gaining and pleasure discharging we can draw the conclusion that in the first person the conditions for discharge are lacking and that those for gaining pleasure are only incompletely fulfilled. Thus it is not to be disputed that we enhance our pleasure in that we attain the—to us impossible—laughter in this roundabout way from the impression of the person who was stimulated to laughter. Thus we laugh, so to speak, _par ricochet_, as Dugas expresses it. Laughter belongs to those manifestations of psychic states which are highly infectious; if I make some one else laugh by imparting my wit to him, I am really using him as a tool in order to arouse my own laughter. One can really notice that the person who at first recites the witticism with a serious mien later joins the hearer with a moderate amount of laughter. Imparting my witticisms to others may thus serve several purposes. First, it serves to give me the objective certainty of the success of the wit-work; secondly, it serves to enhance my own pleasure through the reaction of the hearer upon myself; thirdly, in the case of repeating a not original joke, it serves to remedy the loss of pleasure due to the lack of novelty. _Economy and Full Expenditure_ At the end of these discussions about the psychic processes of wit, in so far as they are enacted between two persons, we can glance back to the factor of economy which impressed us as an important item in the psychological conception of wit since we offered the first explanation of wit-technique. Long ago we dismissed the nearest but also the simplest conception of this economy, where it was a matter of avoiding psychic expenditure in general by a maximum restriction in the use of words and by the production of associations of ideas. We had then already asserted that brevity and laconisms are not witty in themselves. The brevity of wit is a peculiar one; it has to be a “witty” brevity. The original pleasure gain produced by playing with words and thoughts resulted, to be sure, from simple economy in expenditure, but with the development of play into wit the tendency to economize also had to shift its goals, for whatever might be saved by the use of the same words or by avoiding new thought connections would surely be of no account when compared to the colossal expenditure of our mental activity. We may be permitted to make a comparison between the psychic economy and a business enterprise. So long as the latter’s transactions are very small, good policy demands that expenses be kept low and that the costs of operation be minimized as much as possible. The economy still follows the absolute height of the expenditure. Later on when the volume of business has increased, the importance of the business expenses dwindles; increases in the expenditure totals matter little so long as the transactions and returns can be sufficiently increased. Keeping down running expenses would be parsimonious; in fact, it would mean a direct