The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1941-12-25
Changes In Social
Security Program
Urged By McNutt

washington, ~. y. \lLNO)-OrSlHS
protection Of small and medium-sized
industrial plants, which he declared
basic to our economic system, Paul v.
McNutt, Federal Security Administra-
tor, told a Senate special committee
that the United States, in it's shift
from peace to wartime economy,
Cannot afford busy assembly lines in
some places and hungry bread lines in
others"
McNutt discussed the human aspect
of wartime problems, including the
appalling unemployment which will
follow if small proprietorships cannot
be maintained, the need for purchas-
ing power to buttress small stores,
and the disruption of community life
which will follow the elimination Of
these small concerns from our eco
nomic universe"
Three Ways of Aiding Workers
After praising the accomplishment
of the social security program in
erecting safeguards for the economic
protection Of nearly 35,000,0O0 men,
women and children who are de-
pendent upon the payrolls of small
enterprise, McNutt said the Federal
security program could assist workers
laid off by wartime changes in three
ways:
1 Through surveys by public en-
ployment offices of all plants which
have experienced or are faced with
layofs to determine the materials
lacking, the skills of the workers laid
off, whether plant facilities are con-
vertible to wartime production, and
the employment opportunities for dis
placed workers.
(2) Through assisting workers to
transfer to jobs in defense industries
or, if they are lacking in the neces-
sary mechanical skills, through pro-
yiding training in vocational courses.
(3) And through payment of un-
employment insurance benefits, usual
ly about one-half of regular weekly
wages.
Small Business "Still Basic"
After explaining to the committee
that small and medium-sized business
'is still basic part of our economic
foundation" McNutt said these small
enterprises could not be considered
separately as "they have their ups
and downs together"
"When the workers in small indus
trial plants are unemployed" he
added, "small stores and service
establishments lose customers and lay
Off help, and this in turn limits the
consumption of the products of larger
businesses"
McNutt said priorites unemploy
ment assumed serious proportions
around the middle of 1941, when it
became more difficult for certain
manufacturers to obtain various ma
terials. He warf9d that the peak of
labor displacement is likely to be felt
in the first half of 1912 and said that
literally millions will shift from one
job to another. "They will experience
longer or shorter period of unem-
ployment and feel the chill Of insecure
ty," he added.
The administrator pointed out that
payments now being made under the
social security program are of vital
importance to small business, since
the groups partially or wholly de-
pendent on this income spent it large
ly on rent, food, clothing, and low
priced necessities sold by small
merchants.
McNutt emphasized this was the
basis for the recommendation that
the unemployment compensation sys-
TENS be amended, "and that the Fed
eral Government provide grants to
the States for general relief to be ad-
ministered like the present system of
aid to the aged. This would safe
guard against especially heavy drains
in distressed localities and the denial
Of relief to worthy cases because of
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