Evening star., 1932-05-02
WAGNER SUPPORTS
WORK INSURANCE
Two Courses Offered by Sen
ator for Federal Part in
Compulsory Law.

In an individual report of the special
Senate committee appointed to make
ElIryey. Senator Wagner, Democrat, New
York. was on record today as having
recommended compulsory unemploy-
ment insurance or wage reserves. TO be
regulated under State authority.
Wagner would have the Federal Gov
eminent encourage state action by two
courses with the States
in establishment of a Nationwide en-
ployment service, and by allowing en-
ployers to deduct from income TAX a
portion of their payments into the un-
employment reserves.
The New York Senator sponsored the
Senate inquiry into unemployment in
surance. Senator Hebert, Republican,
Rhode Island, the chairman OF the
committee, stated: I'VE are in accord
on the main feature-State compulsory
insurance" He said he would submit
@ final report shortly.
Compulsory insurance does not mean
that the states must operate the IN
surarce system" Wagneris report en-
phasiEed, Tor that the State must con-
tribute to the Insurance fund or re-
serve. All that a system OF compulsory
insurance necessarily involves Is that
the employer is under statutory obliga-
IlOll W PIOfAdC oAANS "
protect his employees against a stated
period of unemployment"
In Other Nations.
Wagner pointed out that unemploy-
ment insurance is already established
upon a compulsory basis in Austria,
Bulgaria, Germany, Great Britain, irish
Free State, Italy, Luxembourg, Poland,
Queensland and Russia.
70 - hn Raid HthpTP Are IN
the United States at the utmost only
100 900 workers covered by any form OF
benefit plan against the losses arising
out of unemployment"
He summarized his findings as fol-
lows:
Il. The evil consequences Of unem-
ployment can and should be mitigated
by the establishment Of unemployment
insurance or wage reserves.
20. Unemployment insurance or wage
reserves, to be successful should be
inauglrated under compulsory state
legislation and be supervised by state
authority.
'3. The Federal Government should
encourage State action by (a) coop
Grating with the States in the establish
ment of a Nationwide employment
service, and (b) by allowing employers
to deduct from income tax q portion OF
their payments into unemployment re-
serves.
"a. Every system of unemployment
insurance or reserves should be organ
lied to provide incentives to the Stanil-
ization Of employment.
"5. The insurance or wage reserve
system should be built on plan f1nan-
cially and actuariily sound, SO that the
premiums paid into the fund shall be
sufficient to meet the obligations Of the
fund.
Advantage Is Eliminated.
"6. Compulsory unemployment in
surance eliminates the competitive ad-
vantage of the employer who refuses to
recognize his business responsibility for
unemployment.
~. Compulsory unemployment In
Burance preserves the mobility OF the
worker and his freedom of action in at
tempting to improve his position.
"8. Unemployment insurance VIII
beneficially affect not only the workers,
but agriculture, industry and trade all
alike profit from sustained purchasing
power.
80. Sound business and good con-
science both command us, In dealing
with unemployment, to abandon the
methods of poor relief, with its ballyhoo,
its inadequacy, inequality and uncer-
tainty, which are drain on the sym
pathy of the giver and strain on the
character of the taker. Let us, like civil
lied men and women, organize tntelli-
getty to prepare during sunshine 10
Withstand The rain"
Meanwhile, the Joint Committee On
Unemployment issued statement de-
knanding that Congress put aside al
other legiaation for the Immediate con-
sideration Of the Wagner construction
bill and the Wagner Federal unemploy-
knent relief measure.