In his discussion of the “dream-work” in Book VI of The Interpretation of Dreams (1900), Freud made a distinction between the “manifest” and “latent” content of the dream. He observed that “Dreams are brief, meagre and laconic in comparison with the range and wealth of the dream-thoughts” (Penguin edition, p. 383) and theorised that what was manifest in the dream had been produced out of its latent content by processes of condensation and displacement. Condensation is the process whereby one sign represents a nodal point in two or more associative chains, or where various elements with diverse origins are combined into a composite …
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Clark, Robert. "Condensation [Verdichtung]". The Literary Encyclopedia. First published 22 October 2005
[http://www.litencyc.com/php/stopics.php?rec=true&UID=215, accessed 25 May 2017.]