For lucidity and compactness of style, James's short novels, or novelles, are shining examples of his genius.  Few other writings of the century have so captured the American imagination.  When Daisy Miller, the tale of the girl from Schenectady, first appeared in 1878, it was an extraordinary success.  James had discovered nothing less than "the American girl"--free spirited, flirtatious, an innocent abroad determined to defy European convention even if it meant scandal . . . or tragedy.  But the subtle danger lurking beneath the surface in Daisy Miller evolves into a classic tale of terror and obsession in The Turn Of The Screw.  "The imagination," Henry James said to Bernard Shaw,  "has a life if its own."  In this blood-curdling story, that imagination weaves the lives of two children, a governess in love with her employer, and a sprawling country house into a flawless story, still unsurpassed as the prototype of modern horror fiction.