That there are also unconscious psychic processes beside the conscious ones is the hotly contested and energetically defended issue. Lipps gives us the more far-reaching theory that everything psychic exists as unconscious, but that some of it may exist also as conscious. But it was not to prove this theory that we have adduced the phenomena of the dream and of the hysterical symptom formation; the observation of normal life alone suffices to establish its correctness beyond any doubt. The new fact that we have learned from the analysis of the psychopathological formations, and indeed from their first member, viz.

dreams, is that the unconscious — hence the psychic — occurs as a function of two separate systems and that it occurs as such even in normal psychic life. Consequently there are two kinds of