PROSPECTUS SUPPLEMENT
(TO PROSPECTUS DATED JUNE 18, 1997)

          4,000,000 TRUST CONVERTIBLE PREFERRED SECURITIES
                      MCKESSON FINANCING TRUST
              5% TRUST CONVERTIBLE PREFERRED SECURITIES
     (LIQUIDATION AMOUNT $50 PER CONVERTIBLE PREFERRED SECURITY)
            GUARANTEED TO THE EXTENT SET FORTH HEREIN BY,
                        MCKESSON CORPORATION


      This Prospectus Supplement supplements and amends the Prospectus
dated June 18, 1997 (the "Prospectus") relating to the 5% Trust Convertible
Preferred Securities (the "Convertible Preferred Securities"), which
represent preferred undivided beneficial interests in the assets of
McKesson Financing Trust, a statutory business trust formed under the laws
of the State of Delaware, and the shares of common stock, par value $.01
per share, of McKesson Corporation, a Delaware corporation ("McKesson"),
issuable upon conversion of the Convertible Preferred Securities.

      On October 29, 1997, McKesson's board declared a two-for-one split of
its common stock to be effected in the form of a stock dividend
distributable January 2, 1998 to stockholders of record on December 1,
1997.

      McKesson and AmeriSource Health Corporation ("AmeriSource"), a
leading U.S. wholesale distributor of pharmaceutical and related health
care products and services, have signed a definitive merger agreement
providing for McKesson to acquire AmeriSource. On March 9, 1998, the U.S.
Federal Trade Commission (the "FTC") filed a complaint in the United States
District Court for the District of Columbia seeking a preliminary
injunction to halt the merger; a pre-trial hearing on the matter has been
set for May 11, 1998. On March 18, 1998, McKesson and AmeriSource each
announced that they will oppose the FTC's motion for preliminary
injunction. There can be no assurance that McKesson and AmeriSource will
prevail in their opposition to the FTC's request for a preliminary
injunction, that the merger will be completed, or that it will be completed
as contemplated or what the results of the merger might be.

      Under the terms of the merger agreement, stockholders of AmeriSource
would receive a fixed exchange ratio of 0.71 shares of McKesson common
stock for each share of AmeriSource common stock. McKesson would issue
approximately 17.4 million new shares of common stock in the merger, and
would assume the long-term debt of AmeriSource which was approximately
$781.0 million at December 31, 1997. The merger of the two companies has
been structured as a tax-free transaction and would be accounted for as a
pooling of interests. The combined company would operate under the McKesson
name and would be headquartered in San Francisco. Upon completion of the
merger, R. David Yost, currently president and chief executive officer of
AmeriSource, would become group president of the AmeriSource Services Group
and a McKesson corporate vice president. Also upon completion of the
merger, McKesson's board of directors would be expanded from nine to twelve
members, which would include Yost and another two directors from the
current AmeriSource board.

      The table on pages 56 through 58 of the Prospectus, which sets forth
information with respect to the Selling Holders (as defined in the
Prospectus) and the respective amounts of Convertible Preferred Securities
beneficially owned by each Selling Holder that may be offered pursuant to
the Prospectus (as supplemented and amended), is hereby amended by the
addition of item 76 to that table as follows:




                           Convertible                                
                           Preferred                                     Convertible Preferred
                           Securities Owned                               Securities Owned    
                           Prior to Offering         Number of            After Offering 
                           -----------------    Convertible Preferred    --------------------- 
"Selling Holder            Number    Percent    Securities Offered       Number       Percent
- ---------------            ------    -------    --------------------     ------       -------

                                                                            
76. Froley, Revy            7,250      0.18%           750               6,500         0.16%
    Investment Co.,                                                   
    Inc. Account:
    Southern Farm
    Bureau Life 
    Insurance Co.


    The Prospectus, together with this Prospectus Supplement, constitutes
the prospectus required to be delivered by Section 5(b) of the Securities
Act of 1933, as amended, with respect to offers and sales of the
Convertible Preferred Securities and McKesson Common Stock issuable upon
conversion of the Convertible Preferred Securities. All references in the
Prospectus to "this Prospectus" are hereby amended to read "this Prospectus
(as supplemented and amended)".

PROSPECTIVE INVESTORS SHOULD CAREFULLY CONSIDER MATTERS DISCUSSED UNDER THE
CAPTION "RISK FACTORS" BEGINNING ON PAGE 6 OF THE PROSPECTUS.

THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR
HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

The date of this Prospectus Supplement is March 24, 1998.