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 June 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 JUNE 30, 1999
Common Stock $2.50 par value                         1,563,685


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
         June 30,1999 and December 31, 1998..................................2

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

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

Statements of Cash Flows for the six months ended
         June 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..................................................9



                                        i
<PAGE>


                              DANIEL GREEN COMPANY
                                 Balance Sheets

                                     ASSETS
                                                    June 30     December 31
                                                      1999          1998
                                                   (Unaudited)      (*)
                                                  ------------  ------------
Current Assets:
Cash                                              $     5,400   $     7,300

Accounts Receivable, trade
 less allowances for doubtful accounts
 (1999 - $259,914  1998 - $250,000)                 2,453,931     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                                122,453       995,918
         Work In Process                                    0        82,795
         Finished Goods                             4,031,202     4,402,186
                                                  -----------   -----------
           Total Inventories                        4,153,655     5,480,899

Other Current Assets                                    1,574        50,275
                                                  -----------   -----------

Total Current Assets                                6,778,684    10,295,719

Property, plant & equipment:
Real Estate and Water Power, at cost                2,560,504     2,560,504
Machinery, Equipment, & Lasts, at cost              1,554,157     1,526,742
                                                  -----------   -----------
                                                    4,114,661     4,087,246
Less: Accumulated Depreciation                      3,342,895     3,180,179
                                                  -----------   -----------
Property, plant & equipment, net                      771,766       907,067


Other Assets:
Deferred income tax asset                             859,798       267,905
Other Assets                                          217,968        69,399
                                                  -----------   -----------
 Total Other Assets                                 1,077,766       337,304
                                                  -----------   -----------


Total Assets                                      $ 8,628,216   $11,540,090
                                                  ===========   ===========
                                       2
<PAGE>

                              DANIEL GREEN COMPANY

                                 Balance Sheets

                       Liabilities & Stockholders' Equity

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

Current Liabilities:

Notes Payable, line of credit              $    497,657    $  1,144,092
Notes Payable, current                          957,987       1,212,424
Accounts Payable, trade                         328,066         833,177
Accrued Salaries & Commissions                  204,261          21,242
Accural for Closed Facilities                   353,250               0
Other Accrued Liabilities                       259,553         301,802
                                           ------------    ------------

Total Current Liabilities                     2,600,774       3,512,737

Notes Payable, non-current                       98,115         116,361
                                           ------------    ------------

Total Liabilities                             2,698,889       3,629,098


Stockholders' Equity

Common Stock                                  4,245,823       4,245,823
Paid-in-excess of par value                     741,303         741,303
Retained Earnings                             1,641,858       3,516,189
                                           ------------    ------------
                                              6,628,984       8,503,315
Less: Treasury Stock                           (699,657)       (592,323)
                                           ------------    ------------
Total stockholders' equity                    5,929,327       7,910,992
                                           ------------    ------------

Total Liabilities & Stockholders' Equity   $  8,628,216    $ 11,540,090
                                           ============    ============


(*) Derived from audited 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
                                             1999                1999                 1999             1999
                                      --------------------------------------------------------------------------

<S>                                       <C>                <C>                  <C>               <C>
Net Sales                                  $2,263,351         $2,701,872           $5,150,376        $5,201,335

Costs and Expenses
  Cost of Goods Sold                        2,826,588          1,783,724            5,249,842         4,261,226
  Selling, General &
    Administrative                          1,354,715          1,199,209            2,314,779         2,300,453
  Interest Expense                             30,744             46,666               51,977           100,301
                                      --------------------------------------------------------------------------

Total Costs and Expenses                    4,212,047          3,029,599            7,616,598         6,661,980

Loss before credit for
  Income Taxes                             (1,948,696)          (327,727)          (2,466,222)       (1,460,645)

Credit for Income Taxes                       470,233            124,536              591,893           555,045
                                      --------------------------------------------------------------------------

Net Loss                                  $(1,478,463)        $ (203,191)         $(1,874,329)       $ (905,600)
                                      ==========================================================================

Net Loss per Share:
  Basic                                       $ (0.95)           $ (0.13)             $ (1.20)          $ (0.60)
  Diluted                                     $ (0.95)           $ (0.13)             $ (1.20)          $ (0.60)

Shares Outstanding:
  Basic                                     1,556,445          1,523,975            1,563,685         1,517,934
  Diluted                                   1,556,445          1,523,975            1,563,685         1,517,934

