There is at the present time a strong movement to include in the school curriculum more preparation for character education. The schools have long recognized their obligations in this respect, but more progress has not been made because they did not know how to bring it about. With the coming of trained psychologists, psychiatrists, and other specialists, the study of problem cases has begun. This report represents the first of a series of research studies in the education of exceptional children to be planned cooperatively by the United States Office of Education and selected school systems. It was with full recognition of all the limitations within the field of research of human behavior that the present study was undertaken. Because, however, the school system in Berkeley, California, which constitutes its background was one of those which seem to offer a happy combination of understanding, cooperation, efficient organization, and expert service, it was hoped that some light might be thrown upon the problem of behavior adjustment through an intensive investigation of the program in operation there and through a continuous study over a period of years of the progress of the children concerned. This report, an account of a pioneer experimental project carried on in a city school system, has two prime purposes. The first is to show, through description of the organization and methods used in a typical city, how the facilities of the city and the city school system may be utilized for coordinated service and for an economical program looking toward the adjustment of behavior problems of school children. Part I of the bulletin presents such a description. It will interest all those who are concerned with the development of clinical facilities in their own communities and with the growth of the program in the country at large. The second purpose is to describe a method of research which has been used in evaluating such services and which seems to throw some light upon the value of the clinical treatment given. Part II is designed to fulfill this purpose. It will be of value primarily to those who are interested in carrying on experimental research in this field, as well as to those who are eager to know the outcomes of such studies without actually engaging in them. As the conception of the importance of mental hygiene grows and as adequate provision for it is increasingly made in our school systems, there is every reason to expect opportunity for further experimentation in this field which will supplement the pioneer effort described in this bulletin. A list of selected references is attached, and an appendix contains selected forms used in the experiment. (Contains 12 tables, 3 figures, and 28 footnotes.) [Best copy available has been provided.]