FORM 10-Q
                      SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, DC  20549




(Mark One)
[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
       SECURITIES EXCHANGE ACT OF 1934


For the quarterly period ended              June 30, 1998                     


                                      OR


[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
       SECURITIES EXCHANGE ACT OF 1934


For the transition period from                        to                      



Commission file number            0-2757                                      



                          THE MONARCH CEMENT COMPANY              
            (Exact name of registrant as specified in its charter)

            KANSAS                                      48-0340590            
(State or other jurisdiction of                     (I.R.S. Employer
 incorporation or organization)                    Identification No.)

                  P.O. BOX 1000, HUMBOLDT, KANSAS 66748-1000     
                   (Address of principal executive offices)
                                  (Zip Code)

                                (316) 473-2225                   
             (Registrant's telephone number, including area code) 


                                                                              
             (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      


     As of   August 4, 1998 , the Registrant had outstanding 2,293,087  shares
of Capital Stock, par value $2.50 per share and 1,910,777  shares of Class B
Capital Stock, par value $2.50 per share. 

<PAGE>
                       PART  I.   FINANCIAL INFORMATION

                NOTES TO THE SECURITIES AND EXCHANGE COMMISSION
                    REPORT FORM 10-Q FOR THE QUARTER ENDED
                                June 30, 1998

l.  The condensed financial statements included herein have been prepared by
    the registrant, without audit, pursuant to the rules and regulations of
    the Securities and Exchange Commission.  Certain information and footnote
    disclosures normally included in financial statements prepared in
    accordance with generally accepted accounting principles have been
    condensed or omitted pursuant to such rules and regulations, although the
    registrant believes that the disclosures are adequate to make the
    information presented not misleading.  The accompanying financial
    statements reflect all adjustments which are, in the opinion of
    management, necessary to a fair statement of the results of operations
    for the interim periods presented.  It is suggested that these condensed
    financial statements be read in conjunction with the financial statements
    and notes thereto included in the registrant's latest annual report on
    Form 10-K.

2.  For a summary of accounting policies, the reader should refer to Note 1
    of the consolidated financial statements included in the registrant's
    annual report on Form 10-K for the fiscal year ended December 31, 1997.

3.  Basic earnings per share of capital stock has been calculated based on
    the weighted average shares outstanding during each of the reporting
    periods.  The weighted average number of shares outstanding was 4,204,332
    and 4,215,714 in the second quarter of 1998 and 1997, respectively, and
    4,207,726 and 4,216,006 in the first six months of 1998 and 1997,
    respectively.

4.  In June 1997, the Financial Accounting Standards Board issued Statement
    of Financial Accounting Standards (SFAS) No. 130, "Reporting
    Comprehensive Income", effective for periods beginning after December 15,
    1997.  SFAS 130 requires the display of comprehensive income and its
    components in the financial statements.  The registrant has adopted SFAS
    130 for the six months ending June 30, 1998.  Comprehensive income for
    the registrant includes net income and unrealized appreciation on
    available for sale securities.  The following table presents
    comprehensive income for the six months ending June 30, 1998 and 1997:

                                                      1998        1997    
         Net Income                                $3,183,105  $3,001,560
         Unrealized appreciation on available 
           for sale securities (net of deferred
           tax expense of $300,000 and $250,000 
           for 1998 and 1997, respectively)           455,000     380,000
             Total Comprehensive Income            $3,638,105  $3,381,560

5.  Certain statements under the caption "Management's Discussion and
    Analysis of Financial Condition and Results of Operations," and elsewhere
    in this Form 10-Q, constitute "forward-looking statements" within the
    meaning of the Private Securities Litigation Reform Act of 1995.  Such
    forward-looking statements involve known and unknown risks,
    uncertainties, and other factors that may affect the actual results,
    performance or achievements expressed or implied by such forward-looking
    statements.  Such factors include, among others: general economic and
    business conditions; competition; raw material and other operating costs;
    costs of capital equipment; changes in business strategy or expansion
    plans; and demand for the registrant's products.                          
    
<PAGE>
<TABLE>
                                             THE MONARCH CEMENT COMPANY AND SUBSIDIARIES

                                   CONSOLIDATED BALANCE SHEETS--JUNE 30, 1998 AND DECEMBER 31, 1997
<CAPTION>
                             ASSETS                                           LIABILITIES AND STOCKHOLDERS' INVESTMENT

