UNITED STATES
                        SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-Q

[X]      Quarterly report pursuant to Section 13 or 15 (d) of the
Securities Exchange Act of 1934
For the period ended September 30, 1996 or

[ ]      Transition report pursuant to Section 13 or 15 (d) of the
Securities Exchange Act of 1934
For the transition period _________________to______________.

Commission File Number 0-15442
 
                DEAN WITTER CORNERSTONE FUND IV                  
         (Exact name of registrant as specified in its charter)


       New York                                       13-3393597
(State or other jurisdiction of                    (I.R.S. Employer
Incorporation or organization)                   Identification No.)


c/o Demeter Management Corp.
Two World Trade Center, New York, NY 62 Fl.               10048
(Address of principal executive offices)                 (Zip Code)


Registrant's telephone number, including area code (212) 392-5454 

                                                                  
(Former name, former address, and former fiscal year, if changed
since last report)


Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements
for the past 90 days.

Yes    X                            No          
<PAGE>
<TABLE>
              DEAN WITTER CORNERSTONE FUND IV

            INDEX TO QUARTERLY REPORT ON FORM 10-Q

                        September 30, 1996

<CAPTION>
PART I. FINANCIAL INFORMATION
<S>                                                             <C>
Item 1. Financial Statements

      Statements of Financial Condition 
      September 30, 1996 (Unaudited) and December 31, 1995.......2

      Statements of Operations for the Quarters Ended
      September 30, 1996 and 1995 (Unaudited)....................3

      Statements of Operations for the Nine Months Ended
      September 30, 1996 and 1995 (Unaudited)....................4
         
      Statements of Changes in Partners' Capital for the 
      Nine Months Ended September 30, 1996 and 1995
      (Unaudited)................................................5

      Statements of Cash Flows for the Nine Months Ended
      September 30, 1996 and 1995 (Unaudited)....................6

      Notes to Financial Statements...........................7-12

Item 2.        Management's Discussion and Analysis of Financial 
               Condition and Results of Operations...............13-17

PART II. OTHER INFORMATION

Item 6.  Exhibits and Reports on Form 8-K....................18


</TABLE>





<PAGE>
<TABLE>
                                            DEAN WITTER CORNERSTONE FUND IV
                                           STATEMENTS OF FINANCIAL CONDITION

<CAPTION>

                                                                       September 30,              December 31,
                                                                           1996                       1995     
                                                                             $                          $
                                                                        (Unaudited)
ASSETS
<S>                                                                      <C>                        <C>     
Equity in Commodity futures trading accounts:
    Cash                                                                88,071,869                  104,927,961
    Net unrealized gain on open contracts                                1,665,229                       70,143
    
    Total Trading Equity                                                89,737,098                  104,998,104

Interest receivable (DWR)                                                  305,786                      364,747
Due from DWR                                                                40,924                            -

    Total Assets                                                        90,083,808                  105,362,851


LIABILITIES AND PARTNERS' CAPITAL

Liabilities

    Redemptions payable                                                  2,191,773                    1,044,804
    Accrued management fees                                                298,465                      349,039
    Common administrative expenses payable                                 163,037                      267,788
    Accrued brokerage commissions (DWR)                                     78,120                       32,580
    Accrued transaction fees and costs                                       4,490                        1,629

    Total Liabilities                                                    2,735,885                    1,695,840


Partners' Capital

    Limited Partners (30,821.229 and
     35,905.625 Units, respectively)                                    85,574,070                  101,854,654
    General Partner (638.889 Units)                                      1,773,853                    1,812,357

    Total Partners' Capital                                             87,347,923                  103,667,011

    Total Liabilities and Partners' Capital                             90,083,808                  105,362,851


NET ASSET VALUE PER UNIT                                                  2,776.47                     2,836.73

<FN>

                                    The accompanying footnotes are an integral part
                                            of these financial statements.
</TABLE>
<PAGE>
<TABLE> 
                                            DEAN WITTER CORNERSTONE FUND IV
                                               STATEMENTS OF OPERATIONS
(Unaudited)

<CAPTION>
                                                                     For the Quarters Ended September 30,    

