just gradually dying, and I want to make this thought, Mr. Chair

man

The CHAIRMAN. This committee has no jurisdiction of those subjects.

Mr. BAILEY. What is the basis of American prosperity; if it is to be a sound prosperity, it must not overlook the small basic industry. They are the backbone of our economy.

The CHAIRMAN. I want to say to the gentlemen, and I am sure he knows it, that tariff duties, freight rates, ocean rates, trade agreements, are not within the jurisdiction of this committee.

Mr. BAILEY. Let me apologize, Mr. Chairman, for trying to bring them before you.

The CHAIRMAN. I realize the gentleman represents the people that are sorely pressed and they are in great need of help, but that argument should be addressed to some of the other committees. We wouldn't have any power to raise our lower tariff duties. We have no influence over freight or ocean rates for trade agreements.

Mr. BAILEY. Mr. Chairman, I agree with you that it is not within the purview of this committee to do that, and I probably am imposing upon your time in talking about it, but it does lay the foundation for this economic soft spot which this legislation would cure if the Government would help bring some small industries into these stricken

areas.

The CHAIRMAN. We are going to try to do our part within our jurisdiction.

Mr. BAILEY. The Government is responsible for those soft spots in our economy, and this Congress is responsible for it.

Mr. MUMMA. May I ask the gentleman a question, Mr. Chairman? The CHAIRMAN. I will recognize the gentleman.

Mr. MUMMA. Mr. Bailey, all week we have seen on television from Huntington, W. Va., they were talking about the increase of prosperity in the coal industry. Are not the number of tons of coal produced getting back nearer to what they were, but the less man-hour methods of getting it into the cars is what is causing the difficulty on employment in the industry.

Mr. BAILEY. We have had a 22 percent increase in that type of West Virginia coal that is used in the manufacture of steel. Eighteen months ago, the steel industry was operating at 17 percent capacity. It is now operating at about 102 percent. So we have had a demand for that type of coal.

Mr. MUMMA. Coke, you mean?

Mr. BAILEY. It is coking coal. The coal acreage is owned by the steel companies, and the mines that were working 3 and 4 days are working 5 or 6 days, because of the increased demand for steel. That coal doesn't go into the commercial markets at all. It goes directly from the steel company-owned mine to their steel mill. That is up 22 percent.

Now, let's talk about the other two-thirds of our coal markets that go into the commercial business. That is the one that is having to meet competition from residual oil, and from gas and from the other fuels.

Now, there we have had an increase, largely export coal, that has amounted to approximately 11 percent over what it was 15 or 18

months ago, and that has picked up some of these 79,000 miners having gone back to work again, probably 14 or 15 thousand of them have been called back because of that increased demand.

Mr. MUMMA. How about stripping, that took a lot of jobs away, didn't it?

Mr. BAILEY. That is not covered in these mine closings and in these jobs. I didn't produce the figures for strip mining. It is producing about one-eight of the coal produced in West Virginia.

Now, Mr. Chairman, I could do a lot more talking.

The CHAIRMAN. The House is in session, and I suggest that the committee adjourn.

Mr. BAILEY. I thank the committee for listening to me.

I hope, Mr. Chairman, that the committee can find its way clear to enact, not my legislation particularly, but some type of legislation along the line suggested in this plethora of bills that have been introduced.

The CHAIRMAN. We hope so.

STATEMENT OF HON. W. PAT JENNINGS, A REPRESENTATIVE IN CONGRESS FROM THE NINTH DISTRICT OF VIRGINIA

Mr. JENNINGS. Mr. Chairman, members of the committee: I appear here today to urge this committee to report to the House for approval in the near future a bill to create a much-needed, long-range program of Federal assistance-both in the technical-planning and financial fields for the areas of the Nation suffering chronic unemployment. I represent the Ninth Congressional District of Virginia, which has several coal-producing counties. Their economy is based on coal. Beginning in late 1952, coal production started to decline, and, of course, was accompanied by declining employment. This unemployment increased in 1953 and until late 1954 when there was a slight uplift in coal production and employment. Coal production has continued to increase, at least in my coal-producing counties, until normal or above normal levels. But there has not been a corresponding increase in employment. The reasons, primarily, have been due to mechanization and other technological advances, indicating that in order for these counties to reach full employment, there must be new job sources. A new economic base must be created with lesser dependence on the coal industry as the primary source for employment. This does not mean that I fear the coal industry will not continue to expand. Far from it. I have every confidence in coal's future, but with extensive mechanization continuing, we will need additional job sources.

