In his book the _Interpretation of Dreams_, Freud has shown that there exist in the wish-fulfilling mechanisms of dream formation certain definite laws. These laws undoubtedly underlie and determine also many of our crowd-ideas, creeds, conventions, and social ideals. In his book, _Totem and Taboo_, Freud has himself led the way to the application of the analytical psychology to the customs and ideas of primitive groups. I am sure that we shall find, as we proceed, that with the analytical method we shall gain an entirely new insight into the causes and meaning of the behavior of crowds. II HOW CROWDS ARE FORMED In his well-known work on the psychology of the crowd Le Bon noted the fact that the unconscious plays a large part in determining the behavior of crowds. But he is not clear in his use of the term "unconscious." In fact, as Graham Wallas justly points out, his terminology is very loose indeed. Le Bon seems to have made little or no attempt to discover in detail the processes of this unconscious. In company with most psychologists of his time, he based his explanation upon the theory of "suggestion and imitation." He saw in the unconscious merely a sort of mystical "common humanity," from which he derived his--also mystical--idea of a common crowd-mind which each individual in the crowd in some unexplained manner shared. He says: The most striking peculiarity presented by a psychological crowd is the following: Whoever be the individuals that compose it, however like or unlike be their mode of life, their occupations, their character or their intelligence, the fact that they have been transformed into a crowd puts them in possession of a sort of collective mind which makes them feel, think, and act in a manner quite different from that in which each individual of them would feel, think, and act were he in a state of isolation.... It is easy to prove how much the individual forming part of a crowd differs from the isolated individual, but it is less easy to discover the causes of this difference. To obtain, at any rate, a glimpse of them it is necessary in the first place to call to mind the truth established by modern psychology, that unconscious phenomena play an altogether preponderating part, not only in organic life, but also in the operations of intelligence.... Our conscious acts are the outcome of an unconscious substratum created in the mind in the main by heredity. This substratum consists of innumerable characteristics handed down from generation to generation which constitute the genius of the race....