We have not yet exhausted the forms of phantasy thought. A casual conversation between acquaintances in which no information of value is imparted, in which merely some emotional material is brought to the surface and thrown out, is undirective thought. The first person, interested in some emotional experience, recounts to the second the facts of that experience, often without arousing any emotional feeling in the second person. Such is the type of conversation which takes place over a vast majority of tea-tables. It is wasted energy. Another example is that of conventional letter-writing, in certain cases. The duty letter which one person writes to another person is of the same type. The writer who deals with his or her experiences on a shopping expedition, who states a series of things which have happened, merely in order to enjoy them once again in phantasy, is performing the same waste of energy. There is no return for this expended energy, the rush of ideas produces no result. Perhaps the time is due for a letter to be written, and it is the turn of this person to write a letter. As a result of this conventional attitude, the writer has to resort to phantasy thought to satisfy the needs of the moment. We have pointed out that reading a novel is a form of phantasy thinking, in which we identify ourselves with the hero. The same occurs in our cinemas. Here, the pleasure of phantasy thinking is enhanced by the fact that the visual impression is produced direct, whereas in reading a novel the visual impression is by words only, and a certain amount of effort is needed to translate it in the mind into its pictorial form; and thus the cinematograph induces a form of phantasy thinking which needs the least effort of all to realise. It is within the reach of anyone possessing a few pence, and although the average person may regard it as educative and useful to the community, the magistrate who is dealing with the youthful delinquent knows the cinematograph to be very harmful to the child’s mind. And there is no doubt that the unconscious effect of such mental stimuli is excessively deleterious to the race in general. The indulgence in it encourages the habit of phantasy thinking at a small cost, and such a habit soon becomes established as part of the individual’s make-up. Nor does the evil stay itself here. For the phantasy in the cinematograph consists usually in the fulfilment of impossible wishes, and in this, as in other cases, the emotional output is increased out of all proportion to the real exciting causes. This results in a misplacement in the emotional output in the unconscious mind, which in its turn is the basis of many neurotic conditions which may even require a physician’s aid to eradicate. And one must remember that a neurotic condition need not merely be the illness of an individual, it may be, and often is, the disease of a nation. Hence, like the fairy-tale, the cinema, as it