Evening star., 1936-06-28
Parties Making High
Cash Bids for Votes
BY OWEN L. SCOTT.

Political parties, through their plat
forms, are making the highest cash bids
in history for votes. Each one is in
clined to raise the ante on the other.
Democrats have been providing farm
ers with one bounty. Republicans
promise them two-one like the Demo-
Gratis and one as an export subsidy.
The new Union party outdoes both by
guaranteeing profit for all farmers.
Mr.. Roosevelt had Congress set up an
old-age insurance system for 10000 900
workers in industry. Mr.. Landon,
through the Republican platform, criti-
cizes this plan on the ground that it will
deny benefits to about two-thirds OF
our adult population" Mr.. Lemke, for
the Union party, goes them one better
by approving DR.. Townsend's plan for
pensions for all aged at 5000 a month.
The New Deal is continuing work
relief. The Republicans favor direct
relief. The Unionists promise an annual
wage for everybody.
Added up. the promises spell continued
billions in bounties for special groups
in the population. Yet they are ac-
companied by assurances that outgo
from the Treasury will be brought into
line with income.
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What does it all mean? Chiefly that
political parties this year are agreed for
the first time that the National Gov
ernment must be used in the future to
take some of the risk out Of the lives
of its citizens. Four years ago candi-
dates were debating about the question
of Federal aid to States in providing
nora for ba And nOW IL iS
planned as a matter of course.
Hereafter there will be steady flow OF
checks to farmers pensions for the aged.
some insurance against unemployment
and assistance for those who are unable
to find work with which to provide an
existence for themselves. A pre-depreS-
sion normal budget of under $4,000, ,000,-
600 is being transformed into a pros
pective post-depression normal budget
of from $4,000, ,000, 900 to $1,000, ,000, ,000-
with taxes built to the new scale.
Does that mean little distinction be-
tween the subsidy and pension plans Of
fered by the major parties?
Far from it. One of the biggest dis
tinctions is going to be brought force
fully to the attention of nearly 1000 900
employers and nearly 100000 workers
within the next few months.
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President Roosevelt, leading the DEM
ocrats, has set the Federal Government
at the task of building two programs of
old-age assistance.
The first, already in effect, IS a system
of grants of money to individual States
to help them finance old-age pensions
for persons now about IS years of age
and destitute.
The second, which takes effect jan
uary /, and for which intensive prep
aration now is under way. involves
system of forced saving designed to
build up huge reserves out of which an
nuities will be paid to workers who
reach the age of 65 after January /,
1912.
Republicans through their platform,
propose to broaden the first of those
plans and to scrap the second.
The issue involved is regarded here as
being of more immediate and direct i'm
portance to millions of voters than any
other in the campaign. 1t involves cash
in their pay envelopes and a type Of
Government interest in individual af-
fairs of its citizens more intimate than
any previously shown. Involved also
are questions of tax policy, of Govern
ment finance and of administration that
stagger the imagination with their size.
*ks*
Take the first part of the plan, which
involves little controversy. The Social
Security Board in Washington now is
approving State old-age pension systems
When approval is given the National
Government contributes dollar for dollar
to State pensions up to SIS a month.
Gov. Landon is calling special session
of the Kansas Legislature to enable his
State to take advantage of this bounty.
Republicans. in fact promise that the
type Of old-age pension now encouraged
by the present administration as only
part Of its full plan will be the basis of
their complete program if given power
Its cost? At present official estimates
are that about 100000 persons are IS
and Older. Out of that total, approx
imately 100000 are on relief and would
qualify under means test as being des-
titute. To provide them with pensions
Of $50 per month would involve $780,
100000 year-an amount that the
Federal Government would split with
the States.
However, experience Of other countries
and calculations governing the propor-
ton of aged in the population over the
years ahead cause the statisticians to
expect that pensions demands would
rise rapidly to reach $1,000, 100000 or
81 500, 100000, even with means test.
President Roosevelt, in the most am
bilious of his pension ventures-the one
with which millions are soon to become
acquainted-seeks to get away from the
charity and dole feature of old age as
sistance, as involved in the temporary
program.
So, starting next January, the Federal
Government is going to take per cent
of the wage of every worker in the land
except domestic help and farm labor
and in addition, is going to take l per
cent of the total pay roll of every en-
ployer. This money, amounting to
about $600,000,000 the first year. will go
into huge savings account, where it
will draw per cent interest.
Involved is a system of forced saving.
Workers and employers are to be made
to contribute to an account that will be
used to protect them against a rainy
day. Their contribution will increase
gradually until it reaches per cent of
the total pay roll, involving an estimated
100000 year.
Each one of about 100000 workers
will have separate savings account in
M %NJy1 1~ No. L. L.