What are children’s first thoughts about their dreams like? I have not been able to collect much evidence on this head. What seems certain is that to the simple intelligence of the child these counterfeits of ordinary sense-presentations are real external things. The crudest manifestation of this thought-tendency is seen in taking the dream-apparition to be actually present in the bedroom. A boy in an elementary school in London, aged five years, said one day: “Teacher, I saw an old woman one night against my bed”. Another child, a little girl, in the same school told her mother that she had seen a funeral last night, and on being asked, “Where?” answered quaintly, “I saw it in my pillow”. A little boy whom I know once asked his mother not to put him to bed in a certain room, “because there were so many dreams in the room”. In thus materialising the dream and localising it in the actual surroundings, the child but reflects the early thought of the race which starts from the supposition that the man or animal which appears in a dream is a material reality which actually approaches the sleeper. The Nature-man, as we know from Professor Tylor’s researches, goes on to explain dreams by his theory of souls or ‘doubles’ (animism). Children do not often find their way to so subtle a line of thought. Much more commonly they pass from the first stage of acceptance of objects present to their senses to the identification of dreamland with the other and invisible world of fairyland. There is little doubt that the imaginative child firmly believes in the existence of this invisible world, keeps it apart from the visible one, even though at times he may give it a definite locality in this (_e.g._, in C.’s case, the wall of the bedroom). He gets access to it by shutting out the real world, as when he closes his eyes tightly and ‘thinks’. With such a child, dreams get taken up into the invisible world. Going to sleep is now recognised as the surest way of passing into this region. The varying colour of his dreams, now bright and dazzling in their beauty, now black and terrifying, may be explained by a reference to the division of that fairy world into princes, good fairies, on the one hand, and cruel giants, witches, and the like, on the other. We may now pass to some of children’s characteristic ideas about living things, more particularly human beings, and the familiar domestic animals. The most interesting of these I think are those respecting growth and birth.