This annual is now published by the co-workers of Géza Róheim. It continues to be a forum for the discussion of psychological principles relevant to both sciences. The theoretical and sociological papers, by representative authors in these fields, offer formulations of dynamic processes underlying or governing the formation of groups, the interrelationships between group members and between group members and the leader. Particular attention is paid in the second part to the effects of success and of failure of leadership, and to the reciprocal manner in which leader and masses influence each other. Relevant theories of Freud, for instance his