Evening star., 1938-11-27
Congress Must Face
Pension PIun Issues
By Frederic J. Hdskin

the entire country was half startled, half
relieved. Later, as pencils were taken out
and people began to discover the huge
cost Of such plan, wave Of ridicule fol-
lowed in its wake. At the time OF the
first proposal the country was at the
very floor Of the great depression. A
combination Of the ridicule and the be-
ginning of a sort of false dawn of recov-
cry caused an apparent waning of inter-
est, at least of publicity.
1t appears, however, that the plan was
by no means dead. Seven thousand
Townsend clubs had been formed all
oyer the country with an aggregate Of
3,500,000 members and there, in spite of
sporadic scandals here and there over
misuse OF Townsend Club funds, contin-
ued IN existence. The old people who
were members OF these clubs had little
else to do than attend meetings and
think about the plan.
When the secondary depression began
something over year ago there was a
marked resurgence of interest not alone
in the Townsend plan, but in various
other schemes for the relief Of the aged.
There was an outpouring of new pro-
posals from various parts of the country.
From California came the $50 every
Thursday plan. In Alabama a numerous
group was organized under the remark
able banner Of Life Begins at so With
$50 a Week for Life" A PENNSYLVANIA
organization flung out its challenge of
$3.50 After CO." while Kansas citizens
cried, "s25 every Tuesday" There were
numerous other schemes.
The Townsend plan itself, and these
variations OF it, found supporters from
end to end of the country. In staid New
England, the traditional home of thrift
with capital ct, the idea caught hold
with remarkable strength.
The fact that what proposed and
proved to be an epochal election was
coming on stimulated candidates to pay
attention to the demands of the aged
whether they would or no. There was
scarcely candidate who was not cate
chized concerning his position on old-age
pensions In many communities a sort
OF armed truce was declared between Re-
publican and Democratic candidates. a
tacit agreement being reached that both
would ignore the issue So far as speeches
were concerned the terms of this truce
were carried out and yet. underneath. the
yeast of the idea was at work and candi-
dates were making more or less secret
promises.
The election is over and today there e
no utility in Disgusting the fact that the
old-age pension idea in one form or an
other, was potent factor in the canvass.
Where statements of pension plans ap-
peared or ballots the response did not
seem to be very remarkable. Plans
seemed to run weakly, but there was the
coincidence that outstanding proponents
OF such plans were, in many cases, elect
ed 1t was made manifest that the idsa
was decidedly live thing.
Some politician once said that plat
forms are gangWays to office, which are
discarded once the candidate is aboard
There are indications that the old-age
pension issue cannot be treated in such
a cavalier manner. Young, vigorous
people, busy about their various concerns
are, indeed likely to forget or become
vague about campaign issues and prom
1ses, but the aged with nothing to do but
wait and dream and write letters do not
let matters drop so readily.
1t Is foregone conclusion that men
elected to Congress who have made
promises in connection with any sort of
pension plan are not going to be allowed
O tr,tI
promises have been made. that the WAYS
and Means Committee of the national
House Of Representatives must bring the
matter to the fore at the next session of
Congress. 1t cannot be pigeonholed. it
cannot be relegated to a subcommittee
and forgotten. There are too many old
people holding weekly meetings and
ceaselessly asking how about it? In
deed, certain members of Congress, al
ready members of the Ways and Means
Committee and running for reelection,
were forced to declare that they would
bring bill up to insure support.
While the old are the chief benef-
ciaries, old-age pension plans derive
strong support from young people, too.
- oAiC SoFCA AA1lcIiC W1ll 1cHlONc lTOll
their shoulders the burden of caring for
aging relations, the young are very much
in favor of the proposal.
1t has been demonstrated, over and
over again. that, so far, no plan has been
put forward which will pay for any con-
tinuing pension plan. Even the relief
provided by the Social Security Act is
not definitely financed, much less the
far more expensive schemes elsewhere
proposed.
The Committee on Old Age Security
conducted research on the basis Of the
Townsend plan and found that it would
cost $4,000, 100000 a year to pay the
>pensions called for to the 10000, 900 per-
sons so years of age and over. The per
cent transactions tax which was pro-
posed to defray the cost, it was found,
would raise only $4,000 600, 900, while Ger
tain additional taxes proposed would
produce the relatively Insignificant sum
of s143, 100000. 1t appeared that IL per
cent transactions tax would be required
to meet the outlay under the Townsend
plan, always provided that the existence
of such tax did not itself have the ef-
feet Of retarding transactions and defeat.
ing its own ends.
Yet, In the last few years, millions OF
Americans have seen money flow out OF
the Federal Treasury apparently from