The allusion in the scarlet letter refers to Daniel a wise biblical prophet. The speaker in that excerpt expected the reader to know this information that Daniel had the gift of answering difficult riddles and interpreting dreams.
In literature, an allusion is an indirect reference to a person, event, or thing, as well as a section of another text.
The majority of allusions are founded on the premise that the reader is in the know about an idea that is commonplace and that the reader would grasp the author's reference thereby.
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