SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

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

For the quarter ended September 30, 1999        Commission File No. 0-774

                              DANIEL GREEN COMPANY
                 (Name of Small Business Issuer 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)

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

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

Check whether the issuer:  (1) filed all reports required to be filed by section
13 or 15(d) of the  Exchange  Act  during  the past  twelve  months (or for such
shorter period that the  registrant was required to file such reports),  and (2)
has been subject to the filing requirements for the past 90 days. YES X NO ___

         CLASS                      OUTSTANDING AT SEPTEMBER 30, 1999
Common Stock $2.50 par value                      1,568,860

Transitional Small Business Disclosure Format, (check one) YES______  NO     X



<PAGE>


                              DANIEL GREEN COMPANY

                                      INDEX

                                                                           Page
                                                                          Number

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

PART I - Financial Information

Balance Sheets, Assets
      September 30,1999 and December 31, 1998.................................2

Balance Sheets, Liabilities & Stockholders' Equity
      September 30,1999 and December 31, 1998.................................3

Statements of Operations for the three months and nine months periods ended
       September 30, 1999 and 1998............................................4

Statements of Cash Flows for the nine months ended
       September 30, 1999 and 1998............................................5

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

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

PART II - Other Information..................................................10

<PAGE>

                              DANIEL GREEN COMPANY
                                 Balance Sheets

                                     Assets


                                                  September 30      December 31
                                                      1999             1998
                                                  (Unaudited)           (*)
                                                 -------------------------------

Current Assets:
Cash                                              $     5,000      $     7,300

Accounts Receivable, trade
  less allowances for doubtful accounts
  (1999 - $359,409    1998 - $250,000)              3,331,565        4,205,979

Deferred Income Tax Asset                             164,124          164,124

Income Tax Receivable                                       0          387,142

Inventories, at lower of cost (FIFO) or market:
  Raw Materials                                        83,408          995,918
  Work in Process                                           0           82,795
  Finished Goods                                    4,472,652        4,402,186
                                                  ----------------------------
    Total Inventories                               4,556,060        5,480,899

Other Current Assets                                  626,999           50,275
                                                  ----------------------------

Total Current Assets                                8,683,748       10,295,719


Property, plant & equipment:
Real Estate and Water Power, at cost                2,560,504        2,560,504
Machinery, Equipment & Lasts, at cost               1,573,696        1,526,742
                                                  ----------------------------
                                                    4,134,200        4,087,246
Less: Accumulated Depreciation                      3,312,786        3,180,179
                                                  ----------------------------
Property, plant & equipment, net                      821,414          907,067

Other Assets:
Deferred income tax asset                             846,001          267,905
Deferred financing costs                              470,749           29,417
Other Assets                                          178,660           39,982
                                                  ----------------------------
  Total Other Assets                                1,495,410          337,304

Total Assets                                      $11,000,572      $11,540,090
                                                  ============================

(*)Derived from audited financial statements.



                                       2
<PAGE>


                              DANIEL GREEN COMPANY
                                 Balance Sheets

                       Liabilities & Stockholders' Equity

                                                September 30       December 31
                                                    1999              1998
                                                (Unaudited)            (*)
                                               --------------------------------
Current Liabilities:

Notes Payable, line of credit                  $  2,319,707        $  1,144,092
Notes Payable, current                              100,096           1,212,424
Accounts Payable, trade                           1,138,030             833,177
Accrued Salaries & Commissions                       67,977              21,242
Accural for Closed Facilities                       145,982             153,250
Other Accrued Liabilities                           172,201             148,552
                                               --------------------------------

Total Current Liabilities                         3,943,993           3,512,737

Notes Payable, non-current                          863,330             116,361
                                               --------------------------------

Total Liabilities                                 4,807,323           3,629,098

Stockholders' Equity:

Common Stock                                      4,245,823           4,245,823
Paid-in-excess of par value                         815,940             741,303
Retained Earnings                                 1,685,550           3,516,189
                                               --------------------------------
                                                  6,747,313           8,503,315
Less: Treasury Stock                               (554,064)           (592,323)
                                               --------------------------------
Total Stockholders' Equity                        6,193,249           7,910,992

Total Liabilities & Stockholders' Equity       $ 11,000,572        $ 11,540,090
                                               ================================

(*) 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             Nine Months Ended
                                      September 30    September 30    September 30    September 30
                                         1999            1998             1999            1998
                                     -------------------------------------------------------------

