■y-\ 7 IIH ^otnell IBnivewitg pibwg BOUGHT WITH THE INCOME FROM THE SAGE ENDOWMENT FUND THE GIFT OF Siettrg W. Sage X891 J^. 2...-3...6.QB.^. Z.3/im/0f, 6896-1 Digitized by Microsoft® tf^p'u ^J-^K «■. '•^{^ '^m. The date shows when this, volume was taken. To renew this book copy the call No. and give to ' the librarian. - ^- HOME USE rules' All Books subject to; Recall. Books not used for instruction or research are returnable within 4 weeks. Volumes^ of periodi- cals and of pamphlets, are held in the library as much asypossible. For special pui^QseS " they are given put for a limited time. Borrowers should mot use their library ' ' '' privileges/f or the bene- fit of other persons. Books cot needed during, recess periods should be returned to the libraty, or arrange- ments made for their return during borrow er'sabsence,if wanted\ Books needed by more than one person are held on the reserve list. Books of special ' value and gift books, when the giver wishes it, are- not allowed to circulate. Readers are asked to report all cases of books marked or muti- ,lated. Do not deface bool(s by marks and writing. Cornell University Library HD7106.G3 H78 The German state Insurance system for pr olin 3 1924 030 079 093 Digitized by Microsoft® This book was digitized by Microsoft Corporation in cooperation witli Cornell University Libraries, 2007. You may use and print this copy in limited quantity for your personal purposes, but may not distribute or provide access to it (or modified or partial versions of it) for revenue-generating or other commercial purposes. Digitized by Microsoft® ■i h^i^ " ^ ^r" .■ W: Jv''",;: ,/: '■ . ' ■j';'MC'fS?^%'';'.-^^-i5S5F , ;fo-v ,:.r?^ Digitized by Microsoft® Digitized by Microsoft® THE GEEMAN STATE INSURANCE SYSTEM FOB PBOVIDIlira INVALID AND OLD AGE PENSIONS. Digitized by Microsoft® Digitized by Microsoft® THE GEEMAN STATE « INSURANCE SYSTEM FOE PEOVIDING INVALID AND OLD AGE PENSIONS BY E. GRANT HOOPER YALL RIGHTS RESERVE!)-] LONDON EFFINGHAM WILSON, 54, Theeadneidle Street, E.G. 1908 Digitized by Microsoft® :'3/rjtf m , — Y- — /\ V 2'i(rO'&H Digitized by Microsoft® CONTENTS. — ♦ — Fabs. Scope and general provisions 1 — 12 Waiting periods 13 Annuities — invalid and old-age 14 Sick and accident allowances 15 Provision of funds, i.e., insurance contributions, etc. 16 Payment of contributions 17 Controlling authorities and appeals 18 Payment of pensions 19 Exceptional cases — illness, military service, and unemployment . . 20 — 22 Marriage of female workers 23 Death without becoming a pensioner 24 Workers who become master-workers 25 Various positions at commencement of system 26, 27 Penalties 28 Summary and conclusions 29 Some formalities needing amendment 30 Digitized by Microsoft® Digitized by Microsoft® THE GEEMAN WOEKEES' STATE INSUEANCE SYSTEM FOE PEOVIDING INVALID AND OLD-AGE PENSIONS AND ASSISTANCE IN CASE OP TEMPOEAEY ILLNESS AND OP ACCIDENTS OCCUEEING IN THE COUESE OP EMPLOYMENT. The German Workman's Insurance System was founded by a law passed on tte 22nd June, 1889, and which came into operation on the Ist January, 1891. On the 13th July, 1899, ten years after the first law, an amending Act was passed making some important changes to the advantage of the insurer, and this came into operation on the 1st January, 1900. On the 1st July last (1908), the number of persons receiving allowances was as follows, viz. : Invalid pensions, 852,824; old-age pensions, 112,096; and sick payments (temporary illness) 19,642, or altogether 984,562. On the previous 1st April (three months earlier), the numbers were 845,233, 114,378 and 19,894 respectively, or a total of 979,505. Thus it appears that there is a quarterly increase of about 4,000 in the total number of persons receiving assistance, and it is reckoned that by the middle of 1909 the first million of insurance payments wiU. have been reached. In view of the institution of Old-age Pensions for the poor of the United Kingdom, and of the success of the German endeavour to cover the wider field embracing both sickness and old-age, a succinct, but sufficiently detailed account of the German system appears likely to be interesting. This the writer has attempted to give. It represents a holiday task, begun in a somewhat casual manner, but which in consequence of the great kindness and ready assistance of German friends and German officials, rapidly resulted in a mass of notes which had to be systematized, the result being this article, Digitized by Microsoft® 8 German Workbrs' State Insurance System. Scope and Geneeal Provisions. — 1. The system of workmen's insuranoe is not designed to include all persons, but only those " workers" who may be expected to actually need assistance. Pensions are granted (1) to insurers who become permanent invalids, and (2) to those over seventy years of age. By means of sick-fund associations (Krankenhassen) assistance is also given in the case of temporary illness, or illness which may prove to be only temporary, and, where an insurer dies without having been in possession of an " Invalid " or " Old-age " pension, certain repayments are made to the widow or dependent children, thus supple- menting the burial fund provided for by the sick-fund association. Works' accidents are also provided for under a special insurance. 2. There are two classes of insurers, viz. : (1) compulsory insurers, and (2) free-will insurers. The former include all those — male and female — who are in the employment of others (except those who do not work for payment more than fifty days per year), and who do not receive a wage or salary of more than 2,000 marks (£100) yearly. The free-will members are small independent workers of closely corresponding position to those of the other class, but with the limit of, in certain cases, 3,000 marks (£150) maximum income. 3. An invalid is defined as a person who, by reason of infirmity of mind or body, cannot work even though willing to do so. But see also 8. 4. An " old person " is one who is over seventy years of age. A person less than seventy years of age who is unable to work becomes ipso fado an "invalid." 