$1,200. And any formula that doesn't recognize that freezes in this old adage, "If you are poor you will be kept poor." I think any formula must make allowance for effort. The fact that these poor States, what they do pours money into the richer States that have a manufacturing economy.

Senator JAVITS. The richer States are pouring money into the poorer States for oil, vegetables, and cotton.

Senator YARBOROUGH. But the producer of the raw materials doesn't get much in this world. My State produces 23 percent of all the mineral value produced in this country in a year, one of the top three agricultural States, tops in lumber. But you add all of this together, and the total value of that a year is far less than the difference, for our population in Texas alone, in average per capita annual income.

It is the manufacturing that adds the great value.

FORMULAS OUTDATED

Senator JAVITS. I don't think we need to cry for Texas. But I don't think that is the point. I think the problem with these formulas is that they are over 30 years old, and there are two things that have happened to them.

One, they have become too rigid, and, two, there are too many vested interests in them. I can show you areas of my State that are abysmally poor, just as you can show me areas in your State. But I can also show you areas of your State of Texas that are richer than any in my State. I think these are the things that need to be compensated for.

In addition, the population has moved. The farm population is now down to around 15 million. Seventy percent of the people live in the big cities. We are strangling, and we are going to do something about this. That doesn't mean we are not ready to pay more taxes and get back less. There is no question about that. We probably will continue to. The whole thing is too lopsided and the criteria are out of date. I hope that we will now start a process of reevaluation. The people who were poor yesterday are not necessarily poor today. And the problems which were met yesterday are not those of today. However, the formula has remained the same. Every time you renew these bills, the natural feeling is "Why fight about it, let's take the old formula."

Well, if we can help it, we are not going to do that any more.

I don't say that Texas, Alabama, or Mississippi shouldn't have more in proportion than New York. I have always voted that way here and I will continue to. But I think we have to take another look at this.

Senator YARBOROUGH. I am perfectly willing to have a new formula, but not to freeze poverty in place by saying, "You don't have much, therefore we won't give you much."

But I

Senator JAVITS. I am not going to argue figures right now. don't think your figures are quite appropriate to what we are discussing. I don't think the figures are as bad as what you say.

But all I am pleading for is let us now take these formulas one by one and find out why we have them and whether they are apposite to the present social organization of the country.

Mr. COHEN. Could I just say one thing to, maybe, ease Senator Yarborough's mind. When I said that I was willing to take effort into account, I had in the back of my mind, from previous analysis of the statistics, that some of the poorer States, by per capita income tests, are making a greater effort and would benefit. So that while effort is not correlated exactly with per capita income, I am quite well aware of the fact that States like Mississippi and Alabama are making a greater effort than other States, and this is what is impeding this further expansion in health and education, because in relation to income they are doing more than other States.

Senator YARBOROUGH. Yes. In relation to its wealth, Mississippi is making one of the greatest efforts in America in education. The table from the Statistical Abstract, page 423, shows now in taxes, and the effort they are making, from their own sources, that Mississippi is now making a greater effort than the State of New York for all State revenue.

I would like to put this table in the record.

The CHAIRMAN. Without objection, we will put that in the record. Senator YARBOROUGH. I must leave, Mr. Chairman. I thank the Senator. He was very courteous to yield to me.

(The tables referred to follow:)

1 Based on provisional estimates of U.S. population as of July 1, 1962, excluding Armed Forces abroad.

2 Based on personal income estimates reported in Department of Commerce, Office of Business Economics, Survey of Current Business, August 1963.

Source: Department of Commerce, Bureau of the Census; annual report, Govern mental Finances in 1962.

[Excerpt from Statistical Abstract of the United States]