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 in the neuroses, which transcend the boundaries of the immediate sexual; in any case, this occurs in psychotic episodes. I consider the broadening of the conception of libido which has developed through the most recent analytic work as a real advance which will prove of especial advantage in the important field of the introversion psychoses. Proofs of the correctness of my assumption are already at hand. It has become apparent through a series of researches of the Zurich School, which are now published in part,[32] that the phantastic substitution products which take the place of the disturbed function of reality bear unmistakable traces of archaic thought. This confirmation is parallel to the postulate asserted above, according to which reality is deprived, not merely of an immediate (individual) amount of libido, but also of an already differentiated or desexualized quantity of libido, which, among normal people, has belonged to the function of reality ever since prehistoric times. A dropping away of the last acquisition of the function of reality (or adaptation) must of necessity be replaced by an earlier mode of adaptation. We find this principle already in the doctrines of the neuroses, that is, that a repression resulting from the failure of the recent transference is replaced by an old way of transference, namely, through a regressive revival of the parent imago. In the transference neurosis (hysterical), where merely a part of the immediate sexual libido is taken away from reality by the specific sexual repression, the substituted product is a phantasy of individual origin and significance, with only a trace of those archaic traits found in the phantasies of those