"STATE BONUS AND RECONSTRUCTION.
[To THE Emma or THE " SPECTATOR."] SIR,—The proposals of Mr. Dennis Milner for a State Bonus, as outlined by Mr. Pickard in your issue of November 16th, embody a most attractive idea; but I desire to suggest that the following altera- tions in (1) the method of raising the money, and (2) the method of its distribution, would turn it into a simpler and more effective scheme:—
- (1) Instead of Collecting at the source a fixed percentage (say one-fifth) of all incomes, including wages, why 'should not the cost be charged, like old-age pensions, on the ordinary revenue of
the country raised in any manner considered the fairest ? The experience of the war shows that there is no difficulty in raising money for anything the nation really wants. The only things lost by this change would be the aillpmatically varying amount of benefit according to the total of the national income (but which could be adjusted in the annual Budget) and the idea of "State Profit-Sharing," which, however, would be so lost in the large average as to be infinitesimal for each individual. The gains would be (a) the avoidance of a deduction of a large percentage from all wages, which would be so unpopular as to be impractic- able, even if it were known that it was coming back; and (b) the greatly decreased cost of collection as compared with the setting up of a new and most complicated system. There seems to be no valid reason why this money should not be raised in the same way as that for old-age pensions, and the idea of the richer securing for the poorer a minimum income is as sound a principle as " profit- sharing." It is adniitted that the cost of the scheme will really fall on those families who have incomes above 2500 per annum, se it does not appear worth while to set up an elaborate machinery to rearrange incomes below that figure.
(2) I suggest that the distribution should follow the lines of the present separation allowances and be paid direct to wives and mothers. This would carry with it for a large part of the popula- tion more than all the advantages claimed for Mr. Dennis Milner's scheme, for the reduction in the number of recipients would enable the suggested somewhat inadequate payments of 5s. per week for adults and 3s. 9d. for children to approach more nearly to the present separation allowances. The only persona left out would be the single men and women, who in most cases de not need the 5s. per week; but they could, of course, be included afterwards if desired. The payments should be given to all who applied for and claimed them at the Post Office without some of the tests applied in the case of old-age pensions. Such a scheine would not only have all the advantages claimed for Mr. Dennis Milner's proposal, especially as regards the pressing matters of maintenance allowances for the extended school age, the " endow- ment of motherhood," and the economic independence of women. but it would prevent the widespread and disastrous disappoint- ment and hardships which will result from the withdrawal of t he separation allowances. The economic benefit to the country of the wider distribution of money by means of old-age pensions and separation allowances has not been at all adequately realized. Without them the moral and contentment of the people could not have been steadily maintained during the war, and their con- tinuance would be almost equally valuable in peace.—I am, Sir.
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