The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1936-02-20
BY WILLIAM c. UTLEY

BY WILLIAM c. UIlEf
ny THE end of June approx
x mately 100000 American citi-
zens more than sixty-iVe years
old will be receiving pension
checks from funds created by state
and federal cooperation. This will be
the beginning of the benefit payments
Under one of the most spectacular
pieces Of legislation ever attempted in
the United States, the Wagner-Lewis
social security act.
The act, signed by President Roose-
Welt August II, 1885, providing pro-
lection against extreme poverty in old
age, and insurance against unemplOy-
ment, is the largest tax bill ever
passed. Unless ii is amended or the
Supreme court declares it unconstitu-
tional, it will collect $236,O00,O0O in
taxes this year. The levy, which is a
progressive one and grows to its max
imum in about twelve years, may ulti-
mateIy reach S2,SOO,OOOOO0 a year.
The fund ultimately to be accumu-
lated viii swell to nearly S500OO,OeO,-
600 in 1880. a total about half again
as large as the present record national
debt.
Old age pensions began in Europe
as early as 1853, and unemployment
Insurance has been in practice for
more than forty years. BY the social
security act, the United States is at
tempting. in a single stroke, TO go
far beyond what the nations of Eu-
rope have been several decades in de-
veloping.
Right now there is a far-fiung drive
under way TO get states TO submit old
age plans which viii be acceptable to
the social security board and its d.
rector, Frank Bane Twenty-Five
states have already submitted plans
which have met. or soon will meet with
the boards approval. They are:
Delaware. Idaho, Iowa, Maine, Mary
land, Michigan, Mississippi, Missouri,
Nebraska. New Hampshire. Vermont.
Wisconsin, Wyoming, Alabama, Colo
RADIO. Connecticut, Florida, Kansas,
Massachusetts. Montana, Ohio, Rhode
Island. Utah, Washington and the Dis
trict Of Columbia.
Eighteen other states have enacted
legislation which will enable them TO
apply for federal aid at some future
date Only Georgia, Louisiana. New
Mexico, North Carolina, South Dakota,
South Carolina. Tennessee and Virginia
are without old age pension laws. but
2 &c hall will
presented TO the next session of the
state legislature in each.
New Deficiency Bill.
The house appropriations committee
has recommended the appropriation of
$40 60. 500 for social security in the
new deficiency bin which, il is ex-
pected, viii soon be passed. This will
replace the one which was defeated by
the famous filibuster Of the late Huey
Long in the senate last summer. In
Guided in this appropriation will be
S24. 600 for old age assistance to
June 80, 100000 for the aid of de-
pendent children, and S2GO0,000 for
the care of the blind.
From a political point of view, 1t is
probably the old age pensions which
are the most important part of the act
at the present time. Certainly the
spread of publicity concerning the
Townsend plan has emphasized the
necessity for caring for the aged whose
earning power has declined or van
ished. And il is the old age pensions
which first go into effect.
The act makes two provisions for
old age In the first Of these pro-
visions, the one now in effect. the fed
eral government matches, dollar for
dollar. the old age pension systems of
the states, up TO the point where per-
sons of seventy or more are being paid
SIS by the state and SIS by the fed
eral government. These payments
would be financed out Of the treasury S
general fund and the cost would be
borne by all the taxpayers; il is pos
sible that beneficiary may pay moth
ing toward his own pension. Similar
federal grants-in-aid are given for pub