This lesson considers the seventh chapter of Alice in Wonderland and the seventh great principle of wisdom in the Philosophy of Concepts as revealed through the adventures of Alice is that genius is insanity usefully applied. The close interrelation between genius and insanity is thoroughly recognized by the world at large today, but beyond acceptance of the fact the academic scholars have been willing to let the matter rest as something unexplainable or as example of the compensation of nature or deficiency in certain faculties making up for extreme brilliancy in others. That genius is itself insanity is often seen to be true by the layman but the truth is too disagreeable for the world's intelligentsia to accept wholeheartedly. The educated man of this smug age by an odd manifestation of conceit is unwilling to admit any indebtedness to one who by conventional standards he must classify as inferior to himself. Thus moral turpitude in an artist in America renders the art unworthy of consideration. Presumably in time the Babbits will achieve the moral courage to refuse to be saved from drowning by a bootlegger. Genius and insanity are identical in the fact that both are abnormality and it will be obvious that this abnormality may be either sub or super normality. In a humorous sense it is insanity if it is discovered before it justifies itself and genius if it justifies itself before its discovery as a pathological symptom. Fundamentally unbalance may be as constructive as destructive and examination of the history of human progress will demonstrate the fact very quickly that unbalance is the first manifestation of progress. So-called human balance is too often mere stagnation.