The annual report describes and discusses humanities programs which support the parallel development of research, scholarships and institutions with a broader public education program. Programs described in this report represent the Endowment's efforts to bring the disciplines of the humanities to bear on problems of national concern. Following an introduction to the seventh annual report, Fritz Machlup explains a conceptual framework for his study concerning "Learning More About Knowledge" and reports findings on the recent growth in the dissemination of humanistic knowledge. The divisions of public, education, research, and fellowship programs, each arranged in a separate section, are briefly described along with an explanation of the function of the Office of Planning and Analysis--an office responsible for funding experiments to find better ways to carry out the Endowment's public mandate. Appendices include a brief history of the Endowment; information for applicants; financial report; summary of grants and awards; a list of private donors to the endowment; a list of the members of the National Council on the Humanities; National Endowment panelists and staff listing; and a list of awards by state. A related document is ED 062 358. (SJM)