                                           1 9 9 8      1 9 9 7                                               1 9 9 8      1 9 9 7  
<S>                                      <C>          <C>           <S>                                     <C>          <C>
CURRENT ASSETS:                                                     CURRENT LIABILITIES:
  Cash and cash equivalents              $ 5,305,230  $ 4,093,317     Accounts and notes payable            $ 4,657,987  $ 3,518,686
  Short term investments, at cost                                     Accrued liabilities                     2,943,116    2,864,409
    which approximates market             12,673,132   20,930,123       Total current liabilities           $ 7,601,103  $ 6,383,095
  Receivables, less allowances of                                 
    $524,000 in 1998 and $447,000 in
    1997 for doubtful accounts            12,512,127    7,972,699 
  Inventories, priced at cost which                                 ACCRUED POSTRETIREMENT BENEFITS           9,835,993    9,838,905
    is not in excess of market-    
    Cost determined by last-in,
      first-out method-        
      Finished cement                    $ 1,602,202  $ 1,168,177   ACCRUED PENSION EXPENSE                     321,184      321,184
      Work in process                      3,321,401      316,370
      Building products                    1,227,760    1,127,182
    Cost determined by first-in,                                 
      first-out method-                                             MINORITY INTEREST IN CONSOLIDATED
      Fuel, gypsum, paper sacks                                       SUBSIDIARIES                            2,233,178    2,004,424
        and other                          1,544,772    1,318,911
    Cost determined by average method-                           
      Operating and maintenance supplies   7,043,922    7,375,598
          Total inventories              $14,740,057  $11,306,238   STOCKHOLDERS' INVESTMENT:
  Refundable federal and state                                        Capital stock, par value $2.50
    income taxes                               -          221,072       per share-Authorized 10,000,000
  Deferred income taxes                      415,000      415,000       shares, Issued 2,289,987 shares
  Prepaid expenses                           156,879       27,921       at 6-30-98 and 2,292,891 shares
          Total current assets           $45,802,425  $44,966,370       at 12-31-97                         $ 5,724,967  $ 5,732,227
                                                                      Class B capital stock, par value
PROPERTY, PLANT AND EQUIPMENT, at                                       $2.50 per share-Authorized
  cost, less accumulated depreciation                                   10,000,000 shares, Issued
  and depletion of $76,778,071 in 1998                                  1,913,877 shares at 6-30-98 and
  and $74,556,421 in 1997                 27,951,627   25,517,772       1,922,823 shares at 12-31-97          4,784,693    4,807,058
                                                                      Retained earnings                      47,777,526   45,486,139
DEFERRED INCOME TAXES                      1,510,000    1,810,000                                           $58,287,186  $56,025,424
                                                                      Plus:  Unrealized holding gain          2,115,000    1,660,000
OTHER ASSETS                               5,129,592    3,938,890       Total stockholders' investment      $60,402,186  $57,685,424

                                         $80,393,644  $76,233,032                                           $80,393,644  $76,233,032

</TABLE>

<PAGE>
<TABLE>
                  THE MONARCH CEMENT COMPANY AND SUBSIDIARIES

            CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS


<CAPTION>
                                  For the Three Months Ended    For the Six Months Ended
                                    June 30,     June 30,        June 30,     June 30,
                                      1998         1997            1998         1997    
<S>                                <C>          <C>             <C>          <C>
NET SALES                          $28,478,765  $25,524,530     $43,577,622  $41,414,537

COST OF SALES                       21,799,909   18,608,238      35,566,412   33,559,520 

    Gross profit from operations   $ 6,678,856  $ 6,916,292     $ 8,011,210  $ 7,855,017

SELLING, GENERAL AND
  ADMINISTRATIVE EXPENSES            1,637,717    1,755,957       3,309,613    3,454,198

    Income from operations           5,041,139  $ 5,160,335     $ 4,701,597  $ 4,400,819

OTHER INCOME (EXPENSE):
  Interest income                  $   258,959  $   184,887     $   499,431  $   369,205
  Other, net                          (219,105)     (21,851)       (217,923)     (68,464)
     
                                   $    39,854  $   163,036     $   281,508  $   300,741 

    Income before provision
      for taxes on income          $ 5,080,993  $ 5,323,371     $ 4,983,105  $ 4,701,560

PROVISION FOR TAXES ON INCOME        1,835,000    1,925,000       1,800,000    1,700,000

NET INCOME                         $ 3,245,993  $ 3,398,371     $ 3,183,105  $ 3,001,560

RETAINED EARNINGS, beg. of period   45,244,851   37,515,291      45,486,139   38,039,014

Less cash dividends                    672,618      590,200         672,618      590,200

Less purchase and retirement
 of treasury stock                      40,700        -             219,100      126,912

RETAINED EARNINGS, end of period   $47,777,526  $40,323,462     $47,777,526  $40,323,462