                                                                         1996                   1995      
                                                                           $                      $
REVENUES
<S>                                                                  <C>                      <C>       
    Trading profit (loss):                                                      
         Realized                                                    (3,667,691)              8,042,836  
         Net change in unrealized                                      (914,027)             (2,556,427)

           Total Trading Results                                     (4,581,718)              5,486,409  

    Interest Income (DWR)                                               956,468               1,266,900  

           Total Revenues                                            (3,625,250)              6,753,309  


EXPENSES

    Brokerage commissions (DWR)                                       1,014,337                 646,423 
    Management fees                                                     913,789               1,152,626  
    Transaction fees and costs                                           64,627                  39,831  
    Common administrative expenses                                       20,804                       -  
                                                                                
           Total Expenses                                             2,013,557               1,838,880 


NET INCOME (LOSS)                                                    (5,638,807)              4,914,429 


NET INCOME (LOSS) ALLOCATION

    Limited Partners                                                 (5,529,511)              4,837,556 
    General Partner                                                    (109,296)                 76,873 
                                                                                                        

NET INCOME (LOSS) PER UNIT                                                                              

    Limited Partners                                                    (171.07)                 120.32 
    General Partner                                                     (171.07)                 120.32 


<FN>

                                    The accompanying footnotes are an integral part
                                            of these financial statements.
/TABLE
<PAGE>
<TABLE> 

                                            DEAN WITTER CORNERSTONE FUND IV
                                               STATEMENTS OF OPERATIONS
(Unaudited)


<CAPTION>

                                                                   For the Nine Months Ended September 30,     

                                                                         1996                   1995      
                                                                           $                      $
REVENUES
<S>                                                                   <C>                    <C>        
    Trading profit (loss):                                                      
         Realized                                                      (289,827)             31,263,863 
         Net change in unrealized                                      1,595,086             (2,188,461)

           Total Trading Results                                       1,305,259             29,075,402 

    Interest Income (DWR)                                              2,995,868              3,761,427 

           Total Revenues                                              4,301,127             32,836,829 


EXPENSES

    Management fees                                                    2,944,036              3,501,583 
    Brokerage commissions (DWR)                                        2,902,879              2,408,216 
    Transaction fees and costs                                           173,838                146,189 
    Common administrative expenses                                        38,947                 39,890 
                                                                                
           Total Expenses                                              6,059,700              6,095,878 


NET INCOME (LOSS)                                                    (1,758,573)             26,740,951 


NET INCOME (LOSS) ALLOCATION

    Limited Partners                                                 (1,720,069)             26,358,694 
    General Partner                                                     (38,504)                382,257 


NET INCOME (LOSS) PER UNIT                                                                              

    Limited Partners                                                     (60.26)                 598.31 
    General Partner                                                      (60.26)                 598.31 


<FN>
                                    The accompanying footnotes are an integral part
                                            of these financial statements.
</TABLE>

<PAGE>
<TABLE>
                                            DEAN WITTER CORNERSTONE FUND IV
                                      STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
                                 For the Nine Months Ended September 30, 1996 and 1995
                                                      (Unaudited)


<CAPTION>


                                                  Units of
                                                 Partnership         Limited            General
                                                  Interest          Partners            Partner           Total
<S>                                              <C>            <C>                  <C>               <C>        
Partners' Capital
   December 31, 1994                             47,632.891      $108,418,306       $1,473,960        $109,892,266 

Continuous Offering                                  67.000           182,947                -             182,947 

Net Income                                                -        26,358,694          382,257          26,740,951  

Redemptions                                       (9,822.417)     (26,767,637)               -         (26,767,637)

Partners' Capital
   September 30, 1995                            37,877.474      $108,192,310       $1,856,217        $110,048,527 




Partners' Capital
   December 31, 1995                             36,544.514      $101,854,654        $1,812,357       $103,667,011 

Continuous Offering                                  29.206            83,657                -              83,657 

Net Loss                                                  -        (1,720,069)         (38,504)         (1,758,573)

Redemptions                                      (5,113.602)      (14,644,172)               -         (14,644,172) 
   
Partners' Capital
   September 30, 1996                            31,460.118       $85,574,070       $1,773,853         $87,347,923 




<FN>


               The accompanying footnotes are an integral part
                        of these financial statements.


