A new alternative to awarding "F" grades for course failure was investigated by the psychology department of Los Angeles City College, and initial results are reported in this study. Basically, a "W" grade was given to failing Psychology 1 students in place of "F" during the fall 1969 semester. The "W" could also be selected by students who would otherwise earn a "D." The "W" grade meant no credit for courses, but did not result in a loss of grade points. Conclusions indicated that grading standards were not lowered; and a substantial majority of instructors and students found many positive values in the system, especially a lessening of anxiety about grades. It was subsequently recommended that the procedure be continued. [Not available in hard copy due to marginal legibility of original document.] (JO)