This project examined how values relate to teachers' ratings of their children and teacher reports of critical incidents which happened in the classrooms. The role of race and social class differences in values and classroom problems was also investigated. An examination of children's remarks showed that Good Manners, Kindness, Academic Achievement, Diligence, and Obedience were among the more frequently used value categories. Analysis of the use of the categories and of responses to further value questionnaires developed to be effective within each of the subcultures showed only minor differences in values as a function of social class, sex and race. Most of the classroom incidents were judged to involve values. Value differences between the child and the teacher or the child and his peers were predictive of involvement in incidents and of the teacher's rating the child as having personality or behavior problems. Values also increased the prediction of grades over that which could be achieved by using IQ alone. Teachers did have impact on the children's values. Children shifted towards their teachers over the semester if the teacher scored higher than the children on the value scales. (Author)