The persons before whom one is ashamed are almost always strangers with faces that have been left undetermined. It never occurs in the typical dream that one is reproved or even noticed on account of the dress which causes the embarrassment to one’s self. Quite on the contrary, the people have an air of indifference, or, as I had opportunity to observe in a particularly clear dream, they look stiffly solemn. This is worth thinking about. The shamed embarrassment of the dreamer and the indifference of the spectators form a contradiction which often occurs in the dream. It would better accord with the feelings of the dreamer if the strangers looked at him in astonishment and laughed at him, or if they grew indignant. I think, however, that the latter unpleasant feature has been obviated by the tendency to wish-fulfilment, while the embarrassment, being retained on some account or other, has been left standing, and thus the two parts fail to agree. We have interesting evidence to show that the dream, whose appearance has been partially disfigured by the tendency to wish-fulfilment, has not been properly understood. For it has become the basis of a fairy tale familiar to us all in Andersen’s version,[BS] and it has recently received poetic treatment by L. Fulda in the _Talisman_. In Andersen’s fairy tale we are told of two impostors who weave a costly garment for the Emperor, which, however, shall be visible only to the good and true. The Emperor goes forth clad in this invisible garment, and, the fabric serving as a sort of touchstone, all the people are frightened into acting as though they did not notice the nakedness of the Emperor.