The Waterbury Democrat., 1938-12-16
FRANCO REGIME PLANS SUBSIDY
 FOR FAMILIES
Aid Will Range Upward From $I.5O Monthly for
 Two Children
BY EDWARD c. De FURY United Press Staff Correspondent

BY EDWARD c. De FURY
 United Press Staff COrrespOndent)
 SaragoSsa, Spain, Dec. 16-(UP) States subsidies for workers with large families soon will be inaugu- rated in Nationalist Spain to carry out a promise made by Generalis- simo Francisco Franco.
 A decree embodying the general plan has been issued. General reg ulations will be published within three months and the date of first payments fixed.
 The plan provides for subsidies ranging from IS pesetas monthly for families with two children to 145 pesetas for families with l2 children. This is equal at cur- rent rates of exchange to approxi- mately $1.50 and $14.50.
 The pensions will be financed by contributions from the state, em- ployers and workers.
 The Nationalist government also is planning a scheme for extend ing and increasing old age pen- sions. Its policy is disclosed in the statement of Pedro Gonzales Bueno, minister of trade unions.
 Revision Is Promised
 T intend" he said, "to revise and reorganize the institute of workers welfare to carry out ser vices in regard to social insurance.
 "The new state of Spain intends to do it's utmost to protect the working classes. Up to the present there have been three welfare or- ganizations for old age, accident and maternity. The first needs complete overhauling; the second needs modifying and improving, and the third needs o be more effectively administered. All this is part of the labor program.
 "The family subsidy for work CTS is of the most urgent neceS- sity. If such subsidies are not necessary and just, why create voluntary compensation funds? If their object is to satisfy a prim- ordial necessity, why make cm- ployers' generosity their basis? Compensations funds are insuffi- cient to carry out this policy.
 "Old age pensions are of similar urgency" declared Bueno. To-day the pension is derisory and it is necessary to increase it. The old age pension is the same for the woman who earnrs one peseta daily and the skilled worker who earns from 13 to 15 pesetas. Old age pensions must be proportional to the wages earned. They must now have family basis, adding a subsidy for the number of de- pendents.
 Lower Pension Age Sought
 To-day the worker who is 65 gets a pension. This should be reduced to the age of 60. Today the eventual number of workers who are entitled to pensions is very small as provided by the law of 1921. All workers must be elig- ible for such pensions and besides workers must be able to live on their pensions.
 we intend t o do everything possible with regard to workers welfare, according to the maxi mum possibilities of Spain"
 The decree providing for family subsidies states:
 without prejudice to the salary being earned, family subsidy must be established to prevent the economic equilibrium of the home from being upset, especially in the cast of families with numbers of children-children which the state desires to have as numerous as possible. Thus no mother of famil will be forced to work out side the home to balance the fam fly budget"
 The scale of subsidies and list of beneficiaries will be subject to revision twice year.
 Workers to Contribute
 The state, employers and work CTS will contribute to a fund for payment of these subsidies. The state contribution will be from a special fund.
 Employers and workers will pay in accordance with quotas as- signed to them, but the employees share will never be more than one- third of the employers share. Em- ployers will pay the share of their employees and deduct the amount from the wages.
 The National Institute for Fam fly Subsidies will be organized with the following resources:
 1. Capital fund of 5,000,000 pesetas ($5OO,00O) provided by the state from the profits of the Ma tional Wheat Service.
 2. Quotas of employers and workers.
 3. Tax of 10 per cent on divi- dends in excess of per cent paid by any business or commercial en- terprise:
 4. Fines for infraction of the law.
 5. Subventions and gifts received | for the fund.
 6. Interest on investment of funds.