Evening star., 1961-02-02

ference yeSterday.-Al
hausting unemployment bene-
fits has also increased. About
500. 900 persons who have ex-
hAusted their benefits are still
unemployed. During the first
six months Of 1861, nearly Ia
million more persons will use
up their unemployment bene-
fits before finding jobs.
In these urgent circum-
stances, I shall ask the Con-
gresS to enact q temporary
program for extending the du-
ration Of benefits. Under
agreements voluntarily entered
into between the States. and
the Federal Government, addi-
tional weeks Of benefits would
be authorized from Federal
funds, during the IL months
following enactment. to per-
sons who have exhausted reg
ular benefits since October 81,
1860, and are still unemployed.
These extended benefits would
equal one-half-up to q max
imum Of 13 weeks-of the
duration provided by the State.
The duration Of the benefits
would be subject to an over
all maximum, State and Fed
eral, Of 80 weeks. Where the
State law already provides ben
efitS for longer than 26 weeks,
the Federal Government would
pay. for the period Of the
emergency. for all weeks of
benefits beyond 26, up to q
maximum Of 80, thus freeing
State funds for much-needed
Increases lin benefit amounts.
The amount thus going into
Increased Income and purchas-
ing power will be advanced
from general revenues and later
repaid in full from increased
insurance contributions OBJ
tanned by raising the taxable
payroll maximum per employe
from $1,000 to $4,000 annually.
This increase will maintain the
ef-Supporting basis Of the
system and enhance its capac-
ity to meet future emergencies.
Our permanent Federal
State unemployment insurance
system, which has become an
institution essential to the eff
cient functioning Of our labor
markets as well as q strong
defense against economic con-
traction, is In need Of perma-
nent reform. AS I said in
1858, I believe it would be a
tragic mistake to embark on a
Federal experimentation pro-
gram geared to the present
emergency without also
strengthening the underlying
system. A mere stop-gap ap-
proach ignores the role our
permanent unemployment in
surance system was intended to
play, and establishes instead a
precedent for falling back on
temporary remedies whenever
the system is really needed.
The standards Of the system
have proven inadequate to deal
with the recession problem.
This time. we must estab-
lish Q permanent unemploy-
ment compensation system
which can do the job 1t was
intended to do. A program Of
Federal legislation designed 20
revise and strengthen the bene-
fit and financing provisions of
the system will therefore to
recommended to the Congress
by the end Of March.
4. EXPANSION OF UNITED
STATES EMPLOYMENT
SERVICE
I am directing the Secretary
Of Labor to take necessary steps
to provide better service for
unemployment insurance claim
ants and other job applicants
registered with the United
States Employment Service.
This will require expanded
counseling and placement serv-
ices for workers or job seekers
ca in depressed areas; (b) in
rural areas Of chronic underem-
ployment; (c) displaced by au-
tomation and chronological
change In factories and on
farms; ID in upper age
brackets, and (e) recently
graduates from college and
high school.
5. AID TO DEPENDENT
CHILDREN OF THE UN-
EMPLOYED.
Under the aid to dependent
children program, needy chill
dren are eligible for assistance
If their fathers are deceased,
disabled, or family deserters.
In logic and humanity, a child
should also be eligible for as
sistance If his father Is a needy
unemployed worker-for ex-
ample, q person who has ex-
hausted unemployment bene-
fits and is not receiving ade-
quate local assistance. Too
many fathers, unable to sup