Imperial Valley press., 1935-12-23
Written for The Press
BY DALE cox


Financial Writer of Cleveland Plain Dealer
The first question arising in most peoples
minds about the new social security program Is
the identity of the people who will pay for it
You and l. everyone will help pay the cost
of the social security offered by this govern
ment to its people under the social security act.
What then the more important facts
about the Social Security act? How does it at-
feet each of us? What does it offer? What is
it to cost us? How are the benefits to be paid?
How soon does it begin to offer us security?
The Social Security act is divided into three
sections, and to understand 1t properly II is
well TO study each section separately.
Federal Aid
The first section deals with immediate aid to
be given by the federal government to the var
ious states now attempting to aid their own
citizens through old age pensions, unemploy-
ment insurance, child health work and other
forms of public welfare. This aid the govern
ment offers to give Immediately. in order to pro-
vide something for the people now in need
pending such time as the other sections of the
act shall begin to operate.
The outstanding feature of this section of the
act is the offer of the federal government to
match dollar for dollar, all the money paid out
by the various states in old age pensions to their
citizens. For the current fiscal year SAG OoO,-
600 was appropriated to be allotted to the states
having old age pension laws meeting the quail
ifications set up by the act.
Laws Unequal
About % states have old age pension
laws some of them good, others poor, bad
indifferent Inasmuch no payments will be
made to the aged under the permanent federal
social security program until the year 1912, the
only aid the aged people will get prior to 1912
will be that given them by the various states
receiving up to so per cent of their funds from
the federal grant
The Social Security act provides however
that the federal government in case will con-
tribute more than SIS per month to- any indi-
vidual as an old age pension in any state. Since
the state would contribute like amount, the
maximum for any elderly person under the first
section providing temporary old age pensions)
Of the Social Security act is $50 per month.
The modesty of that figure amuses the adj
herentS of the Townsend old age pension plan,
which advocates the payment of 5000 per month
to all people over Is years of age. Consequent
~, large group of old people seeking old age
pensions are anything but pleased over the out
look of receiving a paltry 81 per day.
Effectiveness Restricted
Furthermore, the effectiveness of this first
section of the Social Security act has been defin-
itely limited by the fact that many states hav-
ing old age pension acts cannot qualify for the
federal aid. The Social Security act lays down
very definite set of requirements which all state
old age pension laws must meet before those
states can receive the maximum CT SIS per month
from the federal government for each old age
pensioner. Inasmuch it has been difficult to
call state legislatures into special session to
change their old age pension acts to conform to
the federal requirements, little federal aid is as
yet going to old age pensioners.
Thus for the time being, social security for
the old people, in far as the federal govern
ment is concerned is locked in the tangle of state
Legislatures and held in allegiance between WASH
ington and the various state capitals.
The fact is that under the present social S
curity law no one qualify for an old age PEN
sion before 1912 unless he is on the pension roll
of a state
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