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           March 31, 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   May 8, 1998   , the Registrant had outstanding  2,287,287  shares
of Capital Stock, par value $2.50 per share and 1,916,577  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
                                  March 31, 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 4,211,158
    and 4,216,302 in the first three 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 three months ending March 31, 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 three months ending March 31, 1998 and 1997:

                                                      1998         1997   
         Net Loss                                   $(62,888)   $(396,811)
         Unrealized appreciation on available 
           for sale securities (net of deferred
           tax expense of $250,000 and $25,000 
           for 1998 and 1997, respectively)          430,000       40,000 
             Total Comprehensive Income (Loss)      $367,112    $(356,811)

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--MARCH 31, 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              $ 4,585,283  $ 4,093,317     Accounts and notes payable            $ 3,376,889  $ 3,518,686
  Short term investments, at cost                                     Accrued liabilities                     1,703,046    2,864,409
    which approximates market             16,038,329   20,930,123       Total current liabilities           $ 5,079,935  $ 6,383,095
  Receivables, less allowances of 
    $505,000 in 1998 and $447,000 in
    1997 for doubtful accounts             7,560,249    7,972,699   ACCRUED POSTRETIREMENT BENEFITS           9,833,566    9,838,905
  Inventories, priced at cost which
    is not in excess of market-
    Cost determined by last-in,
      first-out method-                                             ACCRUED PENSION EXPENSE                     321,184      321,184
      Finished cement                    $ 4,334,243  $ 1,168,177
      Work in process                        572,533      316,370
      Building products                    1,211,607    1,127,182
    Cost determined by first-in,                                    MINORITY INTEREST IN CONSOLIDATED
      first-out method-                                               SUBSIDIARIES                            2,040,469    2,004,424
      Fuel, gypsum, paper sacks
        and other                          1,256,731    1,318,911
    Cost determined by average method-
      Operating and maintenance supplies   6,432,710    7,375,598   STOCKHOLDERS' INVESTMENT:
          Total inventories              $13,807,824  $11,306,238     Capital stock, par value $2.50
  Refundable federal and state                                          per share-Authorized 10,000,000
    income taxes                             209,508      221,072       shares, Issued 2,288,661 shares
  Deferred income taxes                      415,000      415,000       at 3-31-98 and 2,292,891 shares
  Prepaid expenses                           166,605       27,921       at 12-31-97                         $ 5,721,652  $ 5,732,227
          Total current assets           $42,782,798  $44,966,370     Class B capital stock, par value
                                                                        $2.50 per share-Authorized
PROPERTY, PLANT AND EQUIPMENT, at                                       10,000,000 shares, Issued
  cost, less accumulated depreciation                                   1,917,053 shares at 3-31-98 and
  and depletion of $75,600,957 in 1998                                  1,922,823 shares at 12-31-97          4,792,633    4,807,058
  and $74,556,421 in 1997                 26,054,614   25,517,772     Retained Earnings                      45,244,851   45,486,139
                                                                                                            $55,759,136  $56,025,424
DEFERRED INCOME TAXES                      1,530,000    1,810,000     Plus:  Unrealized holding gain          2,065,000    1,660,000
OTHER ASSETS                               4,731,878    3,938,890       Total stockholders' investment      $57,824,136  $57,685,424

                                         $75,099,290  $76,233,032                                           $75,099,290  $76,233,032
</TABLE>

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

            CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS


<CAPTION>
                                                   For the Three Months Ended 
                                                    March 31,      March 31,
                                                      1998           1997      
<S>                                                <C>            <C>
NET SALES                                          $15,098,857    $15,890,007

COST OF SALES                                       13,766,503     14,951,282

    Gross profit from operations                   $ 1,332,354    $   938,725

SELLING, GENERAL AND
  ADMINISTRATIVE EXPENSES                            1,671,896      1,698,241

    Loss from operations                           $  (339,542)   $  (759,516)

OTHER INCOME (EXPENSE):
  Interest income                                  $   240,472    $   184,318
  Other, net                                             1,182        (46,613)

                                                   $   241,654    $   137,705 
 
    Loss before benefit from taxes on income       $   (97,888)   $  (621,811)

BENEFIT FROM TAXES ON INCOME                           (35,000)      (225,000)

NET LOSS (Basic loss per share-$(.01) in
 1998 and $(.09) in 1997)                          $   (62,888)   $  (396,811)

