A record of hearings is presented conducted by the United States House of Representatives into a bill (H.R. 123) to provide Federal grants to elementary and secondary schools to carry on programs related to citizenship and ethnics. The bill, introduced by Florida Congressman Charles E. Bennett, would be financed by an appropriation of $5,000,000 for each of three fiscal years. Funds would be distributed in the form of grants to state education agencies, which would be responsibile for setting standards and devising the content and nature of citizenship and ethics instruction. Testimony relating to the bill is presented by a variety of witnesses, including religious leaders (Reverend Jessie Jackson and Reverend Norman Vincent Peale), political leaders (Congressmen Bennett, Congressman Carl D. Perkins), directors and officials of citizenship research centers, parents, educators, newspaper columnists, and spokespersons for interest groups in areas of ethical/values education and citizenship education. Topics discussed include moral deterioration in American society, academic achievement, educational objectives, moral fiber, vandalism in schools, background of instruction in morals and values in schools, dedication and responsibility of young people, and issues involved in values clarification in schools without parental consent. (DB)