BASIC EARNINGS PER SHARE                  $.77         $.81            $.76         $.71

CASH DIVIDENDS PER SHARE                  $.16         $.14            $.16         $.14

</TABLE>





<PAGE>
<TABLE>

                      THE MONARCH CEMENT COMPANY AND SUBSIDIARIES

                         CONSOLIDATED STATEMENTS OF CASH FLOWS

<CAPTION>
                                                      For the Six Months Ended
                                                        June 30,     June 30, 
                                                         1998         1997    
<S>                                                   <C>          <C>
OPERATING ACTIVITIES:
 Net income                                           $ 3,183,105  $ 3,001,560 
 Adjustments to reconcile net income to
  net cash provided by operating activities:
   Depreciation and depletion                           2,550,519    2,252,351 
   Gain on disposal of assets                             (34,603)    (581,893)
   Change in assets and liabilities net of
    effects from purchase of subsidiaries:
     Receivables, net                                  (4,539,428)  (3,516,491)
     Inventories                                       (3,433,819)  (1,469,617)
     Refundable federal and state income taxes            221,072      310,733
     Prepaid expenses                                    (128,958)    (126,708)
     Deferred income taxes, long-term                     300,000      485,000
     Long-term notes receivable                             1,250        7,456 
     Accounts payable, notes payable and
      accrued liabilities                               2,567,037    2,111,824 
     Accrued postretirement benefits                       (2,912)     (27,249)
     Accrued pension expense                                -          (67,301)
     Minority interest in earnings of subsidiaries        270,754      339,014 

    Net cash provided by operating activities         $   954,017  $ 2,718,679 


INVESTING ACTIVITIES:
 Acquisition of property, plant and equipment         $(5,029,397) $(3,635,904)
 Net purchases and sales of subsidiaries' stock             -       (1,029,410)
 Proceeds from disposals of property, plant
  and equipment                                            79,626      692,932
 Increase in other assets                                (736,952)    (250,000)
 Decrease in short term investments, net                8,256,991    2,961,644 

    Net cash provided by (used for)
      investing activities                            $ 2,570,268  $(1,260,738)


FINANCING ACTIVITIES:
 Cash dividends                                       $(2,021,647) $(1,772,080)
 Subsidiaries' dividends paid to minority interest        (42,000)    (173,746)
 Subsidiaries' purchase of treasury stock, net              -           (9,419)
 Purchase of treasury stock                              (248,725)    (153,352)

    Net cash used for financing activities            $(2,312,372) $(2,108,597)


Net increase (decrease) in cash and cash equivalents  $ 1,211,913  $  (650,656)

CASH AND CASH EQUIVALENTS, beginning of year            4,093,317    3,242,245 
  
CASH AND CASH EQUIVALENTS, end of period              $ 5,305,230  $ 2,591,589 


Interest paid                                             $1,517       $4,556
Income taxes paid                                       $170,670     $396,582 



</TABLE>













<PAGE>
                     MANAGEMENT'S DISCUSSION AND ANALYSIS

               OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS



Liquidity

     The registrant's ability to generate cash adequate to meet its needs has
been derived primarily from operations.  Cash and short term investments
decreased during the first half of 1998 primarily due to funding increased
receivables and inventories, maintenance, capital expenditures and dividends. 
The registrant generally produces additional inventory during the early part
of the year in anticipation of sales volume in excess of production
capabilities during the summer and early fall.

Results of Operations

     Net sales increased 11% during the second quarter of 1998 as compared to
the second quarter of 1997 resulting in a 5% increase in net sales and a 6%
increase in cost of sales for the first half of 1998 as compared to the first
half of 1997.  During the second quarter and the first six months of 1998, the
registrant realized increases in both volume of cement sold and sales prices
of cement and ready-mixed concrete as compared to similar periods in 1997. 
Demand for cement and ready-mixed concrete in the registrant's market area was
excellent during these periods and is expected to continue at high levels for
the balance of 1998.
     During the second quarter of 1998, the registrant continued its capital
expenditure program by further modernizing and increasing the capacity of one
of its kilns.  The registrant also utilized this downtime to perform major
maintenance on related equipment.  As a result, clinker production decreased
22% during the second quarter of 1998 as compared to the second quarter of
1997.  This  reduction in clinker production, along with the cost of the
additional maintenance, resulted in a 17% increase in cost of sales during the
second quarter of 1998 as compared to the second quarter of 1997.  
     To help offset the reduction in clinker produced and to meet the
anticipated demand for cement during the coming peak construction season, the
registrant purchased additional clinker from foreign markets during the second
quarter of 1998.  Although this will increase the cement segment's cost of
sales, it will allow the registrant to maintain its customer base in both the
cement and ready-mixed concrete markets. 

Seasonality

     The registrant's highest revenue and earnings historically occur in its
second and third fiscal quarters, April through September.


                         PART  II.   OTHER INFORMATION

Item 6.  Exhibits and Reports on Form 8-K

         (a) There are no exhibits required to be filed for the quarter ended
             June 30, 1998.

         (b) There were no reports required to be filed on Form 8-K during
             the quarter April 1, 1998 to June 30, 1998, inclusive, for which
             this Form 10-Q is being filed.



                            S I G N A T U R E S

     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.


                                          THE MONARCH CEMENT COMPANY
                                                 (Registrant)



Date     August 13, 1998                   /s/ Walter H. Wulf, Jr.          
                                          Walter H. Wulf, Jr.
                                          President and 
                                          Vice Chairman of the Board



Date     August 13, 1998                   /s/ Lyndell G. Mosley            
                                          Lyndell G. Mosley, CPA
                                          Chief Financial Officer and
                                          Assistant Secretary-Treasurer