Evening star., 1953-01-25
U. 5. Chamber Urges
Expanded Coyerage
BY Social Security
BY the Assoeioisd Press

Inc UnlteQ states ChamOer OF
Commerce announced last night
that it's 5000 member organiza-
tions have voted overwhelmingly
for a sweeping expansion of the
Social Security program to cover
all working and all retired
persons"
The chamber said its proposal
would extend Social Security
benefits to S million aged persons
who have not qualified under the
present program and most of
whom receive relief checks under
a combined Federal-State old age
assistance program.
The statement said:
Enactment Of the chamber
proposal by Congress would
mean:
81. Paying basic old age and
survivors insurance benefits to
all today's unprotected aged and
ending the present discrimina-
ton against more than half of
the aged population.
"2. Eliminating Federal sub
sidy of State relief programs for
the aged, thereby saving 81
billion annually in Federal public
assistance grants.
"3. Extending coverage of the
Old Age and Survivors Insurance
System to all gainfully employed,
not presently covered under con-
tributory social security.
a. Financing benefits on a
pay-as-you-go basis thereby es-
tablishing a direct relation be-
tween income and outgo."
No Trust Fund Specification.
The chamber made no specific
statement as to how the present
SIT billion Social Security trust
fund" fits into pay-as-you-go
financing. But Dean Mitchell Of
Hammond, Ind. chairman of
the chambers social legislation
committee, said this balance rep
resents only about three years
revenue under the proposed ex-
tension of coverage.
The fund was built up by
taxes levied on pay checks and
payrolls.
Actually" Mr.. Mitchell said,
"tbis SIT billion is more Of a
cushion than a reserve in the
actuarial sense. 1t has become
evident that the trust fund is
not the proper way to finance a
Government program of this
kind. The mere existence Of a
large fund is a constant temp
tation to raid it for more i'm
mediate benefits.
"At the same time, if the So
cial Security program follows its
present course. the fund will
not be adequate to meet the de-
mands against it when the mil
lions Of persons who have been
brought under the program IN
the past II years begin to retire
in large numbers.
Future Claims Will Be Met.
"Of course, no one questions
that the future claims will be
met. But the Government will
meet them by additional taxes,
and not by reliance on the
fund"
"The present size of the fund
only reflects the fact that much
more money was collected in
taxes than was needed to pay the
relatively small number of aged
who could qualify for benefits.
"It may be possible to elimin-
ate it entirely because the money
has actually been used for Gov
ernment purposes and the fund
consists only of notes that the
Government has issued as COL
lateral for the money it took
from the fund But would not
quarrel with the idea of keeping
a reasonable balance of social Sc
curity funds in the Treasury to
smooth out unexpected short
range changes in revenues and
benefits"
The chamber said the Govern
ment now is involved in two
types of programs for the aged.
adding:
"It administers directly the
old age and survivors insurance
system which now covers less
than 80 per cent of the work
force and pays benefits to only
one third of the present aged.
ut also contributes the major
part of the costs for the State
Federal system of old age as
sistance which is a relief pro-
gram governed by the needs Of