The writings of Nathaniel Hawthorne exhibit the next stage of development. While lacking some of the technical excellence of Poe by often not knowing how to begin or how to end a story, by sacrificing economy or compression, yet he presented something new in making a story of situation, that is, by putting a character in certain circumstances and working out the results, as _The Birthmark_ (1843). His stories also fall into two groups, the imaginative, like _Howe's Masquerade_ (1838), and the moralizing introspective, or, as they have been called, the "moral-philosophic," that is, stories which look within the human mind and soul and deal with great questions of conduct, such as _The Ambitious Guest_ (1837). Hawthorne was the descendant of Puritans, men given to serious thought and sternly religious. It is this strain of his inheritance which is evidenced in the second group. In all his writing there is some outward symbol of the circumstances or the state of mind. It is seen, for example, in _The Minister's Black Veil_ (1835). In 1868 was published _Luck of Roaring Camp_, by Bret Harte. In this story and those that immediately followed, the author advanced the development of the short-story yet another step by introducing local color. Local color means the peculiar customs, scenery, or surroundings of any kind, which mark off one place from another. In a literary sense he discovered California of the days of the early rush for gold. Furthermore, he made the story more definite. He confined it to one situation and one effect, thus approaching more to what may be considered the normal form. With the form of the short-story fairly worked out, the next development is to be noted in the tone and subject matter. Local color became particularly evident, humor became constantly more prominent, and then the analysis of the working of the human mind, psychologic analysis, held the interest of some foremost writers. Stories of these various kinds came to the front about the third quarter of the last century. "Mark Twain" (Samuel Langhorne Clemens), Thomas Bailey Aldrich, and Frank R. Stockton preëminently and admirably present the humor so peculiarly an American trait. Local color had its exponents in George W. Cable, who presented Louisiana; "Charles Egbert Craddock" (Miss M. N. Murfree), who wrote of Tennessee; Thomas Nelson Page, who gave us Virginia; and Miss M. E. Wilkins (Mrs. Charles M. Freeman), who wrote of New England, to mention only the most notable. With psychologic analysis the name of Henry James is indissolubly linked. _The Passionate Pilgrim_ (1875) may be taken as an excellent example of his work.