The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1942-01-01
Information On
Social Security

AlIeT pEdlSllS lllS dCCOlllpiiSiiiiciit
of the social security program in
erecting safeguards for the economic
protection of nearly 35,000,OOO men,
women and children who are depen-
dent upon the payrolls Of small enter
prises, Federal Security Administrator
Paul " McNutt today issued warn
ing that the United States, in its shift
from peace to a wartime economy
Cannot afford busy assembly lines in
some places and hungry bread lines IN
Others"
Appearing at hearing of the Sen
ate Special Committee to Study Prob
lens of American Small Business, Mr.
McNutt discussed the human aspects
Of these problems, "including the ap-
palling unemployment which will fol
low if small proprietorships cannot be
maintained, the need for purchasing
power to buttress small stores, and
the disruption of community life
which would follow the elimination OF
these small concerns from our eco
nomic universe"
The Administrator said that the
Federal security program could assist
the workers laid off in three ways:
Q Through surveys by public en-
ployment offices of all plants which
have experienced or are faced with
layoffs 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-
viding training in vocational courses
(3) And through payment of un-
employment insurance benefits, usual
ly about one-half Of regular weekly
wages.
The Administrator said he believed
unemployment compensation can tide
many workers over period Of invol'
untary idleness, if contracts can be
speedily awarded and supplies assured
to many plants faced with labor dis
placements.
"If, on the other hand, contract
awards of conversion cannot be made
within three months following the lay.
off, it is very likely that considera
BILE number of workers will remain
unemployed until conversion is accom-
plished or may leave the community
for jobs elsewhere"
After explaining to the committed
that small and medium-sized business
"is still basic part of our economic
foundation" Mr.. McNutt said these
small enterprises could not be consid
cred separately as "they have THEN
ups and downs together"
"Layoffs due to material shortages
are likely to be severe in the near
future. Recent reports to the public
employment offices from selected
plants indicate they have already lac
off 45,OC0 workers and anticipate lay
ing off l24 900 or about one-fourth o1
the total force. Nearly one-half thc
firms curtailing employment formerly
employed fewer than $50 workers
The peak of labor displacement i!
| likely to be felt during the first hal
of 1912.
"The area which appears to be
hardest hit by these shortages is The
Great Lakes and Ohio Valley region
particularly Ohio, Michigan, Illinois
Indiana, and Wisconsin. In Michigan
the automobile, parts, and accessorie!
industries are affected most; in In
diana and Ohio, automobiles, electri
refrigerators, domestic laundry equip
ment, and other household appliances
in Illinois, stoves, heating equipment
and electrical machinery, including
radios, refrigerators, and parts; an'
in Wisconsin, aluminium goods, rubbe
goods, and hosiery. In the South, tex
tile firms, manufacturers of stoves
and small metal consumers are report
ed to be laying off workers. In New
England, a wide variety of industries
most of which are small scale, are re
ported to be laying off workers, in
cluding hardware and brass firms no
producing defense items; in Massa
chusetts, toy and clock manufacturer
will probably curtail employment; i,
Rhode Island, the jewelry industry ha
been hard hit; in Massachusetts
Maine, and other areas, the textile in
dustry is laying off workers due t.
the lack of yarns. In Pennsylvania
the. most serious labor displacement
has occurred in the silk industry. Tn
Pacific Coast is experiencing very lit
tie labor displacement.
! The Administrator emphasized tha
"When millions are made insecure b.
shifts in production, their familie
should be protected by every possibl
means" He pointed out that unem
ployment compensation benefits fo
workers, and when these are exhaust
ed, general relief, help to underpi
their level of living.
"Estimates Indicate" Mr.. McNut
said, that Federal, State, and loca
1871 Social Security disbursement