</TABLE>
<PAGE>
<TABLE>

                                            DEAN WITTER CORNERSTONE FUND IV
                                               STATEMENTS OF CASH FLOWS
                                                    (Unaudited)

<CAPTION>
                                                                   For the Nine Months Ended September 30,     

                                                                         1996                   1995      
                                                                           $                      $
CASH FLOWS FROM OPERATING ACTIVITIES
<S>                                                                  <C>                     <C>         
Net income (loss)                                                    (1,758,573)             26,740,951 
Noncash item included in net income (loss):
         Net change in unrealized                                    (1,595,086)              2,188,461 

    (Increase) decrease in operating assets:
         Interest receivable (DWR)                                       58,961                  18,748  
         Due from DWR                                                   (40,924)                      - 
 
    Increase (decrease) in operating liabilities:
         Accrued management fees                                        (50,574)                    732  
         Common administrative expenses payable                        (104,751)                (89,342) 
         Accrued brokerage commissions (DWR)                             45,540                   8,244  
         Accrued transaction fees and costs                               2,861                     412  

Net cash provided by (used for) operating activities                 (3,442,546)             28,868,206 


CASH FLOWS FROM FINANCING ACTIVITIES

    Offering of units                                                    83,657                 182,947 
    Increase in redemptions payable                                   1,146,969                  63,299 
    Redemptions of units                                            (14,644,172)            (26,767,637)

Net cash used for financing activities                              (13,413,546)            (26,521,391) 

Net increase (decrease) in cash                                     (16,856,092)              2,346,815  

Balance at beginning of period                                      104,927,961             111,508,180 

Balance at end of period                                             88,071,869             113,854,995 



<FN>

                                    The accompanying footnotes are an integral part
                                            of these financial statements.

</TABLE>
<PAGE>
          DEAN WITTER CORNERSTONE FUND IV
            NOTES TO FINANCIAL STATEMENTS
                   (Unaudited)

The financial statements include, in the opinion of management, all
adjustments necessary for a fair presentation of the results of
operations and financial condition.  The financial statements and
condensed notes herein should be read in conjunction with the
Partnership's December 31, 1995 Annual Report on Form 10-K.

1. Organization
Dean Witter Cornerstone Fund IV (the "Partnership")  is a limited
partnership organized to engage in the speculative trading of
commodity futures contracts and forward contracts on foreign
currencies.  The Partnership is one of the Dean Witter Cornerstone
Funds, comprised of Dean Witter Cornerstone Fund II, Dean Witter
Cornerstone Fund III, and Dean Witter Cornerstone Fund IV.  The
general partner of the Partnership, Demeter Management Corporation
(the "General Partner"), and the commodity broker, Dean Witter
Reynolds Inc. ("DWR") are wholly owned subsidiaries of Dean Witter,
Discover & Co.  The trading advisors who make all trading decisions
for the Partnership are John W. Henry & Company, Inc. and Sunrise
Capital Management, Inc.    

2.  Summary of Significant Accounting Policies
Effective September 1, 1996, maximum total brokerage commissions
and transaction fees chargeable to the Partnership are capped at 
<PAGE>
                 DEAN WITTER CORNERSTONE FUND IV
               NOTES TO FINANCIAL STATEMENTS (CONTINUED)


 .65% per month of adjusted Net Assets as defined in the Limited
Partnership Agreement.

3. Related Party Transactions
The Partnership's cash is on deposit with DWR in commodity trading
accounts to meet margin requirements as needed.  DWR pays interest
on these funds based on current 13-week U.S. Treasury Bill rates. 
Brokerage expenses incurred by the Partnership are paid to DWR.


