THE PROBLEM OF POVERTY IN THE CITY GHETTO FORMS A COMPLICATED CHAIN OF DISCRIMINATION AND LOST OPPORTUNITIES FOR WHICH ALL AMERICANS PAY. COSTS ARE INCURRED FROM POOR EDUCATION, UNEMPLOYMENT, WASTE OF INDIVIDUAL TALENT, RISING CRIME RATES, MILITARY SERVICE REJECTION RATES, AND OTHER SOCIAL PROBLEMS. THE EDUCATION LINK IN THIS CHAIN IS THE SEGREGATED, INFERIOR SCHOOL. RECENT EFFORTS AIMED AT IMPROVING GHETTO SCHOOLS INCLUDE TITLE I OF THE ELEMENTARY AND SECONDARY EDUCATION ACT AND THE NATIONAL TEACHER CORPS. AT THE NATIONAL LEVEL, THE U.S. OFFICE OF EDUCATION HAS BEEN RESPONSIBLE FOR ABOUT 100 PROGRAMS. MEASURES FOR IMPROVING THE GHETTO SCHOOL AT THE LOCAL LEVEL SHOULD INCLUDE INCREASED FINANCIAL SUPPORT AND SPECIAL SERVICES SUCH AS COUNSELING AND GUIDANCE, SMALL CLASSES, REMEDIAL INSTRUCTION, AND MEDICAL AID. THE OPPORTUNITY FOR AND EXPECTATION OF PERFORMANCE BY DISADVANTAGED CHILDREN MUST BE CREATED TO FACILITATE THIS GOAL, AND CITY SCHOOL SYSTEMS MUST ADOPT POLICIES THAT WILL GUARANTEE THE ASSIGNMENT OF EXPERIENCED AND SPECIALLY TRAINED TEACHERS TO GHETTO SCHOOLS. A MORE DRASTIC MEASURE WHICH WILL BE NEEDED IS THE ALTERATION OF POLITICAL AND SOCIAL BOUNDARIES. RACIAL AND SOCIOECONOMIC SEGREGATION COULD THEN BE BROKEN BY THE CHOICE OF NEW SCHOOL SITES AND BY THE DEVELOPMENT OF CENTRALIZED SCHOOL COMPLEXES. THIS PAPER WAS DELIVERED BEFORE THE ANNUAL CIVIL ASSEMBLY OF THE CITY CLUB OF CHICAGO, CHICAGO BAR ASSOCIATION, CHICAGO, ILLINOIS, MAY 13, 1966. (MM)