The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1938-10-12
DRAFT REPORT
ON PENSIONS
Experts Warn Officials
"Crackpot Schemes"
Initiation Threat
By MACK JOHNSON
1888, by United Press

SoPyrlght. 400, Dy ShteSe
WASHINGTON, Oct. IL. (UP)
Experts of the Social Security
board have prepared a confiden'
tial report for President Roose'
Welt and other high administra.
ton officials warning that ensct
ment of the "crackpot pension
schemes sweeping the country
will plunge the nation into eco
nomic chaos comparable to the
disastrous postwar initiation pc
lod in Germany it was learned
last night. s'...... '-
The report was compiled by at
torneys and technicians skilled in
pension legislation. 1t was pre-
pared for guidance Of the admin
istration and was disclosed short
ly after new deal chieftains an
nopnced they would expedite a
program to lberalize and expand
the Social Security act to thwart
advocates of more sweeping old
age pension schemes.
The report analyses pension
plans which are political issues in
California, Florida, Nebraska, Ar
kansas, Missouri, Oklahoma, Ohio
and a dozen other states and con-
cludes that all of them are I'M
feasible and a threat to the ma
tons financial stability.
1t could not be ascertained
whetheT the report was prepared
at the specific request of Presi-
dent Roosevelt although the chief
executive had issued warnings to
the public against pension plans
which he called "short cuts to
Utonia."
The report deals particularly
with the Townsend plan which
calls for maximum pensions of
5000 monthly for persons over go
years old, and CALIFORNIA; So
called "S30-every-Th scrip
plan for persons over so years old
1.-THE epidemic of crackpot pen
sion schemes sweeping the coun'
try must be taken seriously only
because their surface plausfbility
has succeeded in deluding so many
millions of the aged, their friends
and relatives" the report states
This will continue until the mer
and women of America realize
that there are actually no, 'shor'
cuts'to Utopia
"The basic economic facts are
simple-that If eight or ten mil
lion elderly people are to be sup
ported, they will have, to be, sup
ported by. those who work; ina
the money to provide pensions 10,
the aged will have to come out o
the national income: that the ma
tional income is. the product o.
the nations fields. factories, ant
mines. shaped by the labor OF ou'
heads and hands; and thai, thu
income cannot be- increased b!
taking a part of it from those whit
labor to give to others who pro
dnce nothing in return"
II explained that most of thu
old age pension schemes are de
r;vatiyes of the Townsend or $3.50
every Thursday" plans which
propose to spend on. way t.
prosperity = either with real OF
substitute money" and that the,
are impractical.
It said that Townsend planner.
will shave their hopes blasted" i
they expect to receive 5000 ne,
ninth, because it would REQUIRE a
least 1900, 100000 annually tc
defray the costs of such payments
for an estimated 10000, 900 per,
sons over 90 wears. This. it was
entire national income for 1oSs
Questioning constitutionalitv 81
the scrip plan, the report said>ths,
California also would have TO on
Joy. SS0,000,0O0, 1000 of ANNA
business transactions to carry the
= Nsis9'e!S ,ralAsae s12Ils q carry 49,