The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-08-17
AID TO J0BLESS
is KEYSTONE OF
SECURITY LAW
Bill Encourages States to
Set Up Unemployment
Insurance Funds.
This is the last Of three articles an
slYzinE the Economic Security Act.
BY MAX STERN
Times Special Writer

WASHINGTON. Aug. 17.-"As has
been very evident IN the trying
years Of the depression, unemploy-
ment is the most important single
cause Of dependency" said the Sen
ate Finance Committee IN its re-
port. 1t IS a hazard that confronts
all industrial workers"
In face Of the fact that even in
the prosperous" '2Os at least $780,
600 industrial workers were invOl-
unfairly jobless, 1t has taken the
depressiOn's burden Of 1900, 900
voorhees, workers 70 bring the
United States into line with 10 other
modern nations and enact a Fed
Law.
Title 9" Of the new Economic
Security Act Is an experiment n
Federal-state cooperation for work
security. 1t does not set up a ma
tional unemployment insurance
fund, but leaves it TO the states to
set up 48 Of them.
Compensation Starts in '38
To encourage" them TO do this,
the act imposes a uniform Federal
pay roll tax on all employers Of 10
or more workers. 80 per cent OF
which tax is Cancelled to employers
who pay into state unemployment
insurance systems that meet GER
tain minimum standards.
The tax is l per cent in 1886,
2 per cent in 1887 and per cent
in 1888, and thereafter compensation
begins in 1888.
This feature of the Security Act
covers approximately 20 million
workers. BY 1850 receipts are eX-
pected to run as high as 100000 a
year.
Wide latitude IS given the states
in enacting unemployment compen-
sation laws. Only seven states have
adopted laws so Wisconsin,
Washington, Utah, New York, Mas
sachusetts, New Hampshire and
California. And three types Of sys-
TENS are represented in these seven.
Wisconsin and Utah have company
pools. New York and Washington
have state pools New Hampshire
and California have a combination
system, segregating company &C
counts for the purpose Of adjust
ing rates as rewards for stabIizing
employment.
L. S. to Invest Funds
All state funds are to be invested
by the Federal government 10 pre-
vent disastrous dumping Of securi-
ties in early depression periods.
Benefits are to be paid through
public employment offices to pre-
vent Implications. In general all
state laws will provide for a short
waiting period after a man loses
his job. New York, for instance,
provides for a three-Week wait;
compensation at the rate of so per
cent of the previous full-time wages,
with minimum benefits Of S. and
maximum Of SIS weekly; maximum
limit of 16 weeks for drawing bene-
fits.
Other provisions of the bill cover:
Needy children. Federal grants
on a So to 81 basis 60 to states for
dependent children and for mothers
pensions. Although As states have
mothers pension laws. some grants
now run as low as So or SO monthly
The Federal subsidy of S24,750.000
probably will have to be increased
later. FERA estimates there are
100000 children under 16 in relief
families now Other child welfare
provisions include grants of $4,000,
600 for maternal and child health,
100000 for aid to some 100000
crippled children, S1,500O0O to the
Childrens Bureau for strengthen
ing rural welfare services for home
less, dependent and neglected chill
dren.
Blind to Be Assisted
Blind Aid-To aid in the relief,
education and rehabilitation of ap-
proximately 100000 sightless people
the bill appropriates 100000. This
will aid on $3.50 basis states with
blind pension laws. There are "a
such states now.
Vocational Rehabilitation-Tit
5 adds SS41 900 annually TO exist
ing authorizations for Federal aid
on a matching basis Tor vocational
rehabilitation of the physically
handicapped. All but three states
now cooperate.
Pubic Health-Title 6 appropri-
ates 100000 TO be allotted on a
population and need basis. This is
to be administered by the Treas
ury's Public Health Service.