We know, from our own experience, this state of mind. It is an infantile stage. To a child the moon is a man or a face or a shepherd of the stars. The clouds in the sky seem like little sheep; the dolls drink, eat and sleep; the child places a letter at the window for the Christ-child; he calls to the stork to bring him a little brother or sister; the cow is the wife of the horse, and the dog the husband of the cat. We know, too, that lower races, like the negroes, look upon the locomotive as an animal, and call the drawers of the table the child of the table. As we learn through Freud, the dream shows a similar type. Since the dream is unconcerned with the real condition of things, it brings the most heterogeneous matter together, and a world of impossibilities takes the place of realities. Freud finds progression characteristic of thinking when awake; that is to say, the advancement of the thought excitation from the system of the inner or outer perception through the “endopsychic” work of association, conscious and unconscious, to the motor end; that is to say, towards innervation. In the dream he finds the reverse, namely, regression of the thought excitation from the preconscious or unconscious to the system of perception, by the means of which the dream receives its ordinary impression of sensuous distinctness, which can rise to an almost hallucinating clearness. The dream thinking moves in a retrograde manner towards the raw material of memory. “The structure of the dream thoughts is dissolved during the progress of regression into its raw material.” The reanimation of the original perception is, however, only one side of regression. The other side is regression to the infantile memory material, which might also be understood as regression to the original perception, but which deserves especial mention on account of its independent importance. This regression might, indeed, be considered as “historical.” The dream, according to this conception, might also be described as _the substitute of the infantile scene, changed through transference into the recent scene_. The infantile scene cannot carry through its revival; it must be satisfied with its return as a dream. From this conception of the historical side of regression, it follows consequently that the modes of conclusion of the dream, in so far as one may speak of them, must show at the same time an analogous and infantile character. This is truly the case, as experience has abundantly shown, so that to-day every one who is familiar with the subject of dream analysis confirms Freud’s proposition that _dreams are a piece of the conquered life of the childish soul_. Inasmuch as the childish psychic life is undeniably of an archaic type, this characteristic belongs to the dream in quite an unusual degree. Freud calls our attention to this especially.