(The chart entitled "Suburban Growth Means More Traffic" is as

follows:)

Source: Detroit Metropolitan Area Traffic Study, 1953.

Mr. NANCE. Not just homes, but also stores, factories, churches, schools, and other new developments will continue to scatter through outlying urban areas.

This will mean greater future use of motor vehicles to carry both people and goods. For example, a recent metropolitan traffic survey in the Detroit area shows a typical picture of how use of motor vehicles rises in direct relation to the distance people live away from the downtown area.

The next subject is the potential rise in family income. That is shown on the next chart.

(The chart entitled "Potential Rise in Family Income" is as follows:)

POTENTIAL RISE IN FAMILY INCOME

Source: Based on, "Potential Economic Growth of the United States During the Next Decade"; by Staff,
Joint Committee on Economic Report, 1954.

Mr. NANCE. Due to constant increases in production efficiency in both industry and agriculture, the average family can look forward to greater real income in the next 10 years. If the economy grows at the rate it is fully capable of growing, this average family income will be $1,500 more in 1965 than it was in 1954 measured in purchasing power of 1954 dollars.

This brings us to an increase in motor vehicle registrations.

(The chart entitled "Increase in Motor Vehicle Registrations" is as follows:)

INCREASE IN MOTOR VEHICLE REGISTRATIONS

Mr. NANCE. The President's Highway Advisory Committee had predicted that motor vehicle registrations in the Nation will rise from 58 million for 1954 to 81 million by 1965-an increase of 40 percent. The automobile industry's own market studies support this prediction, indicating a net gain of about 23 million vehicles in use by 1965. We assume here, of course, substantial improvement of our highway system during the next 10 years.

To meet this demand, there is illustrated on the next chart what the automobile industry is doing about it. The chart shows the automotive plant expansion investment from 1950 through 1954, showing a tremendous investment that has been made.

(The chart entitled "Automotive Plant Expansion Investment" is

as follows:)

Mr. NANCE. Our industry's faith in this growing automotive market is reflected in a $4.5 billion investment in expanded production facilities in the last 5 years, and in plans for continued future expansion at a high yearly rate. This does not include yearly expenses of special tooling for new models.

Since no company can finance such major capital investments from its earnings alone, a substantial part of this money has come from borrowings. The future benefits of these borrowings, to our employees and customers and stockholders, will vastly outweigh the interest we pay on borrowed money.

We believe that this same principle of weighing the benefits to be obtained from borrowed money, as well as the interest cost-should apply in governmental consideration of financing urgently needed highway improvements with borrowed money.

WHAT ROADS ARE NEEDED, AND WHY

The growth of population in the next 10 years, and the growing demand for motor vehicles, add up to a critical need for faster improvement of roads and streets.

But if real progress is to be made in this work, through road programs adopted in Congress and in State legislatures, such road programs must be based on a clear understanding of just what kind of roads are needed and why the need is urgent.

Modern highway deficiencies are not as easy to recognize as were the mud-road problems of the 1920's. Today's road needs are only in part a need for more miles of hard-surfaced roads.

In the main, our highway needs today concern traffic capacity, traffic safety, and the important fact that the American economy is being built more and more around use of highways.

The next chart shows the daily vehicles per mile on roads and streets in 1954, and what these totals will be in 1965.