Evening star., 1936-11-19
More Capitalization.

Mayor La Guardia of New York asks
that the whole social security program
be placed directly under the control and
administration Of the Federal Govern
ment. He recommends that the States
contribute to the Federal Government
for the operation of the plan, rather
than have the Federal Government make
contributions to the States. His Is a
proposal for the greater Capitalization of
Government in Washington, for the crea-
ton of bureau under the Federal Gov
ernment that will make the Veterans
Bureau, for size, pale into insignificance.
The mayor might have called atten-
ton to the fact that already under the
existing social security act the Federal
Government is to administer the old
age pensions for all the workers. covered
by the act, wherever they may be, who
become eligible for retirement benefits
after 1912. That means the great mass
Of the workers. For those who reach
retirement age, IS, prior to 1942, the
otdOCS WILL llidhC
will be matched by the Federal Govern
ment. The States will administer that
part of the law. The States also, under
the existing law, are to administer the
unemployment insurance. In the opinion
of Mayor La Guardia, the Federal Gov
eminent should do the whole job. He
rrpiI1J f,1rfh nd ha
on relief who are 'employable" at all
times the charge Of the Federal Gov
eminent rather than of the States and
the cities. Only the "unemployables"
are to be the charges of the States. He
might as well have thrown the "unem-
ployables" into the Federal pot with the
rest.
Mayor La Guardia's recommendation
that the States make contributions for
various kinds of social security to the
Federal Government, instead of having
the Federal Government make contri-
buttons to the States, is an idle PROPOSE
ton. The only source of revenue of the
Federal Government Is the States. It
gets all its funds from taxation levied
upon the people of the States. In the
recent past it has been taking these funds
from the more prosperous States and
dumping them in large amounts into the
less prosperous and less populous States
Thousands of new Federal employees
are to go on the pay rolls with the de-
veloping operation of the social security
law. Card indexing some 100000 in
dustrial workers who may be eligible for
old-age pensions some day is no small
Job. Keeping track of their activities is
another task of magnitude Mayor La
Guardia wants this army of Federal
workers increased by many more thou
sands to administer unemployment in
surance and other social benefits.
The size OF the job undertaken by
Uncle Sam in this social security set I'D
has probably been realized by very few
Of the citizens who are to pay the bill.
The attention of the workers has been
called to the fact that after January l
their pay envelopes will be minus one
per cent-Since the Federal Government
is taxing them along with their en-
ployers to raise the funds for old-age
pensions. That, however, is only one
OF the details of the administration of
the new law.
The social security act does not pro-
vide for pensions or for unemployment
insurance to farm labor, domestic serv-
ants, or employees of the Federal and
State governments. There are other
groups not covered, but those are the
main ones which do not benefit under
the law. How long before there will be
demands for legislation to give these
groups of workers the same benefits as
the industrial workers? Not long, In all
probability.
The American people are on the way
to creating monster that some day will
overwhelm them. And yet Mayor La
Guardia demands that this creation be
still larger and more overwhelming.
State governments seem to be on the
way out