Development and progress of the life insurance industry's urban investment program involves the whole concept of the role of private capital in rebuilding the nation's cities. Business has both short-range and long-range responsibilities to its owners. It must be a successful business today, and it must also direct its policies so as to foster an environment and economic climate in which it can be a successful business in the future. An excellent example of private capital taking the initiative, and at the same time cooperating with government, is the life insurance companies' one billion dollar investment program in the central cities. As of August 13, 1968, the life insurance companies had made nearly $659 million in specific commitments and disbursements. About 47,000 housing units will be financed by $517 million earmarked for dwellings. Some $142 million has been committed or disbursed on job-creating investments-industrial plants, wareholuses, distribution terminals, and service facilities. However, business alone cannot solve all of the problems of the cities. Tangible contributions toward a strong economy can be made by the unions and the cities themselves. In such a context, the role of private capital in rebuilding the cities can truly be great. The reconstruction of the center cities is a complex problem that concerns not only dollars but also people, social and economic institutions, political considerations, international commitments, and a host of other factors. Thus, the life insurance industry's commitment to invest one billion dollars in housing and other job-creating investments is a subject of considerable magnitude. It involves the development and progress of the industry's program itself as well as the whole concept of the role of capital markets in rebuilding the nation's cities. Solution to the urban problem will reCharles Moeller Jr., Ph.D., is Vice PresidentEconomics, Metropolitan Life Insurance Company. This paper was presented at the A.R.I.A. 1968 Annual Meeting. quire the efforts and cooperation of individuals from all walks of life. The need to improve the quality of life in the urban areas today is one of the most pressing domestic problems facing this nation. When specifically viewing the role of private capital, all savers and all investors, whether individuals or corporations, become involved. The Outlook for Capital Markets Before pursuing this further, what is the expected capital market climate in which such involvement takes place? As just one clue on this, detailed five-year outlook tables are developed at Metropolitan Life on the supply and demand for funds in the U.S. These tables are set up on an ex post hasic. tlit i. to r-nrPc.,'nf th fin!l Annli-