A reader writes…

In our county papers of 1936, headlines about “old age pensions” begin appearing. Payments were to be made from federal and state funds to be paid through a new state social security commission headed by Mr. Allan M. Thompson. County Boards were to sign “certificates of need” before the state would issue checks.

The first checks for Daviess Countians were to cover October, 1935, and months thereafter. However, no checks were received until late January, 1936.

The payment amounts were to range from $7 to $12 per month. From lists of early payees, it appeared that couples each got $7 but single persons got $8 to $12. The reason for differences in payment to single persons was not disclosed.

In January 1936, 24 Daviess Countians were cleared to receive payments. To qualify, the person must have been over age 70 and have not over $20,000 in property. By February 13,1936, 60,000 persons in Missouri were eligible, about 10,000 were couples and were jointly to get about one-and-a-half times the amount of money that would go to a singe| person.

The state estimated that $22.50 a month would keep a single person comfortably. Based on the 1930 census, Missouri officials estimated that Missouri had 145,000 persons over 70 years old.

By July 14, 1937, 73,000 “indigent” aged Missourians were eligible for payments and payments were then averaging $14 each. The procedure was for the state auditors office to prepare requisitions and send it to the recipient. Once signed and returned the requisition was processed for payment.

Governor Stark and the state legislature had some administrative problems in the early years including:

1. Making the state old-age assistance laws conform to federal specifications,

2. Keeping of records that were accepted by federal auditors,

3. Patronage problems in the state clerical force, and

4. Waiting lists of unprocessed applications.

Also, Buchanan County assistance board refused to sign 106 certificates because the size of the proposed payments were “too slim.”

The part of the early program that interested me was the certification of need for assistance. As we all know now, payments are made without “a need established,” both in Social

Security and Medicare. Additionally, Social Security payments are demanded from workers and employers regardless of their “ability to pay” as in income taxes.

Without doubt many persons need their social security checks and many others can afford to make payments into the program. But, in some cases, many cases, payments are made to people who really don’t need the money and money is taken from workers who need it badly. Also, some more jobs would be available if the employer did not have to make the social security contributions.

The “Insurance” aspect of the current program and mandatory participation without exemption are the primary problems in the current social security program. Taking money from young workers who “need it,” to pay older people who “don’t need the money” is not only bad, it’s not justice!

With highest regard,

Dave Stark, cpa