Arbuthnot on Political Lying. Begin with "Great Swingeing Falsehoods". The Opposite Method to be used in telling Ghost Stones. Begin with the more Familiar and Credible. Sleep. Dreams. Ghosts are identical with Waking Dreams. Possibility of being Asleep when we think we are Awake. Dreams shared by several People. Story of the Dog Fanti. The Swithinbank Dream. Common Features of Ghosts and Dreams. Mark Twain's Story. Theory of Common-sense. Not Logical. Fulfilled Dreams. The Pig in the Palace. The Mignonette. Dreams of Reawakened Memory. The Lost Cheque. The Ducks' Eggs. The Lost Key. Drama in Dreams. The Lost Securities. The Portuguese Gold-piece. St. Augustine's Story. The Two Curmas. Knowledge acquired in Dreams. The Assyrian Priest. The Déjà Vu. "I have been here before." Sir Walter's Experience. Explanations. The Knot in the Shutter. Transition to Stranger Dreams.