The Coolidge examiner., 1935-02-08

efficiency looks 10 the young work
ers oftener than TO the old. II is
estimated that Of the 100000 TO
100000 persons sixty-hve and over
who are dependent upon others,
only about half are cared for In any
way by private and public agencies.
Difficult Problems.
Five states now have pension
funds for their employees, as have
a large number OF cities. The larg-
est OF all American pension systems
and probably the largest in the
world is the military pension sys-
TEN, which has cost the government
$S,5OO,0O0.0O0 up to the middle OF
1882. All In all. the great mass or
elderly people have probably not
been adequately cared for in this
country, and depression conditions
have made the situation worse.
The Presidents plan asks for
payroll tax which would start at !
per cent and increase by per cent
every five years until 1t reaches
maximum of per cent in 1857. Any
employee who paid for 200 weeks
over period OF at least five years
before he became sixty would be
eligible for benefits. For the en-
ployee who had paid premiums be-
fore 1912, the pension would
amount TO Is per cent of his aver
age monthly wage II only 200 week
~ payments into the insurance fund
had been made. one per cent more
would be added TO the benefits for
each additional 40 weeks of pay
ments up to 400 weeks and > per
cent more for each 40 weeks up to
500 weeks.
For the employee who paid pre-
miums after 1912. the benefit would
be 10 per cent OF his average
monthly wage and l per cent addi-
tional for each 40 weeks he paid
I'm addition to the first 200 weeks.
Senator William 4. Borah OF
Idaho has been the principal op-
ponent on the senate floor. IL am
not satisfied to make an outlay
of nearly billion dollars for arma-
ments and SIS for old age" he said.
referring OF course to the entire eco
nomic security proposal.
The Townsend Plan.
The President is by no means
the only one who has proposed an
old age security plan. Sweeping
the country like wildfire has been
the idea OF DIR. Francis Everett
Townsend. His more ambitious
plan. which claims 25.0O0,000 sig
natures on petitions TO congress.
also claims to be able 10 doctor all
Of the ills OF the depression and
create a prosperity the like OF
which the world has never seen.
oddly enough, II Is based upon A
fundamental OF old age pensions.
The Townsend Old Age Revolv-
Ing Pension Plan. acclaimed and
supported by 25,0O0 Townsend clubs
scattered throughout the United
States. would pay every American
over sixty who Is not an habituai
criminal $500 a month on the con-
dltlon that he spend the entire
amount In the United States with
in the month. The necessary $20,-
0OO.O00OOO would be raised by a
federal tax. They haven't decided
what kind.
There has been no centralized OPP
position to the plan. for the sim
pie reason that business leaders,
finding an expressive voice in DIR.
Raymond Moley, former assistant
secretary OF state. thought IL too
fantastic to bear credence. But il
has.
II would cost $4,000. 900, 900 a year
and the entire national income Is
only S4s,O00,OO0,OO0. Taxing might
lead to an imitation Of prices un-
til the turnover of business could
stand a tax OF that size in a year.
But then the prices would be so
high that the monthly dole of 5000
would be In value far less, or. as
a leading columnist puts 1t. "a sex
agenarian meal OF bread and milk
would cost So"
Based on the premise that money
turns over ten times before II Is re-
tired the Townsend plan tax on