nor by its technology, but also by the creativity of its citizens. As our Nation's material wealth and technological sophistication grew apace, the words of Ralph Waldo Emerson were recalled:

The true test of civilization is not the census, nor the size

of cities, nor the crops-no, but the kind of man the country

turns out.

This concern was highlighted by President Eisenhower's creation of a Commission on National Goals. Among this Commission's conclusions, its 1960 report stated:

In the eyes of posterity, the success of the United States as a civilized society will be largely judged by the creative activities of its citizens in art, architecture, literature, music, and the sciences.

This anxiety that America not neglect the arts and the humanities was heightened by the findings of various congressional committees and private studies. It was discovered that the arts confronted a grave financial crisis, resulting from the inadequacy of private resources to support artistic excellence. It was projected that unless steps were taken immediately to confront this crisis, our Nation could never reach and maintain a preeminent position in the arts. It was further determined that a grave imbalance existed between Federal support for the sciences and for the humanities. This imbalance was distorting national priorities, and was adversely affecting the quality of teaching, research, and student opportunities in the humanities at all levels of American education.

The growing consensus that Federal support of the arts and the humanities was essential resulted in 1964 in Public Law 88-579, creating a National Council on the Arts. In the 89th Congress there was widespread congressional interest in inaugurating a more ambitious program of Federal support. With the strong backing of President Lyndon B. Johnson, and with wide bipartisan sponsorship, the National Foundation on the Arts and the Humanities Act of 1965 was enacted as Public Law 89-209. A complete description and analysis of the original enabling legislation, with its creation of the two operative arms of the Foundation, the National Endowment for the Humanities and the National Endowment for the Arts, may be found in House Report No. 618 from the 89th Congress.

CONSIDERATION OF H.R. 11308

In considering H.R. 11308, the Special Subcommittee on Labor of the Committee on Education and Labor sat in joint hearings with the Senate's Special Subcommittee on the Arts on July 12 and 13. Testifying at these hearings were 15 prominent Americans, who have intimate knowledge of the work of the Foundation, and of the needs in the arts and the humanities. These witnesses represented major groups. involved in the arts and the humanities, and came from all sections of the country. Two broad themes emerged from testimony at these hearings. First, the witnesses believed that the same general needs which first prompted Congress to establish the Foundation still existed. Second, there was unanimity that the Foundation had made an important and creative beginning in meeting these needs, and that the work of the Foundation must be continued and expanded.

As stated above, one major motivation in the original creation of the Foundation was the serious imbalance between Federal support for the sciences and support for the humanities. Although the work of the National Endowment for the Humanities has helped begin to correct this imbalance, a staggering disparity remains. The testimony indicated that last year Federal expenditures for the sciences were $16 billion, while the National Endowment for the Humanities received and expended less than $5 million. The witnesses strongly recommended that the funding for the National Endowment for the Humanities be greatly increased.

It should be noted that the witnesses confirmed again that thoughtful Americans see an increasingly important role for the humanities in our national life. In a world now largely shaped by science, "someone must constantly remind us of the basic values of right and wrong," as Edward E. Booher, president of McGraw-Hill Book Co., testified. Other witnesses stressed the value of the humanities in giving our citizens the tools to think critically and to grapple with the moral and social implications of our rapidly changing technology. The value of humanistic principles in equipping America's doctors, lawyers, businessmen, and government leaders with the background necessary to guide them in their professions was stressed. For example, G. William Miller, president of Textron, Inc., spoke of "the underlying need to inject into the business community a broader acquaintance with the humanities * *

The witnesses testifying with respect to needs in the arts reported that even with the auspicious beginning made by the National Endowment for the Arts a grave financial crisis in the arts persisted and was growing worse. This crisis was fully documented by Prof. William G. Bowen, coauthor of the study "Performing Arts: The Economic Dilemma." Professor Bowen testified that the arts faced a growing "income gap," with the difference between the earned income and expenditures of performing arts organizations inexorably growing. This "income gap" was between $20 and $23 million in 1964, and will rise, Professor Bowen predicted, to between $48 and $61 million in 1975. Professor Bowen also concluded that private contributions would not be sufficient to make up this income gap. This gloomy prognostication was confirmed in specific areas of the arts. For example, William Severns, chairman of the board of the American Symphony Orchestra League, testified that the major American orchestras had an income gap of $13.2 million in 1965, and that this gap was growing at an alarming rate. Given these needs in the arts, and the well-documented fact that more and more Americans in all stations of life have increased time and opportunity to enjoy the arts, all witnesses recommended a substantial increase in funding for the programs of the National Endowment for the Arts.

