The author traces a debate about the concept of ‘internal objects’ that took place between 1937 and 1943 at a time when a group of British analysts was forming around Melanie Klein. The debate is set within a complex of personal, group and organisational dynamics, which the paper makes a start on unravelling. The history of the British Psycho-Analytical Society at this time exemplifies Bion's notion of group schism. The events in the Society's history demonstrate defensive aspects of the interaction between the opposed groups, which support members against various anxieties. These include the stress of the work of analysis, but also in this instance the particular anxieties deriving from the collapse of psychoanalysis in Europe, the state of war of the country as a whole, and the death of Freud shortly after he came to London. This psychoanalytic anxiety/defence model clarifies some aspects of the debate about internal objects, and demonstrates the way in which these various anxieties and defences become organised around a scientific debate in a scientific society.