We must help deal with the pockets of chronic unemployment that here and
there mar the nation's general industrial prosperity. Economic changes in
recent years have been often so rapid and far-reaching that areas committed
to a single local resource or industrial activity have found themselves
temporarily deprived of their markets and their livelihood.
Such conditions mean severe hardship for thousands of people as the slow
process of adaptation to new circumstances goes on. This process can be
speeded up. Last year I authorized a major study of the problem to find
additional steps to supplement existing programs for the redevelopment of
areas of chronic unemployment. Recommendations will be submitted, designed
to supplement, with Federal technical and loan assistance local efforts to
get on with this vital job. Improving such communities must, of course,
remain the primary responsibility of the people living there and of their
States. But a soundly conceived Federal partnership program can be of real
assistance to them in their efforts.
Highway Legislation.
Legislation to provide a modern, interstate highway system is even more
urgent this year than last, for 12 months have now passed in which we have
fallen further behind in road construction needed for the personal safety,
the general prosperity, the national security of the American people.
During the year, the number of motor vehicles has increased from 58 to 61
million. During the past year over 38,000 persons lost their lives in
highway accidents, while the fearful toll of injuries and property damage
has gone on unabated.
In my message of February 22, 1955, I urged that measures be taken to
complete the vital 40,000 mile interstate system over a period of 10 years
at an estimated Federal cost of approximately 25 billion dollars. No
program was adopted.
If we are ever to solve our mounting traffic problem, the whole interstate
system must be authorized as one project, to be completed approximately
within the specified time. Only in this way can industry efficiently gear
itself to the job ahead. Only in this way can the required planning and
engineering be accomplished without the confusion and waste unavoidable a
piecemeal approach. Furthermore, as I pointed out last year, the pressing
nature of this problem must not lead us to solutions outside the bounds of
sound fiscal management. As in the case of other pressing problems, there
must be an adequate plan of financing. To continue the drastically needed
improvement in other national highway systems, I recommend the continuation
of the Federal Aid Highway Program.
Aside from agriculture and the four subjects specifically mentioned, an
integral part of our efforts to foster a strong and expanding free economy
is keeping open the door of opportunity to new and small enterprises,
checking monopoly, and preserving a competitive environment. In this past
year the steady improvement in the economic health of small business has
reinforced the vitality of our competitive economy. We shall continue to
help small business concerns to obtain access to adequate financing and to
competent counsel on management, production, and marketing problems.
Through measures already taken, opportunities for smallbusiness
participation in government procurement programs, including military
procurement, are greatly improved. The effectiveness of these measures will
become increasingly apparent. We shall continue to make certain that small
business has a fair opportunity to compete and has an economic environment
in which it may prosper.
In my message last year I referred to the appointment of an advisory
committee to appraise and report to me on the deficiencies as well as the
effectiveness of existing Federal transportation policies. I have commended
the fundamental purposes and objectives of the committee's report. I
earnestly recommend that the Congress give prompt attention to the
committee's proposals.
Essential to a prosperous economic environment for all business, small and
large--for agriculture and industry and commerce-is efficiency in
Government. To that end, exhaustive studies of the entire governmental
structure were made by the Commission on Intergovernmental Relations and
the Commission on the Organization of the Executive Branch of the
Government--the reports of these Commissions are now under intensive review
and already in the process of implementation in important areas.
One specific and most vital governmental function merits study and action
by the Congress. As part of our program of promoting efficiency in
Government and getting the fiscal situation in hand, the Post Office
Department in the past three years has been overhauled. Nearly one thousand
new post offices have been provided. Financial practices have been
modernized, and transportation and operating methods are being constantly
improved. A new wage and incentive plan for the half million postal
employees has been established. Never before has the postal system handled
so much mail so quickly and so economically.
The Post Office Department faces two serious problems. First, much of its
physical plant--post offices and other buildings-is obsolete and
inadequate. Many new buildings and the modernization of present ones are
essential if we are to have improved mail service. The second problem is
the Department's fiscal plight. It now faces an annual deficit of one-half
billion dollars.
Recommendations on postal facilities and on additional postal revenues will
be submitted to the Congress.
A final consideration in our program planning is: