The major purpose of this study was to determine whether significant differences in morale existed among teachers employed by rural school districts. Major hypotheses dealt with the combination of biographical variables that best predict teacher morale, differences in morale among teachers grouped by salary level, and differences in morale among teacher grouped according to level of salary increase. The research sample of 46 school districts was selected from all high school districts in North Dakota whose 1968-69 high school enrollment was 400 or less in grades 9-12. The Purdue Teacher Opinionaire (PTO) was distributed to 809 teachers; 545 responses were used in the analysis. The PTO contained a total morale score and 10 factor scores relation to teacher rapport with principal, satisfaction with teaching, rapport among teachers, teacher salary, teacher load, curriculum issues, teacher status, community support of education, school facilities and services, and community pressures. Statistical techniques used included stepwise backward multiple linear regression, analysis of variance, and analysis of covariance. When the PTO total morale score was used as the criterion, the significant predictors of morale were educational preparation, years of teaching experience, and age. (Author/JH)