[Lalwendë]

You should get hold of the new Companion and Guide*, as there are sizeable sections on Tolkien's reading, including several pages on what exactly he thought of George MacDonald. This is drawn in part from the private Bodleian collection of Tolkien's papers which I am told includes massive amounts of notes on his thoughts on Fairy Tales and records of his reading.

Without having the book here with me - and in any case said section is far too long to quote, both practically and legally - Tolkien admired two of MacDonald's books - The Princess and The Goblin, and At The Back Of The North Wind when he was a child. He also drew heavily on his Fairy Tales, especially The Golden Key, for his lecture On Fairy Stories; MacDonald was the only children's Victorian writer he liked as he found he did not bowdlerise as much as others. However, some years later he went back to read The Golden Key and found he hated it (there's a juicily vituperative quote from him I would like to share but that will have to wait...). Tolkien never liked MacDonald's other works, reserving particular approbation for Phantastes, saying it: "afflicted me with profound dislike".

Possibly its the allegorical nature as when you examine what he enjoyed reading, as evidenced in the C&G, he seems to have cast aside a great many books for their allegorical aspects.

*Should be on everyone's Christmas wish lists as it's turning out to be the definitive work on Tolkien, far more authoritative than most books, better than the Carpenter bio and essential to help iron out those oddities found in Letters.