Distribution and densities of dislocations, determined by electron transmission microscopy, flow stress and stored energy measurements (by microcalorimetry) on cold-worked polycrystalline silver are correlated with each other, The dislocations are arranged in dense networks forming the boundaries of an otherwise relatively dislocation-free cell structure. The flow stress is explained quantitatively in terms of the forest intersection mechanism at the boundaries. The stored energy after recovery is of the same order as the total self-energy of the dislocation arrangement, so that the long-range stresses must be largely relaxed. The considerable energy release during the recovery stage produces no observable change in dislocation distribution. This recovery stage is thought to be due to the relief of long-range stresses or to the removal of point defects.