Evening star., 1942-01-20
S300,000,000 Asked
For Workers Laid Off
By Plant Changeovers
President Says Stotes'
Unemployment Benefits
Are Not Enough
Continued From First Page.

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might run between $3.50 .000,000 and
$500 900 900. They explained, how
ever, that this figure might be much
less if retooling Of plants Is accom-
plished In a shorter time.
One Year Benefit.
The President also suggested that
the program continue not longer
than this calendar year and that
details of the benefits to be paid be
determined by him through an ex-
ecutive order.
The text of the Presidents letter:
The Speaker Of the House OF
Representatives:
Sir:
THE conversion OF industrial
plants from the production of peace
time goods to the production of war
materials, and the drastic curtail-
ment of civilian consumption re-
quired for de successful prosecution
of the war have already thrown
thousands of persons out OF work.
Eventually these workers will be
absorbed in war industries. In the
meantime there will be widespread
distress unless the Federal Govern
ment takes appropriate action to
cope with the situation which Is
directly attributable to the war pro-
gram.
The present State and terrific
rial unemployment compensation
laws furnish some protection TO
these displaced workers, but the
benefits provided under these laws
are quite inadequate Prompt and
appropriate action by the States and
territories TO meet this emergency
problem cannot be depended upon.
although they have accumulated
two and a half billion dollars re-
serves and have reduced their con-
tribution rates because of small
benefit disbursements. Only eight
States have regular sessions OF the
Legislatures this year and only FIVE
other States have already called
special sessions of the Legislatures
Would Take Time.
Il am convinced that the best
solution of the problem would be a
uniform national system of unem-
ployment insurance with adequate
benefit provisions. Such a system
would be financed by pay roll con-
tributions, obviating the necessity
! for appropriations from general
funds. l have already recommend
ed such system in my budget mes
sage However, permanent legisla-
ton of this character should be con-
sidered in relations to other social
security legislation, and this would
take more time than the present
emergency will permit.
Therefore. recommend that the
Congress appropriate the sum of
$500 900 900 to supplement and ex-
tend the protection now afforded by
the State and territorial unemploy-
ment compensation laws. so that not
only may employees insured under
these laws receive an additional
war displacement benefit, but en-
ployes not now insured under these
laws. either because they work for
small employers or for some other
reason, may also be afforded protec-
ton.
Il suggest that the appropriation
be made in such a way that the
expenditures would be controlled
by plans approved by the President.
These regulations would provide
that displaced employees receive in
total weekly benefits approximately
go per cent of their average weekly
wage. but in no event more than s24
a week for 26 weeks. Such plans
would also provide that no dis
placement benefit be paid to any
person who refuses to accept voca-
tional training to better qualify
himself for employment in a war
/ industry or who refuses to accept
suitable employment.
Plan of Administration.
THE administration of this plar
would be carried out by the Socia
/ Security Board in the Federal Sc.
/ curity Agency. The Social Security
Board is now operating directly
all the Offices Of the United States
Employment Service and is alst
charged with the responsibility Of
supervising the State unemployment,
compensation agencies whose ad.
ministrative expenses are paid en-.
tirely by the Federal Government.
Il recommend that the Appro.
priation Act indicate that this i.
temporary and emergency legisla-
ton covering at most the balance
of the present calendar year.
The detailed appropriation rec
commended is set forth in the letter
of the Bureau of the Budget trans
mitted herewith. with which rec
ommendation / concur.