<PAGE> PAGE 1
000 A000000 12/31/98
000 C000000 0000888850
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 GRADISON-MC DONALD MUNICIPAL CUSTODIAN TRUST
001 B000000 811-6705
001 C000000 5135795076
002 A000000 580 WALNUT STREET
002 B000000 CINCINNATI
002 C000000 OH
002 D010000 45202
002 D020000 3198
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 Y
007 B000000 1
007 C010100 1
007 C020100 GRADISON OHIO TAX FREE INCOME FUND
007 C030100 N
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A00AA01 MCDONALD INVESTMENTS, INC.
008 B00AA01 A
008 C00AA01 801-11037
008 D01AA01 CINCINNATI
008 D02AA01 OH
008 D03AA01 45202
008 D04AA01 3198
011 A00AA01 MCDONALD INVESTMENTS, INC.
011 B00AA01 8-30177
011 C01AA01 CINCINNATI
011 C02AA01 OH
011 C03AA01 45202
011 C04AA01 3198
012 A00AA01 MCDONALD INVESTMENTS, INC.
012 B00AA01 84-01399
012 C01AA01 CINCINNATI
<PAGE> PAGE 2
012 C02AA01 OH
012 C03AA01 45202
013 A00AA01 ARTHUR ANDERSEN LLP
013 B01AA01 CINCINNATI
013 B02AA01 OH
013 B03AA01 45202
014 A00AA01 MCDONALD INVESTMENTS, INC.
014 B00AA01 8-30177
015 A00AA01 STAR BANK N.A.
015 B00AA01 C
015 C01AA01 CINCINNATI
015 C02AA01 OH
015 C03AA01 45202
015 E01AA01 X
015 A00AA02 BANKERS TRUST
015 B00AA02 S
015 C01AA02 NEW YORK
015 C02AA02 NY
015 C03AA02 10017
015 E01AA02 X
018 00AA00 Y
019 A00AA00 Y
019 B00AA00 7
019 C00AA00 GRADMUTFND
020 C000001 0
020 C000002 0
020 C000003 0
020 C000004 0
020 C000005 0
020 C000006 0
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 0
022 A000001 OHIO MUNICIPAL CASH
022 B000001 61-0306040
022 C000001 19000
022 D000001 17500
022 A000002 NATIONAL CITY BANK
022 B000002 35-1660474
022 C000002 9686
022 D000002 3588
022 A000003 MIDWEST OHIO
022 B000003 31-1216196
022 C000003 6100
022 D000003 6100
022 A000004 SEASONGOOD MAYER
022 B000004 31-0439010
022 C000004 5718
022 D000004 0
<PAGE> PAGE 3
022 A000005 BANK ONE
022 B000005 31-1017233
022 C000005 5151
022 D000005 5
022 A000006 MERRIL LYNCH
022 B000006 13-5674085
022 C000006 0
022 D000006 3575
022 A000007 AMRO SECURITIES
022 B000007 31-1355287
022 C000007 2215
022 D000007 1253
022 A000008 PAINE WEBBER
022 B000008 13-2638166
022 C000008 2858
022 D000008 0
022 A000009 BEAR STEARNS
022 B000009 13-3286161
022 C000009 1961
022 D000009 0
022 A000010 BELL HAVEN
022 B000010 06-1385063
022 C000010 0
022 D000010 1419
023 C000000 54242
023 D000000 36458
024 00AA00 N
025 D00AA01 0
025 D00AA02 0
025 D00AA03 0
025 D00AA04 0
025 D00AA05 0
025 D00AA06 0
025 D00AA07 0
025 D00AA08 0
026 A000000 N
026 B000000 N
026 C000000 N
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
034 00AA00 N
035 00AA00 0
036 B00AA00 0
037 00AA00 N
038 00AA00 0
039 00AA00 N
<PAGE> PAGE 4
040 00AA00 Y
041 00AA00 Y
045 00AA00 Y
046 00AA00 N
047 00AA00 Y
048 00AA00 0.500
048 A01AA00 0
048 A02AA00 0.000
048 B01AA00 0
048 B02AA00 0.000
048 C01AA00 0
048 C02AA00 0.000
048 D01AA00 0
048 D02AA00 0.000
048 E01AA00 0
048 E02AA00 0.000
048 F01AA00 0
048 F02AA00 0.000
048 G01AA00 0
048 G02AA00 0.000
048 H01AA00 0
048 H02AA00 0.000
048 I01AA00 0
048 I02AA00 0.000
048 J01AA00 0
048 J02AA00 0.000
048 K01AA00 0
048 K02AA00 0.000
054 A00AA00 N
054 B00AA00 N
054 C00AA00 N
054 D00AA00 N
054 E00AA00 N
054 F00AA00 N
054 G00AA00 N
054 H00AA00 Y
054 I00AA00 N
054 J00AA00 Y
054 K00AA00 N
054 L00AA00 N
054 M00AA00 Y
054 N00AA00 N
054 O00AA00 N
055 A00AA00 N
055 B00AA00 N
056 00AA00 Y
057 00AA00 N
066 A00AA00 N
067 00AA00 N
068 A00AA00 N
068 B00AA00 N
<PAGE> PAGE 5
069 00AA00 N
070 A01AA00 Y
070 A02AA00 N
070 B01AA00 N
070 B02AA00 N
070 C01AA00 Y
070 C02AA00 N
070 D01AA00 N
070 D02AA00 N
070 E01AA00 Y
070 E02AA00 N
070 F01AA00 N
070 F02AA00 N
070 G01AA00 Y
070 G02AA00 N
070 H01AA00 N
070 H02AA00 N
070 I01AA00 N
070 I02AA00 N
070 J01AA00 Y
070 J02AA00 N
070 K01AA00 Y
070 K02AA00 Y
070 L01AA00 N
070 L02AA00 N
070 M01AA00 N
070 M02AA00 N
070 N01AA00 Y
070 N02AA00 N
070 O01AA00 Y
070 O02AA00 N
070 P01AA00 Y
070 P02AA00 N
070 Q01AA00 N
070 Q02AA00 N
070 R01AA00 N
070 R02AA00 N
077 A000000 N
078 000000 N
080 C00AA00 0
081 B00AA00 0
082 B00AA00 0
083 B00AA00 0
084 B00AA00 0
085 B00AA00 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
<PAGE> PAGE 6
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
