The Austrian School of economics arose in opposition to the German Historical School; and Carl Menger developed his methodological views in combat with the rival group. Gordon discusses the philosophical doctrines of the Historical School, and examines some of the philosophical influences on the founders of the Austrian School.This monograph was prepared from a transcript of a talk Dr. Gordon gave at the Mises University summer program at Stanford University in 1994. The informal style of an oral presentation has been retained here. The text has been edited, expanded, and lightly documented.