In this second lecture on formalism, Professor Paul Fry begins by exploring the implications of Wimsatt and Beardsley's theory of literary interpretation by applying them to Yeats's "Lapis Lazuli." He then maps the development of Anglo-American formalism from Modernist literature to the American and British academies. some time is spent examining the similarities and differences between the works of I. A. Richards and his protegé, William Empson. The lecture turns finally to a discussion Cleanth Brooks's conception of unity.