The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1921-02-07


amount directly contributed individually, as well
as the pro-rata amounts provided by the govern
ment and employers. 1t would be un-American
to force workers, who are seldom or never out of
work, to contribute to the unemployment pen
sions of those who are periodically jobless.
Under such plan unemployment insurance
would resemble the life insurance endowment
policy 1t would be savings account. The
periodically jobless would draw against their in
dividual accounts when necessary on the install
ment plan, as they drew their pensions.
For those who are never without work, the
amounts paid in would accumulate at compound
interest. Whenever an individual retired from
work the total amount in the unemployment in
surance fund due that individual would be pay
able. 1t could then be invested by the individual
in income paying securities. In case of death,
the amount due would be paid to the individuals
family or estate.
Freedom of action to create savings individ-
ually should not be unduly interfered with.
Therefore, there should be a limit to the amount
an individual would be required to accumulate in
the unemployment insurance fund. That limit
could be determined by taking the average or
maximum of unemployment periods. AS soon as
any workers total accumulation amounted to
enough to provide pension payments for the de-
termined period, no further payment should be
required from that individual, nor from the en-
ployer or government, for that individuals
account. For factor of safety, after that point
was reached, it would be sufficient to require the
addition to the fund of the interest annually
earned, instead of paying it to the individual
as income.
Furthermore it would be more American if
the administration of unemployment insurance
| cd in tLo
eminent. The tragic and CHASTITY failure of
the government with the insurance is still
an intoerable injustice to thousands of manned
soldiers. 1t would be better to keep unemploy-
ment insurance out of the clutches of the poll
ticians.
| Plainly, justice would be best served and
there would be less red tape if each community's
contributions to the unemployment insurance
fund were administered and invested by that
community's banking institutions. In this man.
ners funds would not be drawn away to some
central point to the economic detrment of the
community.
The banks selected should all be members of
the federal reserve system. Payments by indi-
viduals, employers .and government should be
distributed among such institutions according to
their capital stock and surplus A reasonable
per cent should be allowed the banks for their
services in investing these funds. Investment
should be permitted only in approved bonds and
mortgages.
A local unemployment insurance board should
| be instituted by law for each community. It's
duties would be to receive and deposit payments
and after due investigation, pay unemployment
pensions. The expenses of this board should be
betrayed from the community's unemployment
insurance fund.-
Unemployment insurance is the way to
take its place in the industrial life of the United
States. Sooner or later it will be here as an add-
tional means for securing greater nornalcy in
industry and alternating human suffering.
Therefore, it is wise to prepare for it's advent so
that the form adopted will be true to American
ideals of justice and not adaptation of trans
planted European expediency and injustice.