Evening star., 1934-10-07
AGE PENSION GAINS LEAD
AS u. S. CONTROVERSY
Welfare Experts Find Cure-Alls Numer'
ous-NOne More So Than Offered for
Care of Feeble-Europe Sets Pace.

point out that the problem Of age(
distress Is worse in the United Stat4
because it has been neglected 50
long. The committee in Washing
ton is said to be considering "con-
tributory" plan by which employers,
employees and the Government each
would pay share. The fallacy here
is seen in the fact that the aged
poor have nothing to contribute, with
their overwhelming majority COM
pletely jobless.
The problem, then, is found divided
into two parts: Immediate provision
and sound future program.
1t is the opinion of Abraham Ep-
stein, executive secretary Of the Amer
lean Association for Old-Age Security,
that to install only a contributory
system of old-age insurance would
put the cart before the horse" He
finds that old age can be provided for
solely through a system of non-con-
tributory pensions along the lines now
established in some of the States of
the country. His theory is that those
States which have enacted satisfactory
laws should then be served by a Fed
eral subsidy. Once the present urgent
problem has been met, he believes a
contributory plan could then be de-
vised for a future program for young
people.
Program In Congress.
Such a system of Federal aid was
reported out in the last two sessions
OF Congress by both Senate and House
committees, but failed of passage.
This proposed legislation was known
as the Dill-Connery bill.
Europe has doubtless acted before
us IN old-age care because the prob
lem has been acute much longer there.
AS far back as 1889 Bismarck inaugu-
rated such plan for German wage
earners. Farmers below a certain
minimum were compelled to make
contributions, and employers Clipped
IN equal amounts to a state fund
which was augmented by the federal
government. 1t is estimated that some
100000 in Germany are now Cow
ereo under this plan. approximately
100000 are receiving benefits. Low
income salaried groups are taken care
OF under another system.
This scheme spread to several
European countries, but England. in
lSU0 set up another by which the
oeneficiaries did not contribute The
British plan provides for those lover
7O) who satisfy citizenship reouire-
ments and whose incomes are less
than about f49 yearly. This act,
however, was supplemented in 1925
by system still in operation. Work.
ers must be insured under the ma
tional health insurance act. as it In
called. At 65, they begin to receive
an annuity II they have been insured
for five years, If they have made al
least l04 contributions and haw
averaged 80 contributions a year foG
three years.
The Netherlands has had a systen
in operation since 1918. France
after number of experiments
adopted compulsory old-age insur.
| ance in 1928. In all these countries
| the government contributes a con.
siderable proportion Of the cost.
Whereas most European countries
have restricted their insurance I'd
| wage earners and salaried employees
Sweden has gone step further
Contributions there are made by every
person over the age Of Is, and every
one is entitled to benefits on reach
ing old age. With the exception Of
certain government employees, every
one pays yearly insurance premiums
according to personal income. Bene-
| fits start when the individual reaches
81 years, or earlier if he becomes per-
manently disabled.
To receive the highest possible