In this paper Einstein's unified field theory is modified, and some of the physical implications of the new theory are examined. It entails: (1) a restriction of 4-current distribution, (2) an electromagnetic field consisting of short- and long-range parts, (3) a finite self-energy for the electron, (4) a classical description of pair production and annihilation as discussed by Feynman in his electrodynamics, (5) the Lorentz-force law for a charged particle moving in an external electromagnetic field, (6) the bending of light grazing the surface of the sun---the same as given by the general theory of relativity.