Library Collections: Document: Full Text

My Dear Senator:

Mr. Altmeyer, Chairman of the Social Security Board, has submitted to me some non-controversial amendments to the Social Security Act. In brief, they cover the points listed in the attached memorandum. I feel they are of sufficient importance to warrant their passage at the earliest possible date.

As these amendments will considerably improve the effectiveness of this important Act, I have asked Chairman Altmeyer to discuss this matter with you personally.

Best wishes to you.
Very Sincerely yours,

Honorable Pat Harrison,
United States Senate,
Washington, D.C.

(A similar letter was sent to Congressman Robert L. Doughton.)

Summary of Amendments to the Social Security Act, forwarded with the foregoing letter.

1. To pay death claims direct to the wife or dependent children and save expense of probating estates -- as in veterans' laws. This would save real money to the widow and to the Board.

2. To change "wages payable" in unemployment compensation to "wages paid" as in old-age insurance and permit a duplicate list of wage payments and so complete our efforts greatly to simplify employers' wage reports.

3. To enable "merit rating" to work by making technical changes. It becomes effective in Wisconsin, January 1, 1938.

4. To permit earlier payment of unemployment compensation in states that passed their laws late. For two years funds have been built up in these states. With increasing unemployment this will get money earlier to those laid off.

5. To permit persons now 60 and over to continue working through 1941 to qualify upon retirement for monthly old-age annuities instead of receiving small lump sum payments. A great gain all around.

6. To increase coverage.

a. To seamen on American vessels. Approved by Maritime Commission and the International Seamen's Union and the National Maritime Union.

b. To employees of national banks, state banks that are members of the Federal Reserve System, institutions that are members of the Home Loan Bank system, and the like. The American Bankers Association approves.

NOTE: In signing the Social Security Act on August 14, 1935, I stated that it "represents a cornerstone in a structure which is being built but is by no means complete" (see Item 107, 1935 volume). The Act constituted a pioneer effort on the part of the Federal Government, but although it was comprehensive in scope we recognized that it would have to be developed with experience.

After over two years of operation of the Social Security Act, we concluded that it should be expanded in certain directions. Accordingly, I urged Senator Harrison, the Chairman of the Finance Committee of the Senate, and Representative Doughton, the Chairman of the Ways and Means Committee of the House of Representatives, to consider the changes in the Act outlined by Chairman Altmeyer of the Social Security Board in the foregoing summary.

During 1938, Senator Harrison and Representative Doughton held frequent conferences with Chairman Altmeyer. Meanwhile, several new amendments to the Act seemed advisable and on April 28, 1938, I wrote to Chairman Altmeyer advocating that the old-age insurance system be revised and extended to provide for earlier payments. I also recommended that further liberalizing changes be made in the old-age insurance provisions of the Act (see Item 56, 1938 volume).

Inasmuch as several additional substantive amendments were being developed by the Social Security Board, it was decided to postpone congressional hearings upon all amendments until the final report of the Board was submitted. By the close of 1938, this report had been completed, and I transmitted it to the Congress on January 16, 1939 (see Item 11, 1939 volume).

After the report was submitted, hearings were held upon the amendments outlined in the foregoing letter and also upon the later suggestions of the Social Security Board. Many of these recommendations were enacted and approved by me on August 10, 1939 (Public No. 379, 76th Congress; 53 Stat. 1360).

(For a discussion of the nature of these amendments, see Item 109 and note, 1939 volume.)