The next step followed when Psycho-Analysis was able to feel its way a little nearer to the psychological ego, which was at first known to us only as a repressing, censoring agency, capable of constituting defences and reaction-formations. Critical and other far-seeing minds had indeed for a long time raised objections to the narrowing of the libido concept down to the energy of the sexual instinct as directed to the object. But they omitted to say whence they obtained this fuller comprehension, and failed to deduce anything from it of value for Psycho-Analysis. In the course of more deliberate advance it came under psycho-analytic observation how regularly libido is withdrawn from the object and directed towards the ego (introversion), and through the study of the libido-development of the child in its earliest phases it became clear that the ego is the true and original reservoir of the libido, which is extended to the object only from this. The ego took its place as one of the sexual objects and was immediately recognised as the choicest among them. Where the libido thus remained attached to the ego it was termed ‘narcissistic’.[29] This narcissistic libido was naturally also the expression of the energy of sexual instincts in the analytical sense which now had to be identified with the ‘instincts of self-preservation’, the existence of which was admitted from the first. Whereupon the original antithesis between the ego-instincts and the sexual instincts became inadequate. A part of the ego-instincts was recognised as libidinous: in the ego sexual instincts were found to be active—probably in addition to others; nevertheless one is justified in saying that the old formula, viz. that a psychoneurosis arises out of a conflict between the ego-instincts and the sexual instincts, contained nothing that we should have to reject to-day. Only, the difference of the two kinds of instincts which was supposed originally to be in some kind of way qualitative has now to be defined otherwise, namely on a topographical basis. In particular the transference-neurosis, the real object of psycho-analytic study, is still seen to be the result of a conflict between the ego and libidinous investment of an object.