Between 60 and 90 patients with chronic hepatitis C will be enrolled in a study of the combination of alpha interferon and ribavirin for 12 months with early discontinuation of therapy and randomization to receive either ribavirin alone or placebo for patients who do not respond within 6 months of starting therapy. Adult patients will be chosen who have chronic hepatitis C, HCV RNA in serum, and elevations in serum aminotransferases. Patients who have received alpha interferon in the past will be eligible if they did not have a sustained response to their previous course of interferon. After medical evaluation and liver biopsy, patients will begin receiving alpha interferon by subcutaneous injection in a dose of 3 million units three times weekly. At the same time, patients will begin receiving ribavirin orally in a dose of 1000 mg (if body weight is less than 75 kg) or 1200 mg daily (two or three capsules of 200 mg twice daily). During the initial 24-week period of combination therapy, patients will be seen in the outpatient clinic for medical interview, physical examinations and blood tests at 2 to 4 week intervals. At 24 weeks, patients will be classified as either responders or non-responders based upon HCV RNA testing of serum. Responders will continue on the combination therapy for another 24 weeks (total treatment = 48 weeks). Non-responders will stop interferon therapy and will be randomized to receive either ribavirin or identically appearing placebo capsules for 48 weeks (total treatment = 72 weeks). At the 72 week point (18 months after enrollment), all patients will be readmitted for repeat medical evaluation and liver biopsy. At this point, ribavirin and placebo will be stopped (unless the patient has had a clear histological and biochemical response to therapy) and patients will be monitored with outpatient visits at 8 week intervals for another 6 months.