THIS 1960 STATEMENT OF THE COMMISSION ON HUMAN RELATIONS DESCRIBES THE PROBLEM OF DE FACTO SEGREGATION IN PHILADELPHIA. THE EXTENT OF SCHOOL AND FACULTY SEGREGATION IS INDICATED, AND THE REASONS FOR ITS EXISTENCE ARE DISCUSSED. IT IS FELT THAT THE CULTURAL DEFICIT WHICH RESULTS FROM RACIAL DISCRIMINATION AND SEGREGATION REQUIRES COMPENSATORY EFFORTS BY THE SCHOOLS. INTENSIVE GUIDANCE AND COUNSELING PROGRAMS ARE NEEDED TO DEVELOP THE VOCATIONAL, ACADEMIC, AND PERSONAL POTENTIAL OF NEGRO CHILDREN. AND TO FOSTER WHOLESOME INTERGROUP RELATIONS. COUNSELING BUDGETS SHOULD BE INCREASED AND INTERGROUP RELATIONS PROGRAMS MADE MANDATORY. THE LACK OF CONFIDENCE IN THE SCHOOLS BY BOTH THE NEGRO COMMUNITY AND THE WHITES WHO FLEE THE CITY IS A SERIOUS PROBLEM WHICH NEEDS ATTENTION. PHILADELPHIA SHOULD OFFER QUALITY EDUCATION IN EVERY SCHOOL AND SHOULD ACHIEVE A BETTER RACIAL BALANCE OF TEACHERS IN BOTH THE CITY AND THE SUBURBS. ALSO NEEDED ARE RESEARCH TO ASCERTAIN THE RELATIONSHIP BETWEEN DE FACTO SEGREGATION AND LOWER EDUCATIONAL STANDARDS AND STEPS TO IMPROVE EDUCATION IN SEGREGATED SCHOOLS. (NH)