Evening star., 1953-12-27
By Robert K. Walsh

A widespread belief that social
security is insurance and the
fact that so per cent of the aged
still cannot get benefits we're
cited at the Capitol yesterday as
reasons why the program re-
quires better understanding and
considerable change.
Representative Curtis, Repub-
lican. of Nebraska, who heads a
Ways and Means subcommittee
studying social security, said the
examination disclosed many
shortcomings resulting largely
from "piecemeal expansion" of
the program. He especially crit
icized old age assistance pro-
grams operated by States and
called for congressional reme-
dies.
Mr.. Curtis sent q letter and
staff memorandum to Ways and
Means Committee Chairman
Daniel Reed. Republican. Of New
York. The letter made several
suggestions in advance Of the
complete report to be submitted
by the subcommittee when Con-
gress reconvenes.
Questions Number Of Programs.
|. Noting that 1O6 programs n
nanced wholly or in part from
Federal funds, and many Of
them overlapping. offer old age
assistance and aid to dependent
children. Mr.. Curtis asked:
Must there be so many pro-
grams to deal with two social
problems? Must young widows
with dependent children and the
aged of our country receive such
a wide variety of treatment?
Cannot minor adjustments be
made so that social security may
serve all these worthy people in
a like manner?"
The subcommittee chairman
did not refer to his and Mr..
Reeds previously announced op-
position to any freeze of So
cial security tax rates in 1854.
Nor did he discuss controversial
proposals that the social security
system be put on a pay-as-you-
go basis instead of the present
trust fund arrangement.
The staff memorandum stated
that the December 81, 1852 bal
ance of STA billion in the Old
Age and Survivors Insurance
trust fund is sufficient to meet
all present benefit payments. 1t
nevertheless is almost 81 billion
below the amount that should
be available now in view of pros
pective benefits to eligible per-
sons, the statement showed.
Trust Fund Misunderstood.
AS for what he called a mis-
taken popular belief that the
social security system is essen
TALLY an insurance plan, Mr.
Curtis wrote:
There is a widespread mis-
conception with respect to the
OASI trust fund. Perhaps the
name trust fund gives rise to
the belief that it is like an ac-
tuarilly sound private insurance
company reserve fund. In let
ters, many people have indicated
they firmly believe the trust fund
is their savings, and some even
believe it represents the profits
the Government has made on
the premiums (OAIS taXeS)
they have paid in the years
gone by.
"The fact is that the trust
fund was smaller at the end Of
1852 than the aggregate amount
of benefits which will be paid
Eventually to those then on
the OASI rolls. The fact is that
the benefits to present OASI
taxpayers who will retire, say,
next year and the year after will
have to be met from future col
lections Of these designated
taxes"
May Be Changed.
Mr.. Curtis explained that the
rights" which social security
taxpayers have are not natural,
contractural or constitutional. u
They are merely rights or bene-
fits that may be changed or re-
pealed at any time by legislative
action, he said.
Although the subcommittee
has not yet said it will submit
specific recommendations, Mr..
Curtis gave broad hints in listing