In his second article, on "Psychology as Philosophic Method," Dewey proposes to show that his standpoint is practically identical with that of transcendental idealism. This is made possible, he believes, through the fact that, since experience or consciousness is the only reality, psychology, as the scientific account of this reality, becomes identical with philosophy.

In maintaining his position, Dewey finds it necessary to criticise the tendency, found in certain idealists, to treat psychology merely as a special science. This view of psychology is attained, Dewey observes, by regarding man under two arbitrarily determined aspects. Taken as a finite being acting amid finite things, a knowing, willing, feeling phenomenon, man is said to be the object of a special science, psychology. But in another aspect man is infinite, the universal self-consciousness, and as such is the object of philosophy. This distinction between the two aspects of man's nature, Dewey believes, cannot be maintained. As a distinction, it must arise within consciousness, and it must therefore be a psychological distinction. Psychology cannot limit itself to anything less than the whole of experience, and cannot, therefore, be a special science dependent, like others, upon philosophy for its working concepts. On the contrary, the method of psychology must be the method of philosophy.

Dewey reaches this result quite easily, because he makes psychology the science of reality to begin with. "The universe," he says, "except as realized in an individual, has no existence.... Self-consciousness means simply an individualized universe; and if this universe has not been realized in man, if man be not self-conscious, then no philosophy whatever is possible. If it has been realized, it is in and through psychological experience that this realization has occurred. Psychology is the scientific account of this realization, of this individualized universe, of this self-consciousness."[7]

It is difficult to understand exactly what these expressions meant for Dewey. Granting that the human mind is both individual and universal, what objection could be raised against the study of its individual or finite aspects as the special subject-matter of a particular science? All the sciences, as Dewey was aware, are abstract in method. Dewey's position appears to be that the universal and individual aspects of consciousness are nothing apart from each other, and must be studied together. But 'consciousness' in Dewey's view is, in fact, two consciousnesses. Reality as a whole is a Consciousness, and the individual mind is another consciousness. A problem arises, therefore, as to their connection. Dewey affirms that, unless they are united, unless the universal is given in the individual consciousness, there can be no science of the whole, and therefore no philosophy. The epistemological problem of the relation of the mind to reality becomes, accordingly, the raison d'être of his method. The problem was an inheritance from subjective idealism. It may be pointed out that there is some similarity between Dewey's standpoint and Berkeley's. Both conceive of consciousness as a construct of elements, and Dewey's 'Consciousness in general' holds much the same relation to the finite consciousness that the Divine Mind holds to the individual consciousness in Berkeley's system. The similarity between the two standpoints must not be overemphasized, but it is none the less suggestive and interesting.

In attempting to determine the proper status of psychology as a science, Dewey is led into a more detailed exposition of his standpoint. His position in general is well indicated in the following passage: "In short, the real esse of things is neither their percipi, nor their intelligi alone; it is their experiri."[8] The science of the intelligi is logic, and of the percipi, philosophy of nature. But these are abstractions from the experiri, the science of which is psychology. If it be denied that the experiri, self-consciousness in its wholeness, can be the subject-matter of psychology, then the possibility of philosophy is also denied. "If man, as matter of fact, does not realise the nature of the eternal and the universal within himself, as the essence of his own being; if he does not at one stage of his experience consciously, and in all stages implicitly, lay hold of this universal and eternal, then it is mere matter of words to say that he can give no account of things as they universally and eternally are. To deny, therefore, that self-consciousness is a matter of psychological experience is to deny the possibility of any philosophy."[9] Dewey assures us again that his method alone will solve the epistemological problem.

Self-consciousness, as that within which things exist sub specie æternitatis and in ordine ad universum, must be the object of psychology. The refusal to take self-consciousness as an experienced fact, Dewey says, results in such failures as are seen in Kant, Hegel, and even Green and Caird, to give any adequate account of the nature of the Absolute. Kant, for purely logical reasons, denied that self-consciousness could be an object of experience, although he admitted conceptions and perceptions as matters of experience. As a result of his attitude, conception and perception were never brought into organic connection; the self-conscious, eternal order of the world was referred to something back of experience. Dewey attributes Kant's failure to his logical method, which led him away from the psychological standpoint in which he would have found self-consciousness as a directly presented fact.

This criticism of Kant's 'logical method' fails to take account of the transitional nature of Kant's standpoint. Looking backward, it is easy enough to ask why Kant did not begin with the organic view of experience at which he finally arrived. But the answer must be that the organic standpoint did not exist until Kant, by his 'logical method,' had brought it to light. The Kantian interpretation of experience, in which, as Dewey asserts, conception and perception were never brought into organic relation, is a half-way stage between mechanism and organism. But how does Dewey propose to improve upon Kant's position? He will first of all put Kant's noumenal self back into experience, as a fact in consciousness. But how will this help to bring perception and conception into closer union? There seems to be no answer. Dewey's view appears to be that organic relations are achieved whenever an object is made a part of experience and so brought into connection with other experienced facts. 'Organic relation' is interpreted as equivalent to 'mental relation.' But mental relations are not organic because they are mental. It would be as easy to assert that they are mechanical. The test lies in the nature of the relations which are actually found in the mental sphere and the fitness of the organic categories to express them. Dewey's 'consciousness,' as has been said before, appears to be a structure, not an organism. Its parts are external to each other, however closely they may be related. An organic view of experience would begin with a denial of the actuality of bare facts or sensations, and would not waver in maintaining that standpoint to the end.

Hegel's advance upon Kant, Dewey continues, "consisted essentially in showing that Kant's logical standard was erroneous, and that, as a matter of logic, the only true criterion or standard was the organic notion, or Begriff, which is a systematic totality, and accordingly able to explain both itself and also the simpler processes and principles."[10] The logical reformation which Hegel accomplished was most important, but the work of Kant still needed to be completed by "showing self-consciousness as a fact of experience, as well as perception through organic forms and thinking through organic principles."[11] This element is latent in Hegel, Dewey believes, but needs to be brought out.

T. H. Green comes under the same criticism. He followed Kant's logical method, and as a consequence arrived at the same negative results. The nature of self-consciousness remains unknown to Green; he can affirm its existence, but cannot describe its nature. Dewey quotes that passage from the Prolegomena to Ethics in which Green says:[12] "As to what that consciousness in itself or in its completeness is, we can only make negative statements. That there is such a consciousness is implied in the existence of the world; but what it is we only know through its so far acting in us as to enable us, however partially and interruptedly, to have knowledge of a world or an intelligent experience." If, Dewey observes, Green had begun with the latter point of view, and had taken self-consciousness as at least partially realized in finite minds, he would have been able to make some positive statements about it. Dewey, however, has not given the most adequate interpretation of Green's 'Spiritual Principle in Nature.' This was evidently, for Green, a symbol of the intelligibility of the world as organically conceived, an order which could not be comprehended by the mechanical categories, but which was nevertheless real. As Green tended to hypostatize the organic conception, so Dewey would make it a concrete reality, with the further specification that it must be something given to psychological observation.

The chief point of Dewey's criticism of the idealists is that they fail to establish self-consciousness as an experienced fact; and, Dewey maintains, it must be so established if it is to be anything real and genuine. If it is anything that can be discussed at all, it must be an element in experience; and if it is in experience, it must be the subject-matter of psychology. It is inevitable, from Dewey's standpoint, that transcendentalism should adopt his psychological method.