1. A series of 40 cases of mild psychotic illness and severe psychoneurosis is presented. These cases were treated by electric shock therapy given in the private offices of their physician or as out-patients at the Hillside Hospital.2. This procedure was found to be entirely practicable and without untoward results, providing certain precautions were observed.3. The results were similar to those in the hospital treatment of such cases. From a statistical point of view, our results should not be compared with hospital material, as this is an especially chosen group in whom the prognosis was definitely better than in the average run of cases. The benefits accruing to these patients, other than the immediate therapeutic results obtained, consisted of the avoidance of hospitalization, the continued contact with the normal environment, and the continuation of occupational activities in certain cases.4. The importance of follow-up psychotherapy is emphasized and should form an integral part of the management of these cases.