I have advocated in the last several months the beginning of a Federal program to alleviate the deplorable conditions existing in certain areas of persistent and extensive unemployment. Last year I introduced a bill to begin a program of public works to offset declining unemployment and to aid in obtaining the multitude of public projects needed in the development of these areas. It is unfortunate that such legislation as is now being considered before this committee was not supported by the administration last year. It is, indeed, heartening to find several other Members supporting such legislation. I am glad that the administration has finally admitted the need and is supporting a recovery program, although a program that is lacking in certain features.

My purpose today is not to present a lengthy statement, but to reiterate that the need is great. I know that you have heard considerable testimony from Government departments, interested and affected organizations; and that you have doubtlessly reached the decision that legislation is needed. I believe that this legislation should be approved before these communities wither away and their economic recession spreads to other areas of the economy. There has been hunger and deprivation in these depressed areas. This is not a proper condition in our Nation where we have so many with such great prosperity.

Coal-producing areas, which is an example of the efforts being made aside from this proposed bill, will be aided, eventually I hope, by other actions. These include an import quota on residual oil that has been dumped into traditional coal markets, displacing several million tons; development of new uses and new markets for coal; and the conversion of coal to liquid fuels. However, the need for the legislation being discussed today is not diminished by any of these proposals for the future.

Generally speaking, I am in favor of H. R. 8555 and similar bills. There are certain provisions, however, which I feel should be changed, and it is these I wish to discuss briefly. Also, I wish to say that I support many of the proposals outlined in title II of H. R. 10472 and 10443.

The need is for an integrated and broadly conceived program having central coordination and directed by an administrator. I believe such a program can be established by adopting features of H. R. 8555 and of title II of H. R. 10472 and 10443.

Summarizing some of the reatures of H. R. 8555 that can be improved by features of H. R. 10472 or 10443:

H. R. 8555 would place an Area Assistance Administration in the Department of Commerce. The Administrator would be responsible to the Secretary of Commerce. H. R. 10472 and H. R. 10443 would create an independent Depressed Areas Administration with an Administrator. This latter proposal seems more feasible to me. Since the Depressed Areas Administration would touch many other departments in addition to Commerce, I feel that an independent Administrator, working with the departments and coordinating these various activities, would be best.

H. R. 8555 would authorize $50 million for industrial facilities, loaning only one-fourth of the cost of construction over a maximum 20-year period. The other 2 bills provide a more realistic $100 million with loans up to two-thirds of the construction cost for as long as 40 years.

There is no comprehensive provision in H. R. 8555 for public works that are needed in an industrial development, such as waterworks and sewerage facilities. H. R. 10443 would provide $100 million for such facilities.

In areas of vocational training, which would be most valuable for older workers, H. R. 8555 again falls short. H. R. 10443 would provide Federal aid through supplemental unemployment-compensation payments to trainees. Any creation of a new economic base with new industry would require an extensive vocational training program.

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I believe the provision of H. R. 8555 to provide technical assistance to rural areas and rural communities in their efforts to develop manufacturing, processing, and service activities should be retained.

Finally, I would recommend that the eligibility requirements for participation in this Federal program be revised so as to liberalize the provisions of H. R. 8555, H. R. 10443, and H. R. 10472. In the list of areas that would qualify under H. R. 8555, as presented to this committee by the Under Secretary of Labor, one area (Big Stone GapAppalachia) and a part of another (Radford-Pulaski) would qualify in my district. I personally know of others that could benefit under this act, and should benefit from it.

