Evening star. [volume] (Washington, D.C.) 1854-1972, 1938-08-21

and then elected to the Senate from
Alabama.
w. Lee ODaniel startled Texas poll
ticians by romping home to the governor
ship nomination on a platform that
looked like the Ten Commandments and
hill-billy music. To some heavy political
thinkers, O'Daniel's victory looked like
the triumph of . conservative business
man over left-wing politicians. Now it
turns out. however, that Mr. ODaniel has
promised all OF the old people OF Texas
pension OF $50 a month. Where the
money to meet the payment is to come
from remains an unanswered detail.
# +*s
There was much enthusiasm among
anti-New Dealers when Representative
D. Worth Clark took away the senatorial
nomination from Senator James P. Pope
out in Idaho. Mr.. Clark campa1gned as
conservative" who would oppose much
OF the New Deal. Now 1t turns out that
Mr.. Clark carried the Endorsement of
the Townsend oldage pension organiza-
ton This suggests need for a new def
milton OF a conservative.
Up In New England, where rock ribbed
conservatism Is traditional and where the
Republican party continues to hold sway,
candidates for office on both the Repub-
lican and Democratic tickets are vieing
with one another in promises of larger
and larger pensions for the old people
From out in Observation-Disclosures of
old-age pension plans-now comes word
OF substitute for the Townsend old-ae
revolving fund pension plan The newest
is known as the California pension
plan and already is supported by petit
dion with 100000 signers. The Idea is
to pay $50 on each fourth Thursday to
every person over so years Of age. DR..
Francis E.. Townsend had limited his
payments to individuals over co.
All OF these events are just samples of
what now clearly is the most significant
single political development emerging
from this years primary elections.
This development is the emergence
into great power on the part of this
countrys old. people There now are
nearly 5000 900 individuals of IS years of
age and over. These 100000 individuals
have the vote. Most of them are In need
and are supported by friends or relatives
who also have the vote. Many in the
past lived on savings or on income from
rents both OF which have melted away
in the depression.
&AAl IiidC VIC pOlltlCldIl lldS 10 90 is TO
think about the power welded by 3,000.-
0OO war veterans and he Immediately is
| overaWed by the thought of what 8,00O,-
600 old people can do at election time.
| Yet to provide each of these aged per-
sions with pension of $50 a month
would cost about $4,000, 900 900 a wear.
The s30-a-month idea appears to be the
minimum in pension demands. as those
demands are taking shape throughout
| the country.
On this whole issue President Roose-
| welt Is rank conservative
Where members of Congress who pose
as conservatives are ready to promise
and to vote for almost any plan that will
satisfy the demands of the voting old
people, President Roosevelt has tried to
head of these extravagant pension de-
mands with limited program.
The fact seems to be, however-if this
years elections are criterion-that the
Presidents social security program is
making scarcely dent in the sentiment
for bigger and better pensions. Old peo-
| pie obviously are far from satisfied with
the existing system.
This system is broken down into two
parts.
One part is known as old-age assist
ance. Here the Federal Government
grants money to individual States to help
them finance pensions to the INDECENT
aged The Federal Government will pay
up to SIS a month for each pensioner,
matching State funds dollar for dollar,
provided the Federal Government terms
are met
Thprn nj fhov, I am mn {v,
dividuals receiving this form OF old-age
assistance. These pensions are costing
about $500, 100000 year. Yet they are
paid only to aged persons who are desti-
tute and who are without other means of
support. In many States the payments
are not much more than $40 month
and in most they are graded in a way
merely to supplement other income.
But the plan for meeting the problem
of old age in which Mr.. Roosevelt is most
interested is that of old-age insurance
At present about 10000, 900 individuals
are contributing from their earnings and
100000 employers are supplementing
these contributions to build interest
earning reserves from which insurance
payments will be made when worker
reaches the age of IS and stops work.
This is vast system of forced saving.
Each annuity is based upon the exact
earnings of every individual through
lifetime of work.
The central idea is that every individ-
ual should earn his own right to retire
and should have a retirement annuity
based upon his individual earnings.
This is highly conservative approach
to the old-age problem. It was designed
deliberately to overcome the pension de-
mands Of less conservative sort by ap-
pealing to the sentiment for a payment
that is due as matter of right rather
than as matter Of relief to the INDECENT.
To fulfill this plan calls for creation of a
reserve fund of approximately $5o,ooo,-
000, 1000.
Several reasons are appearing to sug-
gest why this plan Is having next to no
effect in quoting old-age pension de-
mands.
One of those reasons is that first an
nuities are not to be paid until 1912 and
then they will be SO small as to look
meager even alongside the $50 a month
that can now be paid to those who have
reached IS and are INDECENT. Another
reason is that barely half of the workers
of the country are covered by the plan.
Farm workers are outside and SO are
casual laborers and domestic help. Still
. third reason for dissatisfactiou and lack
Of interest u thu lack of provision tor