SECURITIES AND EXCHANGE COMMISSION
                                 Washington, DC

                                  Form 10-QSB

                 Quarterly Report under Section 13 or 15(d) of
                      the Securities Exchange Act of 1934

For the quarter ended June 30, 1997  Commission File No. 0-774

                              DANIEL GREEN COMPANY
             (Exact name of registrant as specified in its charter)

     MASSACHUSETTS                        15-0327010
(State or other jurisdiction of   (IRS Employer Identification No.)
incorporation or organization)

     DOLGEVILLE, NEW YORK                       13329
(Address of principal executive offices)     (Zip Code)

Registrant's telephone number, including area code: (315) 429-3131

Former name, former address and former fiscal year, if changed
since last report:  None.

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 Act of 1934 during the preceding twelve months and (2)
has been subject to the filing requirements for at least the past
90 days.       YES  X    NO

     CLASS                          OUTSTANDING AT JUNE 30, 1997

Common Stock $2.50 par value            1,511,892 Shares



<PAGE>


DANIEL GREEN COMPANY

INDEX
                                                       Page
                                                      Number

Index     . . . . . . . . . . . . . . . . . . . . . . . 1

PART I - Financial Statements

Balance Sheets, Assets
      June 30, 1997 & December 31, 1996   . . . . . . . 2

Balance Sheets, Liabilities & Stockholders' Equity
      June 30, 1997 & December 31, 1996   . . . . . . . 3

Statements of Operations for the three & six month
      periods ended June 30, 1997 & 1996  . . . . . . . 4

Statements of Cash Flows for the six months ended
      June 30, 1997 & 1996  . . . . . . . . . . . . . . 5

Notes to Financial Statements . . . . . . . . . . . . . 6

Management Discussion & Analysis of Financial Condition
      and Results of Operations . . . . . . . . . . . . 7

PART II - Other Information   . . . . . . . . . . . . .11


                                       1

<PAGE>



                              DANIEL GREEN COMPANY

                                 Balance Sheets

                                     ASSETS

                                                   June 30       December 31
                                                      1997          1996
                                                  (Unaudited)       (*)
                                                  -----------   -------------
Current Assets:

Cash                                              $    11,913   $    13,213

Accounts Receivable, trade
 less allowances for doubtful accounts
 (1997 - $227,168  1996 - $200,000)                 3,873,217     6,582,081

Income Tax Refund Receivable                          285,461       157,704

Inventories, at lower of cost (FIFO) or market:
     Raw Materials                                  1,950,337     2,026,140
     Work In Process                                1,123,013     1,351,945
     Finished Goods                                 8,250,522     5,075,618
                                                  -----------   -----------
       Total Inventories                           11,323,872     8,453,703

Other Current Assets                                  101,916        69,479
                                                  -----------   -----------


Total Current Assets                               15,596,379    15,276,180


Property, plant & equipment:

Real Estate and Water Power, at cost                3,271,158     3,270,968
Machinery, Equipment, & Lasts, at cost              5,482,385     5,427,718
                                                    8,753,543     8,698,686
Less: Accumulated Depreciation                      7,075,619     6,900,371
                                                  -----------   -----------
Property, plant, & equipment-net                    1,677,924     1,798,315

Other Assets:
Prepaid Pension Expense                             2,375,369     2,375,369
Other Assets                                          156,551       114,963
                                                  -----------   -----------

Total Other Assets                                  2,531,920     2,490,332


Total Assets                                      $19,806,223   $19,564,827
                                                  ===========   ===========

(*)  Derived from Audited Financial Statements.
     See notes to financial statements.


                                        2
<PAGE>


                              DANIEL GREEN COMPANY

                                 Balance Sheets

                       Liabilities & Stockholders' Equity

                                             June 30      December 31
                                               1997          1996
                                            (Unaudited)       (*)
                                           ------------  ------------
Current Liabilities:

Notes Payable, line of credit              $ 4,977,663   $ 4,537,856
Notes Payable, current                         592,515       591,979
Accounts Payable, trade                        959,298       480,130
Accrued Salaries & Commissions                  72,080       209,427
Accrued Cooperative Advertising                371,604       307,909
Other Accrued Liabilities                      142,233       119,123
Deferred Income Tax Liability                  258,193       258,193
Capital Lease Obligation, current                6,294        23,480
                                           -----------   -----------

Total Current Liabilities                    7,379,880     6,528,097

Notes Payable, non-current                   1,561,242     1,708,240
Deferred Tax Liability                         262,716       262,716
                                           -----------   -----------


Total Liabilities                            9,203,838     8,499,053


Stockholders' Equity

Common Stock                                 3,779,730     3,779,730
Paid-in-excess of par value                    312,500       312,500
Retained Earnings                            6,510,155     6,973,544
                                           -----------   -----------
Total Stockholders' Equity                  10,602,385    11,065,774



Total Liabilities & Stockholders' Equity   $19,806,223   $19,564,827
                                           ===========   ===========






(*)  Derived from Audited Financial Statements.
     See notes to financial statements.