4.  Financial Instruments
The Partnership trades futures and forward contracts in interest
rates, stock indices and currencies.  Futures and forwards
represent contracts for delayed delivery of an instrument at a
specified date and price.  Risk arises from changes in the value of
these contracts and the potential inability of counterparties to
perform under the terms of the contracts.  There are numerous
factors which may significantly influence the market value of these
contracts, including interest rate volatility.  At September 30,
1996, open contracts were:
                                                                  
                                          Contract or
                                        Notional Amount
                                                $
Exchange-Traded Contracts
 Financial Futures:              
   Commitments to Purchase                 53,392,000
   Commitments to Sell                    172,353,000
Off-Exchange-Traded Forward
 Currency Contracts
   Commitments to Purchase                220,303,000
   Commitments to Sell                    290,996,000
            
<PAGE>
                        DEAN WITTER CORNERSTONE FUND IV
                   NOTES TO FINANCIAL STATEMENTS (CONTINUED)



A portion of the amounts indicated as off-balance-sheet risk in
forward currency contracts is due to offsetting forward commitments
to purchase and to sell the same currency on the same date in the
future.  These commitments are economically offsetting, but are not
offset in the forward market until the settlement date.

The net unrealized gain on open contracts is reported as a
component of "Equity in Commodity futures trading accounts" on the
Statement of Financial Condition and totaled $1,665,229 at
September 30, 1996.  Of this amount, $1,949,913 related to
exchange-traded futures contracts and ($284,684) related to off-
exchange-traded forward currency contracts.


Exchange-traded futures contracts held by the Partnership at
September 30, 1996 mature through December 1996.  Off-exchange-
traded forward currency contracts held by the Partnership at
September 30, 1996 mature through December 1996.  The contract
amounts in the above table represent the Partnership's extent of
involvement in the particular class of financial instrument, but
not the credit risk associated with counterparty nonperformance. 
The credit risk associated with these instruments is limited to the
amounts reflected in the Partnership's Statements of Financial
Condition.

<PAGE>
                           DEAN WITTER CORNERSTONE FUND IV
                      NOTES TO FINANCIAL STATEMENTS (CONTINUED)

The Partnership also has credit risk because DWR acts as the
futures commission merchant or the sole counterparty with respect
to most of the Partnership's assets.  Exchange-traded futures
contracts are marked to market on a daily basis, with variations in
value settled on a daily basis.  DWR, as the futures commission
merchant for all of the Partnership's exchange-traded futures
contracts, is required pursuant to regulations of the Commodity
Futures Trading Commission to segregate from its own assets and for
the sole benefit of its commodity customers all funds held by DWR
with respect to exchange-traded futures contracts including an
amount equal to the net unrealized gain on all open futures
contracts, which funds totaled $90,021,782 at September 30, 1996. 
With respect to the Partnership's off-exchange traded forward
currency contracts, there are no daily settlements of variations in
value nor is there any requirement that an amount equal to the net
unrealized gain on open forward contracts be segregated.  With
respect to those off-exchange-traded forward currency contracts,
the Partnership is at risk to the ability of DWR, the counterparty
on all such contracts, to perform.
<PAGE>
                         DEAN WITTER CORNERSTONE FUND IV
                     NOTES TO FINANCIAL STATEMENTS (CONTINUED)




For the nine months ended September 30, 1996, the average fair
value of financial instruments held for trading purposes was as
follows:
                                                Assets        Liabilities
                                                  $                $
Exchange-Traded Contracts
  Financial Futures                           54,599,000   125,969,000
Off-Exchange-Traded Forward
 Currency Contracts                          323,589,000   326,150,000


5.  Legal Matters
On September 6, 10, and 20, 1996, similar purported class actions
were filed in the Superior Court of the State of California, County
of Los Angeles, on behalf of all purchasers of interests in limited
partnership commodity pools sold by DWR.  Named defendants include
DWR, the General Partner, Dean Witter Futures and Currency
Management Inc., Dean Witter, Discover & Co. (all such parties
referred to hereafter as the "Dean Witter Parties"), the
Partnership, certain other limited partnership commodity pools of
which Demeter is the general partner, and certain trading advisors
to those pools.  Also, on September 18 and 20, 1996 similar
purported class actions were filed in the Supreme Court of the
State of New York, New York County, against the Dean Witter Parties
and certain trading advisors on behalf of all purchasers of
interests in various limited partnership commodity pools sold by
DWR.  Generally, these complaints allege, among other things, that
the defendants committed fraud, deceit, misrepresentation, breach
of fiduciary duty, fraudulent and unfair business practices, unjust
<PAGE>
                       DEAN WITTER CORNERSTONE FUND IV
                   NOTES TO FINANCIAL STATEMENTS (CONCLUDED)



