Pensions For All After 60

Manawatu Times, Volume 61, Issue 74, 28 March 1936, Page 5

Pensions For All After 60

Scheme Under Examination In U.S.A.

FRANK EX-SECRETARY

United X J ress Association—By Electric Telegraph.—Copyright. Received Friday, 10 p.m. WASHINGTON, March 26.

A Congressional inquiry which is expected to have more than ordinary social and political significance opened to-day with an investigation of the Townsend plan in tho huge House of Representatives’ caucus room, which, significantly, was crowded with porsuus apparently about 60 years of age, at which the Towuscnd plan would begin its 200-dol!ar monthly payments. Tho first witness was Robert Clements, national secretary of tho Townsend organisation, who, however, has just resigned on account of a disagreement over the founder’s “political” activities. Mr Clements, who was formerly a real estate agent, frankly confessed that he had never made any “fundamental study of economics.” As a matter of fact, he very disingenuously admitted complete innocence of a knowledge of the torminology of economics.

“Do you know the .difference between economy and political economy?” ho was asked. “I don’t know that I do,” he replied. He said that both his own and Dr. Townsend’s experiences iu world affairs were chiefly confined to dealing in Californian real estate.

Dr. Townsend himself is expected to be au early witness. Members showed particular interest in the finances of the Townsend organisation and ordered Mr Clements to produce the account books for future hearings.

The movement claimed it has 4,G00,00U members, each paying fen cents dues monthly. Mr Clements admitted that, of the money collected, the State managers kept 40 per cent., some allegedly receiving for their personal use between ISOO and 2000 dollars monthly.

The Townsend plan aims at providing pensions for all at the rate of about £4O a month from tho age of 60. These persons would be compulsorily retired from gainful pursuits at that age, and their pensions must be spent, not saved. This would be financed by a sales tax on industry.