                                        3

<PAGE>
<TABLE>
<CAPTION>

                              DANIEL GREEN COMPANY

                            Statements of Operations
                                   (Unaudited)

                                              For the                       For the
                                         Three Months Ended             Six Months Ended
                                       June 30        June 30          June 30     June 30
                                        1997           1996             1997         1996
                                     --------------------------   ---------------------------     
<S>                                 <C>            <C>            <C>           <C>
Net Sales                            $ 3,850,881    $ 4,020,072    $ 7,669,890    $ 7,783,617

Costs and Expenses:

 Cost of Goods Sold                    2,550,840      3,051,121      5,498,089      5,915,928
 Selling, General,
 & Administrative                      1,376,031      1,272,443      2,669,418      2,583,887
 Interest Expense                        108,933        204,679        249,785        435,642
                                     -----------    -----------    -----------    -----------

Total Costs & Expenses                 4,035,804      4,528,243      8,417,292      8,935,457

Loss before
 credit for Income Taxes                (184,923)      (508,171)      (747,402)    (1,151,840)

Credit for Income Taxes                   70,270        193,105        284,013        437,699
                                     -----------    -----------    -----------    -----------

Net Loss                             ($  114,653)   ($  315,066)   ($  463,389)   ($  714,141)
                                     ===========    ===========    ===========    ===========

Net Loss per Share                        ($0.07)        ($0.30)        ($0.31)        ($0.68)
                                     ===========    ===========    ===========    ===========

Shares Outstanding                     1,511,892      1,063,235      1,511,892      1,050,064


</TABLE>


See notes to financial statements.





                                        4

<PAGE>

                              DANIEL GREEN COMPANY
                            Statements of Cash Flows
                                   (Unaudited)

                                                 For the Six Months Ended
                                                  June 30        June 30
                                                   1997           1996
                                              ----------------------------
Operating Activities:
 Net Loss                                     $  (463,389)   $  (714,141)

 Adjustments  to reconcile  net loss to net
 cash provided by (used in) operating
 activities:
   Depreciation                                   175,248        199,209
   Amortization                                    12,268         12,268
   Net Pension Credit                                   0        (36,415)

Changes in assets & liabilities:
 (increases) decreases in:
   Accounts Receivable, trade                   2,708,864      2,693,499
   Income Tax Refund Receivable                  (127,757)        10,784
   Inventories                                 (2,870,169)      (647,209)
   Other Current Assets                           (32,437)        60,819
   Other Assets                                   (53,856)        (3,872)

increases (decreases) in:
  Accounts Payable, trade                         479,168        992,211
  Accrued Salaries                               (137,347)      (137,071)
  Accrued Cooperative Advertising                  63,695       (200,000)
  Other Accrued Liabilities                        23,110         21,925
                                              -----------    -----------
 Net Cash Provided (Used)
  by Operating Activities:                       (222,602)     2,252,007
                                              -----------    -----------

Investing Activities:
  Purchase of property & equipment                (54,857)       (54,184)
Net Cash Used in Investing Activities:            (54,857)       (54,184)

Financing Activities:
  Net (Payments) Borrowings on
     Line of Credit                               439,807     (3,362,851)
  Repayments of Notes Payable                    (146,462)      (341,400)
  Principal payments under capital lease          (17,186)       (11,822)
  Net Proceeds of Issuance of Common Stock              0      1,500,000
                                              -----------    -----------

Net Cash Provided by (Used)
 in Financing activities                          276,159     (2,216,073)
Net (Decrease) in Cash                             (1,300)       (18,250)

Cash at Beginning of Period                        13,213         29,762
                                              -----------    -----------
Cash at End of Period                         $    11,913    $    11,512
                                              ===========    ===========

                  See notes to financial statements.