<S>                                 <C>             <C>             <C>             <C>
Net Sales                            $  3,694,844    $  3,188,641    $  8,845,220    $  8,389,976

Costs and Expenses:
  Cost of Goods Sold                    2,583,448       2,326,707       7,833,290       7,155,839
  Selling, General &
    Administrative                        988,871       2,154,822       3,303,650       3,887,370
  Interest Expense                         65,035          48,419         117,012         148,720
                                     -------------------------------------------------------------

Total Costs and Expenses                3,637,354       4,529,948      11,253,952      11,191,929

Income (loss)before (Provision)
  Credit for Income Taxes                  57,490      (1,341,307)     (2,408,732)     (2,801,953)

(Provision)Credit for Income Taxes        (13,797)        509,697         578,096       1,064,742
                                     -------------------------------------------------------------

Net Income (Loss)                    $     43,693    $   (831,610)   $ (1,830,636)   $ (1,737,211)
                                     =============================================================

Net Income (Loss) per Share:
  Basic                              $       0.03    $      (0.53)   $      (1.17)   $      (1.13)
  Diluted                            $       0.03    $      (0.53)   $      (1.17)   $      (1.13)

Shares Outstanding:
  Basic                                 1,579,211       1,579,514       1,568,860       1,538,460
  Diluted                               1,579,211       1,579,514       1,568,860       1,538,460




See notes to financial statements.

</TABLE>



                                       4
<PAGE>


                              DANIEL GREEN COMPANY
                            Statements of Cash Flows
                                   (Unaudited)



                                                      For Nine Months Ended
                                                  September 30     September 30
                                                     1999              1998
                                                  -----------------------------
Operating Activities:
Net Loss                                           $(1,830,636)   $(1,737,211)
Adjustments to reconcile net loss to net
  cash (used)provided by operating activities:
  Depreciation                                         218,734        240,309
  Amortization                                          29,417         29,315
Changes in assets & liabilities:
  (Increases) decreases in:
    Accounts Receivable, trade                         874,414      2,554,374
    Income Tax Refund Receivable                       387,142     (1,064,742)
    Inventories                                        924,839        316,013
    Other Current Assets                              (576,724)        63,233
    Other Assets                                      (656,850)       164,516
Increases ( decreases) in:
    Accounts Payable, trade                            304,853        260,864
    Accrued Salaries & Commissions                      46,735       (167,688)
    Accrued Cooperative Advertising                     19,629        (63,296)
    Income Tax Payable                                       0       (421,389)
    Other Accrued Liabilities                           (3,248)       (99,837)
                                                   --------------------------
Net Cash (Used) Provided by Operating Activities      (261,695)        74,461

Investment Activities:
  Proceeds from disposals of property/equip                  0          2,173
  Purchase of property & equipment                    (133,082)      (258,407)
                                                   --------------------------
Net Cash Used in Investing Activities                 (133,082)      (256,234)

Financing Activities:
  Net Borrowings(Payments) -Line of Credit           1,175,615       (267,251)
  Repayments of Notes Payable                         (365,359)      (421,251)
  Issue (Purchase) of Treasury Stock                    38,259        (24,000)
  Acquisition Activities                               (59,926)             0
  Other Refinancing Expenses                           (96,112)             0
  Commitment Fee for Refinancing                      (300,000)             0
                                                   --------------------------
Net Cash Provided (Used) in Financing Activities       392,477       (712,502)
                                                   --------------------------

Net (Decrease) in Cash                                  (2,300)      (894,275)

Cash at Beginning of Period                              7,300        901,875
                                                   --------------------------

Cash at End of Period                              $     5,000    $     7,600
                                                   ==========================


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 September 30, 1999 and
                   the results of  operations  and cash flows for the three and
                   nine months then ended.

Note 2.            The  results  of  operations  for the three and nine  months
                   ended September 30, 1999 are not  necessarily  indicative of
                   the results to be expected for the full year.

