the General Assembly in 1964 to aid in the construction of new hospital
facilities in the State. In the field of mental hygiene, emphasis in the
State's program has been shifted from maintaining space for human
storage to providing the facilities for the active treatment of mental
disorders and rehabilitation of persons who are victims of mental
diseases. Bricks and mortar are an inadequate index of our program
for mental health, as are figures budgeted to defray the costs of that
program. It nevertheless is significant, I think, that from 1959 through
1966 the State spent $21, 891, 000 on buildings and equipment for the
Department of Mental Hygiene, and that funds for the operation of
our mental hospitals increased from $20, 562, 000 in fiscal to $37, 464, 000
in 1966.

Maryland has had a sound economy throughout its history, but for
the first time in 1959 the State assumed as its responsibility the function
of attracting new industry and persuading existing plants to expand.
One of the first acts of this administration was to establish a new State
agency—the Department of Economic Development—which was given
the authority and the responsibility to develop new business and
industry for the State. It was also charged with the responsibility for
promoting the ever-growing and ever-more-important tourist industry.
Since it began operations in 1960, this Department has been directly
responsible for 37 new plant openings in Maryland. These plants
employ 11, 000 workers, have an annual payroll of $69 million and a
capital investment totaling $45 million. Because of time limitations,
I cannot hope to give you a comprehensive report on all areas of
governmental endeavor, and, indeed, can only mention such things
as the highly successful program of oyster rehabilitation, the vast
expansion of our park system, the efforts that are being made to curb
the pollution of our water and our air.

But there are a few points I should like to cover before closing.
I was in Kentucky last week attending the 1966 Southern Governors'
Conference, of which I was Chairman. A great deal of dissatisfaction
was expressed, in discussions among the Governors, with the way the
federal government is handling some of its aid programs—education
and highways notably. There was nothing but praise, however, for
one program, and that was Appalachian Development Program. It
was with some degree of satisfaction that I recalled that this program,
involving the expenditures of many billions of dollars for the reha-
bilitations of depressed areas in the Appalachian region, had its genesis
in Annapolis at a Conference of Governors which I called in May,
1960, to consider a joint attack on the problem. In a speech at that

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