Proceeding from the assumption that psychoanalytic theory has yielded insightful literary interpretations, I propose that equally legitimate readings result from analyzing consciousness in literature. William James' "Stream of Thought" offers a psychological theory of consciousness from which I develop a literary theory that counterbalances the Freudian emphasis on the unconscious. Examining two works by Henry James, I demonstrate how assessing the elements of a character's consciousness leads to conclusions at which other theories do not arrive. This analytical approach leads to not only an alternative critical agenda but also a fuller understanding of the psychological function of the character's and, by extension, the human mind. / Master of Arts