If the evil impulses of our dreams are merely infantile, a reversion to the beginnings of our ethical development, the dream simply making us children again in thought and feeling, it is surely not reasonable to be ashamed of these evil dreams. But the reasoning faculty is only part of our mental life; there is much in it besides which is not reasonable, and so it happens that, although it is unreasonable, we nevertheless are ashamed of such dreams. We subject them to the dream-censorship and are ashamed and indignant when one of these wishes by way of exception penetrates our consciousness in a form so undisguised that we cannot fail to recognize it; yes, we even at times feel just as much ashamed of a distorted dream as if we really understood it. Just think of the outraged comment of the respectable elderly lady upon her dream about “love service,” although it was not interpreted to her. So the problem is not yet solved, and it is still possible that if we pursue this question of the evil in dreams we may arrive at another conclusion and another estimate of human nature. Our whole enquiry has led to two results which, however, merely indicate the beginning of new problems and new doubts. In the first place: the regression in dreams is one not only of form but of substance. Not only does it translate our thoughts into a primitive form of expression, but it also re-awakens the peculiarities of our primitive mental life—the old supremacy of the ego, the initial impulses of our sexual life, even restores to us our old intellectual possession if we may conceive of symbolism in this way. And secondly: all these old infantile characteristics, which were once dominant and solely dominant, must to-day be accounted to the unconscious and must alter and extend our views about it. “Unconscious” is no longer a term for what is temporarily latent: the unconscious is a special realm, with its own desires and modes of expression and peculiar mental mechanisms not elsewhere operative. Yet the latent dream-thoughts disclosed by our interpretation do not belong to this realm; rather they correspond to the kind of thoughts we have in waking life also. And yet they are unconscious: how is the paradox to be resolved? We begin to realize that here we must discriminate. Something which has its origin in our conscious life and shares its characteristics—we call it the “residue” from the previous day—meets together with something from the realm of the unconscious in the formation of a dream, and it is with these two contributing elements that the dream-work is accomplished. The influence of the unconscious impinging upon this residue probably constitutes the condition for regression. This is the deepest insight into the nature of dreams possible to us until we have explored further fields in the mind; but soon it will be time to give another name to the unconscious character of the latent dream-thoughts, in order to distinguish it from