Horizontal versus vertical associative memory concepts are denned. Vertical associative memory involves chunking: the specification of new (previously free) nodes to represent combinations of old (bound) nodes. Chunking is the basis of semantic memory, configuring in conditioning, and cognitive (as opposed to stimulus-response) learning. The cortex has the capacity for chunking, but the hippocampal (limbic) arousal system plays a critical role in this chunking process by differentially priming (partially activating) free, as opposed to bound, neurons. Binding a neuron produces negatively accelerated repression of its connections to the hippocampal arousal system, consolidating the memory by protecting the newly bound neuron from diffuse hippocampal input and thus retarding forgetting. Disruption of the hippocampal arousal system produces the amnesic syndrome of an inability to do new chunking (cognitive learning)-anterograde amnesia-and an inability to retrieve recently specified chunks-retrograde amnesia.With a time period of development spanning over two thousand years of human history, the doctrine of the association of ideas is to this day the dominant theory of the mind. I imagine there were always protesters who claimed that the mind was too complex to be encompassed by such associationism. However, until recently, there was no comparably elegant and general alternative theory. Now there is such a theory, though as is so often the case, the new theory is more of an extension than a repudiation of classical associationism.The basic idea derives from the concept of chunking. Chunking was originally formulated by G. Miller (1956), but subsequently chunking has been implicated in a wide variety of