Following the joint hearings, the Special Subcommittee on Labor held hearings on July 18 and 26 with the chairmen of the respective Endowments. In addition to offering explanations of the amendments proposed in H.R. 11308, the chairmen also reviewed the first years of the Foundation's operation, and discussed in a specific way the future needs and projected plans of the respective Endowments. It is difficult to summarize the initial achievements of the Found&tion, but a few examples provide the flavor. In its first 2 years, the National Endowment for the Arts used $10.5 million of Federal funds to generate $16 million of private and local government funds to aid

artistic projects. Some projects, like the launching of the American Film Institute, were major undertakings. Others, such as the grants to individual artists, involved modest sums but had a dramatic effect on the artistic community. Thus, a grant of $1,220 was instrumental in bringing the work of a comparatively unknown composer to the attention of the Pulitzer Prize jury.

The National Endowment for the Humanities awarded a major grant to the Modern Language Association for the editing and publishing of complete and authoritative editions of the work of eight major American authors, a project hailed by students of American literature. Other smaller grants had significant consequences. For example, a $6,000 grant to a Delaware school district enabled the preparation of a comprehensive humanities curriculum for use in the public elementary and secondary schools, and involved an important precedent of school-university cooperation.

Testimony was also received on the projections of both Endowments on future needs. These projections were translated into budgetary terms, and in your committee's opinion represent a thoughtful and realistic appraisal of future needs in the arts and humanities. In the judgment of your committee, the testimony presented at these hearings fully justifies the continuation and expansion of the work of the Foundation.

One important mark of the success of the Foundation is the absence in the hearing record of expressions of concern which helped delay the creation of the Foundation for many years. Some early opponents of the concept of Federal support for the arts and humanities argued that Federal support could mean Federal control. To assure this unwanted control did not develop, section 4 (c) of the Public Law was enacted, forbidding any Federal control over the policy or programs of any non-Federal organization or institution. The injunction. of this section 4 (c) has been honored both in its letter and its spirit. Indeed, both W. McNeil Lowry, vice president of the Ford Foundation, and William Severns, chairman of the board of the American Symphony Orchestra League, stated in the joint hearings that the performance of the two Endowments had allayed whatever original fears some persons had that Government support would lead to "politics" in the arts and the humanities.

Your committee would also observe that the procedures set forth in the enabling legislation, in conjunction with the internal administrative processes adopted by the Endowments, seem to have insured that the grants made by the Endowments have been of the highest quality, and that these grants have been awarded to artists and humanists undertaking projects of the most varied and most representative nature. This accords with the declared policy of the Congress in establishing the Foundation, that "it is necessary and appropriate for the Federal Government to help create and sustain *** a climate encouraging freedom of thought, imagination, and inquiry ***." Your committee again affirms its intention that the Endowments make their awards on the basis of merit, and not favor unduly certain "schools" of art or study. Your committee strongly endorses the efforts of both Endowments to insure, within the limits. imposed by available funding, and through the use of advisory panels of experts as well as the National Councils, that the award of a grant for a particular project reflects the high promise and merit of the proposed project, and not the personal taste of any individual.

Your committee wishes to stress that the initial programs of the Endowments apparently have had a significant impact in the stimulation of State art programs and in generating private contributions in support of projects in the arts and humanities. By the beginning of fiscal 1967, all 50 States, plus the District of Columbia, Guam, Puerto Rico, and the Virgin Islands had designated agencies to serve as official channels for support of the arts. Every State plus the other four entities received in fiscal 1967 grants from the National Endowment for the Arts enabling them to study their cultural resources and develop programs, facilities, and services at the community level. In addition, the National Endowment for the Arts has provided funds to the States pursuant to the authorization in the Public Law, which permitted in the first fiscal year of the program the undertaking by the various State art agencies of some 250 separate arts projects. In addition, over $2 million in private gifts were generated by the Foundation in fiscal 1967. This early experience indicates that the Foundation's efforts will have a multiplying effect; the moneys appropriated to and used by the Foundation will attract additional private resources, as well as stimulate State and local efforts.

