The nation’s public works activities are tremendous in scope.  It is expected that more than $ 12 billion will be expended in 1955 for the development of land, water and other resources; control of floods, and navigation and harbor improvements; construction of roads, schools, and municipal water supplies, and disposal of domestic and industrial wastes.  Many of the Federal, State and local agencies responsible for this work are, in their separate capacities, highly efficient.  But public works activities are closely inter-related and have a substantial influence on the growth of the country.  Moreover, in times of threatening economic contraction, they may become a valuable sustaining force.  To these ends, efficient planning and execution of the nation’s public works require both the coordination of Federal activities and effective cooperation with State and local governments.

The Council of Economic Advisers, through its public works planning section, has made important advances during the past year in effecting this coordination and cooperation.  In view of the success of these initial efforts, and to give more emphasis and continuity to this essential coordination, I shall request the Congress to appropriate funds for the support of an Office of Coordinator of Public Works in the Executive Office of the President.

A most significant element in our growing economy is an agriculture that is stable, prosperous and free.  The problems of our agriculture have evolved over many years and cannot be solved overnight; nevertheless, governmental actions last year hold great promise of fostering a better balance between production and markets and, consequently, a better and more stable income for our farmers.

Through vigorous administration and through new authority provided by the 83rd Congress, surplus farm products are now moving into consumption.  From February 1953 through November 1954, the rate of increase of government-held surpluses has been reduced by our moving into use more than 2.3 billion dollars’ worth of government-owned farm commodities; this amount is equal to more than seven percent of a year’s production of all our farms and ranches.  Domestic consumption remains high, and farm exports will be higher than last year.  As a result of the flexibility provided by the Agricultural Act of 1954, we can move toward less restrictive acreage controls.

Thus, farm production is gradually adjusting to markets, markets are being expanded, and stocks are moving into use.  We can now look forward to an easing of the influences depressing farm prices, to reduced government expenditures for purchase of surplus products, and to less Federal intrusion into the lives and plans of our farm people.  Agricultural programs have been redirected toward better balance, greater stability and sustained prosperity.  We are headed in the right direction.  I urgently recommend to the Congress that we continue resolutely on this road.