Evening star., 1939-06-02

manner III WHICH, ''i" A""''"Ne'
the vote was taken. There was really
no opportunity for amendments
Hence a member can readily con-
tend that he favored, for instance,
the 200-a-month-pension plan, but
didn't believe in the transaction tax
as a method of financing it.
Actually the number of Repub-
licans voting for the plan was slight
ly more than on the Democratic SIDE
it was SIS and 40-but the Repub-
licans cast 107 votes against it and
the Democrats 1874 This is not
much comfort for either party above
the other in the pro or anti-ToWn-
send camp.
There is no denying that the
Townsend Club activity has played
a part in the modification of the
existing pension plans, though there
were other important and substan-
tial reasons for the changes being
made in the present law
Increases Payments.
Thus the legislation about to be
passed will move up the time for
the beginning of old-age pensions so
that it will start in January, 194O,
instead of January, 1912. Likewise,
there has been an increase in the
grants. Heretofore the starting PEN
sionS would have amounted to
paltrv $40 a month. Now. the new
law is designed to pay S3l month
minimum to a married man who
before retirement averaged about
$50 a month for the previous three
years. Also, if man averaged SlOO
a month, he now would get pen
sion of $40 a month Similarly, one
who has been earning $3.50 month
would get about $50 a month.
Widows of the workers would re-
ceive the pensions for life or until
they remarry. To get the pension
the widow does not have to prove
destitution or need unless the hus-
band dies before retirement age,
which is S5.
These are liberal provisions in
duced, some will say, by the growing
political strength of the Townsend
ties and possibly also by the grow
ing recognition of the problem OF
superfluous labor in the advanced
age groups.
With the improvement in health
throughout America, the number OF
older citizens has been increasing
at time when unemployment has
been increasing, too. among the
younger and even more able bodied
workers. The problem of old-age
pensions is relatively new to the
United States, but it has been
part of the social programs of for
eign countries for many years.
To Free Purchase Stream.
Entirely apart from the social or
humanitarian aspects of the prob
lem is the impact of the pay roll
taxes which has caused hardships
to businesses and unemployment.
One answer which the administra-
ton is trying to apply to the situa-
ton is the moving up of old-age
payments to 1910 instead of 1912.
This is because up to now the Gov
ernment has been Withdrawing from
the stream of purchasing power an
enormous sum and has been sending
back through the same stream rela-
lively little. Thus about SITS 100000
will be disbursed in 1910 for old-age
pensions, though about s500000 900
will be collected. But the $175000.-
600 is ever so much more than has
been disbursed heretofore per an
mum, though large collections were
made for potential reserve. The
freezing" of social security taxes
beginning next January is part of the
program to stop the def1ationary ef-
fects of the pay roll tax, at least un-
til such time as disbursements and
collections are somewhere near a
balance.
There can be no doubt that many
Republicans benefited in the 1888
election by the Townsend club vote
and the Democrats have been deter
mined that, so far as incumbent
members are concerned, this shall
not happen again unless member
has actually voted for the plan.
Those who have been flirting with
ToWnsendiSm with no real inten-
ton of supporting the plan have
been forced into definite position.
To this extent the calling of the roll