Evening star., 1942-10-11

ployment compensation in the
States and make possible the in
crease OF average benefits. At pres
ent there is an exceedingly wide
margin between benefits paid and
contributions collected by the diff
ferent States for Unemployment
compensation.
Using the first six months Of
1910 as an average period, North
Dakota. Montana, Nevada and
Idaho paid in BENEFITS more than
they collected. North Dakota paid
$l,43 for every dollar collected.
Eight States paid less than Is per
cent of their collection, the re-
mainder being kept to already swol-
len reserves. Connecticut paid ia
per cent of the contributions for
unemployment compensation bene-
fits.
Total Reserve Three Billion.
Total reserve funds for unemploy-
ment compensation now aggregates
approximately 100000, 900. The
old age and survivors insurance
system has more than $3,400, 900 900
to its credit. Payments for unem-
ployment compensation for Septem-
Der, 1912, totaled $22,378000 and
for the same month old age and
survivors insurance payments to-
tailed $9,l00,000. A total of $780,
$50 900 have peen paid in unemploy-
ment compensation claims since
1887.
Another argument OF the pro-
ponents is that the Federal system
would Danish the fear of insolvency
OF State insurance funds. Such in
solvency. they say. is likely in States
With dominant industries that SUI
fer from seasonal or cyclical f1uc-
tuations. The present system does
not permit payments of as high
benefits in such States as in others,
and the national system would REM
edy the inequality.
Opposition to the liberalization
plan is high both in and out of Con-
gress. The s300,0O0,0OO work dis
placement legislation, designed to
pay benefits to automobile and
other workers during their enforced
ldleness when their plants were be-
ing converted from peace to war
production, was reported out un-
favorably by the House Ways and
Means Committee. That action
was taken after State officials testi-
fed that the measure was the first
move of the administration to fed
eralize the unemployment compen-
satlon system.
Opponents Of System.
Among the opponents of a ma
tional system are $4,000 former en-
ployes of State employment Offices.
These Offices were federalized by
an agreement between the President
and Governors in December, 194l.
The employees have been inducted
into the Federal service. but they
are still drawing salaries at State
levels. The Social Security Board
sought to rectify this by inserting
into the l943 supply bill of the Fed
eral Security Agency an item for
$4000,000 for "readjustment of
United States Employment Service
salaries of former State employees
to Federal classification level"
The subcommittee, headed by
Representative Hare, Democrat, of
South Carolina. struck the item from
the appropriations after Mr.. Nc
Mutt testified. as he did in the $780,
000,0 900 work displacement bill, that
he was in favor of federalizing the
unemployment compensation system
and after State directors of Un-
employment Compensation Com
missions charged that social security
was attempting liberalization by re-
quiring State unemployment COM
pensation employees to do Federal
work.
The board contended that the
former State employment service
employees had been taken into the
Federal service and were entitled to
the higher wage scale Of the Federal
Government. The committee threw
the measure out when members i'm
piled that this move was an indirect
method Of obtaining the support of
the $4,000 employees for permanent
liberalization of the employment
system at the conclusion of the var.
The best way to root for victory
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