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

standing issues over to the fund, the
government in that case would have to
buy them back from the banks, and
even write out more promises-to-pay
with interest To realize on such a
fund it would be necessary for the
treasury to sell its notes TO the public
and the banks again, slow and labo-
riOus operation
At least, those are some of the crit
icisms the act has received. Another
is that a reserve fund of such enorm-
ity would be a constant temptation TO
grating politicians who might seek
political popularity by advocating high
er benefit payments or smaller contri-
buttons from workers, in a fashion
that might dissipate the fund.
Aids Naturalization.
There is one way that the social Sc
curity act may benefit the country, in
addition TO the manner in which its
sponsors believe ii will help to solve
the unemployment problem: Daniel C.
MacCormack, commissioner of immi-
grafton and naturalization, says that
the prospect of benefits TO be paid has
lent impetus TO large increase in the
number Of aliens applying for naturali-
cation throughout the country.
So much for old age pensions; now
for unemployment insurance.
Two model plans have been suggest
ed for states by the social security
board One is called the pooled re-
serve" plan and one the employer re-
serve" plan. Contributions under the
first plan are deposited in the United
States treasury's unemployment trust
fund. Benefits are paid with all con-
tributions undivided. In the states
where this plan is operating, benefits
would be paid TO each unemployed per-
son whe was eligible, without regard
for his employers benefit and contribu-
ton experience. For rating purposes,
records would be kept on all employers.
In the states where the employer
reserve" plan is adopted, separate &C.
counts are kept for each employer.
with his contributions being credited
oulN 10 MS U" II ICSCiNC dNlOunl. nus
an employees benefits would be limit
ed by the amount of his employers re-
serve account; and the employers re-
serve could be charged only with bene-
fits paid TO his own employees.
All corporations or individuals in the
United States who employ eight or
more persons for 20 weeks with the
same exemptions as are provided in
the old age pension plan) are subject
to the tax which viii support the bene-
fit payments for unemployment insur-
ance. This tax will be paid entirely
by employers. II viii amount to 9
per cent Of payrolls for this year, Is
per cent for 1887 and 81 per cent for
1885, Employers in states where the
"employer-reserve" plan was in effect
would become eligible for decreased
rates in the payroll tax in 1889, pro-
vided their reserve accounts equal ~
per cent of the payroll for the year
before, and five times the total benefits
paid from their accounts In any one of
the three years preceding. Employers
under the pooled reserve plan would
become eligible for lower rates or liza
BILE for higher rates In 1871.
Forcing State Cooperation.
The social security act provides the
federal government with a club for
forcing the states to adopt one of its
recommended plans. Employers in
states which. adopt the pooled reserve"
or the employer reserve" or any
plan approved by the social Sc
curity board. are permitted a re-
fund Of 90 per cent of the tax. The
encouraging" agent is obvious; If a
state doesn't fall in line. nearly 3 per
,cent of all its payrolls goes out of the
state and doesn't return.
Unemployment insurance acts have
been passed by IL states and the Dis
trict of Columbia, most of them in
1885, in anticipation of the federal leg
fslation, although in Wisconsin unem-
ployment insurance has been in effect
for many years. 1t is possible that a
few states viii join the ranks this
year.
Western Newspaper Union