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Francis Everitt Townsend

Francis Everitt Townsend (1867-1960), American physician, author, and political organizer, crusaded for pensions for the elderly.

Francis Townsend was born into a poor farm family near Fairbury, II., on Jan. 13, 1867. The family moved to Nebraska, where Francis attended Franklin Academy. He went to California expecting to get rich in the land boom, only to end up nearly penniless. After a few years at farming and odd jobs in Kansas and Colorado, Townsend entered Omaha Medical College, graduating in 1907. He set up practice in South Dakota, where he remained until he entered the Army Medical Corps in World War I. He married a nurse, Minnie Bogue.

After the war the Townsends lived in Long Beach, Calif. But Townsend's medical practice was far from prosperous. He finally secured appointment as assistant city health director but, with the Great Depression, lost the job. At retirement age himself, Townsend grew increasingly indignant over the plight of the masses of poverty-stricken old people. In 1933 he proposed a plan whereby the Federal government would provide every person over 60 a $200 monthly pension. This would be financed by a Federal tax on commercial transactions.

The response to Townsend's Old Age Revolving Pension Plan was overwhelming, and soon inquiries and monetary contributions poured in from all parts of the country. By 1935 Townsend claimed that more than 5, 000 "Townsend Clubs, " with some 5 million members, operated across the country. That year the Townsend organization secured an astounding 20 million signatures on petitions urging Congress to enact the Townsend Plan. Organized pressure from the Townsendites was the single most powerful impetus behind passage of the Social Security Act of 1935. Yet Townsend saw the social security program as woefully inadequate.

Disillusioned with Franklin Roosevelt's administration and embittered by rough handling before a congressional investigating committee, Townsend in 1936 joined forces with Father Charles Coughlin, founder of the National Union for Social Justice, and Gerald L. K. Smith, self-pro-claimed inheritor of the late Huey Long's "Share Our Wealth" movement, to form the Union party. But the result of that year's presidential election was disastrous for them, as Roosevelt won reelection by a record majority.

In 1937 the U.S. Department of Justice prosecuted Townsend for contempt of Congress in the 1936 House investigation. However, Roosevelt commuted Townsend's 30-day prison sentence.

Townsend never stopped pushing his pension scheme. But the prosperity of the post-World War II years and improvements in private, state, and Federal pension benefits blunted the appeal of his message. He died in Los Angeles on Sept. 1, 1960.

Further Reading

Townsend's autobiography is New Horizons, edited by Jesse George Murray (1943). There is substantial biographical information and a good narrative on the growth of Townsendism in Richard L. Neuberger and Kelley Loe, An Army of the Aged (1936), and in David H. Bennett, Demagogues in the Depression: American Radicals and the Union Party, 1932-1936 (1969). Abraham Holtzman, The Townsend Movement: A Political Study (1963), analyzes the Townsend organization. For the sociopolitical background, Arthur M. Schlesinger, Jr., The Age of Roosevelt (3 vols., 1957-1960), is good.

 
 
Columbia Encyclopedia: Townsend, Francis Everett
(toun'zənd) , 1867–1960, American reformer, leader of an old-age pension movement, b. Fairbury, Ill., grad. Univ. of Nebraska medical school, 1903. He practiced medicine in several Western states before he settled (1919) at Long Beach, Calif. In 1933, at the height of the economic depression, he produced the Townsend plan, which called for a pension of $200 per month for citizens of 60 years of age or older, on condition that the $200 be spent in the United States within a month after receipt. The funds were to be raised principally by a 2% federal sales tax. The simplicity of the proposal, the apostolic zeal of Townsend, and the organization of the Townsendites into a formidable pressure group brought increasing support for the plan despite its condemnation by competent economists. Bills to establish the Townsend plan were continually defeated in Congress after 1935, and the strength of the movement declined after the economy began to recover and the effects of social security were felt in the United States. Townsend modified a few of the provisions of his plan in the 1940s.
 
Wikipedia: Francis Townsend


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Dr. Francis Everett Townsend (January 13, 1867September 1, 1960) was an American physician who was best known for his revolving old-age pension proposal during the Great Depression. Known as the "Townsend Plan," this proposal influenced the establishment of the Roosevelt administration's Social Security system.

