THE PURPOSE OF THE STUDY WAS TO EXAMINE THE PSYCHOLOGICAL IMPACT OF STORIES AND STORY BOOKS ON 142 PRESCHOOL CHILDREN INCLUDING 46 NEGROES (N.Y. AND CALIF.), 22 PUERTO RICANS (N.Y.), 10 MEXICANS (CALIF.), 16 SIOUX (S. DAKOTA) AND 48 NAVAJO (ARIZ. - N. MEXICO) BY MEANS OF STANDARDIZED RETELLING OF STORIES. A FURTHER AIM WAS TO DISCOVER PATTERNS OF LANGUAGE PERFORMANCE AMONG THE FIVE DIFFERING ETHNIC GROUPS. THE INVESTIGATORS RECRUITED AND TRAINED TWELVE RESEARCH ASSISTANTS OR LIBRARIANS WHO WERE COLLEGE STUDENTS. EACH LIBRARIAN WAS PROVIDED WITH A STANDARD KIT OF TEN BOOKS OF THREE TYPES (1) BOOKS OF ETHNIC IDENTIFICATION, (2) NON-VERBAL BOOKS, AND (3) CLASSIC CHILDREN'S BOOKS. DURING THE LAST PART OF THE PROGRAM, THE LIBRARIANS READ ABBREVIATED VERSIONS OF TWO SELECTED STORIES TO THE CHILDREN AND HAD EACH CHILD RETELL BOTH STORIES. IT SEEMED THAT THE INCLUSION OF ETHNIC BOOKS IS USEFUL IN A PROGRAM AIMED AT NON-WHITE CHILDREN. (COD)