Today’s Frontiers

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

The vast frontier of the Western world.

This land, free from bigotry and hatred, offered opportunity to the crowded peoples of Europe.

Its mountains and streams, forests and plains offered a livelihood to those who were hardy enough to gain a foothold on its rugged shores to pierce the new frontier.

These pioneers crossing the Atlantic settled first along the coastal plain, pushing the frontier back to the mountain ranges.

To the south, the English established colonies and plantations in Maryland and Virginia, while farther north the Pilgrims built their settlements on the rock -bound shores of New England.

A tiny island in the mouth of the Hudson and the adjacent land was settled by the Dutch and called New Amsterdam.

With the coastal plain settled, pioneers moved westward and the frontier was pushed steadily back to the broad waters of the Mississippi.

Frontiersmen in deer skins led the advance into this new territory, blazing trails, locating routes for the settlers who followed, ever seeking new lands from which to gain their living.

Again, the frontier moves westward across the broad plains, over the tortuous mountains to the blue waters of the Pacific.

To the beat of horses' hoofs and the plodding feet of oxen, settlers drifted westward in covered wagons, drifting that became a wild rush when the discovery of gold attracted thousands to California.

So in two centuries, the frontier was pushed across 3 ,000 miles of plain, mountain and forest.

There were no more geographical frontiers.

Then the industrial frontier was pierced.

With the development of the railroad, scattered communities were drawn together.

Commerce was stimulated.

America needed things, all kinds of things, and the frontiersmen of industry found new, faster, better ways of supplying these things.

Machines replaced hands, new machines replaced old machines, new inventions, the electric light, automobile, telephone, started as luxuries then as they were made better and cheaper became commonplace.

Modern agriculture and building machinery released man -to -man the new production machinery.

America became the industrial empire of the world, a vast factory working day and night to meet a seemingly endless demand.

Production was the problem.

It went up, up, up, faster, faster, faster.

Industrial America was truly the land of plenty.

Yet even during this boom period, we had between one and a half and two million unemployed.

Young people seeking their first jobs, seasonal workers and workers who had been replaced by machines that made their labor unnecessary.

Then with appalling suddenness came the beginning of the greatest depression of all time.

Stocks collapsed, factories shut down, businesses passed out of existence, and the ranks of those already unemployed swelled into a huge army.

Unemployment swept the nation like a horrible pestilence.

On August 14th, 1935, the National Social Security Act became law.

In it, there was included a provision for federal -state cooperation in unemployment compensation.

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

During 1936, the tax was 1%.

In 1937, the tax is 2%.

In 1938 and thereafter, it will be 3%.

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

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

Let us see how this plan works.

R.

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

As it concerns the worker, the system of paying unemployment compensation follows the same general principles in the 35 states and the District of Columbia, which now have laws on this subject.

The plan may best be explained by an example from a single state.

Take the cases of three workmen, John Jones, Tom Smith, and Ed Brown, who are just being laid off because of slack work.

Here's the bad news, boys.

For the time being, they're going to try to struggle along without yours truly.

You got one too? Yeah, I got one.

Well, we better go down to the state employment office and see what they can do for us.

It's okay by me.

Here it is.

We'd like to see the employment officer.

He's been laid off.

Are you registered here? I know.

Are you? No.

Fill these forms out at the desk over there and bring them to me.

I'll take you into the employment office.

Thanks.

Here you are, miss.

All right, come with me.

Mr.

Anderson, Mr.

Brown.

How do you do, Mr.

Brown? How do you do? This is Mr.

Brown's registration.

Oh, yes.

Thank you.

Won't you sit down, Mr.

Brown? Well, it seems to be in order all right.

I see you've been a punch press operator for the XYZ manufacturing company for the past three years, is that right? Well, off and on.

I've been laid off before in slack time.

Yes, of course.

Possibly have something for you right here.

Had a call a little while ago.

Here we are.

Punch press operator.

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

Now, I'll just give you a note to there, Mr.

Simmons.

He's the manager of employment.

You take this over to Mr.

Simmons and if you can satisfy him, you can probably go right to work.

Thank you very much.

You're welcome, I'm sure.

Good luck, Brown.

Brown went back to work immediately, but Smith and Jones were not so fortunate.

There being no jobs for them at the moment, they must wait three weeks before becoming eligible for unemployment compensation.

Two weeks later, Jones receives a letter from the unemployment office telling him to report a job.

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

But no job is found for Smith, so he becomes eligible for compensation and goes to the unemployment compensation office, where he receives a check for one half his regular weekly pay, not to exceed a maximum of $15 per week.

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

Smith and his wife spend this money for the necessities of life.

To them, it means the ability to get through the slack season without becoming dependent on charity or relief.

To the community, it means a continuation of buying power, small but steady, and this buying power benefits industry by keeping the wheels turning long after unemployment has set in.

On January 1st, 1937, 35 states and the District of Columbia had passed unemployment compensation laws.

The method of administering these laws differs in each state, as does the amount paid and the length of time such payments continue.

But already these states have accumulated more than 70 million dollars in unemployment compensation reserves.

With this constantly growing fund built up during prosperity, depression will never again so suddenly paralyze business.

Unemployment compensation will act as a brake on the decline.

Buying power will not stop but will slow down gradually until readjustments can allow business to again be carried by its own momentum.

And to those unemployed, compensation will assure the necessities of life, will mean freedom from the fear of an income suddenly cut off.

This plan to protect our men and women out of work is a first line of defense against depression.

Unemployment.

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