Evening star., 1951-07-18
Truman Wants Rise
In Pensions Included
With Relief Increase

With Relief Increase
President Truman today told
Congress that if a proposal to
increase public assistance pay
ments to needy Is to be pushed
through a corresponding boost
should be made for old-age insur-
ar1ce beneficiaries.
To increase one without the
other, he said, in a letter to Vice
President Barkley would be
a highly undesirable result for
the future of both programs"
The Presidents intervention in
the legislative move was prompted
by approval In the Senate Finance
Committee of an amendment to
the tax bill which would give
about So more monthly to the
Federal share of State public
assistance payments to needy.
aged, blind. or disabled and about
50 monthly to dependent children.
The total cost would be about $140
million annually.
Stresses Basic Purpose.
In explaining his stand, the
President said:
1T seems to me that any legis-
lation to increase public assistance
payments should take account of
the relationship between those
payments and the amounts paid
out under our Old Age and Sur
vivors Insurance system. The lat
ter program is financed by an
employer-employe tax.
"In considering increases in
public assistance payments, it is
vitality important that we all keep
clearly in mind the basic purpose
of public assistance. Its purpose
is and always has been to supple
ment our Social Insurance system.
Our aim has been to expand the
coverage of social insurance and
gradually reduce the need for
supplementary public assistance
programs. It is essential that a
proper relationship be maintained
between insurance benefits and
assistance payments. At the very
least, average benefits from insur-
ance should be as high as average
payments under public assistance.
Today, the average payment In
both programs is about $43 per
month. An increase in public as
sistance alone would, therefore
result in an average insurance
benefit lower than the average
assistance payment"
The President said that the in
surance benefits could be in
creased now without changing the
actuarial status of the Old Age
and Survivors Insurance system
which was revised last year
because higher wages over the
country will bring a greater in
crease in the income of the in
surance fund than its liabilities
Will cause to be paid out.
Recalls 194S Procedure.
The President also urged that
If the Senate plan is adopted the
law should make plain that the
additional funds actually are toI
be passed along without delay to
people getting State aid.
He pointed out that when the
Federal share in the public assist
ance program was increased in
October, 1948. there were in
stances where Federal funds were
substituted for State and local
funds and the upshot was that
benef1ciaries got less than was in
tended.
IF new increases are now to be
authorized" the President ad-
monished, 1--WE should take care
to avoid repetition of this ex-
perience."
The Senate took up the bill this
afternoon.
Watered-Down Version.
Federal contributions to the
States for social security grants
to the aged. blind and disabled
would be increased So a month
and, for dependent children, about
$1.60 month.
The proposal is watered-down
version of an amendment by Ma
Jority Leader Mcfarland and %
other Senators which would have
raised the Federal contribution by
$3.50 million year.
Senator Mcfarland wanted to
increase the Federal share of the
old age, blind and disabled grants
by SIS, those for dependent chill
dren by So.
The amendment passed the
Senate, tackled on to a minor
House revenue bill, but Senator
Taft. Republican, of Ohio, sue
ceeded in getting the Senate to
reconsider.
Senator Taft argued that the
Senate Finance Committee should
take look at the plan and try to-
make some savings. This COM