The Omaha guide., 1935-10-05

Americans. This is more than q
old age pension proposal, as tn
Townsend Plan Ii truly 4 recovery
plan whereby we may AL get bach
to normal and decent standards d
living
The malady affecting the country
today l. III almost total loss Of buy
ing power on the part Of the general
public It is peculiar in that this l.
the first time IN the history Of our
development as a nation that we did
not have new lands, new mines, new
forests, and other raw to
absorb the idle workers, thus assur-
ing g comparatively speedy recovery
following our business slumps.
Today there are no good farm
lands inappropriate The output
Of the mines IS already greater than
we can absorb There Is no use to
find and open more. Without new
domestic and foreign markets our
numbering operations cannot pro-
coed. The supply on hand Of the
finished product IS more than we
need with our present buying power.
Over-production on the part of
those who turn out the finished
product, because they find no ability
on the part of the public to buy; I'M
der-consumption by the people for
exactly the same reason-lack of
ability to buy. As a sequence, gen
eral business stagnation, enforced
idleness; nearly half the population
leading q hand-to-mouth existence,
unable to produce, unable to subsist
without the aid of charity and con-
stantly becoming a greater burden
On our government and on the
shoulders OF those upon whom the
load Of charity falls.
Our natural are as great
as ever; there r as many willing
hands to do the work; the facilities
for turning out the finished
products are the best that civilized
man has yet produced; there Is as
much money in existence. Why the
s~tagnation - where Is the missing
link IN the chain Of distribution?
The answer is obvious. MONEY
DOES NOT CIRCULATE 1t stag
mates in bank vaults and treasures.
The general public that creates ali
markets do not have access to it, and
no market for their goods. Banks
cannot loan to people who have no
security nor to factories that have
no market for their gods. Banks
lose money. They have no income
from loans. Thus the vicious round
of stagnation is made complete.
Buying power must be restored to
the general public before this dead
lCck can be broken Throwing out
gigantic seoopfuls Of money from
the national treasury into spots
where restitution seems most in
tense is but to temporize with the
emergency. A system OF circulating
money must be set up. Dependable
legal machinery must be devised
that viii keep the money circulating
after it is set going. This is a true
and natural function Of government
that has never been called into be-
ing. 1t will have to be done or, ike
former civilizations, we shall perish.
THE TOWNSEND PLAN OF
OLD AGE REVOLVING PEN
SIONS calls upon the national gov
eminent to this function:
the function OF starting and main
tanning the circulation Of a large
amount of actual money throughout
the entire nation fairly distributed
as to population. benefiting all
classes alike. It demands the pas
sage of q national law that will per
NIT every CITIZEN, male or fe-
male, who has attained the age Of
sixty years or over and who is not
an habitual criminal, to apply for
and to receive a pension not to ex-
coed $500 per month until death. up-
on the conditions that ne take oath
to spend for commodities or services
the entire amount Of the pension
within the confines Of the United
States during the current month in
which 1t is received, and shall re-
frain from al remuneration or pro
ductive labor or occupation
It provides that persons having
an independent net income Of 81. 400
per year, or more, are not eligible
TO receive the pension. In cases
where persons otherwise eligible
have a net income from other
sources Of less than s2,4O0 per year.
they shall be given sufficient from
the pension fund to raise their in
come to $1,000 per year.
How Would We Pay The Cost?
simultaneously 1t demands a law
establishing a Federal transaction
tax. Leading economists and stats
ticians state that the annual rams
sactions IN this country viii sweep
I'D u the 1929 ficrra II tualua hnn-