T cells bearing receptors for the Fc portion of IgM or IgG, TM or TG cells respectively, in the peripheral blood of RA and OA patients were found significantly less often when compared with TM and TG cells in the peripheral blood of normal donors. Using culture combinations of TM, TG and B cells, we were able to demonstrate that the B cells in the peripheral blood of RA patients were constantly of low functional competence and the TMcells varied between highly competent and low competent. RATG cells in general suppressed normal B-lymphoblast differentiation.