The consideration which I said I wished to call to your notice is intended to direct your attention to these latent dream-thoughts now brought into prominence. I must beg you not to forget that, first, the dreamer is unconscious of them; secondly that they are quite reasonable and coherent, so that we can understand them as comprehensible reactions to whatever stimulus has given rise to the dream; and, thirdly, that they may have the value of any mental impulse or intellectual operation. I will designate these thoughts more strictly now than hitherto as _the residue from the previous day_; the dreamer may acknowledge them or not. I then distinguish between this ‘residue’ and ‘latent dream-thoughts,’ so that, as we have been accustomed to do all along, I will call everything which we learn from the interpretation of the dream ‘the latent dream-thoughts,’ while ‘the residue from the previous day’ is only a part of the latent dream-thoughts. Then our conception of what happens is this: something has been added to the residue from the previous day, something which also belongs to the unconscious, a strong but repressed wish-impulse, and it is this alone which makes the formation of a dream possible. The wish-impulse, acting upon the ‘residue,’ creates the other part of the latent dream-thoughts, that part which no longer need appear rational or comprehensible from the point of view of our waking life. To illustrate the relation between the residue and the unconscious wish I have elsewhere made use of a comparison which I cannot do better than repeat here. Every business undertaking requires a capitalist to defray the expenses and an entrepreneur who has the idea and understands how to carry it out. Now the part of the capitalist in dream-formation is always and only played by the unconscious wish; it supplies the necessary fund of mental energy for it: the entrepreneur is the residue from the previous day, determining the manner of the expenditure. It is, of course, quite possible for the capitalist himself to have the idea and the special knowledge needed, or for the entrepreneur himself to have capital. This simplifies the practical situation but makes the theory of it more difficult. In economics we discriminate between the man in his function of capitalist and the same man in his capacity as entrepreneur; and this distinction restores the fundamental situation upon which our comparison is based. The same variations are to be found in the formation of dreams: I leave you to follow them out for yourselves.