Features of the Townsend Plan

The Townsend Plan called for a guaranteed monthly pension of $200 (a quite-considerable sum in 1930s, which would have enabled its recipients to have lived a relatively middle class lifestyle) to every retired citizen age 65 or older, to be paid for by a form of a national sales tax of 2% on all business transactions (in reality a concept somewhat akin to a value added tax), with the stipulation that each pensioner would be required to spend the money within 30 days. The idea was to end the Depression through consumer spending by way of ending poverty among the aged. Economists generally disdained this form of taxation as being unfairly advantageous to large, vertically integrated enterprises which produced goods from the raw material all the way to the finished, saleable product over intermediary operations which were involved in only one or two steps of this process. The main argument against the plan, however, was that the taxes would not be enough to pay for the high pensions, which would account for almost half the national income. Townsend and Clements, the co-founder of the organization and its motive force, quickly amended the proposal to pay out only as much as the tax would bring in. The Townsend Plan contested old-age policy in a serious way for more than a decade.

Promoting the Plan

Townsend talks with Senator Sheridan Downey
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Townsend talks with Senator Sheridan Downey

Townsend and Clements employed the techniques of real estate salesmanship to gain support for the Townsend Plan. Soon there were organizers in almost every state seeking to create Townsend clubs and to sell Townsend Plan paraphernalia. But President Franklin D. Roosevelt rejected Townsend's idea as unworkable, and the organization was forced to seek so much support in Congress that it would be able to overcome presidential opposition. In 1936, after breaking with Clements and being the subject of an unfriendly congressional investigation that led to the loss of much support, Townsend allied with radio priest Father Charles Coughlin and with Gerald L. K. Smith, to back the Union Party candidacy of William Lemke for President. But Roosevelt won reelection handily, and Lemke garnered only meager support. Nonetheless, the Townsend Plan, with a new corporation called the Townsend National Recovery Plan, Inc., pressed on and won back many of its previous supporters by the end of the decade and focused on gaining influence in Congress.

Influences

In 1935, partly in response to the continued growth of the Townsend Plan, President Franklin D. Roosevelt proposed his own old-age policy, which was less generous than Townsend and Clement's proposal. The president's policy included a program for poor older people with matching payments from the federal government, known as Old Age Assistance, and a national old-age annuity program that later was called by all Social Security (United States). The president's programs were included in the Social Security Act, which passed in August 1935.

The Townsend Plan continued to agitate for higher benefits after the Social Security Act's passage and reached its peak of support in the months after it was enacted. The Townsend organization could plausibly claim that the benefits were far less than what the American public wanted. The average Old Age Assistance benefit was about $20 per month as late as 1939, and the program known as Social Security was not due to take effect until 1942, despite the fact that opinion polls indicated that the American public thought that $40 per month was fair for the elderly. Although the Townsend Plan was hampered by Dr. Townsend's personal control over his organization and his vendetta against Roosevelt, by continued political pressure, augmented by other pension organizations, such as California's Ham and Eggs, the Townsend Plan helped to induce amendments to the Social Security Act in 1939. These amendments greatly upgraded old-age benefits for both programs. Along with other pension organizations that promoted state-level Old Age Assistance programs, the Townsend Plan indirectly spurred the augmentation of Social Security in 1950, when it finally became a more generous program than Old Age Assistance. The Townsend Plan continued to exist in some form until the early 1980s, but had fallen into political insignificance during the 1950s.

Bibliography

Edwin Amenta. 2006. When Movements Matter: The Townsend Plan and the Rise of Social Security. Princeton: Princeton University Press.


 
 

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Biography. © 2006 through a partnership of Answers Corporation. All rights reserved.  Read more
Columbia Encyclopedia. The Columbia Electronic Encyclopedia, Sixth Edition Copyright © 2003, Columbia University Press. Licensed from Columbia University Press. All rights reserved. www.cc.columbia.edu/cu/cup/  Read more
Wikipedia. This article is licensed under the GNU Free Documentation License. It uses material from the Wikipedia article "Francis Townsend" Read more

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