The Washington times., 1935-01-17
CONGRESS GETS
PRESIDENTS
PENS|ONPLAN
Continued from Page -

65, provided they qualify as need.
ing this help.
Makes Loans to States
Actually the Government spends
no money on pensions, except in
the case thus mentioned, but does
grant money in loans for States
to carry out the purposes of the
new policy. What President
Roosevelt did today was to point
the way to social security against
the hazards Of unemployment
and the infirmities Of age, and
tell the people of the country
how they could all chip in and
finance the thing themselves.
Congress will 60 to work to
enact the proper legislation, it
is assumed, under the leadership
of Senator Wagner, of New York.
and Representative Lewis, of
Maryland,
For the District of Columbia
special congressional legislation
will be needed to put the Ma
tional Capital on a level with
the States. Only States which
enact a plan which Clicks" with
the national plan can have the
benefits Of Federal cooperation.
The main requirement for So
cial security is a maximum of
jobs - work enough to employ
everyone who can work. This is
the first matter touched by the
Presidents Committee on Eco
nonic Security, whose 35,000!word
report was sent to Congress with
q brief message from the Presi-
dent.
High points in the report cover
employment assurance, unemploy-
1nent compensation, old age pen
Sions, security for children and
risks arising from i'll health.
Employment Assurance
First essential Is private en-
ployment, supplemented by public
employment for those whom
private industry cannot absorb.
Work is preferable to other forms
of relief.
The report states it is advisable
to lend Federal money at low
rates to State and local govern
ments for public work purposes,
but that these loans should be on
o self.liquidating basis.
The report strongly recon-
mends well planned, long-view
public work and the establish.
ment of national planning
board.
Unemployment Compensation
A reduced scale of payment to
men and women out Of work is
urged.
The proposed schedule of pay
ments is as follows: Nothing for
four weeks. so per cent COM
penSation thereafter with a maxi
mum of SIS a week. The report
says that a maximum period Of
IS weeks will strain the system,
unless special financial arrange
ments are made.
Money for this compensation,
the report says, can be raised by
q three per cent pay roll tax,
against which credit can be
made to any industry which has
contributed to unemployment in
surance funds in States which
have compulsory job insurance
laws.
The tax should be uniform so
that there will be no advantage
between employers in one State
or another. The Federal Govern
ment should handle the money,
invest it, keep it in the Treasury,
and avoid all argument by being
supreme high administrator of all
financial matters.
Merit System Urged
Furthermore, the entire per
sonnel required to administer the
social security administration
should be selected entirely on the
merit system, according to the
Presidents committee.
Special suggestions are made
for longtime employees, who might
be allowed to draw one extra week
unemployment compensation for
each six months of continued EN-.
ployment. Ten additional weeks
over the regulation IS weeks is
suggested as a maximum for such
employees
After a worker has drawn his
maximum unemployment compen.
sation he would be certified to the
public works administration as a
person entitled to work benefit.
The tax should be imposed on
all employers, the report suggests,
who have employed four or more
persons for at least 13 weeks Of
@ year.
While three per cent is the
amount suggested as a tax, the
committee has agreed that pos
sibly one or two per cent might
be heavy enough until business is
restored to normal, and suggests
that by 1888 the full three per
cent should be the amount as.
SesSed.
All To Contribute
There should be no exceptions.
All industries should contribute to
this jobleSS insurance fund, but
the committee recommends sep.
arate national administrations of
the funds for railroad and mari.
time employees.
None of the pay roll tax col
lected by the Government will go
to jobleSS insurance funds in any
State unless the State complies
with the general program and en-