U.S. SOCIAL SECURITY

Hawke's Bay Tribune, Volume XXV, Issue 159, 21 June 1935, Page 7

U.S. SOCIAL SECURITY

Protection of Wage-Earners PENSIONS FOR THE AGED Important Measure Passed By Telegraph—Dress Assn—Copyright. NEW YORK, June 20. The Washington correspondent of the “New York Times” says that the New Deal's contribution to social security, stated by some to be the most comprehensive measure of its kind ever adopted at any single session by any national parliament in the world, was approved by the Senate to-day in the passing of the so-called WagnerLewis Bill (which in somewhat different form was passed in the House in May last), caftying with it a broad programme designed to cover some 26,000,000 wage-earn-ers. This omnibus security bill covers oldago pensions to indigent elderly people under a system of Federal and State compulsory contributions, unemployment insurance, aid to dependent mothers and children, and aid to the blind, i'he measure is much more inclusive than when it was introduced in its first form by President Roosevelt last November. It is said to be in scope wide' than had ever before been attempted anywhere. Its very scope brought repeated and vigorous objections from its opponents, who fought- unsuccessfully against it. Specific provisions in the measure are the payment of 50,000,000 dollars in pensions by the Government iu 1936. Only American citizens are eligible. Three million men uud women of 65 who are penniless and homeless will be pensioned off on “poor farms.” The Federal Government will provide dol-lar-for-dollar contributions with States. Workers will be taxed one per cent, of their wages as a contribution to the fund, alien workmen being included. Employers will deduct workers’ contributions from their pay envelopes and will add their own assessments to them All workers will bo pensioned at 65. Existing private pension systems will not be interfered with. The sum of. 25,000,000 dollars is appropriated for orphans and dependent children, and 11,000,000 dollars for blind welfare and vocational guidance., The Senate on May 16 passed the Wagner Labour Disputes Bill. The new law, in effect, superseded the highlycentroversial section 7a of the National Industrial Recovery Act and created a permanent Labour Relations Board to guarantee the workers’ right to bargain collectively, and in so doing virtually outlawed employer-dominated company unions. Section 7A of the Recovery Act was so open that both employers and employees thought it supported them; and this ambiguity was admitted to ’have been the cause of many of the strikes in American industry during the Roosevelt regime. President Roosevelt on November 14 outlined what part of his programme of “economic security” he would press before Congress. He said that he would ask for unemployment insurance as a cooperative Federal and State undertaking supported by contributions, not taxation, and with funds held and invested by the Federal Government. Bo indicated that he was not then ready to act regarding old-ago and sickness insurance. “Our first task is to get the economic system to function so that there will be greater general security,” he said.