The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1950-01-26
Administration
Asks More Liberal
Security Bill

Washington (LPA)-The Admin.
istration opened Senate hearings
on the House social security bill by
asking for more liberalization OF
the present law than is provided ir
the House measure.
Arthur j. Altmeyer, Commiss-
ioner of Social Security and the
Administrators first witness be
fore the conservative Senate Fin
ance Committee, asked for whole
series of amendments expanding
the House bill-most of them Adj
ministration recommendations that
were rejected in the House Ways
and Means Committee.
But Altmeyer lauded the House
bill and urged quick action to i'm
prove it. He said the Social Secur-
ity Act had accomplished zone pri-
mary objective-the abolition of
the old-fashioned poor house" but
had not yet fully achieved its
long-range objective of preventing
destitution through the establish
ment of a comprehensive system of
contributory social insurance.
"The time has come, he added,
'to reaffirm the basic principle
that contributory system of So
cial insurance in which workers
share directly in meeting the cost
of the protection afforded is the
most satisfactory way of prevent
ing dependency.
In contrast with this principle,
Altmeyer said, more than five mil
lion people are now receiving pub
lie assistance as compared with
half that number getting old age
insurance benefits. The nation is
spending more than 81 billion a
year for public assistance and only
third of this on insurance.
Federal expenditures for old age
assistance, or charity, are rising at
the rate of 81 million month, Alt
meyer warned. He said neither this
system, nor the private plans now
being worked out by industry, were
satisfactory solutions to the pro-
blem
Contending there was no longer
any doubt of the practicability of
old age insurance, Altmeyer urged
the committee to improve it by:
l. Extending the coverage to
practically all gainfully employed,
particularly farmers and domestics.
2. Liberalizing the eligibility re-
quirements for those now past mid
die age, so they could be covered
under insurance rather than char
ity.
3. Raising the level of benefits.
a. Extending the insurance pro-
gram to provide for disability as
well as old age and death.
IF the social insurance program
covered practically all gainfully
persons, Altmeyer testi-
fled, sit would carry much great
er part of the cost of providing for
the aged, the disabled, and the de-
pendent survivors of deceased
breadwinners. This would be par
ticularly significant in agricultural
areas where today, because of the
limited coverage of old age and sur
vivors insurance, these costs must
be met largely by public assistance
financed from general tax funds.
Among Altmeyer's specific re-
concentrations were:
l. Raising the coverage of the
payroll tax from the present $1,000
20 $4,000 to provide more money!
sor adequate benefits.
2. A new formula to provide
more liberal benefits.
3. Liberalizing the proposed
benefits for disabled to include
benefits for dependents.
Altmeyer said the House bill
would cost 81 per cent of payrolls
n the future, while his proposals
would cost 6 per cent. But he said
hey would reduce the cost of pub
ic assistance, even after providing
more liberal grants.