Evening star. [volume] (Washington, D.C.) 1854-1972, 1937-11-28
Unemployment Insurance
Faces Test.
BY OWEN L. SCOTT.

1t happens that the temperance of q
rising trend in unemployment Is occur
ring just at time when unemployment
insurance is to take effect on an impor-
tant scale.
For the past two years. employers of
eight or more persons have been contrib
uting portion of their pay rolls to build
reserves that can be drawn against when
some Of those jobs disappear. The un-
employment insurance law requires that
those reserves accumulate for two full
years before they can be used to insure
workers against loss of income.
BY January l, this accumulation will
have gone on for the required length of
time in twenty-five States and the Dis
trict of Columbia. After that time, ma
chinery will exist in those States-many
of them important Observation-Disclosures
which unemployment can be dealt with
in an orderly manner. More than H.
1000 workers then will be covered,
and, by the start of 1899, this total will
rise to 100000 as nearly all States
swing into line.
The meaning of this development can
best be understood by glance at what
has happened in the past when indus
trial jobs were contracting in number
and at what will begin to happen under
similar circumstances in many States
after January /.
When John Jones or Bill Smith or any
other among the millions of industrial
workers lost his job before 1888 he was
forced to look to personal savings or to
relatives or to local government to tide
him over. This system broke down and
the National Government stepped in to
bolster local relief on dole basis. Then
in 1885, w. P. A. jobs were substituted for
the dole, but proof of restitution re-
manned requirement for aid.
Now there is to be try at more
orderly plan for meeting this problem
Reserves against unemployment that
have been accommodating for the past two
years today total more than $500 900, 900.
OF this amount, about $3.50 900 900 is held
to the credit of State unemployment in
surance systems that will start on the
first of the year to pay benefits. Fur
thermore, these reserves will be replen-
ished at an accelerated rate as an added
one per cent tax on pay rolls takes effect
In January. At that time. affected en-
ployers will be contributing per cent
OF their total pay rolls to build unem-
pIOyment reserves.
1t is against that cash background that
the John Joneses and Bill Smiths face
| the future of their jobs.
The future, for many, is highly uncer-
| tain at the moment. Many of the larger
! industries are spreading work. now that
| production has Slackened but others are
| letting men out. Best available Govern
ment estimates are that seasonal factors
| and the decline in the rate of industrial
| activity will result in the loss of 5000 900
| jobs between November and February /.
If Worker Jones or Worker Smith or
any other of those workers who face the
loss of job resides in any one of the fol-
| lowing States, he will have formula to
| follow The States in which unemploy-
| ment insurance will be in effect on jan
| uary l are: Alabama, Arizona, California,
Connecticut, District Of Columbia. LOU
isiana, Maine. Maryland, Massachusetts,,
Minnesota, New Hampshire. New York,
| North Carolina. Oregon, Pennsylvania,
Rhode Island, Tennessee, Texas. Utah.
Vermont, Virginia. West Virginia and
Wisconsin.
| Instead of heading for relief Office,
the jobless worker in any of those States
will head for an Office of the State En-
| !.
make application for his insurance and
provide the employment service with full
| information concerning his abilities. his
experience and his job preferences. If it
is unable Immediately to place the unem-
ployed worker, the employment service
will certify him to the unemployment in
surance agency for it's benefits.
x X
|
situation is the fact that in most of the
States listed above, an individual may
apply for insurance if he has been en-
ployed during any substantial portion OF
1887 This means that men who now are
being laid of and who will be laid off in
the period before the first of the year
will be able to share the benefits that
become effective at that time
After application for unemployment
insurance is made at an employment
office, there follows waiting period OF
from two to four weeks, depending upon
the State, before insurance payments
begin. During this period, an effort is
made to find employment and thereby
to avoid the necessity of payments.
But If nothing turns up, Mr.. Smith OF
Mr.. Jones or whoever the eligible appli-
! SoAiV 40, Will 4CCClNC d CIlcCh 1lOlll Lille
Government. The size of this check in
most States will be for so per cent of the
workers previous full-time weekly wage
but no more than SIS a week A check
of this size will continue to be mailed
the unemployed worker weekly for a
period OF between twelve and twenty five
weeks. depending again upon the partic-
ular State system. Payments are not
large, but do provide basis for subsis-
tence comparable to w. P. A. wages.
At the end of that time, if work still is
unavailable. but only then would the
unemployed worker face the necessity OF
looking to the Government or to relatives
or to his savings for longtime support
This bit of machinery promises to be
highly important. 1t is new and may be
creaky until broken in, but there does
exist the basis for dealing with the grow
ing unemployment on definite basis.
Lacking such system as that about
to begin functioning, the unemployed
might face hard winter. The reason Is
that Government finances are in state
OF disrepair, and Congress has appro-
priated a fiat sum of money which must
under the existing law, be spread over
the entire fiscal year. This means that
q man who loses his job might simply be
out of luck, since the w. P. A. rolls al
ready are pretty well filled. Instead, ir
q large part of the country, he can look
to fund in Washington that now totals
half billion dollars and that is con.