  We use the Least Action Principle to predict the peculiar velocities of PSC-z
galaxies inside $cz=2000$\km. Linear theory is used to account for tidal
effects to $cz=15000$\km, and we iterate galaxy positions to account for
redshift distortions. As the Least Action Principle is valid beyond Linear
theory, we can predict reliable peculiar velocities even for very nearby
galaxies (ie $cz \leq 500$\km). These predicted peculiar velocities are then
compared with the observed velocities of 12 galaxies with Cepheid distances.
The combination of the PSC-z galaxy survey (with its large sky coverage and
uniform selection), with the accurate Cepheid distances, makes this comparison
relatively free from systematic effects. We find that galaxies are good tracers
of the mass, even at small ($\leq 10$\mpc) scales; and under the assumption of
no biasing, $0.25 \leq \beta \leq 0.75$ (at 90% confidence). We use the
reliable predicted peculiar velocities to estimate the Hubble constant \ho from
the local volume without ``stepping up'' the distance ladder, finding a
confidence range of 65-75\kmM (at 90% confidence).
