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4230 Bondini Boulevord, Los Angeles 23, Colif. lruck and lrailer WHOLESALE basic premises to enable families to improve their housing conditions and thus, for'cities to improve their standards.

But the free flow of families from undesirable into desirable houses and neighborhoods as they are made available presupposes that all these families are able to do just that. Most of our families can, of course, buy or rent adequate homes on the private market. But unfortunately there are still large numbers in all our cities who cannot do so. Their inconres are too low-and beyond that many, even with adequate incomes, are forbidden to do so because of racial exclusion.

These are the people'ivhose housing problems constitute one of the most serious roadblocks we have to the clearance and prevention of slums and to the renewal of our cities. Their problems must be solved, or we have just failed to solve the problems of slums and blight. Out of 123 slum clearance projects developed under Title I of the Housing Act of 1949, at least half of the families living in the project areas are unable under current conditions to afford decent minimum private housing. Nearly two-thirds -or 40,000 of these families living in these areas-are minority families, who face the added difficulty of finding housing open to them at any price.

If we expect to clear slums and renew our cities, the housing problems of these families must be squarely. faced and solved.

In the low-income housing field, the President's program also introduces a new concept. Basically, it treats the lowincome housing market as part of the total housing market, and endeavors to serve it through private means as far as possible. To that end rve will propose, as recommended by the President's Advisory Committee, a special type of low initial payment, long-term loan designed to produce, through private means, both new and modernized housing at low cost and rents. Such special aids would be used for those who are displaced by urban renewal and other public works projects.

We have also found it essential to recommend continuation of the public housing program at a moderate level of 3.5,000 units a year for the next four years. The new plans to assist low-income families to acquire good housing will need Congressional authorization and it rvill obviously be some time before this can be translated into actual homes for these families. In the meantime, it seems only'reasonable and necessary to the success of our total program to continue public housing.

Before speaking in detail concerning public housing problems, let me clear the air somewhat as to myself and my rn'ell known views on the subject: I have always been a critic of political housing; I have always been a critic of socialized housing; I have ahvays been a critic of any system of institutional housing which might contribute to the creation of a poor house class or classes among our people. However, if public housing is viewecl in the correct perspective, I recognize that it can serve as a helping hand extended to assist our people of low income at this stage in our housing efiort to bridge the gap now existing between the slums and either new low cost, or renovated older dwellings, which they can rent and, in time, perhaps, even buy in the American tradition. Public housing cannot be considered an end in itself; it is a conduit through which people can move toward improved and permanent living conditions.

The proposals for low initial payment, long-term insured mortgages will broaden the opportunities for more louincome families to acquire good homes. But it is a ner,v measure and it will take time to perfect and get it into operation in any substantial degree. However, I am confident that in time it will greatly reduce the need for public housing. Out of these experiments and the continuing studies we are undertaking in this field, we are developing still other means for providing satisfactory housing for more of our lowest in,come families. It seems to me quite obvious, as we increase our supply of good lower cost housing through the efforts now being proposed, that we must also provide a good measure of older but still sound housing within the reach of lower incomes. It would seem to me far preferable to provide limited subsidy for low-cost private housing of these types than to continue indefinitely to build new, isolated housing projects, which inevitably make it more difficult to integr'ate low income families into a progressive and ever-growing nation.

In the meantime, however, it would be misleading to say that we can make anything like enough such low-cost private housing available for these people right now or in the immediate future-whether they be of minority groups or not. Yet we cannot afford to postpone any longer offering these families the opportunity to obtain homes. The solution to their problem is the immediate crux of our whole effort to clear slums. It is therefore essential to the success of the program as a whole that we adopt the President's recommendation for a limited level of public housing for the next few years during this period of experimentation and the development of new methods.

I want to say frankly, however, that regardless of rvhat measures are provided or developed to clear slums and meet low-income housing needs, the critical factor in the situation which must be met is the factor of racial exclusion from the greater and better part of our housing supply. I must tell you that no program of housing or urban improvement, however well conceived, well financed, or comprehensive can hope to make more than indifferent progress until rve open up adequate opportunities to minority families for decent housing.

We cannot do a real job of clearing slums until lve accomplish this. At least trvr.r-thirds of the slum families in many of our major cities are minority families who, regardless of income, would find it extremely diffrcult to get other housing. We cannot hope to meet the housing requirements of our low-income families-of which minorities consititute a disproportionately large number-until and unless \ve open the doors of an adequate supply of good private housing to them.

This is not, let me stress, a low-income pro,blem as such. Lou'-income simply ,complicates the problem of many minority families, but all face it-even those with relatively high incomes. A great many of these families are able and willing to pay for good housing, if they can find it. Their incomes have greatly improved over the past decade, and the1. are ready to enter the market if the market u'ill receive them. Recent studies in a number of our large cities inclicate a very substantial l.aiting market for Negro housing ranging from $40 to $90 in rents and from $6500 to $15,000 for sales housing. u'ith a fair nunrber of n.rinoritv iamilies able to enter the luxnrv housing market.

It is vert- pcior business to ignore or-re-tenth of onr poltulation as a housing market. It is u-orse than bad business. \\re are simply not living up to the standards of a free economy and a clemoclatic society. For the housing economy has not been a free-economv for the Negr<>. If he u'ants to get out of a slum, his best hope usually has been to pay a premium price for a house in bacl condition in a deteriorating neighborhood. If he finds a house he can 1r.11., he mtlst pay more than the normal marl<et price for it-sinrlrly because he isn't free to c()nrPete on the market. If he is able and l.illing to pay the price, he has difficultv getting financing on reasonable or even eqrlal terms. Yet todav these minority families constitute a grou'ing and important part of our society. It is ironic that tl-rough they contribute through savings and inr-estments a very sultstantial part of our capital u'hich is needed to support the over-all housing and our other procluctive activities. they are the last in line rvhen jt crimes to borrou'ing nronev to build or buy a home.

This is not primarily a Federal problem. The Presiclent has n.rade it clear that to the extent that Federal policies can be so used, rve u'ill do all in our autl.rority to make housing and home finance available to minoritl' families and 'lve certainly rvill not approve Federal assistance t<r any conrmunity unless the affected minoritv families are aderluatelv rehoused and are fairly treated. \\re are also concentrating the efforts of our Racial Relations Service on the task of u'orking rvith private builders and lenders to u,ork ()ut means of increasing the production of housing ar':r.iiable to our minority citizens. We are also in the process of tightening the Agency's procedures to make rloubly sure that all citizens, regardless of race, are given :rn even break.

But the real problem lies l'ith the citizens, the lrusiness r.nen-the l>rrilders, the lenders, the realtors-and the civic leaclers and officials n'ho u'ill have to face this problem ancl -u'clrking together-correct it. The blockade of custom ;rncl code. of unjustifiecl economic fears, must be l>reached, ancl the Negro family nrust be given access to goocl homes and goocl neighborl.roods. No citizen can afford to let this mir.rority. housing pressure continue to build up tci the cxplosion point, as it already has in some instances.

Iiederal help cannot dci the job by itself and it should not. It can onlv assist the communities to do their job-to extend a real helpir.rg-hand to those of our citizens u'ho need that help so as to live clecentl,v ancl raise their yotlng in healthr'' ancl crime-free environments. If yclu don't u'ant to clear your slums and reneu' your cities, then forget it. But if you do, then get busy. I am conirdent that the Congress will, on the basis of the President's proposals, provide an effective and comprehensive progranr that rvill give you the help you need.

We would like to extend our thonks ond oppreciotion for your mony courtesies during the post yeors.