See notes to financial statements.
</TABLE>

                                                       4

<PAGE>

<TABLE>
<CAPTION>
                                         DANIEL GREEN COMPANY
                                       Statements of Cash Flows
                                          (Unaudited) For the
                                                                             For Six Months Ended
                                                                         June 30            June 30
                                                                           1999               1999
                                                                      ---------------------------------

<S>                                                                   <C>                 <C>
Operating Activities:
Net Loss                                                               $(1,874,329)        $ (905,600)
Adjustments to reconcile net loss to net
  cash provided by operating activities:
  Depreciation                                                             164,804            160,206
  Amortization                                                              19,543             19,543
Changes in assets & liabilities:
  (Increases) decreases in:
    Accounts Receivable, trade                                           1,752,048          3,207,518
    Income Tax Refund Receivable                                           387,142           (555,433)
    Inventories                                                          1,327,244           (214,660)
    Other Current Assets                                                    48,701             62,051
    Other Assets                                                          (760,005)           119,394
  Increases (decreases) in:
    Accounts Payable, trade                                               (505,111)           114,661
    Accrued Salaries & Commissions                                         183,019           (128,825)
    Accrued Cooperative Advertising                                        (10,371)           (93,296)
    Income Tax Payable                                                           0           (421,389)
    Other Accrued Liabilities                                              321,372            (94,638)
                                                                   -----------------------------------
Net Cash Provided by Operating Activities                                1,054,057          1,269,532

Investment Activities:
  Proceeds from disposals of property/equip.                                     0              1,194
  Purchase of property & equipment                                         (29,505)          (122,100)
                                                                   -----------------------------------
Net cash used in Investing Activities                                      (29,505)          (120,906)

Financing Activities:
  Net Payments on Line of Credit                                          (646,435)        (1,765,046)
  Repayments of Notes Payable                                             (272,683)          (280,655)
  Purchase of Treasury Stock                                              (107,334)                 0
  Principal Payment Capital Lease                                                0                  0
                                                                   -----------------------------------
Net Cash Used n Financing Activities                                    (1,026,452)        (2,045,701)
                                                                   -----------------------------------

Net (Decrease in Cash                                                       (1,900)          (897,075)

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

Cash at End of Period                                                      $ 5,400            $ 4,800
                                                                   ===================================

See notes to financial statements.
</TABLE>

                                                   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
                  normal and recurring  nature,  necessary to present fairly the
                  financial  position  as of June 30,  1999 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,  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 six months  ended June 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 six months  period ended June 30, 1998
                  were as follows:
<TABLE>
<CAPTION>
                                        For the Quarter Ended       For the Six Months Period
                                            JUNE 30, 1998               Ended JUNE 30, 1998
                                          BASIC      DILUTED            BASIC      DILUTED

<S>                                    <C>         <C>               <C>         <C>
Net loss per share, as reported         ($  0.12)   ($  0.12)         ($  0.53)   ($  0.53)
Effect of restatement                   ($  0.01)   ($  0.01)         ($  0.07)   ($  0.07)
Net loss per share, as restated         ($  0.13)   ($  0.13)         ($  0.60)   ($  0.60)

</TABLE>
                                       6

<PAGE>

                              DANIEL GREEN COMPANY

           Management Discussion & Analysis of Financial Condition and
                              Results of Operations

1.   Liquidity and Capital Resources

     For the first six months of 1999, the Company generated  $1,054,057 in cash
     from  operating  activities  compared to $1,269,532  cash generated for the
     same period in 1998. At the end of the second quarter,  accounts receivable
     decreased  by  $262,734  or 10.5%  over last year and is  $1,752,048  lower
     compared  to the end of fiscal  year  1998.  Inventories  ended the  second
     quarter of 1999 at  $4,153,655  which is $4,530,380 or 52.2% lower than the
     1998  comparable  period and has, as expected  with the  discontinuance  of
     manufacturing as of June 30, 1999, decreased from the beginning of the year
     by  $1,327,244.  Naturally,  under the Company's  restructured  status as a
     merchandiser,   work-in-process  inventory  has  been  eliminated  and  raw
     material inventory has been significantly  reduced.  Sales of raw materials
     to vendors  manufacturing our footwear will continue to reduce raw material
     inventory into the third quarter.  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.

