Evening star., 1935-01-17
UNEMPLOYMENT COMPEN.
SATION.

Unemployment compensation, as we
conceive it, is a front line of de-
fense, especially valuable for those
who are ordinarily steadily employed,
but beneficial also in maintaining
purchasing power in depression time.
While it will not directly benefit
those now unemployed until they are
reabsorbed in industry. it should be
instituted at the earliest possible date
to increase the security of all who
are employed.
We believe that the States should
administer unemployment compensa-
ton, assisted by the Federal Govern
nent We recommend as essential
the imposition of uniform pay roll
tax against which credits shall be
allowed to industries (Which have
contributed to unemployment in
surance funds) in States that shall
have passed compulsory unemploy-
ment compensation laws. Through
such a uniform pay roll tax it will
be possible to remove the unfair COM
petitive advantage that employers op-
Grating in States which have failed
to adopt compensation system enjoy
over employers operating in States
which give such protection to their
wage earnerS.
Supervised Investment Needed.
We believe also that it is essential
that the Federal Government assume
responsibility for safeguarding, in
vesting and liquidating all reserve
funds, in order that these reserves
may be utilized to promote economic
stability and to avoid dangers in
herent in their uncontrolled invest
ment and liquidation. We believe,
further, that the Federal act should
require high administrative stand
ards, but should leave wide latitude
to the States in other respects, as
We deem varied experience necessary
within particular provisions in un-
employment compensation laws in
order to conclude what types are most
practicable in this country.
In the basis calculations of our
ectuarles a waiting period of four
weeks, so per cent compensation
rate and maximum of SIS per week.
but no minimum, were assumed. We
suggest to the States, in framing
their laws, that on the basis of 8
per cent contribution rate the maxi
mum benefit period cannot safely
exceed 16 weeks and should be re-
duced to is weeks if it is desired to
give workers who have been long
employed without drawing benefits
an additional (maximum) week of
compensation for each six months
they have been employed without
drawing benefits, up to a maximum
of 10 additional weeks.
Work Benefits Favored.
Extended cash benefits seem to us
far less desirable than work benefits
and We recommend that an employe,
after he has exhausted his con-
tractual rights, be certified to the
authorities in charge of the Federal
work program as entitled to work
benefit. Such certification shall en-
title the unemployed insured worker,
who has exhausted his cash benefits,
to employment on any available pub
lie employment project.
The States should make all con-
tributions compulsory and may re-
quire them from employers alone, or
from employers and employees, with or
without contribution by the State
government. The States should have
freedom in determining their own
waiting periods, benefit rates. maxi
mum benefit periods, etc. We sug-
gest caution lest they insert in their
laws benefit provisions in excess of
collection.
We earnestly recommend prompt
enactment by the Congress of legis-
lation which will Q) impose uni
form tax on the employers to whom
the act is applicable, beginning with
the year 1886, and ca create ma