Memorandum from Frank Pace to President Harry S. Truman

EXECUTIVE OFFICE OF THE PRESIDENT BUREAU OF THE BUDGET WASHINGTON 25, D. C. ARCHIVE3 RECORD8 AND JUN 1 5 1949 MEMORANDUM FOR THE PRESIDENT: SUBJECT: Extension of unemployment benefits for seamen. The National Maritime Union has obtained introduction of legis- lation which would extend for two years the reconversion unemployment benefits for seamen provided for by Title XIII of the amended Social Securit Act. The present program expires June 30, 1949. The purpose of the program was to tide seamen over in their shift from Federal maritime service which is not insured under State laws to State insured employment. For most of the more than 150,000 seamon in the employ of the War Shipping Administration on rederelly-operated vessels during the war period, this purpose has been accomplished, The residue involves about 1,500 men employed on the five ships still operated by the Government. It is estimated that only about 30% of these seamen have non Federal wage credits. Very heavy pressure is being brought to bear on the Federal Security Agency to advocate thi s bill on the grounds of e quity and "simple justice" by which is meant extension of the program until the seamen can utilize all the wage credits which they havo earned while employed on Federally-owned vessels and until they have opportunity to earn new wage crodits in employment covored by State laws. It is not known how many in addi- tion to the 1,500 seamen just mentioned may still be eligible to draw benefits if the Act is extended. Approval of this extension would definitely be contrary to your action in stating that extension of veterans' employment benefits under the so=called 52-20 club would not be in accord with your progrem. Further, with maritime employment decreasing, it is possible that efe forts would be made to chango the crows of Federally=operated ships with a view to increasing coverage for e.s many seamen as possible. The Federal Security Agency estimates that about $800,000 would be required to finance the benefits if the program is extended for two more years. This would be about one-third of the smount which will be expended in the fiscal year 1949. We believe that the extension is not warranted; is contrary to your general posi tion with respect to