Franklin Merrell-Wolff continues this series by calling attention to a principle or function that he regards as the most important fact in connection with his work. He offers a variety of designating terms for and interpretations of this function, and suggests the term ‘transcendental component’ as the most general definition of it. He goes on to describe the action of the transcendental component as imperienced by him since his Realizations in 1936, to explain the difference between transcriptive and speculative thought, and to discuss the nature of “on-beam” and “off-beam” thinking.