How do I stop this kind of faucet from dripping?

[CliffG]

I have an old faucet that is dripping and I have cut the water off and removed the stem but I'm not sure where the washer is and how to stop it from dripping. It started out very slow and it has gotten worse. Any help would be appreciated.

 

[JoeThePlumber]

That faucet is shot! The washer used to be held on by that corroded flat head screw that will never come out, new faucets are cheap and I'm guessing someone got their moneys worth out of that old one.