Psychoanalysis will put in a new light the old literary controversies between realism and idealism, between classicism and romanticism. Idealistic writers are those who write of imaginary pleasing scenes and characters. Their books are founded on the same principles that are at the basis of dreams; these are the fulfilment of the author's wishes. We grow weary of a deluge of such literature, because it is too visionary and not related to reality. We prefer to see life as it is, even though it is harsh. Hence our reaction to those ancient types of romances where the heroes are always strong, pursuing false ideals, obeying silly codes of honour, and are always triumphant; we weary still more of the heroines who are always without individuality. The most idealistic books are those dealing with utopias, and though the new visionary societies are as a rule undesirable and impossible, they represent the wish of the author fulfilled; such works sometimes, as in the case of Plato's _Republic_ and More's _Utopia_, are full of valuable suggestions. Utopias, however, are generally dreary because they make no allowances for our instincts; the author is insincere to himself and pretends to be what he is not. Then there is the idealistic literature which builds a dream palace beyond this life. The author wants to live forever and to have things he did not possess here, and he creates imaginary scenes where all that he suffered here is righted. Of this type of literature is the Paradise of Dante, and the Celestial City of Bunyan. Literature of this type pleases many people, as it enables them to get away from reality and to have a ground for believing in the existence of chimeras they cherish. Idealism in literature is the selection for description of only those features of life that please the fancy of the author. People are described not as they are but as the author would like them to be; events are narrated not as they occur in life but as the writer would wish them to happen. The dream of the author is given instead of an actual picture of reality. When Shakespeare grew weary of London life, he drew a picture of life in the forest of Arden in his _As You Like It_ such as he would have liked to have enjoyed. Idealistic literature hence gives us an insight into the nature of the author's unconscious. His constructed air castles show us where reality has been harsh with him. It is true all literature must to some extent be idealistic, as the author must always do some selecting. Idealism will never die out in literature. Man is an idealist by nature; every man who has day dreams is reconstructing life in accordance with his desires.