     Total  debt  consists  of notes  payable  and the  current  line of  credit
     balance.  At the end of the  second  quarter  of 1999,  total  indebtedness
     consisted of: line of credit balance of $497,657,  notes  payable,  current
     $957,987 and notes payable, noncurrent $98,115; a total debt of $1,553,759,
     as compared with $2,061,235 a year ago, for an overall decrease of $507,476
     or  24.6%.  In an  effort  to  conserve  cash,  employment  levels  in  the
     manufacturing  area were  reduced to  essential  minimums.  Work weeks were
     abbreviated to accommodate only required footwear production. Significantly
     lower  spending  levels  throughout  the  first six  months  of 1999,  also
     contributed  to debt  reduction.  Proceeds from  terminating  the Company's
     defined  benefit  plan  during the fourth  quarter of 1997,  affected  1998
     second quarter debt reduction.

     Through the second  quarter of 1999,  the Company had a credit  arrangement
     with  KeyBank  National  Association  which  provided  the Company  with an
     $8,000,000  revolving line of credit and a $2,100,000  mortgage/term  loan.
     The revolver is secured by accounts  receivable,  inventory,  equipment and
     cash.  As of June 30, 1999 the Company was not in  compliance  with certain
     financial covenants contained in those loan agreements. Management executed
     a credit  agreement  with a new financial  institution  on August 11, 1999.
     Prior to that date  KeyBank  National  Association  extended to the Company
     forbearance agreements until the new financing arrangements were completed.

                                       7
<PAGE>

     The mortgage term loan is secured by the Company's  facilities  and totaled
     $921,907 as of June 30, 1999.

     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 second quarter were  approximately  $2.3 million which is
     16.2% lower than last year during this timeframe.  For the first six months
     of 1999, net sales amounted to $5,150,376, a slight decrease of 1% from net
     sales  in the  first  six  months  of 1998.  The  number  of pairs  shipped
     increased  3.6% from 363,358 year to date June 1998 to 376,676 year to date
     June 1999.  However,  the average selling price per pair of $13.67 is 11.6%
     lower that  $15.46 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  June  30,  1999  totaled
     $2,826,588  an increase of  $1,042,864  or 58.5% over the  comparable  1998
     period,  resulting in a gross loss of $563,237 for the 1999 second  quarter
     compared to a gross  profit of $918,148  for the 1998  period.  For the six
     months,  the Company  recognized a gross loss of $99,466 compared to a 1998
     gross profit of  $940,109.  These  losses are largely  attributable  to the
     significant  inventory  reductions.   Other  factors  contributing  to  the
     increase  to cost of goods  sold  were,  a higher  degree of  underabsorbed
     overhead due to low production  volume  reported for the first half of 1999
     and severance payments to terminated  production employees of approximately
     $251,000.

     For the quarter and six months,  total selling,  general and administrative
     expenses were 13% and 0.6% higher,  respectively,  than  expenses  reported
     during the comparable periods of 1998.  Expenditures for promotional items,
     such as design and  development of new display  stands,  a more  aggressive
     national   advertising   campaign  and  dealers'   promotional   literature
     identifying  the  new  "Comfy  Line"  attributed   approximately  $140,000.
     Forbearance  fees  with  KeyBank  and  other  expenses  associated  to  the
     refinancing  process,  year to date, total $68,000.  An accrual of $200,000
     was established during the second quarter of 1999 for costs associated with
     closing  and  securing  facilities  previously  used  by  the  Company  for
     manufacturing purposes.

     During the second quarter of 1999, net interest expense amounted to $30,744
     compared to $46,666 a year ago. For the six months,  net  interest  expense
     has declined to $51,977 in 1999 from $100,301 in 1998. This decrease in net
     interest

                                       8
<PAGE>

     expense is principally  due to lower spending  levels in 1999,  compared to
     last year, and a lower utilization of Company's revolving line of credit.

     The Company incurred a net loss before taxes of approximately  $1.9 million
     in the second  quarter of 1999, an increase of $1.6 million over last year.
     On an  after-tax  basis,  the loss for the quarter was  approximately  $1.5
     million or $0.95 per share as opposed to approximately  $203 thousand after
     tax loss of $0.13 per share in 1998.

     The net loss for the first half of the year was approximately  $1.9 million
     or $1.20 per share.  This  compared to last year's first six months loss of
     approximately $906 thousand or $0.60 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  $150
     thousand. The Company expects to complete all year 2000 programming changes
     prior to the fourth quarter of 1999. 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

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.


     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: August 13, 1999                   /s/ John E. Brigham
                                        John E. Brigham
                                        Chief Financial Officer,
                                        Treasurer



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


                                       10