Evening star., 1934-09-09
BY THEODORE G. JOSLIN.

~ LD-AGE pensions give prom
ise of becoming a national
issue comparable to some of
~ the most controversial events
of the past. The subject
has been projected by President
Roosevelt because of his desire to
provide security for the men and
women and children of the Nation"
1t will be discussed heatedly through
out the congressional campaign in the
Fall. 1t will be hammered out on the
anvils of debate when the next Con-
greSs receives the formal recommen-
dations by Mr.. Roosevelt. 1t very
likely will be brought to conclusion
during the presidential campaign of
1896.
Even the beginnings of the strug-
gle are dividing public officials into
two antagonistic schools of thought.
The division is irrespective of par
tisan considerations; it cuts dag
onally across party lines. The pro-
ponents insist that the future we'll
being of the people necessitates such
action. The opponents insist it will
impose an insuperable burden that
will destroy its own purpose. Thus
the issue is definitely drawn even be-
fore considerations have been weighed.
Because events move so fast these
days it may be we'll to ascertain the
facts in advance of the siege. The
cost of pensions, running into untold
billions, would be borne in large part
by business and labor rather than by
the Federal Government. Industry
would be assessed a proportion of its
gross income; employees would be
charged percentage of their weekly
a meager or 4 per cent, would be
reflected in the cost of living. AS
likely as not, the bulk of the burden
would be passed on to the people.
The assumption that his plan is an
untried experiment is incorrect. Some
40 nations of the world have old-age
pension systems. In fact, the United
States, China and India are the only
large countries without national pro-
vision for the care of their aged.
National" is emphasized in so far as
this republic is concerned because 26
of our States have some manner of
pensions, which are intended in most
instances to obviate the old-fashioned
poorhouse.
Developing for Century.
AS matter of fact. old-age pension
systems have been developing for a
century. Great Britain made its first
provision in 1893, when it set up
system of government annuities, with
any person more than years of age
eligible. These annuities were similar
to insurance policies; they were sold
either on periodical payments or for
a lump sum. The purpose was to
provide fixed income in old age.
A retirement fund for seamen was
established by France as long ago as
1873. In 1850 that republic made all
OF its citizens eligible to purchase an
nuities. The first old-age insurance
law was made operative in Germany
In 1889. In the last 40 years not only
have old-age systems been adopted by
many countries, but their scope of
operations has been materially Wild
ened.
There are three separate types of
pension systems in operation-public,
voluntary and compulsory. The cost
of public pensions is borne by the
government. Citizens reaching a
given age-perhaps three-Score years
and perhaps three-score and ten
are paid certain pensions, providing
they are without other means of sup
port. Under the voluntary plan the
government sells annuities at more
favorable rates than private insurance
companies. France and Japan have
this system. Compulsory insurance
calls for contributions by employers,
employees and the state. Twenty-six
countries have this system, among
them Great Britain and Germany.
The compulsory system is rising in
favor in most countries. OF the three
plans, it seems to come the nearest
to representing the ideas of President
Roosevelt. Its purpose is to insure
working citizens of fund to support
them in their old age. The worker
receives an annuity derived from the
deferred earnings of his years of
labor.
Pensions for the aged have appealed
to the President for long time; he
has weighed their advantages and
disadvantages for more than three
years. He discussed the subject with
group of confidants early in 1881,
considerably in advance of his cam
paign for the presidential nomination.
He referred to it during the cam
paign. His massage to the last Con-
gress was logical sequence. Now he
will reduce his ideas to a formal rec
ommendation for legislative action by
the next Congress.
Features Included.
The bill enacted by the last Con-
gress providing retirement pay for
railroad employees contains essential
features that almost certainly will be
incorporated in the general legislation
sponsored by the President. Person.
ally he would have preferred to have
that measure delayed until the next
Congress, but as long as the Congress
took matters into its own hands and
laid the bill before him he ap-
proved it.
Beyond any doubt the legislation
was loosely drawn; it did not provide
sufficient revenues to maintain the
system permanently. However, both
employers and employees supported it.
So the President attached his sigma
ture to it, characterizing it as "in line