tified as limitations on its optimum development for the benefit of the people.

INTEGRATED DEVELOPMENT OF ALL RESOURCES

This is not solely a program of extending a system of water control to the small tributary rivers and streams of the valley, although that is part of the whole. It is not a program designed to provide emergency relief for areas of local depression. But if it is successful, it should help to provide jobs and raise incomes and to give protection against recessions of the future. Simply stated, it is an effort to apply to small, individual tributary areas, the total TVA program of integrated development of all resources. Because the areas considered are much smaller than the region, local problems become more apparent, and local opportunities are more clearly defined. The participation of local groups becomes increasingly important, and their share of the total responsibility increases.

The program is open to every area in the river basin. It is initiated in different ways. Most often a group is organized locally to achieve some particular improvement on which public attention has been focused.

FLOODING OF BOTTOM-LAND FARMS

In some areas, for example, the occasional and seasonal flooding of bottom-land farms has been considered a major barrier to the economic growth of the area, and a local organization might be formed to seek relief. Such a group might approach TVA with a single purpose, to obtain Federal assistance in the channel clearing or dam construction believed to be required. Other groups organize in the hope of attracting a specific industry to develop a resource believed to be available.

The problems differ. But always there is a common denominatorthe desire and need for economic improvement; the feeling that their area is not realizing the full potential of its resources. They come to TVA for varied types of assistance. We explain our program to them and if they are interested, a broad cooperative program is undertaken.

RESOURCE BASE INVENTORY

First, TVA urges that the total, not just a fragment, of the resource base be inventoried before a decision as to the priority of activities is undertaken;

Second, we urge that the organization should include representatives of all parts of the area and of all sectors of the economy, farmers, businessmen, bankers, forest and sawmill owners, representatives of towns and villages and rural areas, of labor and employers;

PARTICIPATION OF STATE GOVERNMENTS

And, third, we urge the participation of the State government, for we believe that governments of the States should share increasingly in responsibility for developing the resources of the Tennessee Valley, that they should not be bypassed by an agency of the Federal Government.

As the committee knows, TVA from the beginning has sought to conduct all its programs in such a way as to strengthen State and local governments, and in this program we think it essential that State

governments, as well as local agencies, should participate fully. If for no other reason, it is in their own self-interest.

For example, analysis showed that in one area the State was spending twice as much money per capita as for the State as a whole but receiving only about half as much revenue per capita as in the rest of the State. Clearly, a State is strong only as its subareas are strong.

As I said at the beginning, the organization of these area groups differs. Some, but not all, have formal charters recognized by State legislative action.

ESTABLISHMENT OF WORK GROUPS

After general understanding of procedures and objectives is achieved, and agreement that appraisal should precede action is reached, work groups are normally established, each one organized to survey a major resource and the current level of its development. They analyze the problems and opportunities it presents. Water, land, forests, and the industries and related services are inventoried.

TVA offers the help of technicians in each field who work with the individual committees, prepare the inventory forms which provide the basic information, assist in the analysis and interpretation of the findings. The technician in turn is able to recommend to TVA whatever intensification of its programs are desirable to make the local activities most effective. A representative of a State agency participates. He, too, shares the responsibility for giving technical advice.

COORDINATION OF EXISTING STATE AGENCIES

Coordination of existing State activities in the area is sought. Through these committees and their reports to the parent association there is made available to the people the basic information about their resources from which problems and opportunities can be defined and the potential for growth appraised.

Much of the basic data is available but reported on a statewide basis, or for the great watershed as a whole. Forest inventories have been made, for example. Soils have been studied and agricultural production analyzed.

TVA itself has a vast amount of data about the water resource of the region. Records of precipitation and of stream-flow are voluminous. Rates of siltation and records of water quality are available, used by TVA in its operations, and available to technicians of State and local governments.

TVA power distributors know about the industries they serve with electricity. Transportation studies have been made by TVA. The Bureau of the Census and other agencies have collected information of various kinds.

All this material is assembled and made available to the committees which I have described. It is brought up to date and down to size, supplemented by greater detail. It is analyzed, interpreted, and discussed, related to the specific area under study. Gradually public understanding of all the resources grows, all the problems and all the opportunities. The decisions of private owners and pubic bodies can be made with awareness of all the alternatives available.

"TVA; DEMOCRACY ON THE MARCH"

In 1943 a book called "TVA; Democracy on the March" was pubished. The author was Mr. Lilienthal, then Chairman of the Board of TVA. This book has much to say about the importance of local participation in total resource use efforts.

One chapter was entitled "Experts and the People." It described one advantage inherent in the statutory organization provided by Congress for TVA. Not only did specialists in various resource fields work together under a single management, they worked close to the problems, bringing scientific knowledge out of textbooks, research and experimentation, giving it to the people in a form they could understand and use.

The program I have just summarized is an illustration of one further step in this direction. Geologists, hydrologists, economists, and agronomists are called upon by Mr. Kilbourne's staff to meet with various groups. Specialists in recreation, transportation, forestry, and agriculture in fact from all resource fields represented in TVA are available for consultation and assistance. TVA programs are intensified to keep pace with local actvities.

The resource inventories and their analyses sometimes indicate that the project or activity which the local group was first organized to promote is of less consequence than other development activities insofar as long-time economic growth is concerned. Priorities change, and in the course of study and discussion it may become apparent that the greatest impediment to local economic growth lies in the quality of education, or the lack of facilties for transportation by highway or rail in the area, or in shortages of certain resources, or limitations on credit or suitable sites for industry.

