Unfortunately the reality is much more complicated. Let me facilitate an insight into these complications by an example of a case of hysteria. It will, I hope, enable me to demonstrate the characteristic complication, so important for the theory of neurosis. You will probably remember the case of the young lady with hysteria, whom I mentioned at the beginning of my lectures. We noticed the remarkable fact that this patient was unaffected by situations which one might have expected to make a profound impression and yet showed an unexpected extreme pathological reaction to a quite everyday event. We took this occasion to express our doubt as to the etiological significance of the shock, and to investigate the so-called predisposition which rendered the trauma effective. The result of that investigation led us to what has just been mentioned, that it is by no means improbable that the origin of the neurosis is due to a retardation of the affective development. You will now ask me what is to be understood by the retardation of the affectivity of this hysteric. The patient lives in a world of phantasy, which can only be regarded as infantile. It is unnecessary to give a description of these phantasies, for you, as neurologists or psychiatrists, have the opportunity daily to listen to the childish prejudices, illusions and emotional pretensions to which neurotic people give way. The disinclination to face stern reality is the distinguishing trait of these phantasies—some lack of earnestness, some trifling, which sometimes hides real difficulties in a light-hearted manner, at others exaggerates trifles into great troubles. We recognize at once that inadequate psychic attitude towards reality which characterizes the child, its wavering opinions and its deficient orientation in matters of the external world. With such an infantile mental disposition all kinds of desires, phantasies and illusions can grow luxuriantly, and this we have to regard as the critical causation. Through such phantasies people slip into an unreal attitude, preeminently ill-adapted to the world, which is bound some day to lead to a catastrophe. When we trace back the infantile phantasy of the patient to her earliest childhood we find, it is true, many distinct, outstanding scenes which might well serve to provide fresh food for this or that variation in phantasy, but it would be vain to search for the so-called traumatic motive, whence something abnormal might have sprung, such an abnormal activity, let us say, as day-dreaming itself. There are certainly to be found traumatic scenes, although not in earliest childhood; the few scenes of earliest childhood which were remembered seem not to be traumatic, being rather accidental events, which passed by without leaving any effect on her phantasy worth mentioning. The earliest phantasies arose out of all sorts of vague and only partly understood impressions received from her parents. Many