Evening star., 1936-09-27
Landon Address at Milwaukee
Forced Saving Under Social Security Law
Called Cruel Hoax.

some State laws pay no taxes ana
yet actually get larger pension
when they reach the age Of 65.
These are q few reasons why
called this law unjust and stupidity
drafted!
There is q further important
point in connection with the COM
pulsory saving provided by the
plan of the present administra-
ton. According to this plan. our
workers are forced to save for q
lifetime-what happens to their
savings? The administrators
theory is that they go into a re-
serve fund-that they will be in
vested at interest and that in due
time this interest will help pay
the pensions. The people who
drew this law understand nothing
Of Government finance.
Let us trace the process step by
step. The workers cash comes
into the Treasury. What is done
with It? The law requires the
Treasury to buy Government
bonds. What happens when the
Treasury buys Government bonds;
well, at present, when there is
deficit, the Treasury gives some
nice new bonds in exchange for
the cash which the Treasury gives
the Treasury. Now what happens
to the cash that the Treasury gives
the Treasury? The answer is
painfully simple. We have good
spenders at Washington, and they
spend the cash that the Treasury
gives the Treasury.
Now, I know all this sounds
silly, but it happens to be an ac-
curate recital of what this ad-
ministration has been foolish
enough to enact into law.
Let me explain it In another
way-in the simple terms Of the
family budget. The father Of the
family is a kindly man, so kindly
that he borrows all he can to add
to the family's pleasure. At the
same time he impresses upon his
sons and daughters the necessity
of saving for their old age. Every
month they bring 6 per cent Of
their wages to him so that he may
act as trustee and invest their
savings for their old age. The
father decides that the best invest
ment is his own I. o. U. So every
month he puts aside in a box his
I. o. U. carefully executed, and,
moreover, bearing interest at
per cent. And every month he
spends the money that his chill
dren bring him, partly in meet
ing his regular expenses, and the
rest in various experiments that
fascinate him. Years pass-the
children grow old-the day comes
when they have to open their
fathers box. What do they find?
Roll after roll of neatly executed
II. o. us"
Forced Saving Called
Cruel Hoax on People.
am not exaggerating the folly
Of this legislation. The saving 1t
forces on our workers is q cruel
hoax
There Is every probability that
the cash they pay in will be used
for current deficits and new ex-
travagances. We are going to
have trouble enough to carry out
an economy program without hav-
ing the Treasury flush with money
drawn from the workers. Per-
sonally, I do not want the Treas
ury flush with trust funds-funds
which the trustee can mingle with
its own general funds. want the
Treasury to be In q position where
1t must consider every penny 1t
spends. I want the Secretary Of
the Treasury to be obliged to say
to committees of Congress every
time q new appropriation Is pro-
posed, Gentlemen, you will have
to provide some new taxes II you
do this" With this social security
money alone running into billions
of dollars, all restraint on Congress
will be of. Maybe some people
want that, but I don't.
And even if the budget Is bal
anced, the fact that there is
billion dollars and more of extra
cash on hand each year that can