PROBLEMS OF UNEMPLOYMENT

For example, in one of these areas the inventory showed that there was a major problem of unemployment and underemployment. Now, there were newly established industries nearby and there were jobs in those industries, but the people living in this area were not properly trained for those jobs.

The State leader of this project talked to the local people who were working in the field of vocational education, and together they went to a nearby State college and talked to the people there interested in vocational education. The college agreed to help organize a program for retraining of these unemployed people to give them the kind of background they needed to take jobs in the new industries. They agreed that they would conduct night schools for adults in the local school buildings, using the facilities that were there. And they are now engaged in talking with the managers of nearby industries to determine the specific kinds of training for these unemployed people at the present time unemployable in the industries accessible to them the kind of training needed to qualify them for the jobs that are there.

The story of another group-and this one organized also on a small watershed basis-further illustrates how a broadened view may alter the timing and the nature of activities undertaken.

Here, more than 10 years ago, a group of farmers under the leadership of the county judge asked TVA to dredge out the channel of their stream. They hoped to stop the damage caused by summer floods to riverbottom corn crops. The uplands, heavy producers of cotton in years gone by, had eroded away into nonproductiveness; their owners were scratching out a bare existence or had already given up and abandoned the farm.

There was very little off-farm employment in industry or otherwise. Young people were leaving the area as soon as they finished school-to look for jobs. And now the bottom lands, fertile but often overflowed by the floodwaters of a stream choked with silt from the destroyed uplands, were also failing to produce decent income. TVA agreed to see what we could do to help. We met with local groups and with representatives of the State and undertook the kind of analyses and activities I have just described.

The people first recognized, although this took some time, that what they really wanted was more job and income opportunities; that eliminating bottom land flooding was important only as it contributed to that end; that it was only a part, probably a small one, of their total problem, and that in any case dredging the channel would be useless until something was done to stop the flow of silt which would only fill it again. So they set up work groups to tackle, with TVA and other Government agencies, a whole variety of problems.

A program of tree planting on the worst eroded lands was intensified and a market for pulpwood was found, providing cash income from trees planted in earlier years.

If I may digress for a moment, I'd like to point out how this pulpwood marketing demonstrates the tie between TVA's general valleywide programs and these tributary area development projects.

PAPERMILLS

In the early 1940's TVA's foresters prepared an extensive study to show the feasibility of locating papermills in the Tennessee Valley. This is an area which grows pine trees well and fast.

Based on the findings of this report, about 1950 a paper company built, on the Hiwassee River, what is now the Nation's largest newsprint plant. This plant provided the market for pulpwood from the area I've been describing.

The pulpwood is loaded to barges at a landing on the banks of the Kentucky Reservoir, which TVA had identified and reserved for local use even before that reservoir was filled in 1944. And, of course, the barge channel created by TVA's main stream dams was used to haul the pulpwood nearly 400 miles to the mill.

Another papermill, using mostly pine, has begun operation this year near Pickwick Dam.

And now TVA has completed and released another study on the feasibility of hardwood pulpmills in the valley. This, too, in the years ahead, will help to bring continuing jobs and income to other Landowners and factory workers in other tributary areas.

TEST-DEMONSTRATION FARMS

But now to return to other activities in the tributary area I started to describe. TVA, working through the Agricultural Extension Service, established a greater number of test-demonstration farms in the area and the county agents persuaded and helped farmers to change over to diversified farming, including livestock raising.

As a result there have been several grade A dairies established in this area. Hog raising has been undertaken, and sheep and feeder calves have been introduced into the farm economy. This, with the help of concentrated TVA fertilizers, fitted into a plan for permanent pastures and cover crops to conserve and rebuild the upland soils. Cash crops, such as strawberries, were also introduced.

ATTRACTING INDUSTRY

Meanwhile, committees were at work determining what industries the area might best support. The whole watershed has a population of only about 20,000 people. I was recently told that 4 principal towns, the largest with 4,000 people, had only 2 industries of consequence in 1953. Since then, working in the area development program they have established 11 new industries and the old ones have expanded, providing nearly 2,000 new jobs.

While many areas attract industries which employ only, or principally, women, this community's industries have a reasonable balance between male and female employment and community leaders are working for an even better balance.

The largest county, reflecting the spirit of progress and growth, has built a new court house, and a new Hill-Burton hospital. The largest city has built new school facilities and several new churches and its outskirts are bustling with new residential subdivision construction.

Ten years ago when we first undertook this program, the concern locally was for the vacant houses and the loss of people. For 10 years work has been going on in this area. There has been progress every year. Now the construction of several relatively small water control projects is a next logical step in the orderly development of this area's resources. Changed land use has reduced erosion and therefore the problem of siltation.

EROSION CONTROL

About 25,000 acres have been planted in pine trees, and in addition, large areas have been put into permanent pasture, so that a substantial part of the area which contributed so much to the silt and added to the flooding problem has been brought under control.

There is one problem that has not been whipped yet. That is the problem which is common in this area, as it is in many others, the erosion of soil from drainage ditches and cuts and fills along roadsides. We believe we will be able, through coordination of the activities of State and local agencies in this program, to bring about changes in maintenance procedures and perhaps in construction that will help to correct that problem.

Water control projects are now recognized to be needed not just to reduce the local flood damage potential first identified as a prob