Previous studies indicate that many gun owners, and most handgun owners, own their weapons for defensive and protective reasons, that fear of crime and prior victimization are related to gun ownership, and crime rates are positively associated with levels of gun ownership. The 1968-78 period saw an 85 percent increase in available gun stock and a 52 percent increase in the UCR crime index rate. However, much of the increase in handgun ownership can be attributed to fear of crime rather than actual crime increases. The models used in this study considered several variables, including homicide rates, total firearms ownership, longgun and handgun ownership, new handguns added to the existing stock, UCR percentage of murders and non-negligent manslaughters known to police cleared by arrest, robbery rates, median family income in 1974 dollars, income of families in the 20th percentile of the income distribution, holders of hunting licenses, and total motor vehicle registrations. Gun ownership had no statistically significant effect on the homicide rate, but homicide rates had positive and significant impact on ownership rates. New handguns introduced into the inventory were not related to the homicide rates. Gun ownership levels did appear to affect robbery rates, which in turn affect homicide rates. The contrast between these findings and studies based on pre-1964 data can be attributed to a change in the pattern of gun ownership during the 1960's and 1970's. In this period, gun ownership among the violence-prone was increasing faster than within the general population, and the general level of gun ownership became a poor indicator of ownership among the violence-prone. Only a tiny fraction of guns or gun owners are involved in crime, and gun ownership among the law-abiding has no effect on homicide rates. These findings argue against banning all guns, but are compatible with moderate controls such as licensing and laws restricting the open or concealed carrying of weapons. Tables, footnotes, and approximately 50 references are provided.