The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1937-02-22
RELATES STATUS
AS PERTAINS TO
SOCIAL SECURITY
SECRETARY MoRcENTHAU IS
CREDITED WITH THROWING
sPoTLicHT ON WORKINGS
OF PLAN
By. PRESTON GROVER
lIsy Associated Prrssl

y
WASHINGTON, February 22.-
Credit Secretary Morgenthau with
throwing a spot. light. although for
just moment, on one of the UNI
DERIVING big problems incident to
operation of the social security
act.
Within II years, he said, "va-1
rious laws, such as social secur-
ity, sinking fund, and SO forth,
will absorb about $4,000, 900, 900
worth of public debt
Don't be misled into thinking
the social security money viii be
used to retire the government
debt. That isn't the law. His state
ment simply means that in about
II years the social security act,
together with sinking fund "and
so FORTH" viii pile money into the
treasury will invest it, just like an
insurance company.
But in connection with the
prospect of such sum massing in
the hands of government { and
some estimate it may nearly dou-
bic that) any questions arise that
get in the hair Of practical politi-
clans as wei as in the hair of econ
omists.
Questions
What if there came along a first
line war, or a number one nation
al emergency, or a lot of pesky
little emergencies? How well
would the government withstand
the temptation to dip into the pot,
take it all in the name of nation
al emergency or pinch it off in bits
in the name of national exigency?
Suppose depress on came
along and the middle-aged and
near-pension-aged folk decided
they needed the money right away
instead of waiting? And the infla-
tionists insisted that the pension
savings under social security
ought to be pumped into business.
to perk. up business? And columns
of elderly and near elderly march
ed on Washington demanding pre-
payment of "the old age bonus?
But if no big fund is built up in
which employees have a definite
concrete stake which they can call
theirs by right, then what assur-.
ance is there that some congress
might not decide to abolish social
security, or reduce it greatly? Al
ready there is afoot a program
backed by many business men
urging that the social security
payments be met on a pay-as-you
go basis by raising enough taxes
each year to pay the needs rather
than by taxing enough in addition
to pie up q reserve fund. 81
If employees pay social security
taxes on a pay-as-you-go plan for,
several years, can they argue that
they have a fright" to pension or
unemployment benefits as COM
vinc:ngly as if they had an actual!
reserve opposite their names on
the social security register? De-
tenders of the reserve fund plan
argue that unless employe rights"
to pension or unemployment bene-
fits are made evident by such a
fund, there will be tendency by
employers through the years to
seek to trim off part of the bene-
fits so their own share of the tax
loan will not be so heavy.
Anticipation
But enough of that heavy 60
ing. Do you think Representative
Sol Bloom of New York, for in
stance, spends his leisure time
worrying about it? Of course not.
But you should see Bloom driving
along Washington streets in a
pint-size automobile with a
chauffeur.
Then, again, we are living in an
ticipation of the moment when
glossily dressed Senator Reynolds
of North Carolina strolls on the
floor in these new pastel shades
Of pants, say Bermuda blue or
gulf-stream green. 'TwouId end
constitutional crisis.