Note 3.            Basic and  diluted  net loss per share for the three  months
                   and nine months ended  September 30, 1998 have been restated
                   as the Company did not  consider the  Company's  unallocated
                   shares in its 401(k) Plan as treasury  stock when  computing
                   the  originally  reported  amounts.   The  effects  of  this
                   restatement for the quarter and the nine months period ended
                   September 30, 1998 were as follows:

<TABLE>
<CAPTION>
                                  For the Quarter Ended       For the Nine Months Period
                                    September 30, 1998         Ended September 30, 1998
                                   BASIC      DILUTED          BASIC         DILUTED

<S>                              <C>        <C>              <C>           <C>
Net loss per share, as reported   ($0.49)    ($0.49)          ($1.02)       ($1.02)
Effect of restatement             ($0.04)    ($0.04)          ($0.11)       ($0.11)
Net loss per share, as restated   ($0.53)    ($0.53)          ($1.13)       ($1.13)

</TABLE>

                                       6
<PAGE>


                              DANIEL GREEN COMPANY

           Management Discussion & Analysis of Financial Condition and
                              Results of Operations

1.   Liquidity and Capital Resources

     For the first nine months of 1999, the Company's operating  activities used
     $261,695 in cash, compared to $74,461 cash generated for the same period in
     1998. At the end of the third  quarter,  accounts  receivable  increased by
     $164,509 or 5.2% over last year and is $874,414  lower  compared to the end
     of  fiscal  year  1998.  Inventories  ended the  third  quarter  of 1999 at
     $4,556,060  which is  $3,597,302  or 44.1%  lower than the 1998  comparable
     period and has decreased  from the  beginning of the year by $924,839.  The
     reduction  in  inventory  from 1998 fiscal year end  figures  reflects  the
     elimination of work-in-process  inventory and significant reductions in raw
     material  inventory  due  to  the  Company's   restructured   status  as  a
     merchandiser.  In-transit  footwear  of  96,000  pairs  contributed  to the
     increase  of $70,466 in  finished  goods  inventory.  Finished  merchandise
     inventory  will be  adjusted  on a monthly  basis to reflect  the change in
     overhead  absorption rate due to the mid-year  conversion from manufacturer
     to  merchandiser.  The  increase  of $576,724  in other  current  assets is
     attributable  to  establishment  of  a  Sundries  Accounts   Receivable  to
     accommodate  for  sales  of raw  materials  to  vendors  manufacturing  our
     footwear.  Sundries  receivable  collections are expected within the fourth
     quarter.

     Total  debt  consists  of notes  payable  and the  current  line of  credit
     balance.  At the end of the  third  quarter  of  1999,  total  indebtedness
     consisted of: line of credit balance of $2,319,707,  notes payable, current
     $100,096  and  notes  payable,   noncurrent   $863,330;  a  total  debt  of
     $3,283,133, as compared with $3,418,434 a year ago, for an overall decrease
     of $135,301 or 3.96%.  The  Company's  borrowing  requirements  for working
     capital purposes are seasonal with peak borrowing  periods between June and
     mid September.  Accelerated footwear shipment scheduling in anticipation of
     the  traditionally  busy holiday  season was the primary  factor during the
     third quarter for increased line of credit borrowings.

     As of August 11, 1999 the  Company had in place a revolving  line of credit
     ("revolver"),  with  Manufacturers  and Traders  Trust  Company (M&T Bank),
     Buffalo,  New York, which provided the Company with a $5,500,000  revolving
     line of credit and a $838,097  mortgage/term loan (80% guaranteed by FMHA).
     The revolver is secured by accounts  receivable,  inventory,  equipment and
     cash. Revolving line termination date, without an event of default, is July
     30, 2002. The interest rate  established on the revolving line, prior to an
     event of  default,  is prime  rate plus one  percent  (1%) per  annum.  The
     mortgage  term loan is  secured by the  Company's  facilities  and  totaled
     $838,097 as of September 30, 1999.  The term loan's  principal and interest
     payments  are based on a ten-year  amortization  with a balloon  payment on

                                       7
<PAGE>

     April 1, 2001. Term loan interest rates, prior to an event of default,  are
     LIBOR plus two and one-quarter percent (2 1/4%) per annum.

     Management is not aware of any known  demands,  commitments  or events that
     would materially affect its liquidity.  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.

2.   Results of Operations

     Net sales for the third  quarter  were  $3,694,844,  15.9% higher than last
     year during this timeframe.  For the nine months period ended September 30,
     1999,  net  sales  amounted  to  $8,845,220,  an  increase  of  5.4% to the
     comparable  1998 net sales.  Variations  between the actual  customer style
     demand  and the  sales  style  forecast,  combined  with  the  slower  than
     anticipated  start up of foreign  supply  sources  contributed to the lower
     than expected  sales  figures for the third quarter of 1999.  The number of
     units sold  increased  7.8% from  575,200  year to date  September  1998 to
     619,886 year to date September 1999. However, the average selling price per
     pair of $14.27 is 2.2% lower that $14.59 for the same  period in 1998.  The
     lower price points of slow  moving/closeout  inventory  written down in the
     prior  year,   introduction  of  lower  priced  specialty   footwear,   and
     promotional markdowns drove the lower average selling price per pair.

