Statement on the Life Insurance Industry's Pledge of Additional Investment Capital for Urban Core Areas.

THE PLEDGE made by the life insurance companies to provide a second billion dollars of investment capital for urban core areas is most heartening. It demonstrates again the depth of their concern about the problems of our cities, and it will provide an effective way to bring more jobs and better housing to many Americans who need them.

Because this action represents a continuation of a program which began in 1967, the industry will be able to draw upon a great deal of experience. Our urban problems require intelligent planning as well as additional money, after all, and the life insurance industry is increasingly able to provide the needed skills. In the first billion-dollar program, the industry financed specific projects in 227 cities in 42 States, the District of Columbia, and Puerto Rico. They also financed 63,000 units of better housing for low-income families and invested in core area business enterprises and community services which created 30,000 permanent jobs.

The continuing commitment of the life insurance companies illustrates the effectiveness of volunteer business efforts in meeting social needs. It is no surprise that many of these companies are also involved in programs like the National Alliance of Businessmen and Plans for Progress. The men and women who are responsible for such initiatives are truly pioneers, breaking new ground and setting a pace which other groups and individuals can be expected to follow.

With such cooperation, government can work effectively by entering into a creative partnership with the private sector. The life insurance executives can be sure that this administration will cooperate fully in making their program as effective as possible. We realize, too, that government can do more than it has done in the past to encourage further efforts of this sort by private investors.

The program of the insurance industry will have an impact far beyond what is directly accomplished by this particular investment. The effectiveness of that investment will be multiplied many times by providing economic stimulation, by inspiring further investments, and by encouraging greater cooperation between private and public institutions.

The Nation deeply appreciates the farsightedness and the sense of responsibility of the life insurance companies. On its behalf, I congratulate them for this significant decision.