Pricing Supplement Dated August 4, 1997

(To Prospectus dated  November 1, 1996, and
Prospectus Supplement dated November 7, 1996)

The Charles Schwab Corporation
Medium-Term Notes, Series A
(Fixed Rate)

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Trade Date: August 4, 1997             Original Issue Date:       August 7, 1997
Principal Amount:  $10,000,000         Net Proceeds to Issuer:  $9,940,000
Issue Price:  100%                     Interest Payable: March 1, September 1,
Agent's Discount or Commission: .60%                     and at maturity
Interest Rate:  6.80%                  Agent's Capacity:  x    Principal
                                                         ---
Maturity Date:  August 9, 2004                                 Agent
                                                         ---
- --------------------------------------------------------------------------------

Form:                      x    Book-Entry
                          ---
                                Certificated
                          ---

Redemption:                x    The Notes cannot be redeemed prior to maturity
                          ---
                                The Notes may be redeemed prior to maturity
                          ---

                  Initial Redemption Date:
                  Initial Redemption Price:
                  Annual Redemption Price Reduction:

Repayment:                 x    The Notes cannot be repaid prior to maturity
                          ---
                                The Notes can be repaid prior to maturity at the
                                option of the holder of the note
                          ---

                  Repayment Date:
                  Repayment Price:

Discount Note:           Yes      x  No
                     ---         --- 

                  Total Amount of OID:
                  Yield to Maturity:
                  Initial Accrual Period:

Ranking:          x    Senior            Senior Subordinated
                 ---               ---

The second paragraph under the caption "Certain United States Federal Income Tax
Consequences" in the Company's  Prospectus  Supplement dated November 7, 1996 is
hereby amended in its entirety to read as follows:

       As used herein,  the term "Holder" means the beneficial  holder of a Note
       (a) that is for United States  federal  income tax purposes (i) a citizen
       or resident of the United  States,  (ii) a  corporation,  partnership  or
       other  entity  created  or  organized  in or under the laws of the United
       States or of any  political  subdivision  thereof,  (iii) an  estate  the
       income of which is  subject  to United  States  federal  income  taxation
       regardless of its source,  or (iv) any trust if (A) a United States court
       is able to exercise primary  supervision over the  administration  of the
       trust and (B) one or more United States fiduciaries have the authority to
       control all substantial  decisions of the trust; or (b) whose income from
       such Note is treated as effectively  connected with such owner's  conduct
       of the United  States  trade or business.  The term Holder also  includes
       certain  former  citizens and certain former  long-term  residents of the
       United  States  whose  interest  and gain on the Notes will be subject to
       United States federal income taxation.
                                                         Morgan Stanley & Co.