FULL SCALE PENSIONS

Evening Post, Volume CXXVIII, Issue 11, 13 July 1939, Page 17

FULL SCALE PENSIONS

PLEBISCITE AGAIN

A CALIFORNIAN PROJECT-?

{From "The Post's" Representative.)

SAN FRANCISCO,' J;ine;2ll The State "of California, rioted for its fantastic old-age pension- schemes, ■•?. ranging up to 200 dollars a'moniii, is' going to hold another plebiscite on the "Ham and Eggs" 1, scheme,' uridef which the State would pay^'3o^dollars a week for life" to its citizens who pass . the age of 50 years. Last Nbyemßter a ! similar ; proposal was defeated-, by 255,000 votes in a poll of 2,500 000 ielec- ' tors. The new plan, alteredjin some;.i details to meet the objections raised in \ last year's bitter campaign^ prpposes that the pension be paid-in the s formof State warrants. A number of taxa- : tion measures are involved but; the warrants, as under the old "Ham,'and Eggs" proposal, would be.validated bj" affixing' a two-cent stamp every "week / to the;. back of each one-dollar •Warrant.-"';' ;• •■.-.. ■■'■ -■:;'■ '. /; •■ ■ ';!■■'.'. ."■J''

In the latter detail, the plan'! re-* sembles the first Social-Credit plan of Mr. Aberhart, Premier of Alberta. Because banksand business houses refused to honour; the scrip, Mr. Aberhart abandoned it, and recently established a number of credit clearing banks. Similar action is being taken in California,' where the -banks; and ■ business houses have also refused to handle the warrants; The latter, are.: preparing to fill another,: huge; war 1 chest -to fight the proposal. The sponsors of the measure are asking Cover-: 1 nor Olson to set up a Commission of ; economists to advise how the Stata>^ can finance1 the scheme. ■'. v Z

Meantime; another California prdpect. Dr. Townsend's old age pension plan, was defeated %i the House of ; Representatives at Washington by 302; votes to 97. Many of; the Townseridites - have deserted to, the "Ham and Eggs*y\ party. The agitation is likely to con-: % tinue as long as the country has. a,-large; number, of unemployed. Support" for, A each of the pension schemes conies from unemployed; who foresee eni-, ■; : ployment for themselves: when those ' of 50 years and over are taken fronv^ industry and put on the pension rolls. •- Support also comes from retailers and small merchants who- , think;:;:pf ■'/.,the* money that would pour into theirHill3:-..-. if every Ijeneficiary/! was receiving from 150 to 200 dollars a month., /

' 'THE FEDERAi; GOVERNMENT. Further confusing the issuers vi&e;-'de-y cision of the Federal Government to liberalise the provisions of the Social .' Security Act Under that law; ■ two >; types of benefits for aged persons are now availabie-rnori-contributory ypay- > ments to needy individuals of 65^years \; or over, and contributory payments, due to begin in 1942, to persons wto reach 65 andjthen retjre, based on wftat the pensioner and his employer have paid into the fund since the law- became effective. The; Federal Govern-.'':/'? irient wiir subsidise, up! to 15 dollars ; a nionthi: a^c^oUi^ :^e States; pay;;; to the heedyj aged J binder the iion- ;: contributory system. : , .; ; !:^ The most impprtant of "these amendments would a4\r?aace: the' day of Icornznencing payments, under the cofttri-;v butory system'by two "years; riiaidng^-; thehi1 availabletat tl&^^nd 'df^this^year.; This would 1 inyojye .';.. s trebling" the amount to be paid put in the firsfi five years, commencing January, 1940. It is. expected that Congress will agreed.;to"'-• these amendments. High old agevperi- : sion payments: are crippling tM !fin-« ances.of the State-of .Cplprado...;Sucliv a situation^ and toe threat involved in the "Ham and Eggs", proposal in I Cali-; ;■. fornia are likely to be eased by jth« : , passage, of the Federal legislation.^;