropriations, except war funds assessed by the National Council of Defense, are originated in the upper legislative house, concurred in by the lower house, approved by the chief executive, and finally validated by the federal budget commission of one hundred. The members of this commission are nominated by the state governors and elected by the state legislatures to serve for twenty-four years, one quarter being elected every six years. Every six years this body, by a three-fourths ballot, chooses one of its number as chief, and he thereby becomes director-controller of the federal treasury.

In addition to the basic compulsory education program extending from the ages of five to eighteen, special schools are maintained as follows:

1. Statesmanship schools. These schools are of three classes: national, regional, and state. The public offices of the nation are grouped in four divisions. The first division of public trust pertains principally to the national administration, and all officeholders of this group must be graduates of both regional and national schools of statesmanship. Individuals may accept political, elective, or appointive office in the second division upon graduating from any one of the ten regional schools of statesmanship; their trusts concern responsibilities in the regional administration and the state governments. Division three includes state responsibilities, and such officials are only required to have state degrees of statesmanship. The fourth and last division of officeholders are not required to hold statesmanship degrees, such offices being wholly appointive. They represent minor positions of assistantship, secretaryships, and technical trusts which are discharged by the various learned professions functioning in governmental administrative capacities.

Judges of the minor and state courts hold degrees from the state schools of statesmanship. Judges of the jurisdictional tribunals of social, educational,