THE ECONOMY: Help at Home

In the depressed textile town of Lawrence, Mass., in the fall of 1952, Candidate Dwight D. Eisenhower said: "Now, ladies and gentlemen, this country is no greater than the sum of its parts. When a great group has a special problem that, due to special reasons, they are unable to solve in their individual power, it is time for somebody to come in and help."

In Denver last week, President Eisenhower accorded "strong approval" to a new federal plan for helping depressed towns like Lawrence. The plan called for the formation of a new federal agency within one of the Cabinet departments (Commerce or Labor), to make loans and give grants-in-aid for technical assistance to the depressed communities. The federal contributions would be matched by the states and communities concerned, the whole to be used for such purposes as building new plants, modernizing existing plants and developing new sites for incoming industries. This plan envisaged the extension of present measures, such as the retraining of unemployed workers for more productive jobs. The Federal Government's estimated share of the cost: $2,000,000 to $3,000,000 a year, with a new revolving fund for loans that might be set, initially, at $25 million.

The President defined his objective as "extending the good times" for all. The plan will be submitted to Congress next year.