FORM 10-Q
                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C.  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          September 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 November 6, 1998 , the Registrant had outstanding 2,288,414  shares
of Capital Stock, par value $2.50 per share and 1,889,657  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
                                September 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 4,200,003
    and 4,215,714 in the third quarter 1998 and 1997, respectively, and
    4,205,152 and 4,215,908 in the first nine 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 nine months ending September 30, 1998.  Comprehensive income
    for the registrant includes net income and unrealized appreciation
    (depreciation) on available for sale securities.  The following table
    presents comprehensive income for the nine months ending September 30,
    1998 and 1997:

                                                          1998        1997    
       Net Income                                      $6,575,363  $7,713,946
       Unrealized appreciation (depreciation) on
        on available for sale securities (net of 
        deferred tax (benefit)/expense of $(100,000) 
        and $355,000 for 1998 and 1997, respectively     (160,000)    534,000
          Total Comprehensive Income                   $6,415,363  $8,247,946

4.  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--SEPTEMBER 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              $ 3,559,204  $ 4,093,317     Accounts and notes payable            $ 4,834,831  $ 3,518,686
  Short term investments, at cost                                     Accrued liabilities                     3,073,949    2,864,409
    which approximates market             17,571,072   20,930,123        Total current liabilities          $ 7,908,780  $ 6,383,095
  Receivables, less allowances of 
    $541,000 in 1998 and $447,000 in
    1997 for doubtful accounts            14,197,559    7,972,699  
  Inventories, priced at cost which                                 ACCRUED POSTRETIREMENT BENEFITS           9,752,998    9,838,905
    is not in excess of market-
    Cost determined by last-in,
      first-out method-                                            
      Finished cement                    $   782,853  $ 1,168,177   ACCRUED PENSION EXPENSE                     321,184      321,184
      Work in process                        990,669      316,370
      Building products                    1,192,574    1,127,182
    Cost determined by first-in,                                   
      first-out method-                                             MINORITY INTEREST IN CONSOLIDATED
      Fuel, gypsum, paper sacks                                       SUBSIDIARIES                            2,411,684    2,004,424
        and other                          1,870,643    1,318,911
    Cost determined by average method-
      Operating and maintenance supplies   7,479,137    7,375,598  
          Total inventories              $12,315,876  $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 2,285,564 shares
  Prepaid expenses                            32,216       27,921       at 9-30-98 and 2,292,891 shares
          Total current assets           $48,090,927  $44,966,370       at 12-31-97                         $ 5,713,910  $ 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 $78,056,964 in 1998                                  1,893,007 shares at 9-30-98 and
  and $74,556,421 in 1997                 27,839,735   25,517,772       1,922,823 shares at 12-31-97          4,732,517    4,807,058
                                                                      Retained earnings                      49,941,895   45,486,139
DEFERRED INCOME TAXES                      1,910,000    1,810,000                                           $60,388,322  $56,025,424
                                                                      Plus:  Unrealized holding gain          1,500,000    1,660,000
OTHER ASSETS                               4,442,306    3,938,890       Total stockholders' investment      $61,888,322  $57,685,424

                                         $82,282,968  $76,233,032                                           $82,282,968  $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 Nine Months Ended
                                    Sept. 30,    Sept. 30,       Sept. 30,    Sept. 30,
                                      1998         1997            1998         1997    
<S>                                <C>          <C>             <C>          <C>
NET SALES                          $30,733,881  $27,431,041     $74,311,503  $68,845,578

COST OF SALES                       23,865,433   19,264,628      59,431,845   52,824,148 

    Gross profit from operations   $ 6,868,448  $ 8,166,413     $14,879,658  $16,021,430

SELLING, GENERAL AND
  ADMINISTRATIVE EXPENSES            1,701,540    1,747,263       5,011,153    5,201,461

    Income from operations         $ 5,166,908  $ 6,419,150     $ 9,868,505  $10,819,969

OTHER INCOME (EXPENSE):
  Interest income                  $   289,828  $   281,981     $   789,259  $   651,186
  Other, net                          (114,478)     811,255        (332,401)     742,791
     
                                   $   175,350  $ 1,093,236     $   456,858  $ 1,393,977 
 
    Income before provision
      for taxes on income          $ 5,342,258  $ 7,512,386     $10,325,363  $12,213,946

PROVISION FOR TAXES ON INCOME        1,950,000    2,800,000       3,750,000    4,500,000

NET INCOME                         $ 3,392,258  $ 4,712,386     $ 6,575,363  $ 7,713,946

RETAINED EARNINGS, beg. of period   47,777,526   40,323,462      45,486,139   38,039,014

Less cash dividends                    672,618      590,200       1,345,236    1,180,400

Less purchase and retirement
 of treasury stock                     555,271        -             774,371      126,912

RETAINED EARNINGS, end of period   $49,941,895  $44,445,648     $49,941,895  $44,445,648


BASIC EARNINGS PER SHARE                  $.81        $1.12           $1.56        $1.83

CASH DIVIDENDS PER SHARE                  $.16         $.14            $.32         $.28

</TABLE>










<PAGE>
<TABLE>

                      THE MONARCH CEMENT COMPANY AND SUBSIDIARIES

                         CONSOLIDATED STATEMENTS OF CASH FLOWS

<CAPTION>
                                                     For the Nine Months Ended
                                                      Sept. 30,     Sept. 30, 
                                                        1998          1997    
<S>                                                  <C>           <C>
OPERATING ACTIVITIES:
 Net income                                          $ 6,575,363   $ 7,713,946 
 Adjustments to reconcile net income to
  net cash provided by operating activities:
   Depreciation and depletion                          3,974,630     3,515,267 
   Gain on disposal of assets                            (89,696)     (633,308)
   Realized gain on sale of other investments              -          (840,797)
   Change in assets and liabilities net of
    effects from purchase of subsidiaries:
     Receivables, net                                 (6,224,860)   (4,180,797)
     Inventories                                      (1,009,638)      (63,802)
     Refundable federal and state income taxes           221,072       310,733
     Prepaid expenses                                    141,890      (261,040)
     Deferred income taxes, long-term                   (100,000)      590,000
     Long-term notes receivable                            1,250         8,706 
     Accounts payable, notes payable and 
      accrued liabilities                              2,728,529     2,341,524 
     Accrued postretirement benefits                     (85,907)      (47,587)
     Accrued pension expense                               -           (46,619)
     Minority interest in earnings of subsidiaries       449,260       381,147 

    Net cash provided by operating activities        $ 6,581,893   $ 8,787,373


INVESTING ACTIVITIES:
 Acquisition of property, plant and equipment        $(6,367,001)  $(4,638,275)
 Net purchases and sales of subsidiaries' stock            -        (1,029,410)
 Proceeds from disposals of property, plant
  and equipment                                          160,104       795,998
 Proceeds from disposals of equity investments             -         1,366,267
 Increase in other assets                               (664,666)     (409,102)
 (Increase) decrease in short term investments, net    3,359,051    (1,923,656)

    Net cash used for investing activities           $(3,512,512)  $(5,838,178)


FINANCING ACTIVITIES:
 Cash dividends                                      $(2,694,265)  $(2,362,280)
 Subsidiaries' dividends paid to minority interest       (42,000)     (173,746)
 Subsidiaries' purchase of treasury stock                  -            (9,419)
 Purchase of treasury stock                             (867,229)     (153,351)

    Net cash used for financing activities           $(3,603,494)  $(2,698,796)


Net increase (decrease) in cash and 
 cash equivalents                                    $  (534,113)  $   250,399 

CASH AND CASH EQUIVALENTS, beginning of year           4,093,317     3,242,245 
  
CASH AND CASH EQUIVALENTS, end of period             $ 3,559,204   $ 3,492,644 


Interest paid                                             $1,517        $3,874
Income taxes paid                                     $2,467,485    $2,875,322 

</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 nine months of 1998 primarily due to funding
increased receivables, capital expenditures and dividends.

Results of Operations

     Net sales increased 12% during the third quarter of 1998 as compared to
the third quarter of 1997 and 8% during the first nine months of 1998 as
compared to the first nine months of 1997.  During the third quarter and the
first nine 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.

     While net sales increased 12% and 8%, respectively, cost of sales
increased 24% and 12%, respectively, causing gross profit from operations to
decrease during the third quarter and the first nine months of 1998 as
compared to similar periods in 1997.  Modernization of one of the cement 
kilns and major maintenance on related equipment reduced the registrant's
clinker production during the second quarter of 1998.  To help offset the
reduction in clinker produced and to meet the anticipated demand for cement,
the registrant purchased additional clinker from foreign markets.  Higher
costs associated with cement produced from purchased clinker increased the
registrant's cost of sales and reduced its gross profit margin to 22% for the
third quarter of 1998 as compared to 30% for the third quarter of 1997 and to
20% for the first nine months of 1998 as compared to 23% for the first nine
months of 1997.  Although purchased clinker reduces the registrant's gross
profit margin, additional purchases are intended to allow the registrant to
meet the service demands of its customer base in both the cement and ready-mixed
concrete markets.

     Other, net decreased approximately one million dollars during the third
quarter and the first nine months of 1998 as compared to similar periods in
1997 due primarily to gains on the sale of investment securities that occurred
during the third quarter of 1997. 

Year 2000

     The registrant has completed its assessment of year 2000 issues relative
to information technology (IT) and non-IT computer hardware, software, and
operating systems.  The registrant primarily relied upon a qualified and
experienced external resource to inventory, test for year 2000 compliance, and
prepare detailed recommended solutions on any non-compliant hardware or
software systems.  The recommended solutions have been presented to and
assessed by the registrant's year 2000 management team and it has been
determined that the costs of addressing the year 2000 compliance issues will
not be material to the registrant's business, operations or financial
condition. 

     The registrant is dependent upon numerous third parties including
customers, power generators, financial institutions and other significant
suppliers.  The registrant has no control over these third parties systems and
potential year 2000 IT and non-IT system problems.  The registrant intends to
inquire of third parties and seek guidance as to their state of readiness. 
However, there can be no assurance that the registrant can avoid disruptions
of supplies and services from its suppliers or purchases by its major
customers in the event that these entities encounter unforeseen year 2000
problems, any of which could have a material adverse effect on the
registrant's business, operations or financial condition.  The registrant is
not aware of any material risks associated with these other entities.

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
             September 30, 1998.

         (b) There were no reports required to be filed on Form 8-K during
             the quarter July 1, 1998 to September 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    November 12, 1998                   /s/ Walter H. Wulf, Jr.         
                                          Walter H. Wulf, Jr.
                                          President and
                                          Vice Chairman of the Board




Date    November 12, 1998                   /s/ Lyndell G. Mosley           
                                          Lyndell G. Mosley, CPA
                                          Chief Financial Officer and
                                          Assistant Secretary-Treasurer