Whether Ulysses had such overpowering influence on The Waste Land that the latter is in effect a parody of the former is a point that need not be decided here; Joyce thought it did, but he was touchy in these matters, and even if he was right, hardly anyone connected the two works till many years after both were published. The basic fact that Ulysses made a tremendous impression on Eliot is beyond question, and nobody did more to make it clear than Eliot himself. His friends were amazed; for the first time in their experience, he was openly enthusiastic about a contemporary book. He not only talked up Ulysses among his acquaintance, he wrote, in November 1923, a most influential notice for The Dial under the heading "Ulysses, Order, and Myth"; this statement served for many years not only as a landmark of Joyce criticism, but as a credo for advocates of myth as a structural principle in modern writing.
In fact, Eliot's essay in The Dial applies more directly to the use of myth in The Waste Land than to the use of myth in Ulysses. The Grail legend as interpreted by Jessie Weston really serves as a structural principle on which Eliot hung (with the help of Pound) his observations of contemporary London. (pp. 37-8)
Robert Martin Adams, in his AfterJoyce: Studies in Fiction After "Ulysses" (copyright © 1977 by Robert Martin Adams; reprinted by permission of Oxford University Press, Inc.), Oxford University Press, 1977.
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