Statement by the President Upon Signing the Second Supplemental Appropriation Act, 1956.

I HAVE TODAY approved the Second Supplemental Appropriation Act, 1956.

No funds are provided in the bill for the Tennessee Valley Authority to initiate construction of an additional steam-electric generating unit at the John Sevier plant. I am advised that a majority of the House Appropriations Committee believed that TVA could use its power revenues for this purpose, while the minority challenged this authority. I am also advised that the Senate Appropriations Committee expressed its conviction that TVA should not use its power revenues unless and until approved by the Congress.

This conflict of opinion as to the existing authority of TVA makes it imperative that Congress decide how new plants and additions to existing plants are to be financed. The Administration has recommended that they be financed by the sale of revenue bonds, subject to the usual Congressional and Budget controls. This recommendation has not as yet been acted upon. I again urge that the revenue-bond method of financing be authorized.