                                        5

<PAGE>




DANIEL GREEN COMPANY

Notes to Financial Statements


Note 1.  In the opinion of the Company, the accompanying  unaudited financial
         statements  contain  adjustments,  all of  which  are of a  normal  and
         recurring nature, necessary to present fairly the financial position as
         of June 30, 1997 and the results of  operations  and cash flows for the
         three and six months then ended.

Note 2.  The results of  operations  for the three and six months  ended June
         30, 1997 are not  necessarily  indicative of the results to be expected
         for the full year.

Note 3.  In March 1997,  the  Financial  Accounting  Standards  Board  issued
         Statement of  Financial  Accounting  Standards  No.128,  "Earnings  per
         Share," which is effective for  financial  statements  for both interim
         and annual periods  ending after  December 15, 1997.  This new standard
         requires  dual  presentation  of basic and diluted  earnings  per share
         (EPS)  on  the  face  of  the   earnings   statement   and  requires  a
         reconciliation  of the numerators and denominators of basic and diluted
         EPS calculations.  The Company's  current EPS calculations  conforms to
         basic EPS. Diluted EPS will not be materially  different from basis EPS
         since the issuance of common shares upon exercise of outstanding  stock
         options would not be materially dilutive.



                                        6

<PAGE>

DANIEL GREEN COMPANY

Management Discussion & Analysis of Financial Condition
and Results of Operations


1.   Liquidity and Capital Resources

     For the six months ended June 30, 1997,  the Company used  $222,602 of cash
for operations. This compares with $2,252,007 of cash provided by operations for
the first six months of 1996.  The primary use of cash went for the  build-up of
inventory  to  support  sales  orders in  subsequent  months.  Inventories  have
increased by $2,870,169 or 34% since the beginning of the year. This increase in
inventory  reflects the  unusually low level of stock at the end of 1996 and the
significant  increase  in  purchases  made this year over last year of  imported
footwear.  In  comparison  to last  year,  the  Company's  inventory  stands  at
$11,323,872 or 2% lower than the June 1996 level of $11,547,451.  As of June 30,
1997, inventory quantities are 6% below June 1996.

         The Company  continues to be successful in its  collections of accounts
receivable.  Receivables were reduced by $2,708,864 or 41% from the beginning of
the year, as compared to a $2,693,499  or a 37% reduction  through the first six
months of 1996.  Total  liabilities  increased  by  $704,785  or 8.3%  since the
beginning of the fiscal year.  The increases are reflected in accounts  payable,
and in the  additional  borrowings  of $439,807  through the first six months of
1997.

         The Company entered into a new credit arrangement with KeyBank National
Association  on April 14, 1997.  The  agreement  provided the Company  with:  an
$8,000,000  revolving line of credit (the  "revolver");  a $1,000,000  equipment
line of credit and a $2,100,000 mortgage/term loan. The credit facility is for a
three year period and bears interest at LIBOR plus 2.25%.  Permitted  borrowings
against the revolver are a percentage of eligible accounts receivable,  finished
goods and raw material inventory, subject to certain limitations.  These include
a cap on the total  amount of eligible  inventory.  Pursuant to the terms of the
revolver,  the inventory cap was reduced by $500,000 on August 1, 1997.  Towards
the end of the second  quarter,  the Company had  projected and disclosed to its
Directors that the Company would have negative  availability  under the revolver
beginning  toward  the  end of  July  and  running  through  the  early  part of
September. The projected shortfall was directly related to the still outstanding
refinancing  of the  Company's  long  term  debt.  The long  term  debt that was
continued at the time of the new  financing  with KeyBank was to be increased by
an estimated  $2,000,000  which would have  provided  the Company with  adequate
liquidity.  This financing has been delayed;  however,  the Company continues to
work towards obtaining the additional $2,000,000. To maintain availability under
the  revolver,  the Company  initially  sought to arrange a short term loan with
KeyBank,  which would be repaid  with funds that the Company  expects to receive
following  the  termination  of its existing  pension plan and  reversion to the
Company  of any  overfunding.  However,  the terms and  conditions  required  by
KeyBank  were not  acceptable  to the Company and steps were taken to seek short
term financing from another lender.



