Evening star., 1935-01-17
PRESIDENT OFFERS
PLAN OF SECURITY.
Five.Point Program Based
on Survey Report-Speed
Is Urged.
.tinued From First Page.)


98,500,0 900. For each year thereafter
the total is placed at s21s. s.50o.0 900. In
1886 the Federal appropriation for old
age pensions is placed at $50,000,000
and the amount for unemployment in
surance at $5,O00,000. In the succeed
ing years these amounts are to be in
creased to $l25,000,000 for old-age
pensions and to $50.000.0 900 for unem-
ployment insurance subsidies to the
States. The other items, which remain
the same in succeeding years, are $25,-
100000 for aid to dependent children,
$4,000 900 for maternal and child
health, $3,000,0 900 for care of crippled
children, $l,500,000 for aid to child
welfare services and $10,000,O00 for
the Public Health Service.
Twin Objectives Fused.
'"The economic security BILL" said
Senator Wagner today, presents the
most substantial evidence to date that
our twin objectives of recovery and
reform are fused in an inseparable
unity of purpose and action.
While the horror of the depression
Is still fresh upon our memory, we
are taking decisive steps to shake off
Its lingering aftermath, to prevent its
recurrence, and to set up safeguards
for those who may suffer in the future
from economic forces beyond the con-
troll Of the Individual"
Along with his message, the Presi-
dent sent to Congress a 30,000-word
report written by his Committee on
Economic Security, and signed by Sec
retary Of Labor Perkins, chairman;
Secretary of the Treasury Morgen-
thau, Attorney General Cummings,
Secretary of Agriculture Wallace and
Harry L. Hopkins, Federal emergency
relief administrator. The recommen-
dationS of this committee are the
basis Of the Presidents proposals to
Congress and the Wagner bill.
State Freedom Proposed.
In addressing himself to the unem-
ployment features Of his bill-the ad-
ministration bill-Senator Wagner
said that because of divergent busi-
ness problems in various parts of the
country, each State should be left free
to enact its own unemployment in
surance law.
But no State" he continued,
should be at liberty to neglect this
problem, or to put more progressive
commonwealth at a competitive dis
advantage.
For this reason the bill proposes
q per cent Federal tax upon pay
rolls. to be RENTED to employers in
so far as they contribute to unem-
ployment insurance funds under
State laws. AS an added incentive a
Federal subsidy aggregating $4,000, 900
for the fiscal year 1886 and $50
100000 for each succeeding year is
provided for ALLEGATION among the
States to aid them in administering
such unemployment insurance laws as
they may enact"
The unemployment insurance tax
will fall on all employers of four or
more workers.
Senator Wagner said that since old
age is a natural phenomenon that
falls upon all mankind with unfail-
ing regularity, the bill treats the prob
lem OF old-age pensions on a ma
tional basis.
The proposals for unemployment in
surance and old-age pensions, the
New York Senator insisted, ARE built
upon the Gibraltar of business COM
mon sense. Unemployment insurance
is cheaper than relief, because pre-
paredness Is superior to planlessness.
The Wagner bill provides for setting
up a social insurance board in the
Labor Department, with three men,
bers appointed for six-year terms at
salaries of $4,000. Its duties will in
clude study of social security practices
and laws, recommendations regard
ing credits of employers under the un-
employment insurance law, supervision
OF the payment of annuities under the
old-age pension law and assistance to
the States in administration of the
unemployment insurance laws.
Other Federal agencies which will
have part in administering the pro-
posed social security laws are the Fed
eral emergency relief administrator,
who seems under this legislation to
become permanent officer of the
Government; the Secretary of Labor,
the Secretary of the Treasury and the
Public Health Service.