The Waterbury Democrat., 1939-01-16
strengthen and extend its provi-
Much Importance

strengthen and extend its provi- sions."
 Of Much Importance
 Mir. Roosevelt said improvement Of the old age pension system was of ,particular importance.
 sThe report suggests g two-fold .approach which believe to be sound" he said. "One way is to be- gin the payment of monthly old age benefits sooner, and to liberalize the benefits to be paid in early years.
 ~The other way is to make pro- portionately larger federal grants maid to those states with limited fiscal capacities so that they may provide more adequate assistance to those in need"
 MT. Roosevelt said the additional cost to the federal government of increased grants-in-aid would be small and suggested that the prin- ciple of increasing such grants to poorer states might well be applied to other federal grants-in-aid. Dependent Children
 The president also proposed greater aid to dependent children :, and noted that the Social Security board proposed two methods where by that might be achieved.
 "One way" said MT. Roosevelt, "is y to extend our federal old age insur- ance system so as to provide regular monthly benefits not only to the l aged but also to the dependent chil- dren of workers dying before reach ! ing retirement age. The other way . is to lbiralize the federal grants-in- : aid to the states to help finance as- sistance to dependent children" The president emphasized belief that both old age insurance and un- employment compensation systems should be extended to afford as wide ' coverage as possible.
 "Such extension is particularly im- portant in the case of the federal old age insurance system," he said. Already Very Liberal The president pointed out that old age insurance benefits payable in the early years of the social security . system are already 'very liberal' in comparison with taxes paid in. "This very fact" he said, "creates the necessity of extending this pro- etection to a. large proportion as possible of our employed population in order to avoid unfair discrimtna- tion."
 MT. Roosevelt criticized "incompe- tent and politically dominated" state social security set-ups which he charged had in some states proved distinctly harmful to success of ,, the program.
 To meet the situation, the presi- dent proposed that all states, as a condition of receiving federal funds, be required to establish and main tain a merit system for state social security personnel.
 HD said that would automa tically promote efficiency and eliminate the necessity for minute federal scrutiny of state operations.
 Washington, Jan. l6- (UP)- Tl,c text of President Roosevelt's special message to congress on So- cial security:
 Four years ago I sent to the newly convened congress mes sage transmitting report of the committee on economic security. In that message urged that con- gress consider the enactment into law of the program of protection for our people outlined in that re- port. The congress acted upon that recommendation and today we have the social security act in ef- feet through the length and breadth of our country. This act has amply proved its essential soundness.
 More than two and one half mill lion needy old people, needy blind persons, and dependent children are now receiving systematic and humane assistance to the extent of 8 half billion dollars year. !, Three and half million unem- ployed persons have recevied out of work benefits amounting to $400, ,000, 900 during the last year.
 42,500,0O0 Persons ], A federal old age insurance sys- tenn, the largest undertaking of its kind ever attempted, has been or ganized and under 1t there has been set up individual accounts covering 42,50O,0O0 persons who may be likened to the policy hold CTS of private insurance com- pany.
 In addition there are the splen- did accomplishments in the field of public health, vocational re- mobilization, maternal and child welfare and related services made possible by the social security act.
 We have right to be proud of the progress we have made in the short time the social security act is in operation. However, we would be derelict in our responsibility if we did not take advantage of the experience we have accumulated to strengthen and extend its provi- sions.
 I submit for your consideration report of the social security board, which, at my direction and in accordance with the congress sional mandate contained in the