We said that dream-ideas are vivid; and there is no doubt that dreams in general have an _hallucinatory_ character; dream-images are extremely vivid, dream-scenes are staged in what is taken for objective space, dream-events occur without any felt dependence upon the dreamer. This impression of the reality of dream-incident is partly due to a negative condition; we have no means, in the dream-state, of testing or checking what happens. In the waking life we compare experience with experience; in the dream there is nothing with which the present train of ideas may be compared. It seems, however, that the hallucinatory character is native to our dream-ideas, that it is due to positive as well as negative conditions; though, again, we cannot say what the conditions are, until we know more about the nervous correlate of dreaming. The net result is that, in popular phrase, _we take our dreams for granted_; the dream-world, so long as we are in it, appears as real as the world of our waking existence. This does not at all mean that we accept, blindly, everything that takes place. We may protest and criticise in dreams, just precisely as we protest and criticise in real life; we may dream that we are dreaming, just as we sometimes say ‘I must have been dreaming’ when we give a wrong account of some waking experience or find ourselves mistaken in a recollection; and we may have a sense of unreality in dreams, just as we have it now and again in waking situations. It means only that the nervous system of the dreamer is stamped with the great biological tendencies that we have noted and discussed; the tendency to take things as real is present by night as well as by day. The old common-sense notion that dreams are prophetic has no foundation in fact. The idea that underlies it—the idea that dreams must be of some use to the organism—nevertheless persists, and has found recent expression in a comprehensive theory of dreams. _The theory is that all dreams, if one interprets them aright, represent the fulfilment of a wish, entertained in the waking life but repressed by circumstances._ The organism attains by night, though in veiled and transmuted shape, what it has failed of attaining by day. This theory has been elaborated and illustrated with very great ingenuity; but _its claims are too sweeping_. Recent observations seem to show that the wish-dream is likely to occur in the hours before waking, rather than in the early hours of the night or in the middle period of profound sleep; that many dreams cannot be interpreted, even with the best will, as fulfilments of wish; and, in particular, that fear-dreams form a category as distinct and ultimate as wish-dreams. The merit of the theory is that it emphasises the feeling-processes of the dream-life; it does not give us the key to the psychology of dreaming.