028 A010100 10357
028 A020100 271
028 A030100 0
028 A040100 2108
028 B010100 4253
028 B020100 291
028 B030100 0
028 B040100 1645
028 C010100 2942
028 C020100 333
028 C030100 0
028 C040100 1625
028 D010100 2912
028 D020100 335
028 D030100 0
028 D040100 2195
028 E010100 2674
028 E020100 431
028 E030100 0
028 E040100 659
028 F010100 5367
028 F020100 352
028 F030100 0
028 F040100 3280
028 G010100 28505
028 G020100 2013
028 G030100 0
028 G040100 11512
028 H000100 0
029 000100 N
030 A000100 0
030 B000100 0.00
030 C000100 0.00
031 A000100 0
031 B000100 0
032 000100 0
033 000100 0
042 A000100 0
042 B000100 0
042 C000100 0
042 D000100 100
042 E000100 0
042 F000100 0
042 G000100 0
042 H000100 0
<PAGE> PAGE 7
043 000100 144
044 000100 0
049 000100 N
050 000100 N
051 000100 N
052 000100 N
053 A000100 N
058 A000100 N
059 000100 Y
060 A000100 Y
060 B000100 Y
061 000100 1000
062 A000100 Y
062 B000100 0.0
062 C000100 0.0
062 D000100 0.0
062 E000100 0.2
062 F000100 0.0
062 G000100 0.0
062 H000100 0.0
062 I000100 0.0
062 J000100 0.0
062 K000100 0.0
062 L000100 0.0
062 M000100 0.0
062 N000100 0.0
062 O000100 98.6
062 P000100 0.0
062 Q000100 0.0
062 R000100 0.0
063 A000100 0
063 B000100 19.1
064 A000100 Y
064 B000100 N
071 A000100 29019
071 B000100 12774
071 C000100 109200
071 D000100 12
072 A000100 6
072 B000100 3011
072 C000100 0
072 D000100 0
072 E000100 0
072 F000100 287
072 G000100 0
072 H000100 0
072 I000100 45
072 J000100 0
072 K000100 0
072 L000100 3
072 M000100 10
<PAGE> PAGE 8
072 N000100 1
072 O000100 0
072 P000100 0
072 Q000100 0
072 R000100 15
072 S000100 4
072 T000100 144
072 U000100 0
072 V000100 0
072 W000100 3
072 X000100 512
072 Y000100 0
072 Z000100 2499
072AA000100 166
072BB000100 1
072CC010100 805
072CC020100 0
072DD010100 2466
072DD020100 0
072EE000100 98
073 A010100 0.3060
073 A020100 0.0000
073 B000100 0.0120
073 C000100 0.0000
074 A000100 7
074 B000100 0
074 C000100 200
074 D000100 117360
074 E000100 0
074 F000100 0
074 G000100 0
074 H000100 0
074 I000100 0
074 J000100 0
074 K000100 0
074 L000100 1675
074 M000100 12
074 N000100 119254
074 O000100 0
074 P000100 92
074 Q000100 0
074 R010100 0
074 R020100 0
074 R030100 0
074 R040100 95
074 S000100 0
074 T000100 119067
074 U010100 8552
074 U020100 0
074 V010100 13.92
074 V020100 0.00
<PAGE> PAGE 9
074 W000100 0.0000
074 X000100 1711
074 Y000100 0
075 A000100 0
075 B000100 112115
076 000100 0.00
SIGNATURE MARK A. FRIETCH
TITLE ASST TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000888850
<NAME> GRADISON-MCDONALD MUNICIPAL CUSTODIAN TRUST
<SERIES>
<NUMBER> 1
<NAME> GRADISON OHIO TAX-FREE INCOME FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 112085076
<INVESTMENTS-AT-VALUE> 117560420
<RECEIVABLES> 1675158
<ASSETS-OTHER> 18653
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 119254231
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 187107
<TOTAL-LIABILITIES> 187107
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 113491902
<SHARES-COMMON-STOCK> 8551826
<SHARES-COMMON-PRIOR> 7179641
<ACCUMULATED-NII-CURRENT> 32719
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 67159
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 5475344
<NET-ASSETS> 119067124
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 3010507
<OTHER-INCOME> 0
<EXPENSES-NET> 511895
<NET-INVESTMENT-INCOME> 2498612
<REALIZED-GAINS-CURRENT> 165413
<APPREC-INCREASE-CURRENT> 805323
<NET-CHANGE-FROM-OPS> 3469348
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 2465893
<DISTRIBUTIONS-OF-GAINS> 97728
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2054622
<NUMBER-OF-SHARES-REDEEMED> 827130
<SHARES-REINVESTED> 144693
<NET-CHANGE-IN-ASSETS> 19912303
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (526)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 287199
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 516388
<AVERAGE-NET-ASSETS> 112115079
<PER-SHARE-NAV-BEGIN> 13.811
<PER-SHARE-NII> .310
<PER-SHARE-GAIN-APPREC> .120
<PER-SHARE-DIVIDEND> .306
<PER-SHARE-DISTRIBUTIONS> .012
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 13.923
<EXPENSE-RATIO> .89
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>