AMERICAN PLAN.

Auckland Star, Volume LXVI, Issue 3000, 19 December 1935, Page 7

AMERICAN PLAN.

OLD-AGE PENSIONS. Advocate of Townsend Scheme Gains Victory. POLITICIANS " SHOCKED." United Press Association. —Copyright. WASHINGTON, December 18. Partisan politicians, both Republican and Democrat, were not a little shocked last night when the yeturns from a special congressional election in Michigan revealed that an advocate of the Townsend old-age pension plan had defeated his Democrat opponent by almost two votes to one. The successful candidate, Mr. Verner Main, a Republican, drew tremendous support in the rural sections, where not only in Michigan but throughout the nation the Townsend supporters appear to be effecting strong organisations for their pension plan, which has been advocated during the' past few years without receiving any substantial support. Under it Congress would grant 200 dollars a month to all individuals over the age of CO, regardless of need, at an estimated cost to the Government of more than 8,000,000,000 dollars a year. Recently, Dr. F. E. Townsend, the founder of the movement, declared he had 30,000,000 followers and would demand support from every Congressional candidate in the 193 C elections on a threat; to exert their political power against any refusing. Many political observers, while believing Dr. Townsend's strength has been over-estimated, say the movement is spreading like wildfire throughout the west, and may elect a considerable block to the next Congress. A strange force is ominously making itself felt in the Uuited States just now. This is the nation-wide organisation of the Townsend Old Age Pension Plan, started in iong Beach, California, exactly two years ago by the 67-year-old Dr. P. E. Townsend, assistant city health officer, who had lost his job through polities and bank smashes. He had just 100 dollars saved. He started clubs throughout California, and within year had secured % the election of a "firstattempt" candidate to Congress. This was J.phn McGroarty, an Irish Catholic, who defeated his Republican opponent by 12,000 in a rabid anti-Catholic district which had been traditionally a Republican stronghold. This was the first votepulling test the Plan had been given. John McGroarty, who is aged 72, introduced a bill—of less than 1000 words— into Congress, and desperate efforts have been made to have it passed during this year. Its supporters were few, but blind to opposition, and they achieved the feat of letting their 25,000,000 signed adherents know which politicians opposed tfye scheme. Thereupon Congressmen were inundated with mail averaging thousands of letters daily. Pew made any attempt to answer this mail. Even the White House itself was inundated far beyond its capacities by the flood of mail, which it is stated has exceeded tenfold the activity of any pen-and-ink campaign in the history of America. Dr. Townsend plans to give, on condition- alone that they spend, it within 30 days, a sum of 200 dollars a month to all citizens. This would probably cost the Government 8,000,000,000 a year. He would raise the money by a 2 per cent sales tax on all financial transactions. His opponents declare this will stop all business in the country, and the bornus payment will deprive those under 60 of one-third of the national income. Townsend. 6ays • ''We found. 33 l>illions for a. European war; we spend 12 billions annually on crime prevention; we provide hundreds of millions for unemployed relief projects, etc. Under my plan the country would save at least 9 - billions each year."