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The author states that the schizophrenic uses the narcissistic defense (a concept developed in a previous paper) against discharge of dangerous accumulations of destructive impulses. He focuses on two aspects of the schizophrenic problem: overstimulation or weakness of the stimulus barrier and inadequate discharge patterns. He adapts the electrodynamic concept of insulation to mental functioning, making reference to Freud's Project for a Scientific Psychology and Penfield's neurophysiological investigations. Schizophrenics use pathological and inadequate forms of insulation against overstimulation and discharge of their destructive impulses. The objective of psychotherapy with schizophrenic patients is to develop 'healthful forms of insulation' and 'appropriate verbal discharge patterns.' Spotnitz conducts the initial treatment of schizophrenic patients in accordance with three general principles: (1) a nonstimulating treatment climate; (2) the patient is not permitted to discharge his feelings into action in the presence of the therapist; (3) the building up and re-enforcement of the ego's insulative capacity. The author describes one of his cases to illustrate how this is done.