Statement by the President on the Textile Industry.

THE TEXTILE industry plays a vital role in the health of the American economy.

Almost 2 1/4 million Americans--one out of every eight industrial employees--work in the textile and apparel industries. Hundreds of thousands more are employed in producing materials, machinery, other services and supplies for this enormous industrial complex.

No region of the country contributes more to the health and prosperity of textiles than the American Southeast.

When this administration took office serious difficulties confronted this industry.

Between 1950 and 1960 approximately 275 mills closed, and 341,000 textile mill-product employees lost their jobs. Profits were down. Growth capital for research and expansion and improvement was in short supply. The result was not only a stricken industry, but damage to the economic health of the entire Nation.

When this administration took office it recognized the importance of the textile industry and the special nature of its problems. It was determined to find answers.

We worked hand in hand with Congress to develop a seven-point program for textiles. This program would not have been possible without the farsighted leadership of Carl Vinson. He served as the congressional spokesman of textile matters and worked closely with the administration.

The result is a classic example of the benefits of constructive cooperation between Government and business.

A number of bilateral and multilateral trade arrangements have been negotiated and implemented to bring about more orderly world trade in cotton textile products. New tax depreciation schedules have encouraged plant expansion and improvement. This year a new law made it possible to buy American cotton at the same price it is sold abroad for the first time since 1956. Even in the difficult area of wool products, so vital to Georgia, we have taken significant steps to stem the tide of certain imports which have entered this country through unintended loopholes in our tariff laws.

The result has been increasing confidence and well-being for the industry and its workers. Wages have been increased--twice within the past year. The Department of Commerce estimates a 1 billion bale increase in domestic cotton consumption this year. The demand for textile products is good. The industry is planning record-breaking investments in plant and equipment. Annual capital expenditures averaged $414 million in the 1950-1960 period. They are expected to approach $800 million in 1964. This is a rate of increase not surpassed by any other major American industry. Textile machinery sales are up. Thousands of new jobs are being created.

These are impressive accomplishments. We know the job can be done. We must now focus on the remaining weak spots, and implement the rest of our program.

We must move ahead with a permanent one-price system.

We intend to keep cotton textile imports from disrupting the market.

Wool product imports must be kept at reasonable levels. For it is essential that the wool textile industry be restored to good health.

I am convinced that our program for textiles is in the best interests of all America. I intend to pursue it to a successful conclusion.