RETAINED EARNINGS, beg. of period                   45,486,139     38,039,014

Less purchase and retirement of treasury stock         178,400        126,912

RETAINED EARNINGS, end of period                   $45,244,851    $37,515,291

</TABLE>




<PAGE>
















<TABLE>
                      THE MONARCH CEMENT COMPANY AND SUBSIDIARIES

                         CONSOLIDATED STATEMENTS OF CASH FLOWS


<CAPTION>
                                                   For the Three Months Ended
                                                     March 31,    March 31, 
                                                       1998         1997    
<S>                                                 <C>          <C>
OPERATING ACTIVITIES:
 Net loss                                           $   (62,888) $  (396,811)
 Adjustments to reconcile net loss to  
  net cash provided by operating activities:
   Depreciation and depletion                         1,227,463    1,105,419 
   Gain on disposal of assets                           (19,536)    (438,254)
   Change in assets and liabilities, net of
    effects from purchase of subsidiaries:
     Receivables, net                                   412,450   (1,340,262)
     Inventories                                     (2,501,586)  (2,075,913)
     Refundable federal and state income taxes           11,564     (225,000)
     Prepaid expenses                                  (138,684)    (199,547)
     Deferred income taxes, long-term                   280,000      260,000
     Long-term notes receivable                           1,250        6,206 
     Accounts payable, notes payable and
      accrued liabilities                                45,869    1,141,714 
     Accrued postretirement benefits                     (5,339)      11,989 
     Minority interest in earnings of subsidiaries       36,045      102,179 
    Net cash used for operating activities          $  (713,392) $(2,048,280)

INVESTING ACTIVITIES:
 Acquisition of property, plant and equipment       $(1,769,469) $(1,973,103)
 Net purchases of subsidiaries' stock                     -       (1,029,410) 
 Proceeds from disposals of property, plant
  and equipment                                          24,700      509,896
 Increase in other assets                              (389,238)     (25,000)
 Decrease in short term investments, net              4,891,794    4,430,787 
    Net cash provided by investing activities       $ 2,757,787  $ 1,913,170

FINANCING ACTIVITIES:
 Cash dividends                                     $(1,349,029) $(1,181,880)
 Purchase of treasury stock                            (203,400)    (153,352)
    Net cash used for financing activities          $(1,552,429) $(1,335,232)


Net increase (decrease) in cash and
 cash equivalents                                   $   491,966  $(1,470,342)

CASH AND CASH EQUIVALENTS, beginning of year          4,093,317    3,242,245 

CASH AND CASH EQUIVALENTS, end of period            $ 4,585,283  $ 1,771,903 


Interest paid                                              $510          $62
Income taxes paid                                       $74,698     $111,289

</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 and the maturity of short term
investments.  Cash and short term investments decreased during the first
quarter of 1998 primarily due to funding increased inventories, maintenance 
and capital expenditures.  The registrant generally produces additional
inventory during this quarter in anticipation of sales volume in excess of
production capabilities during the summer and early fall.

Results of Operations

     Net sales for the first quarter of 1998 decreased 5% as compared to the
first quarter of 1997 as a result of decreases in the volume of cement and
ready-mixed concrete sold due to wet weather interrupting construction
projects.  Demand for cement and ready-mixed concrete in the registrant's
market area was excellent during both the first quarter of 1998 and the first 
quarter of 1997 and is expected to continue during the balance of 1998.
     The registrant incurred significant maintenance costs during the first
quarter of 1998. However, unlike the first quarter of 1997 when the registrant
worked on each of its three  kilns, the registrant was able to sustain a
higher volume of production during much of the 1998 maintenance program.  This
allowed the registrant to produce 32% more clinker and 20% more cement during
the first quarter of 1998 as compared to the first quarter of 1997.  The
increased level of production resulted in a significantly higher inventory at
March 31, 1998 and a significant reduction in the cost of sales for the
quarter.  
     The registrant anticipates a reduction in clinker production during the
second quarter of 1998 as it continues its capital expenditure program by
further modernizing and increasing the capacity of one of its kilns.  Even
though the registrant entered the second quarter with higher levels of
inventories, to meet anticipated demand for cement during the coming peak
construction season, the registrant has negotiated the purchase of additional
clinker from foreign markets.  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
             March 31, 1998.

         (b) There were no reports required to be filed on Form 8-K during
             the quarter January 1, 1998 to March 31, 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       May 13, 1998                     /s/ Walter H. Wulf, Jr.         
                                          Walter H. Wulf, Jr.
                                          President and
                                          Vice Chairman of the Board


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