Evening star., 1946-12-01
VI ths Assoeiuisd Press

CluueQ Lnat &uaT6nJeeQ HnuuAi
wage for workers can help stabilize
the economy and point the way to
enduring prosperity.
] The findings were contained in.
m interim report made public last
hight by Murray w. Latimer,
former chairman Of the National
Railroad Retirement Board and
director Of the study, which was
made at White House direction.
Many industrialists have opposed
the wage guarantee idea on the
ground they would lose great
deal OF money II required to con-
tinue paying wages for as long as
. year to workers they had TO lay
of.
Mr.. Latimer's report held that,
even In most seasonal industries,
wage guarantees can be granted
without increasing costs to en-
ployers by more than s per cent
il co-ordinated with the existing
system Of State unemployment COM
pensatton.
Urges Acceptance Of Plan.
The report urged that the Fed
eral or State governments take
steps by broadening present u1-
employment compensation benefits
and extending special tax exemp-
tions--to encourage more widespread
acceptance Of the guaranteed wage
plan
"The study has recognized" the
report said, "that the guaranteed
wage system is not panacea for
the insecurity of our economic sys-
tenn, that it cannot. in and OF it
self, eliminate the fluctuations in
the economic system.
ION the other hand, 1t Is quite
clear that widespread wage guaran-
tees can make a substantial con-
tribution to the stabilization Of the
economy through the stabilization
Of wage Garner income and hence
Of consumer expenditures.
The report recognized that other
factors must be considered beyond
the immediate expenditures for con-
sumer goods Of the recipients OF
guaranteed wages" 1t disclosed
that q companion SURVEYS to
the plans overall, economic in
f1uence"--is being completed.
Study Encouraged by CLIO.
This phase OF the study is being
made by Profs. Alvin n. Hansen
Of Harvard, former economic ad-
wiser to the Federal Reserve Board
and Paul A. Samuelson of Mas
sachusetts Institute of Technology
In connection with Mr.. Latimer's s
study, the CIO reiterated yesterday
that Mr.. Latimer had been ordered
by the Once of War Mobilization
and Reconversion to wind up his
work in hurry, by December 81
The CIO, which has long been en-
couraging the Government study
said in its weekly newspaper that
OWMR's action would cause the
study to be abandoned before "cer-
tain vital aspects" are satisfactorily
completed.
Mr.. Latimer told a reporter HI
had received no such orders" anc
the study group still has sufiicien
funds remaining from its $3.50, ,00l
ALLEGATION to run for several month.
additional"
The report said that reserves II
the State unemployment compensa
ton funds are large enough to war.
rant increasing the benefits job
less worker may receive, both as Il
amount and duration of payments
1t suggested SIS to $50 . week fol
26 to 80 weeks.
But even these increased rates
the report said. would leave t.ampls
room for voluntary supplements
tion of benefits" by guaranteed wage
plans initiated by private business
The report noted that at present
employees out Of work who receive
guaranteed wage payments are in
eligible for unemployment compen-
sation payments. @
Recommendations Listed.
Among the reports recommends
tions to OWMR were these:
/. That the Government urge ths
States to allow workers covered un-
der guaranteed wage plans to re-
ceive unemployment compensation
2. That employers paying out
guaranteed wage benefits be allowed
| to calculate the unemployment COM
pensation payments. as part OF theii
wage guarantees.
That Congress- amend the tas