The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1935-03-21

gressional approval. Under the new
plan no one having an income In
excess Of the pension that would
be paid, would be eligible but they
would be paid an amount sufficient
to bring the total income up to the
maximum pension.
The plan would be financed
through the imposition OF a 2 pei
cent turnover tax and through an
increase in the income and inheri-
lance taxes, and the receipts equal
ly apportioned to all eligibles.
The Townsend plan contains
several very desirable features.
First, it would automatically retire
from gainful employment people at
the age of 60 if they wished to quail
ify. That would make room for a
great many young people who are
now unable to find employment. 1t
would also tend to prevent panics
and depressions in that 1t would
promote and encourage constant
flow of money which would insure
steady production and consump-
ton. Under our plan the pension
fund would increase as the volume
of business gained in velocity, as 1t
would be largely based upon the
turnover tax and the greater the
turnoves, the greater the income
from the tax, and the larger the
pension.
There are so many angles to this
question which consider one OF
the most important now before
Congress. 1t must be borne in
mind that we are building for tine
future. The original Townsend plan
which provided an automatic PEN
sion of $500 per month to every
man and woman regardless OF 9th
err income was not workable &C
cording to the best actuaries that
we have been able to contact and
DR.. Townsend and his associates
have wisely decided that it would
be better to build upon a firm
foundation, a structure that could
be enlarged as it proves itself.
We hope to have our bill in shape
to present to Congress within two
or three weeks, possibly sooner. 1t
is estimated that about five million
men and women past the age Of 60
would be eligible under the plan
that we have in mind.
I am a member of the Commit
tee that has been holding hearings
ON the Administrators pension
plan which provides for pension
up to $50 per month. That is, the
government would contribute up to
SIS per month, and the state as
much as they saw fit. It is safe to
say that very few states would con-
tribute more than the government,
so the average pension would pro-
badly be about $50 per month be-
ginning at the age Of IS. To my
mind that plan would not relieve
the unemployment problem. Meth
er could it result in greatly in
creasing the volume of business.
AS a matter of fact, after the rent
had been paid it would leave very,
very little for the barest necessities
of life.
I feel that we should set up
pension plan that would make
those over go years of age reason
ably secure in their declining days.
No one can object to that. In set
ting up such a plan we must make
doubly sure that the burden will
not be such as to defeat the very
end we seek to accomplish for, af-
ter all, the success of any old age
pension plan must be predicated
upon a foundation that does not in
terfere with nor restrict business
prosperity. 1t is my hope that we
may be able to work out a plan
that will so stimulate business as
to make the tax a negligible guam
tity.