Evening star., 1938-01-02
RELIEF MACHINE
SOFTENS SLUMP
Lack of Cry for Aid En-
phasizes Nation Is Geared
to Burden.
Rx HARDEN COLEAx.

u 0uTu6n.
BY HARDEN COLFAX.
The sharp rise in unemployment
totals Is not being reflected In Ar
equivalent increase In demands made
on the Federal Government for relief.
This Is cause Of some mystery among
ofncials here. They had expected to
be swamped with calls for help.
An analysis Of the situation, made
for the Government officials whose
problem 1t Is to deal with unemploy-
ment relief. goes far to clear up this
mystery. The analysis shows that in
recent years the United States actr-
ally has built up more extensive ma
chinery to deal with unemployment
than the country realizes.
The reported facts are these:
More than 2,000. 900 jobs have been
lost through the present depression
in industry. coupled with the normal
seasonal loss of employment. This
total Is likely to rise considerably
above 100000 by February when
there is the usual peak. BY that time
q total Of more than 100000 will be
able to work and yet out Of work.
To deal with that total OF unem-
ployed there is q variety Of machinery.
100000 w. p. A. Jobs.
In the first place, w. P. A. Is
equipped to supply jobs to about ,sOO.-
900 at its peak load, as compared with
about 100000 in recent weeks.
In the second place, direct relief
financed by States and localities now
Is carrying . load OF about 1,500,00
cases and this can be increased
somewhat.
In the third place, old age assist
ance in the States, subsidized by
grants from the Federal Government,
is providing an income to another
100000.
In the fourth place, unemployment
insurance, now effective in ~ States
and the District Of Columbia, pro-
vides machinery through which at
least 100000 Of those who are losing
work in industry will be assured Of
some income during the weeks ahead.
Added together. that brings a total
Of 5.400 900 out Of an estimated o.
100000 jobless who either are receiv-
ing direct aid from Government agen-
cies or soon will be in position to
receive that aid
But that is not all
c. c. c. Pay Aids Families.
The c. c. c. camps take boys only
from families that are destitute and
most of the salary of the boys goes
back to their parents in the form OF
indirect relief benefits. This ac-
counts for 100000 more.
And the Farm Security Administra-
ton is in the business of making small
loans and grants to destitute farmers
who otherwise might be on charity in
the towns and cities. This accounts
for another 100000.
The result is that approximately
100000 families are in line for di.
rect Government aid during the pres
ent winter. This total is not far
from the depression peak made during
the days Of the c. w. A. in the fall
and winter of 1894. At that time
there was a combination of direct re-
lief and work relief and anybody
could qualify for work relief, whether
destitute or not.
These facts reveal the magnitude of
the machinery that government. Fed
eral. State and local, has erected in
recent years to temper the effect of
depression In business. This ma
chinery apparently should insure
against absolute destitution among
any groups in the population during
the period Of large-scale unemploy-
ment
But the catch is that much Of the
machinery still is financed with bor-
rowed money. rather than with tax
funds collected from people who do
have incomes and who will need,
sooner or later. to begin to pay the
full cost Of supporting the uDm-
ployed.
$4,000, 900 900 a Year.
The cost of this support. on the
present basis, amounts to about 81
800 100000 year. including $780,
100000 for w. P. A. and farm security,
$500. 900 900 for old-age benefits, $780,
100000 for unemployment insurance
and 5000, 1000 900 for direct aid to the
destitute unemployables in the States
and cities.
Those are big figures, but the eco
nomists say that. If private industry
is to provide jobs for those who are out
Of work and yet able to work, 1t Is
going to take national income of at
least $8s, ,000, 900 900, or $18, 900 ,00O, 900
more than during 1887, provided the
price level does not rise above that of
the present.
Depression has served to gear Gov
ernment to unemployment relief in
variety of forms and on a large scale
The result is that the machinery of
relief is functioning smoothly and with
little strain in the present situation.
There no longer is the emergency at
mosphere that was so noticeable in
years past. Aid to the unemployed
now seems to be accepted as a regular
Government function.
(copyright. 1888. BY Consolidated News.)