The relation of our typical dreams to fairy tales and to other poetic material is neither a sporadic nor an accidental one. Occasionally the keen insight of a poet has analytically recognised the transforming process—of which the poet is usually the tool—and has followed it backwards, that is to say, traced it to the dream. A friend has called my attention to the following passage in G. Keller’s _Der Grüne Heinrich_: “I do not wish, dear Lee, that you should ever come to realise from experience the peculiar piquant truth contained in the situation of Odysseus, when he appears before Nausikaa and her playmates, naked and covered with mud! Would you like to know what it means? Let us consider the incident closely. If you are ever separated from your home, and from everything that is dear to you, and wander about in a strange country, when you have seen and experienced much, when you have cares and sorrows, and are, perhaps, even miserable and forlorn, you will some night inevitably dream that you are approaching your home; you will see it shining and beaming in the most beautiful colours; charming, delicate and lovely figures will come to meet you; and you will suddenly discover that you are going about in rags, naked and covered with dust. A nameless feeling of shame and fear seizes you, you try to cover yourself and to hide, and you awaken bathed in sweat. As long as men exist, this will be the dream of the care-laden, fortune-battered man, and thus Homer has taken his situation from the profoundest depths of the eternal character of humanity.” This profound and eternal character of humanity, upon the touching of which in his listeners the poet usually calculates, is made up of the stirrings of the spirit which are rooted in childhood, in the period which later becomes prehistoric. Suppressed and forbidden wishes of childhood break forth under cover of those wishes of the homeless man which are unobjectionable and capable of becoming conscious, and for that reason the dream which is made objective in the legend of Nausikaa regularly assumes the form of a dream of anxiety.