There are varied opinions on the relationship between the circulation penetration of the American daily newspapers and certain demographic indicators. Previous studies have treated the growth of circulation figures by utilizing gross national data and have indicated the role newspaper circulation plays in defining the limits of major urban centers. In one study a number of test newspapers were coded by strata, census region, level of newspaper competition, and level of local competition. The regions involved ranged from suburban to large metropolitan areas. Over 39 percent of each stratum as sampled on a random basis. Findings show no important variation in penetration of the newspaper dailies from 1940 to 1970. In 1970 newspapers were reaching about the same percentage of homes as they were in 1940, although there were variations in the regions. The biggest decline was in the circulation of daily newspapers in the highly populated areas, although revenues in the same areas were up. Sunday editions registered a gain of about 10 percent. Despite the stiff competition from television and other media, the daily newspaper in the United States is still flourishing. (DS)