A group of six feminists undertook this study because they felt it important that people learn about racial and sexual discrimination in textbooks used in Baltimore City and other U.S. schools. The task force chose five series of basal readers widely used in Baltimore. These series are used in most, if not all, Elementary Secondary Education Act Title I schools -- schools in which a majority of students are Third World. A predetermined selection process was used to chose a block of ten stories from each book in the study sample. The examination reveals that females and racial minorities are underrepresented in central roles. Where they do appear, their characterization reinforces traditional sexual and racial stereotypes. The readers fail in general to provide positive self-images for females and racial minorities, and they reflect and reinforce social injustices. Recommendations are made for ways to use the readers and for the development of teacher, parent, and publisher awareness of the problems of sexual and racial stereotyping. An afterword has been appended reviewing 1975 and 1976 readers. (Author/JM)