Finally, it should be emphasized that the initial efforts of the Foundation enjoy strong support from many segments of our national life. The appendices to the hearings abound with vigorous endorsements of the work of the Foundation from Governors and other State officials, the academic community, colleges and universities, learned societies, groups in the arts, labor organizations, businessmen, and private citizens. These persons and groups expressed for the record their support for the Foundation, and also their hope that its operations would be expanded as proposed in H.R. 11308.

PURPOSE OF H.R. 11308

H.R. 11308 extends the authorization for appropriations for the Foundation and makes certain minor amendments to the Foundation's enabling legislation.

Section 1 of H.R. 11308 amends section 3(f) of Public Law 89-209 to make clear that the definition of "workshop" includes workshops in the humanities, as well as in the arts, as originally intended by the Public Law.

Section 2 of H.R. 11308 amends section 5(c) of the public law to authorize the National Endowment for the Arts to enter into contracts in support of projects in the arts. This contract authority is desired. to enable the Endowment to accomplish specific aims where a contract mechanism would be more appropriate than a grant-in-aid. In addition, section 5(f) is amended to permit the National Endowment for the Arts to use up to 20 percent of its program money on a nonmatching basis without requiring that a prospective grantee prove it has made unsuccessful attempts to obtain an equal amount of funds from other sources.

Section 3 of H.R. 11308 amends section 5(h) (5) to permit the National Endowment for the Arts to use any amounts remaining after grants are made to the States under section 5(h) (5) for further program activities. In addition, a conforming amendment to section 5(h) (3) was made.

Section 4 of H.R. 11308 amends sections 6(b) and 8(f) of the Public Law to authorize the Chairman of each Endowment to approve or

disapprove an application for a grant without a specific Council recommendation if (1) the application is for $10,000 or less, (2) the Chairman's action is taken pursuant to a delegation of authority from the Council to the Chairman, and (3) each such action is reported to the Council at its next meeting. These amendments would give the respective Councils, each composed of 26 prominent private citizens, more time to carry out their important function of advising on national policies and programs. Because of the increasing number of applications, these amendments are recommended to improve the administration of the Endowments.

Section 5 of H.R. 11308 amends section 10 of the public law to permit the use of funds appropriated pursuant to section 11(b) to match restricted as well as unrestricted gifts, provided the Endowment Chairman concerned approves such matching, and provided the Council has made a recommendation regarding the gift. This amendment would improve the posture of the Endowments with respect to attracting private gifts.

Section 6 of H.R. 11308 amends section 11 of the public law to authorize the appropriation for the National Endowment for the Arts of $22 million for general programs for fiscal year 1969 and $32 million for fiscal year 1970. In addition, $5,500,CCO is authorized to be appropriated to the National Endowment for the Arts for fiscal 1969 for State arts programs and $8 million is authorized to be appropriated for fiscal 1970 for State arts programs. $27,500.000 for fiscal 1969 is authorized to be appropriated to the National Endowment for the Humanities for general program purposes. and $40 million is authorized to be appropriated for fiscal 1970. These authorizations are intended to permit both Endowments to continue and expand their work.

Also, section 6 of H.R. 11308 authorizes the appropriation to each Endowment of an amount equal to the total amount of private gifts received by that Endowment under section 10(a) (2) in any fiscal year. Authorization for appropriation of funds for administrative expenses of the Foundation was also approved.

SECTION-BY-SECTION ANALYSIS

The reported bill contains an amendment striking out all after the enacting clause and inserting a substitute text. This analysis is of the substitute amendment.

Section 1

Section 3 (f) of the National Foundation on the Arts and the Humanities Act of 1965 is amended to define a "workshop" to be an activity which has one of several enumerated primary purposes, including the promotion of scholarship and teaching among the participants. Section 2

In addition to the authority for support of productions and projects in the arts through grants-in-aid presently contained in section 5(c) of the act, section 5(c) is amended to authorize the National Endowment for the Arts to establish and carry out a program of contracts with groups or, in appropriate cases, individuals engaged in or concerned with the arts, for the purpose of enabling them to provide or support in the United States productions and projects in the arts.