Evening star., 1938-09-20

ARTHUR J.
IN the whole country who would still
attempt to argue against these SELF
evident facts.
Such differences Of opinion on old
age security as still exist relate only
to the financial Or administrative
feasibility of this or that proposal.
These questions lead far afield, and
do not propose to discuss them to-
night. do want to tell you, however,
about what is actually being done
right now-about the advances made
under the Social Security Act, and
about the prospects for developing
more and more effective protection
as our increasing experience points
the way.
Variation In States.
would be the last to say to you
that the present program is perfect
or complete. A nation would be fool
ish, indeed, II 1t expected to encounter
no problems in an undertaking of this
magnitude.
In old-age assistance, for example,
one Of the serious problems we are up
against arises out Of the wide varia-
ton in the financial capacity Of the
States. For the country As q whole,
the average monthly allowance Is now
= little more than $l9: though in
many Of the States the average is
higher. in . few it is considerably
lower. While no one pretends that
even the more adequate allowances
paid IN some States are munificent,
there can be no doubt that regular
payments. even modest ones, do give
old people the wherewithal for basic
necessities; that they do forestall fear
and actual privation. Where allow
ances in . particular State fall below
the general level, it IL not because the
people OF that State are less humane,
but mainly because the available State
resources are limited. Federal grants
Tor old-age assistance are, rs you
probably know. on = matching dollar
for-dollar basis. 30 that the amount
Of money the State can put up deter
mines the sine Of the Federal grant.
In general this Il . practical method
OF sharing the cost, and is backed by
past experience. Even the poorer
States now have twice As much money
As they could raise alone. However,
there u no getting around the fact
that. In parts Of the country where
resources are low, need is likely to be
nigh. Though no entirely satisfactory
method OF maintaining adequate as
sistance on = Nation-wide base has
yet been worked out, I can at least
report that the problem Is recognized
BY Federal, ~ well ~ State otncials,
and Is receiving their active attention.
Meantime. admitting its limita tions,
Federal-State old-age assistance has
more than proved its worth. As a
measure Of what it has enabled the
States to do. let me give you q brief
oefore-and-after view. Though y
number Of States had old-age assist
ance laws before the Social Security
Act was passed. these provisions were
never able to meet more than q small
fraction Of the need. As 4 result. in
1894 some 100000 Of the needy aged
were already being taken care Of oy
the Federal Government through its
emergency relief program. But old
age dependence Is no emergency mat
ter; it is with US in good years As in
bad. To help the States meet this
expensive and continuing obligation.
the Federal Government has alr.ady
contributed some three-quarters of q
billion dollars which the States have
used, together with funds of their
own. for paying allowances to their
own needy old people. With this help,
the States are now aiding more than
five times As many needy old people as
were receiving similar care under
State a&d local provisions before the
enactment Of the Federal law.
Public Always Paid,
That doesn't necessarily mean that
the number Of needy aged has in
creased. Nor does it mean that our
responsibility toward them has
changed. except in method. One way
or another the public has been paying
this bill for long time. But whereas
in the past our provisions were made
in an uneconomical and ineffective
piecemeal-patchwork fashion, they
are now made on the basis Of orderly
and organized planning on 4 Nation
wide scale.
So far so good. But what of the
future? Can we remain content to
lock the door after the horse Is stolen
Ito wait until people are old and
needy before we take action? OF
course we can't. Any such policy
would be contrary to American ideals
and principles. And in addition It
would become increasingly-and ap-
pallingly-expensive, particularly in
view of the growing number Of old
people and their shrinking chance Of
employment. We must have . system
Of old-age security which forestalls
destitution, and is based upon right
as distinguished from q showing Of
dependence.
This Is where old-age insurance
comes in. The insurance principle
the principle of pooling the risks
one OF our most familiar protective
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