Evening star., 1961-02-02

aged widows would be increased
from rs per cent to IS per
cent Of the husbands benefit.
About 1,550,000 widows would
be affected.
Workers totally disabled for
six months would receive disa-
bility pensions. These bene-
fits now are paid only II the
disability is expected to result
in death or to last for q long.
indefinite period. About 5000
workers would benefit.
Workers would be eligible for
retirement benefits II they were
In covered employment for one
out Of every four quarters since
1850, instead Of one Of every
three quarters as now required.
This liberalization of eligibility
would benefit 10000 persons.
JObless Pay. The President
proposed Federal grants to ex-
tend eligibility for unemploy-
ment compensation to 100000
workers who have been unem-
ployed 50 long that they have
exhausted their benefits. He
estimated that Is million more
viii use up their rights BY mid
year.
Eligibility wouldbe extended
temporarily by so per cent. to
q maximum Of 80 weeks. That
is. in a State providing benefits
for 20 weeks. the Federal Gov
eminent would pay for an addi-
tional 10 weeks for a total Of 30.
The outlay from the Treas
ury's general fund would be re-
paid later from increased pay
roll taxes on employers. effec-
tive on wages paid after jan
uary /, 1862. The tax would be
figured on the first $4,000 Of
pay to each covered employe,
instead Of the present $4,000
base.
This tax increase would be
permanent. and would help
finance q permanent revision
Of the unemployment compen-
sation system to be proposed by
Mr.. Kennedy next month.
Interest Rates. The Presi-
dent said the Treasury and the
Federal Reserve are working
together to reduce long-term
interest rates to encourage in
vestment; while preventing
short-term rates from declih-
ing further. Low short-term
rates have aggravated the defi-
cit in the United States balance
Of international payments.
One way the Federal Reserve
could implement this policy
would be to buy longer-term
Government securities on the
open market. The Treasury
could rely mainly on selling
shorter-term securities to fl
nance borrowing. instead OF
trying to lengthen the debts
maturity.
Housing. Maintaining that
mortgage rates are unjustifi-
ably high, the President cut
the maximum interest rate on
mortgages insured by the Fed
eral Housing Administration
from 534 to 51a per cent. He
directed the Federal National
Mortgage Association to helr
the FILA through its operations
in buying mortgages on the
secondary market.
The Housing and Home FL
nance Agency was directed tc
speed up projects 1t has ap.
proved for construction, in
luding college housing.
Mr.. Kennedy also tele.
graphed 297 mayors urging
them to accelerate their urbar
renewal projects, and he di.
rected the Community FaciN.
ties Administration to reduce
its interest rates and looser
its requirements for loans or
water systems and other pub.
lie facilities.
Dependent Children - The
President proposed grantine
financial assistance to needy
children Of unemployed work
ers. Under existing law, NEEDY
children are eligible only Il
their fathers are dead or dis
abled, or have deserted them
Depressed Areas-Mr. Ken.
nedy renewed his request fol
prompt enactment of legisla.
ton to assist areas with chronic
unemployment through loans
grants and technical assist
ance.
Food for Needy-A pilot
plan was started to distribute
food stamps to needy persons
in six areas, located in West