enrichment, and conversion in connection with the sale and
operation of the various limited partnership commodity pools.  The
complaints seek unspecified amounts of compensatory and punitive
damages and other relief.  It is possible that additional similar
actions may be filed and that, in the course of these actions,
other parties could be added as defendants.  The Dean Witter
Parties believe that they and the Partnership have strong defenses
to, and they will vigorously contest, the actions.  Although the
ultimate outcome of legal proceedings cannot be predicted with
certainty, it is the opinion of management of the Dean Witter
Parties that the resolution of the actions will not have a material
adverse effect on the financial condition or the results of
operations of any of the Dean Witter Parties or the Partnership. 
<PAGE>
Item 2.MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION 
       AND RESULTS OF OPERATIONS.

Liquidity  The Partnership's assets are deposited in separate
commodity trading accounts with DWR, and are used by the
Partnership as margin to engage in trading commodity futures
contracts and forward contracts on foreign currency.  DWR holds
such assets in either designated depositories or in securities
approved by the Commodity Futures Trading Commission for investment
of customer funds.  The Partnership's assets held by DWR may be
used as margin solely for the Partnership's trading.  Since the
Partnership's sole purpose is to trade in commodity futures
contracts and forward contracts on foreign currency, it is expected
that the Partnership will continue to own such liquid assets for
margin purposes.

The Partnership's investment in commodity futures contracts and
other commodity interests may be illiquid.  If the price for a
futures contract for a particular commodity has increased or
decreased by an amount equal to the "daily limit," positions in the
commodity can neither be taken nor liquidated unless traders are
willing to effect trades at or within the limit.  Commodity futures
prices have occasionally moved the daily limit for several
consecutive days with little or no trading.  Such market conditions
could prevent the Partnership from promptly liquidating its
commodity futures positions.

There is no limitation on daily price moves in trading forward
contracts on foreign currency.  The markets for some world 
<PAGE>
currencies have low trading volume  and are  illiquid,  which may
prevent the Partnership from trading in potentially profitable
markets or prevent the Partnership from promptly liquidating
unfavorable positions in such markets and subjecting it to
substantial losses.  Either of these market conditions could result
in restrictions on redemptions.


Capital Resources  The Partnership does not have, nor does it
expect to have, any capital assets.  Redemptions and exchanges of
Units in the future will impact the amount of funds available for
investments in commodity futures contracts and other commodity
interests.  As redemptions are at the discretion of Limited
Partners, it is not possible to estimate the amount and therefore,
the impact of future redemptions.

Results of Operations  
For the Quarter and Nine Months Ended September 30, 1996
For the quarter ended September 30, 1996, the Partnership's total
trading revenues including interest income were $3,625,250.  During
the third quarter, the Partnership posted a decrease in Net Asset
Value per Unit.  The most significant losses were recorded in this
currency-only Fund from short Australian dollar positions as the
Australian dollar's value reversed higher versus the U.S. dollar
and other world currencies during August and then moved in a
trendless pattern during September.  Additional losses were
recorded during September from inconsistent movement in the value
of the German mark and Swiss franc relative to the U.S. dollar. 
Gains recorded between late August and September from short 
<PAGE>
Japanese yen positions more than offset losses recorded during July
due to a reversal higher in the value of the yen.  Gains recorded
during the latter half of July from long German mark positions also
helped to offset a portion of the Partnership's losses for the
quarter.  Total expenses for the quarter were $2,013,557, resulting
in a net loss of $5,638,807.  The value of an individual Unit in
the Partnership decreased from $2,947.54 at June 30, 1996 to
$2,776.47 at September 30, 1996.

