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AREA REDEVELOPMENT

U.S.

4. S. Congress. Senate.

HEARINGS

BEFORE A

SUBCOMMITTEE OF THE

'COMMITTEE ON BANKING AND CURRENCY. UNITED STATES SENATE

EIGHTY-FIFTH CONGRESS

SECOND SESSION

ON

S. 104, S. 964, S. 1433, and S. 1854

BILLS TO ASSIST AREAS TO DEVELOP AND MAINTAIN
STABLE AND DIVERSIFIED ECONOMIES BY A PROGRAM
OF FINANCIAL AND TECHNICAL ASSISTANCE AND
OTHERWISE

PART 2

FEBRUARY 24, 1958

Printed for the use of the Committee on Banking and Currency

-7-618

91201

UNITED STATES
GOVERNMENT PRINTING OFFICE

WASHINGTON: 1958

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Bishop, Charles E., professor, North Carolina State College, Raleigh,

N. C..

Parsons, Kenneth, professor, University of Wisconsin, Madison, Wis

Ruttan, Vernon, professor, Purdue University, Lafayette, Ind..
Smith, Eldon, professor, University of Kentucky, Lexington, Ky
Wills, Walter J., professor, Southern Illinois University, Carbondale,

Ill

Letters, statements, etc., submitted for the record by-

967

974

957

Ellis, Lippert S., dean and director, University of Arkansas College
of Agriculture and Home Economics: Letter to Senator Flanders
Fayette County, Pa., Development Council; F. A. Gradler, executive
vice president:

981

Letter to Senator Clark

980

Letter to Governor Leader_

980

Mendenhall, Howard, manager, Rend Lake Conservancy District,
Benton, Ill.: Letter to Senator Fulbright....

983

Murray, C. C., dean and coordinator, University of Georgia, College
of Agriculture: Letter to Senator Capehart

981

982

Raymond, Julia, Monrovia, Calif.: Letter to Senator Fulbright-
Schneider, Lawrence A., director, Economic Development Commis-
sion, Bismarck, N. Dak.: Letter to Senator Young

982

983

III

AREA REDEVELOPMENT

MONDAY, FEBRUARY 24, 1958

UNITED STATES SENATE,

COMMITTEE ON BANKING AND CURRENCY,

SUBCOMMITTEE ON PRODUCTION AND STABILIZATION,

Washington, D. C.

The subcommittee met, pursuant to call, in room 301, Senate Office Building, at 2:05 p. m., Senator Paul H. Douglas, chairman of the subcommittee, presiding.

Present: Senators Douglas, Frear, and Proxmire.

Senator DOUGLAS. The subcommittee will come to order.

The Production and Stabilization Subcommittee is resuming hearings on legislation dealing with area redevelopment. A number of bills have been introduced on this subject-S. 104, S. 964, S. 1433, and S. 1854. All were considered at length, and were printed in part 1 of these hearings held during the last session.

The problems of the areas involved are made far worse by present business conditions. Areas which suffered from a high rate of unemployment in 1956 and 1957 are now far worse off. Many areas which were just on the borderline of being in the surplus unemployment category in 1956 and 1957 are in real trouble now. Last year the Labor Department's statistics classified 19 of these areas as being in distress. Today there are 45 so classified.

We have been assured that these difficult times too will pass way, by March, or June, or anyway by November. But, even if full prosperity resumes by one or more of these selected dates, the areas which needed redevolpment in 1957 will still need redevolpment in 1958 and 1959, and a number of the areas which were marginal in 1957 may have fallen permanently into the class which needs redevelopment.

Also, the normally hard-hit areas are the first to feel the full impact of an economic dip or slump and really contribute to the spread of the problem across the Nation.

The present time is, I think, desirable for many of the public projects which would be authorized by my bill, namely, industrial water, sewers, power, and other similar projects on which further industrial or commercial development of a city or a town may depend.

I may say in this connection that the provision of industrial water is essential for the attraction of industry in the hard-pressed areas. Yet this cannot be counted in the benefit-cost ratio.

The Army engineers primarily concentrate on navigation and flood control. Similarly, in the Small Watersheds Act generally the industrial lakes thus provided will be too small for the attraction of large industry. So this provision of industrial water tends to fall between two stools. It cannot come under the Flood Control and Navigation Acts and it cannot come adequately under the Small Watersheds Act.

929

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