An outstanding defect of the old quantum theory was its inability to treat the phenomena occurring in the collision of electrons with atoms, and Born’s theory showed how the new quantum mechanics was capable of removing this defect. The original theory of Born was a method of successive approximations to the solution of the wave equation representing the colliding systems, and could be applied to both elastic and inelastic collisions. In its actual applications, which could be worked out to the first approximation, the theory fell far short of expectations. The Ramsauer effect, the most interesting phenomenon exhibited in the elastic scattering of electrons, could not be explained, and in the field of inelastic collisions, it failed to provide a means of explaining the excitation of levels of a term system which does not combine with the ground state system, e. g., the excitation of the triplet lines of helium. These failures are, of course, failures of the theory in its first approximation. The first approximation in Born’s method of successive approximations neglected the disturbance of the electron waves by the field of the scatterer, and also the possibility of exchange of electrons between the atoms and the colliding beam. The neglect of both these effects becomes important for low velocity impacts, and it was clear that the Ramsauer effect, which is only observed for low velocity electrons, could only be explained by more accurate theory. The question was whether both effects, the distortion of the electron waves by the atomic field, and the exchange of electrons was important, or only one of them.