The sub., 1944-11-25
Unemployment Compensation Fund Exceeds Total

cut reached a grand total of | 154,675,10 as of November 10, 1t was announced this week by Cornelius J. Dana her, Administrator of the Elm ployment Security Division. The fund, which has been built up by contributions from employers since 1886, has made rapid increase in recent years and now stands at an all-time high. This money may be expended sole 1 Iy for the payment of bene- fits to idle workers in accord ance with the unemployment compensation law.
 When announcing the size of the fund, MT. Danaher pointed out that it should prove to be of great , benefit to this state during the reconversion period. A total of $1OO, ,0O0,00O in benefits may be paid out in the two years imme- diately following the close of the war.
 Not only will this amount be turned into purchasing power" the Administrator stated, "but it will assure the temporarily unem- ployed that money will be sup piled for their basic needs, thus en- couraging them to spend some of their accumulated savings for other necessities and semi-luxuries, which means that many more mil lions in purchasing power will be released. This release of purchas- ing power should eliminate the possibility of any depression such as occurred at the end of the last war when many war workers were left without any source of in- come''
 The fund has had it's greatest growth in recent years, as wartime payro1ls have resulted in increased contributions and the labor short age in Connecticut has reduced benefits to a minimum.
 At the time of the United States entry into the war, the fund amounted to approximately $63,- 100000. Contributions from em- ployers this year have already reached $31,176,078, an increase over the previous all-time high for calendar year when $31, JAP, ,330 was collected in 1943. Contribu- tions are required at a normal rate of 2.79o of taxable payrolls, although employers who have been liable for three years may receive reduced rates through merit rat ing. The average yield to the state is about 2.1%.
 Benefits paid out of the fund have shown a sharp drop due to the wartime labor shortage. Bene- fits paid during 1943 totalled only $572, ,000 as compared with $5, 5,191,- 900 paid in benefits during 1940, the last completely pre-war year. Payments this year are on the in- crease, however, with over $1,- 160,000 having been paid out in benefits to date, more than twice the amount paid during the entire previous calendar year.
 Although a large number of claims for unemployment benefits is expected following the cessation of hostilities, Administrator Dan- ailer stated that various studies made by the Division reveal that, for all practical purposes, the fund is sufficiently large to meet all claims which may be filed.
 He. pointed out that there is enough money now available to pay benefits in full to 63 % of the 630,000 workers covered in Con- necticut at the present time, and 94%o of all workers engaged in manufacturing. Few claimants are expected from communicating employers, inasmuch as most such firms are understaffed and will probably absorb some of the work CTS released from war plants. The fund is deposited in the United States Treasury in Wash ington and receives interest at 8