The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1910-05-31
Figures Cause Reflection.

Thus TO take an average case II IS
shown by the table that a person now
aged forty. and receiving a salary Of 500
a month viii be compelled 10 contribute
each month $3.50. or SIS annually.
These cold figures startle those who
declare that they are hardly able
10 make ends meet by drawing their en-
tire salary. and that II part OF II is 10
be withheld. the hardship viii be in
creased. Il is generally understood that
the clerks are actually getting less now.
on an average. than they got fifty years
ago. The cost Of living has advanced
enormously. and with no immediate pros
pect OF advancement in salary. the
question Of withholding from the pav en-
velOpes n certain percentage Of the sal
aries presents a new phase Of the subject
There are many clerks who are adverse
10 the bill. on the ground that II
Is compulsory instead Of voluntary. They
contend that the government has no right
10 require that an employee contribute a
certain part Of his salary toward q re-
t'rement fund or In any way coerce him
in the matter Of spending his own money.
This argument is presented mostly by
those young I'm the service who believe
that II they can spare from living ex-
penses a certain amount Of their salaries
they can get more than 3Ik per cent on
safe investments. Some have gone so
far as 10 seek information from life IN
surance companies. and state that they
can do as well by investing the same
amount with them for an annuity: also
that they prefer life insurance.
A Matter Left Optional.
IF after this bill has gone into effect.
one chooses TO come TO Washington and
accept a position under the requirements
Of the bill. II is no ones business" said an
accountant who holds a high position IN
one Of the departments. but those already
appointed at q certain salary should be
allowed 10 say whether they will accent
the proposition"
There is another point that does not
appear 70 many exactly just Not until
clerk has been in the service six years
is interest 10 be allowed. After that
time the amount contributed will pay az
per cent. compounded semi-annuallv.
Right here is where they make another
declaration to the effect that the in
vestment is not advantageous. as there
are many strong savings banks that paw
as high as 4 per cent compounded semi
annually. and per cent is easily obtained
on excellent security.
In figuring the percentage to be with
held, the government il is claimed, has
used table Of MORTALITY that gives II
every advantage over the clerk and
makes it entirely safe against direct
loss. The table that the government
used IS the British Offices annuitants'
| experience (selecO, at $40 per cent.
II the American or actuaries' table had
been used. the assessments would have
! been about II per cent smaller. Aside
from being safe against direct financial
loss. the government Will profit by the
| retirement just as the railroads are
profting under the direct pension scheme.
Moreover, the annuities are small and
It Will be years before any one receives
more than $500. while most Will receive
much less.
Clerks have been reticent. but slnce a
petition has been circulated through The
| departments, sanctioned by Cabinet ofJi-
cials. there Is more freedom of exnras-
sion, and discussion can be heard g.,
every hallway and corridor.