Evening star., 1938-01-30

oyed." WV '~ ~ 1'''
from the University Of Michigan, who has
been working with their stan, that pres
sure to break down the actuarial standards
Of the social security act must be resisted
rather than abetted
1t is likely. however. that the COM
mittee or some Of its individual mem
bers may very soon propose to he Senate
that there be . relaxation Of the two-year
requirement.
It Is even more certain that there will
be recommendation for closer inteRration
OF the duties Of Social Security Administra-
ton and those Of the United States En-
ployment Ssrvics. --.---~.-. ..
L *4Rsssh,S Stage II sfBeni-Hyseria.
With W. Frank Persons. chief of the
employment, service. on the stand, the
committee worked itself up . serni -hysteria
upon learning that his State offices re-
ported to Washington only once each
month on the number Of job applicants.
Since applicants for unemployment COM
pensation must register for jobs with the
employment service. the committee felt
that the prompt digestion Of a few sta
tistics would expedite the workings of
both systems.
One more opinion on the Nations re-
lief needs is worth recalling and undoubt-
edly will figure in any comprehensive
thought they give toward shaping a solu-
ton. That was the testimony of Secre-
tary Of Agriculture Wallace, portraying
a condition of deepening distress in the
rural areas as prices of fern products
drop, drought conditions cut production
In certain areas, industrial employment
curtails purchasing and farm machinery
continues to displace labor.
Mr.. Wallace cautioned the committee
specifically that the problem of employ
ment in agriculture and industry must
not be separated, that half the farm
problem must be solved in the cities, a
position which may lead the committee
to recommend new efforts at passage of
wagehour legislation or any other measure
directed at increasing industrial employ
ment
One of the Secretary's most startling
statements was that some 100000 farm
youths will mature during the next 20
years with virtually no prospect of find
ing land to farm or even steady employ
ment as agricultural 1aborers This condi-
ton. he said is coming about through
displacement of agricultural labor by ma
chinery and simultaneous curtailment of
industrial employment opportunity.
Capital Gains Tax Opposed,
Returning to the voices of industry.
the committee was told day after day that
the factors which were hobblng business
most were the taxes on undistributed
corporate profits and on capital gains
and the uncertainty over administration
intentions aroused by industry batting
speeches.
Although several suggested outright re.
peal of both levies a majority took the
more temperate attitude that If certain
exemptions were made in the first and
greater allowance made for capital losses
in computing the second, the most op-
pressive features would be removed. Since
a House subcommittee, administration
controlled, already has proposed such re-
visions and their approval seemingly is
foregone conclusion, the Unemployment
Committee probably will be content to
indorse the suggestions Of the House
group.
The business demands for an end to
uncertainty" as . means OF inspiring
confidence covered wide range Most
sweeping Of such suggestions, probably,
was that of william j. Kelly, executive
onicer Of the Machinery and Allied Prod
ucts Institute. who apparently favored
repeal Of every law passed since 1888,
although he admitted that production for
his industry had risen during the last
four and one-half years from an index
Of 46 to one of 96, with profits moving In
like proportion.
A more realistic view of the problem
was presented by Colby M. Chester, head
Of General Foods Corp. and chairman of
the National Association Of Manufacturers,
who suggested that somebody distribute
tho peiSes for mud-slingiug and the party