There is another feature of H. R. 10443 and H. R. 10472 that should be enacted into law. That is the provision to continue distribution of surplus foods to areas of unemployment. This distribution has prevented real suffering in past months in many sections. For instance, under provisions of a bill I introduced last year, the Department of Agriculture was able to process surplus grain into flour and meal. As of the end of February, 35 States had ordered over 78 million pounds of this processed grain for distribution to needy. In my own district, the caseload for the month of March was 53,362. (This is not the number of unemployed, but also includes members of families of the unemployed.)

A program to aid depressed areas should be flexible and adaptable to the diverse needs of the several communities. It should be geared not only to help chronically depressed areas, but to assist communities in avoiding economic decline. Of course, local self-help is a necessary condition for a sound program aimed at the rehabilitation of distressed areas, and my counties and the State of Virginia's division of planning and economic development are making every effort to aid themselves.

Thank you for hearing my comments on these pending bills. I am confident that you will report an effective bill as a result of these hearings and your deliberations.

STATEMENT OF HON. LOUIS C. RABAUT, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF MICHIGAN

Mr. RABAUT. Mr. Chairman and members of the committee, I would first like to thank you for this opportunity to express my views on proposed legislation now under consideration by your committee to assist economically depressed areas.

As I have introduced a bill similar in scope to several being studied by your committee, I have a keen interest in the problem of economically depressed areas. We must prevent areas which are experiencing widespread unemployment from becoming destitute. One way to do this is to create an administration which would coordinate local rehabilitation efforts. In my bill, I have proposed that the Administrator appoint a local industrial-development committee to prepare plans for creating new employment, and set up machinery to finance such an operation. Another element of this particular type of legislation which I consider vital is the retraining of workers in affected areas. If a highly specialized industry is crippled or ceases to exist, a pool of specially trained surplus workers exists. If these people are

taught another skill, they may once again become gainfully employed. Another aspect worthy of consideration is the distribution of surplus food to economically depressed areas. It is only right that food which is in surplus be given to Americans who are in need. I have always felt that a great injustice is being done when we hoard $8 billion or $9 billion worth of food in warehouses and caves while some of our fellow citizens are improperly fed.

It is my hope that your committee will report favorably on a bill to assist economically depressed areas. I think it is a step in the right direction toward maintaining a decent standard of living throughout the country.

STATEMENT OF HON. ELIZABETH KEE, A REPRESENTATIVE IN CONGRESS FROM THE FIFTH DISTRICT OF WEST VIRGINIA

Mrs. KEE. Mr. Chairman and other distinguished members of the Banking and Currency Committee of the House of Representatives, thank you for considering this statement.

While most of the country seems to bask in an aura of prosperity, the facts are that we have many communities in the United States which are suffering substantial and persistent unemployment. Especially is this true in the coal-producing areas of the United States.

For many years, the economy of this Nation has been based upon a solid foundation of coal. Our coal miners have been the most important single element in bringing this country to its present position of greatness. It has been our large supply of coal and willing freemen to mine it that has made possible our rapid growth from a semiagricultural country into the greatest industrial giant in the world. But it has appeared to many, especially during these past 4 years, that the Nation has turned its back upon the coal miner at a time when he and his family need help. Americans cannot do without coal, but now they are finding that, thanks to improved production methods and new machinery, the coal miner can be turned out of work and left without opportunity to obtain new and gainful employment.

For example, West Virginia is the largest producer of bituminous coal in the United States. Of its deposit of 50 billion tons of bituminous coal less than 6 billion tons have been mined to date.

The Fifth Congressional District of West Virginia, which I have the honor to represent in the Congress, is the second largest coal-producing congressional district in the Nation and produces over 30 percent of the coal mined in the entire State.

The simple truth of the fact is that in this coal-producing congressional district, the unemployment is so high that nearly 1 out of every 5 men, women, and children are almost completely dependent upon surplus commodities for the very bread which goes into their mouths. As a direct result of the prevailing unemployment conditions throughout this coal-producing area and the accompanying lack of job opportunities, members of our younger generation are forced to leave their homes, families, and friends in an effort to find a way to make their own way.

Here are some figures: In the calendar year 1952, there were 310 operating coal mines in this congressional district, which employed 31,324 men who mined 39,806,802 tons of bituminous coal. In 1955,