Evening star., 1937-12-26
Security Savings Account
Ready for Workers Jan. 1
Jobless Compensation Fund Sure to Be of Nation.
Wide Benefit, Officials Say on
Eve of Test.
BY Sudduth

Needless to say, the demand for such
payments will be scrutinized somewhat
anxiously by those concerned with the
question of whether this part of the social
security program is going to pay for itself.
With comparable interest, 1t will be scruti-
nized also by those administering public
unemployment relief, since an important
argument advanced for the compensation
program was that it would tend to level of
this unpredictable but recurring burden.
BY and large, it was estimated by those
who devised the unemployment compen-
sation program that the proceeds of
per cent pay roll tax in the eligible occupa-
tons would ordinarily balance each year
the demands for unemployment benefits.
With this in mind, the tax rate is being
raised gradually from l per cent in 1886,
to 2 per cent in 1887 and per cent in
1888.
With benefits varying only slightly in
the different States, the maximum in al
most every instance being SIS weekly over
q period Of 16 weeks in any one year, the
estimate Of yearly contributions needed is
likely to show widely different degrees of
accuracy.
For example, those handling administra-
ton of the program in the District Of Co.
lumbia are convinced on the basis Of con-
tributions thus far that per cent tax
on the eligible yearly pay roll of the Capital
is greatly in excess of actual need.
Administrators of the local program
figure that 10000 would be the top unem-
ployment here in the eligible occupations.
At this top figure disbursements of SIS per
individual per week for 16 weeks would call
for only s2,4oO,ooO within years period.
Employers Contribution.
Recognizing this condition, Congress al
ready has decided it unnecessary for the
District government as such to make its
prescribed 1888 contribution Of $175,O00 to
the fund. At the specified tax rate Of
3 per cent in 1885, however employers
still would be forced to contribute an
estimated s60OO,OOo to a credit balance
from which probably not more than third
of that sum will be deducted
As a possible solution, District admin
istrative officials have suggested infor-
mally that the local compensation board
be given authority to vary the tax rate
semi-annually with the probability of keep
ing the rate of per cent unless it should
be found necessary to make more revenue
available.
At the other extreme may be cited the
highly industrialzed State of New York,
where a program covering more than
100000 workers will go into the benefit
paying stage with reserve of approxi-
mately 100000 900. Mass unemployment
in the building and needle trades alone. it
is estimated by those familiar with con-
| ditions in that State, would completely ex-
haust the fund within few months.
Similar fears are felt in Pennsylvania,
where depressed conditions in the steel
and coal industries are sure to bring about
heavy demands upon the benefit funds.
Aside from whatever problems may
arise in meeting actual obligations, one of
the headaches" assured for administrators
will be that arising out of misunderstanding
of individuals as to their eligibility for
benefits.
List Of Exemptions.
The Federal law exempts in the first
instance the following broad categories of
workers: % agricultural labor; ca do
mestic service in a private home; (3C
employment Of close relatives; ~ ma
rine workers; (5) Government workers;
co employees Of -proft-making char
liable. religious, scientific, literary or edu-
| cational institutions.
In addition to accepting these exemp-
tons, the State laws require varying periods
of unemployment during the months i'm
| mediately preceding application for bene-
fits In the District the requirement Is
13 weeks of employment in the preceding
So weeks. In some States this requirement
runs as high as 26 weeks in 50.
All have comparable disqualifications,
usually applicable only for limited time
for unemployment caused by misconduct
participation in strike, voluntary sur
render of employment and refusal Of suit
able unemployment. All provide also for
waiting periods before benefits are paid
after eligibility is established. In addi-
ton, the 5enefits of this program are
available only to those physically able
to work, those In other categories being
eligible for other relief classifications
Acknowledging the experimental nature
of the entire unemployment compensation
program, those supervising its important
period of inception are confident it will
be of Nationwide benefit. BY the end
of 1899 all States will have qualified to pay
benefits from their United States Treas
ury accounts.
Unemployment compensation is to the
advantage not only of workers, but to busi-
ness and society generally" Social Sc
curity Board Chairman Arthur Altmeyer
said a few days ago Its stabilizing effect
on business is Of the utmost importance.
The benefits to the jobless spent in the
purchase of goods, clothing and shelter
help to build up the sales Of retailers and
thus help to sustain the sales and produc-
ton of manufacturers. Industry needs
each man and woman who works for it.