DIFFERENCES BETWEEN THE TWO METHODS OF FIRST-GRADE BEGINNING READING INSTRUCTION WERE INVESTIGATED. APPROXIMATELY 920 FIRST-GRADE CHILDREN WERE DIVIDED INTO 2 GROUPS WHICH RECEIVED 1 OF THE 2 METHODS. TO DETERMINE THE EFFECTS OF CERTAIN VARIABLES ON READING ACHIEVEMENT, THE CHILDREN WERE MATCHED IN PAIRS. THE RESULTS WERE GATHERED FROM ONE GROUP USING MATERIALS PRINTED IN TRADITIONAL ORTHOGRAPHY (T.O.) AND ANOTHER USING THE INITIAL TEACHING ALPHABET (ITA). THE USE OF ITA IN LANGUAGE ARTS WAS FOUND SIGNIFICANTLY BETTER IN THE DEVELOPMENT OF WORD READING SKILL, BUT INFERIOR TO T.O. IN THE DEVELOPMENT OF SPELLING SKILLS. THE INHIBITING EFFECTS OF PHONEME-GRAPHEME CORRESPONDENCE WERE NOT OVERCOME BY EITHER METHODOLOGY. FURTHER STUDY OF THE EFFECTS OF ITA INSTRUCTION WAS SUGGESTED. (RS)