                                        7

<PAGE>


 Liquidity and Capital Resources (continued)

         Riedman  Corporation,  which owns  approximately  31% of the  Company's
outstanding  shares,  proposed a short term  borrowing  solution  to the Company
which was approved by the Board of  Directors at a special  meeting held on July
17, 1997.  Under the loan agreement,  Riedman  Corporation will make advances in
the aggregate  principal  amount of up to $1,000,000,  at a fixed rate per annum
equal to the prime rate  published in the Wall Street Journal on the date of the
agreement,  plus two  percentage  points.  Repayment  of the loan  with  accrued
interest  will be due on or before  December 31, 1997,  and payment will be from
the funds  received  after the  termination  of the  Company's  pension plan and
reversion  to the  Company  of any  overfunding.  In  connection  with  the loan
agreement,  the Company has granted Riedman Corporation an option to purchase up
to 25,000  shares of the  Company's  authorized  and unissued  Common Stock at a
price of $4.75 per share.

         Subsequent to December 31, 1996,  the Company  elected to terminate its
defined benefit pension plan and implement a defined contribution 401(k) savings
plan.  The Company has not  completed  its analysis of the  financial  statement
effect of terminating the plan, but, upon  completion,  it is expected to have a
positive effect on the Company's financial position and results of operations.

         Management  is not aware of any known  demands,  commitments  or events
which would materially affect its liquidity,  once the Riedman  Corporation loan
has been obtained,  and there are no material  expenditures or commitments which
would  affect  capital  resources  in  a  significant  way.  Cash  generated  by
operations,   supplemented  by  short-term  borrowings,   should  cover  planned
requirements.

         In  March  1997,  the  Financial   Accounting  Standards  Board  issued
Statement  of  Financial  Accounting  Standards  (SFAS) No. 128,  "Earnings  per
Share," which will be effective  during the fourth quarter of 1997. SFAS No. 128
will  require  the  Company in its fourth  quarter  and in its annual  report to
restate all previously  reported  earnings per share information to conform with
the new pronouncement's requirements.  The Company anticipates that earnings per
share calculated in conformity with SFAS No. 128 will not differ materially from
current  figures  because  the  issuance of common  shares upon the  exercise of
outstanding stock options would not be materially dilutive.

2.   Results of Operations

         Net sales for the second  quarter were  $3,850,881  and 4.2% lower than
last year during this period. For the first half of the year, net sales amounted
to  $7,669,890  which is 1.5%  lower than net sales  reported  for the first six
months of 1996.  Shipments  for the second  quarter  were down by 3% compared to
last year. On a year-to-date  basis, total shipments are slightly ahead of 1996.
Sales are down for the quarter  because of reduced  shipments  to several of the
Company's larger customers.

         Cost of goods  sold for the  second  quarter  was 66.2% of net sales as
compared  to  75.9%  in  1996.  This  reduction   occurred  due  to  sales  mix:
higher-margin products were sold during the quarter, accounting adjustments

                                        9

<PAGE>

 Results of Operations (continued)

that were made to reclassify some personnel costs into the selling,  general and
administrative  cost category and manufacturing  spending levels for the quarter
in balance with estimates.  On a year-to-date basis, cost of sales is 4.3% below
last year's percentages.

         Selling,  general and administrative  expenses in the second quarter of
1997 are ahead of 1996 by $103,588. This increase relates to reclassification of
expenses  previously  recorded  under the cost of goods sold  section and higher
expenses incurred, for advertising and selling purposes.

         Interest  expense  has been  lowered  by  $95,746  over 1996 due to the
Company's  refinancing of its credit  facilities in April, and a lower borrowing
rate of interest.  Through June, the Company has reduced its interest expense by
$185,857 over last year.

         The Company  incurred a net loss before taxes of $184,923 in the second
quarter of 1997, a decrease of $323,248 over last year.  On an after-tax  basis,
the loss for the quarter was $114,653 or $.07 per share as opposed to a $315,066
after-tax loss of $.30 per share in 1996.

         The net loss for the first  half of the year was  $463,389  or $.31 per
share. This compares to last year's first six month loss of $714,141 or $.68 per
share.

         The  Company's  efforts  through the  remainder  of the year will be to
achieve sales targets.  Selling,  general,  and administrative  expenses will be
monitored  and  spending  levels will be reduced,  wherever  possible.  Interest
expense is expected to decrease well below last year.



                                       10

<PAGE>




DANIEL GREEN COMPANY

Part II - Other Information

1.   Legal Proceedings - None.

2.   Changes in Securities - None.

3.   Default upon Senior Securities - None.

4.   Submission of matters to a vote of security holders - None.

5.   Other Information - None.

6.   Exhibits and reports on Form 8K - None





                                       11

<PAGE>




     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.


                                       DANIEL GREEN COMPANY
                                            Registrant



Date:
                                   Stanley W. Kabot, Chief
                                    Financial Officer




                                       13