     Cost of goods sold for the three  months ended  September  30, 1999 totaled
     $2,583,448  an  increase  of  $256,741  or 11.0% over the  comparable  1998
     period.  Gross  profit  during  the  third  quarter  of 1999,  amounted  to
     $1,111,396  or 30 percent of net sales.  This  compared  to a gross  profit
     percentage of 27 percent in the same quarter of 1998.  For the nine months,
     the gross profit  percentage is 11.4% compared to 14.7% in 1998. During the
     third quarter of 1999, the Company had  significantly  higher freight costs
     in product delivery from foreign vendors. Additional expenses were incurred
     during the 1999 third  quarter to assist our Mexican  vendors in  achieving
     adequate  production  levels to meet  customers'  demands and  establishing
     alternate sources of product supply. Other factors contributing to the cost
     of goods sold  increase  were,  underabsorbed  overhead  due to  sub-normal
     production  levels during the first half of 1999 and severance  payments to
     terminated production employees.

     For the quarter and nine months, total selling,  general and administrative
     expenses  decreased 54.1% and 15.0% , respectively,  from expenses reported
     during  the  comparable  periods  of 1998.  A  reversal  of the  accrual of
     $200,000 established during the second quarter of 1999 for costs associated
     with closing and  securing  facilities  previously  used by the Company for
     manufacturing purposes, was processed during the third quarter. Significant
     reductions in benefit plan expenses and payroll taxes  occurred  during the
     third quarter due to decreases in  employment  levels.  Travel  expense was
     also reduced through the third quarter of 1999.

                                       8
<PAGE>

     During the third quarter of 1999, net interest  expense amounted to $65,035
     compared to $48,419 a year ago. Increased borrowings during the quarter and
     higher  interest  rates under the new bank loan agreement led to the higher
     quarterly  interest expense.  For the nine months, net interest expense has
     declined to $117,021 in 1999 from  $148,720 in 1998.  This  decrease in net
     interest expense is principally due to a lower utilization of the Company's
     revolving line of credit.

     The  Company  produced  net  income  before  taxes of  $57,490 in the third
     quarter of 1999,  compared to a net loss before taxes of $1,341,307 for the
     1998 period.  On an after-tax basis,  income for the quarter was $43,693 or
     $0.03 per share as opposed to the after-tax  loss of $831, 610 or $0.53 per
     share in 1998.

     Through the first nine months of 1999, the Company had an after-tax loss of
     $1,830,636 or $1.17 per share. This compared to last year's  performance of
     an after-tax loss of $1,737,211 or $1.13 per share.


3.   Year 2000

     The Company uses software and related computerized information systems that
     will be affected by the date change in the year 2000. The Company  believes
     it does not have any significant  non-information  technology  systems that
     will be affected by the change in the year 2000.  Based on its  assessment,
     the Company has  determined  that it will replace or upgrade major portions
     of its computer  hardware  and  software so that its computer  systems will
     properly use and  recognize  dates beyond  December 31, 1999.  Based on the
     most current information compiled by the Company, the Company believes that
     the costs of  addressing  the year 2000  issue will be  approximately  $155
     thousand. The Company expects to complete all year 2000 programming changes
     prior  to the  end of the  fourth  quarter  of  1999.  Currently,  our  MIS
     department has completed approximately 80% of the scheduled Y2K programming
     changes.  The  estimated  costs of, and time frame related to, this project
     are based on estimates  of the  Company's  management,  and there can be no
     assurance  that actual  costs will not differ  materially  from the current
     expectations.  While the Company plans to devote the necessary resources to
     resolve all significant year 2000 issues in a timely manner, which includes
     development  of a  contingency  plan,  if such  processing  issues  are not
     resolved  in a timely  manner,  the year 2000  issue  could have a material
     impact on the operations and financial condition of the Company.




                                       9

<PAGE>


                              DANIEL GREEN COMPANY

                           Part II - Other Information

11       Legal Proceedings - None.

21       Changes in Securities - None.

31       Default upon Senior Securities - None.

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

51       Other Information - None.

61       Exhibits and Reports on Form 8K. - None.


     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: November 12, 1999                  /s/ John E. Brigham
                                             John E. Brigham
                                             Chief Financial Officer,
                                             Treasurer



                                         /s/ Greg A. Tunney
                                             Greg A. Tunney
                                             President & COO


                                       10