Evening star., 1934-03-24
ROOSEVELT ASKS
ENACT|NG Of Job
INSURANCE PLAN
Advises Doughton 1t Would
Assist in Retarding
Economic Crises.
BY the Associated Press.

The task of enacting a job insur-
ance plan against future economic
SlumpS was added today to the grow
ing congressional work-sheet
President Roosevelt was specific in
directing the job done. He said, first,
that such legislation would fulfill a
promise made in the last Democratic
party platform.
Secondly, he declared sound the
general principles of the Wagner
Lewis bill. A Ways and Means Sub
committee promptly resumed hearings
today on this measure.
In letter to Chairman Doughton
Of the House Ways and Means Com
mit;ee the Chief Executive wrote that
while unemployment insurance alone
would not make unnecessary other re-
lief for the future jobless he believed
it would act as a stabilizing device to
retard economic crises.
Encourages State Systems.
The first big industrialist to be
heard by the ommittee-Gerard
Swope, president of General Electric
opposed the bill and criticized the
proposed per cent Federal tax on
business employing more than 10 per-
sons. He spoke few hours before
Mr. Roosevelt's letter was received yes
terday.
The measure is designed to encour-
age States to set up their own sys-
TENS. Wisconsin is the .only one now
having such law.
The employer would pay his unem-
ployment insurance tax into the Fed
eral Treasury, and would receive re-
bates on his income tax for whatever
he paid out during the year through
State systems or company set-ups.
The bill is so drafted as to require
actual payment Of benefits to unem-
ployed before any refund could be OBJ
tanned. thus forestalling any evasion
through mythical unemployment in
surance plans.
Text of Letter.
I'VE have in the past" Mr. Roose-
welt said. relied almost entirely upon
private charities and public treasures
to sustain the costs of seasonal and
intermittent unemployment This is
practice that necessity will compel
us to change to a very substantial
degree"
The text of the Presidents letter
follows:
L have received your inquiry about
my opinion on H. r. 1859, a bill levy
ing a Federal excise tax upon large
employers, but allowing them to de-
duct from their tax, amounts con-
tributed pursuant to unemployment
insurance laws that have been or may
be passed by the several States.
Il need not tell you that for a long
time have advocated unemployment
insurance as an essential part of our
program to build more ample and
secure life. The loss of job brings
encouragement and privation to the
individual worker and his family.
If an insurance or reserve fund has
ment from it st such a critical time
will tide over the worker and keep
up his morale and purchasing power
The benfitS of such a system will
not be limited to the individual, how
ever, but will extend throughout our
social and financial fabric. We have
in the past relied almost entirely upon
private charities and public treasures
to sustain the cost of seasonal and
intermittent Unemployment.
Sterilization Is Seen.
This is a practice that necessity
will compel us to change to a very
substantial degree. There is no reason
why they should assume the entire
burden of meeting a foreseeable loss,
the major cost of which ought to be
computed and borne like every other
cost of a business.
"Of course, unemployment insur-
ance alone will not make unnecessary
all relief for all people out of work
for the entire period of a major eco
nomic depression, but it is my conf
dent belief that such funds will, by
maintaining the purchasing power OF
those temporarily out of work, act as
a stabilizing device in our economic
structure and as a method of retard-
ing the rapid downward spiral curve
and the onset of severe economic
crises.
Il am interested to see that the
bill before your COMMITTEES seeks to