For the nine months ended September 30, 1996, the Partnership's
total trading losses net of interest income were $4,301,127. 
During the first nine months, the Partnership posted a decrease in
Net Asset Value per Unit.  Trading gains during the first nine
months were offset by brokerage commissions resulting in net
trading losses.  The most significant losses were recorded from
transactions involving the German mark as its value lacked
consistent direction during August and September.  Additional
losses were recorded from transactions involving the Singapore
dollar throughout the first quarter.  Smaller losses were recorded
across most major world currencies during February due to sharp
reversals in value versus the U.S. dollar.  A portion of these
losses was offset by gains recorded from short positions in the
Japanese yen as the value of the yen moved primarily lower versus
the U.S. dollar.  Long positions in the Australian dollar also
profited as its value moved higher relative to other world
currencies from February to mid-May, thus mitigating losses
recorded elsewhere during the year.  Total expenses for the period
were $6,059,700, resulting in a net loss of $1,758,573.  The value 
<PAGE>
of an individual Unit in the Partnership decreased from $2,836.73
at December 31, 1995 to $2,776.47 at September 30, 1996.    

For the Quarter and Nine Months Ended September 30, 1995
For the quarter ended September 30, 1995, the Partnership's total
trading revenues including interest income were $6,753,309.  During
the third quarter, the Partnership posted an increase in Net Asset
Value per Unit.  The most significant trading gains were recorded
in this currency only Fund from transactions involving the Japanese
yen.  As a result of a downward trend in the value of the Japanese
yen relative to the U.S. dollar between early July and mid-
September, the Partnership was able to record net profits for the
quarter.  Smaller gains were recorded from transactions involving
the Singapore dollar and Malaysian ringgit during August and
September, as these currencies declined in value making short
positions profitable.  The Partnership recorded losses as the
downward trend in the German mark, French franc and Swiss franc,
which began in early August, abruptly reversed in mid-September. 
In addition, continued choppiness in the value of the Spanish
peseta, British pound, Australian dollar and New Zealand dollar
resulted in smaller losses to the Partnership.  These losses offset
a portion of the Partnership's overall gains experienced during the
quarter.  Total expenses for the period were $1,838,880, resulting
in net income of $4,914,429.  The value of an individual Unit in
the Partnership increased from $2,785.06 at June 30, 1995 to
$2,905.38 at September 30, 1995.
<PAGE>
For the nine months ended September 30, 1995, the Partnership's
total trading revenues including interest income were $32,836,829. 
During the first three quarters of the year, the Partnership posted
an increase in Net Asset Value per Unit.  The most significant
trading gains were recorded during February, March and April as a
result of the increased value in world currencies versus the U.S.
and Canadian dollars.  The majority of the gains recorded in March
were from transactions involving the Japanese yen, German mark and
Swiss and French francs.  This upward trend in foreign currencies
lost momentum during May and June.  However, a declining trend in
the Japanese yen relative to the U.S. dollar occurred between July
and September resulting in gains for the Partnership's short yen
positions.  The Partnership did experience losses in trading as a
result of a trendless, but volatile, environment in major world
currency values between May and September.  As a result, losses
were recorded from transactions involving the British pound and
Spanish peseta, as well as the Australian and New Zealand dollars. 
Additionally, a portion of the gains recorded earlier in the year
from transactions involving the German mark, Swiss franc and French
franc was given back due to the above mentioned trend reversal and
volatility in the third quarter.  Together, these losses offset a
portion of the Partnership's overall gains experienced in the first
three quarters of the year.  Total expenses for the period were
$6,095,878, resulting in net income of $26,740,951.  The value of
an individual Unit in the Partnership increased from $2,307.07 at
December 31, 1994 to $2,905.38 at September 30, 1995.
<PAGE>
PART II.   OTHER INFORMATION

Item 6. - EXHIBITS AND REPORTS ON FORM 8-K
                    (A)  Exhibits - None.
                    (B)  Reports on Form 8-K - None.

<PAGE>
                                                       SIGNATURE



Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.




                                       Dean Witter Cornerstone Fund IV
                                            (Registrant)

                                       By: Demeter Management Corporation
                                            (General Partner)

November 8, 1996                       By: /s/  Patti L. Behnke
                                                Patti L. Behnke
                                                Chief Financial Officer
                                                                        



The General Partner which signed the above is the only party
authorized to act for the Registrant.  The Registrant has no
principal executive officer, principal financial officer,
controller, or principal accounting officer and has no Board of
Directors.


<PAGE>