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A little more than 300 years ago, this was America.

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The vast frontier of the Western world. This land, free from bigotry and hatred,

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offered opportunity to the crowded peoples of Europe. Its mountains and

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streams, forests and plains offered a livelihood to those who were hardy

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enough to gain a foothold on its rugged shores to pierce the new frontier. These

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pioneers crossing the Atlantic settled first along the coastal plain, pushing

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the frontier back to the mountain ranges. To the south, the English established

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colonies and plantations in Maryland and Virginia, while farther north the

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Pilgrims built their settlements on the rock-bound shores of New England. A tiny

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island in the mouth of the Hudson and the adjacent land was settled by the

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Dutch and called New Amsterdam.

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With the coastal plain settled, pioneers moved westward and the frontier was

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pushed steadily back to the broad waters of the Mississippi. Frontiersmen in deer

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skins led the advance into this new territory, blazing trails, locating

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routes for the settlers who followed, ever seeking new lands from which to

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gain their living. Again, the frontier moves westward across the broad plains,

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over the tortuous mountains to the blue waters of the Pacific. To the beat of

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horses' hoofs and the plodding feet of oxen, settlers drifted westward in covered

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wagons, drifting that became a wild rush when the discovery of gold attracted

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thousands to California. So in two centuries, the frontier was pushed

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across 3,000 miles of plain, mountain and forest. There were no more geographical

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frontiers. Then the industrial frontier was pierced. With the development of the

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railroad, scattered communities were drawn together. Commerce was stimulated.

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America needed things, all kinds of things, and the frontiersmen of industry

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found new, faster, better ways of supplying these things. Machines replaced

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hands, new machines replaced old machines, new inventions, the electric light,

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automobile, telephone, started as luxuries then as they were made better and cheaper

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became commonplace. Modern agriculture and building machinery released man-to-man

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the new production machinery. America became the industrial empire of the

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world, a vast factory working day and night to meet a seemingly endless demand.

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Production was the problem. It went up, up, up, faster, faster, faster. Industrial America

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was truly the land of plenty. Yet even during this boom period, we had between

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one and a half and two million unemployed. Young people seeking their

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first jobs, seasonal workers and workers who had been replaced by machines that

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made their labor unnecessary. Then with appalling suddenness came the beginning

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of the greatest depression of all time. Stocks collapsed, factories shut down,

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businesses passed out of existence, and the ranks of those already unemployed

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swelled into a huge army. Unemployment swept the nation like a horrible pestilence.

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On August 14th, 1935, the National Social Security Act became law. In it, there was

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included a provision for federal-state cooperation in unemployment compensation.

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Under this plan, every employer of eight or more employees pays a federal payroll

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tax. During 1936, the tax was 1%. In 1937, the tax is 2%. In 1938 and thereafter, it

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will be 3%. Every state with an approved law keeps 90% of the tax for its own

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unemployed. The government also makes grants to states for the cost of

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administration. Let us see how this plan works. R. Gordon Wagonet, director of the

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Unemployment Compensation Bureau of the Social Security Board, explains it.

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As it concerns the worker, the system of paying unemployment compensation follows

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the same general principles in the 35 states and the District of Columbia,

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which now have laws on this subject. The plan may best be explained by an

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example from a single state. Take the cases of three workmen, John Jones, Tom

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Smith, and Ed Brown, who are just being laid off because of slack work.

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Here's the bad news, boys. For the time being, they're going to try to struggle

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along without yours truly. You got one too? Yeah, I got one. Well, we better go down

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to the state employment office and see what they can do for us.

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It's okay by me. Here it is.

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We'd like to see the employment officer. He's been laid off. Are you registered here?

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I know. Are you? No.

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Fill these forms out at the desk over there and bring them to me. I'll take you

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into the employment office. Thanks.

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Here you are, miss. All right, come with me.

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Mr. Anderson, Mr. Brown. How do you do, Mr. Brown? How do you do?

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This is Mr. Brown's registration. Oh, yes. Thank you. Won't you sit down, Mr. Brown?

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Well, it seems to be in order all right. I see you've been a punch press operator

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for the XYZ manufacturing company for the past three years, is that right? Well, off

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and on. I've been laid off before in slack time. Yes, of course. Possibly have

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something for you right here. Had a call a little while ago. Here we are.

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Punch press operator. Now, the American manufacturing company wants a punch press

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operator. Now, I'll just give you a note to there, Mr. Simmons. He's the manager of

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employment. You take this over to Mr. Simmons and if you can satisfy him,

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you can probably go right to work. Thank you very much. You're welcome, I'm sure.

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Good luck, Brown. Brown went back to work immediately, but Smith and Jones were not

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so fortunate. There being no jobs for them at the moment, they must wait three

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weeks before becoming eligible for unemployment compensation. Two weeks later,

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Jones receives a letter from the unemployment office telling him to report

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a job. He goes back to work in another plant and so does not need nor get

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unemployment compensation.

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But no job is found for Smith, so he becomes eligible for compensation and goes

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to the unemployment compensation office, where he receives a check for one half

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his regular weekly pay, not to exceed a maximum of $15 per week. This may

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continue for 14 weeks unless Smith gets another job before then.

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Smith and his wife spend this money for the necessities of life. To them, it means

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the ability to get through the slack season without becoming dependent on

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charity or relief. To the community, it means a continuation of buying power,

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small but steady, and this buying power benefits industry by keeping the wheels

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turning long after unemployment has set in. On January 1st, 1937, 35 states and the

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District of Columbia had passed unemployment compensation laws. The

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method of administering these laws differs in each state, as does the amount

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paid and the length of time such payments continue. But already these

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states have accumulated more than 70 million dollars in unemployment

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compensation reserves. With this constantly growing fund built up during

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prosperity, depression will never again so suddenly paralyze business.

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Unemployment compensation will act as a brake on the decline. Buying power will

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not stop but will slow down gradually until readjustments can allow business

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to again be carried by its own momentum.

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And to those unemployed, compensation will assure the necessities of life, will

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mean freedom from the fear of an income suddenly cut off. This plan to protect

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our men and women out of work is a first line of defense against depression.

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Unemployment.