5. Sons, wives, and daughters of workers, it they, the said sons, wives, and daughters, are themselves in the employment of others, fall under the general head of "workers," and have the benefit of these laws as compulsory insurers. So also do all clerks, shop-attendants and such-like having less than £100 a year, but not civil servants or the oflScials of local authorities, or other persons, such as clergy or schoolmasters, who are entitled to pensions. These are exempted under (1) as not in need. So the policeman and postman do not derive any benefit — they have their pensions and sick leave. Hospital nurses, male and female, liable to dismissal, i.e., not in permanent employ and not having more than £100 a year, and all such persons, come under the law. 6. Small handworkers having not more than two compulsory insurers in their employment, such persons for example as the little tailor, the dairyman, the Digitized by Microsoft® G-BEMAN WOEKEES' STATE iNSaEANCE SYSTEM. 9 day labourer, the pianoforte tuner, and such like, though not compulsorUy brought under the law, can place themselves of their own-free wiU under it at any time when not more than forty years of age. These are the ' ' free-wiU " insurers. Special provision has also been made in the later enactments for the inclusion of certain workers engaged in home industries, such as weaving and the tobacco industry, and also for teachers without pension, overseers and some others which, but for such special provision, would be excluded. The maximum earnings of such insurers, as already stated, is 3,000 marks (£150). 7. A young person who does some work but is under the age of sixteen years does not come under the law, nor does a son or daughter who lives with and works for his or her parents, unless he or she receives regular wages. If regular wages are received, then such persons do come under the law, but not if they merely receive board, lodging and clothing. Neither does an apprentice so long as he gets no money wages, but when he does receive money in addition to, say, board and lodging, and is more than sixteen years of age, he comes in. 8, An "invalid "was formerly defined as one who, though not completely disabled, cotdd earn not more than one-third of his normal wages, if or when well, but this has been now modified, and each case is considered on its own merits, without regard to the exact proportion of his former wages that he may be able to earn. A sick person does not become an "invalid" until he has been continuously ill for twenty-six weeks, except in those cases where it is clear that he is permanently disabled. Thus, usually he becomes an "invalid" at the beginning of the twenty- seventh week of illness, but if as the result of an accident, as for example he loses both legs, then he becomes an "invalid" at once. If an "invalid" becomes well the invalid pension stops. Anyone who purposely injures himself (as to avoid military service) or anyone who meets with an accident is not an " invalid" unless the accident permanently disables. But for example, a drunken man falling and so much hurting himself as to be practically unable to earn anything becomes an " invalid" because he did not purposely injure himself. 9. In addition to the "invalid" provision there are also "sickness" and " accident" funds, formed by practically independent local societies, but recog- nised by and closely associated with the general insurance system, and of which compulsory insurers must be members. A worker who becomes HI falls on such Digitized by Microsoft® 10 Geeman Woekees' State Insueance System. a sickness fund for as long as lie is ill, up to twenty-six weeks, and if at the end of twenty-six weeks ke is not well, then he (or she) becomes an " invalid." The " accident" fund is only for accidents connected with a worker's collective or factory work in certain defined industries. If a farm labourer falls from his waggon, that is an " accident,'' and so if a miU-haad gets his arm torn off by a machine. But if a farm labourer, from exposure, gets rheumatism, or a mechanic falls down steps at home and breaks his leg, these are not "accidents" within the meaning of the law, but " sickness " which may become "invalidism.'' So too with the individual worker like the repairing tailor. If such, as by running a needle into some part of his person, become iU or even loses an important organ, that is not an "accident." 10. Invalid and old-age allowances cannot be pledged or attached by any process of law. And if a person in receipt of an allowance comes into any kind of fortune, that makes no difference. He retains the allowance " because it is his right and not an ahns.'' 11. Foreigners employed inland come like natives under the law, and after the requisite payments and periods, receive the allowances. If a foreigner goes abroad, a lump sum is paid him. But if a, native goes abroad he loses his allowance, though he will regain it if he returns home. 12. Woekmen's Clubs. — Allowances drawn from such organisations do not affect the invalid or other allowances. If one has paid to both the State and a club, so much the better. 13. Waiting Peeiods. — There is, however, for both invalid and old-age allowances a period of waiting ( Wartezeit). This is for an invalid compulsory insurer 200 weeks, and for a free-will insurer 500 weeks, with the further condi- tion that in this time not less than 100 weeks insurance payments must have been made. For old-age pensions the waiting peroid is 1,200 weeks {Beitraga- wochen), i.e., weeks for which insurance money is payable, or weeks which by reason of iUness or military duty are counted as good (as afterwards explained) though for such time no insurance dues were actually paid. It was, however, pro- vided by an amending law that any compulsory insurer who had paid 200 weeks' dues in the first five years after the institution of the system should have full rights, notwithstanding the fact that he did not complete the 1 , 200 weeks' waiting Digitized by Microsoft® German Woekees' State Insueancb System. ii period. For other arrangements afleoting persons of middle age or already old at th.e time the law came into operation, see 26. For an "invalid," therefore, the waiting period is about four years, and for an old-age pension about twenty-three years of payment- weeks, either actual payment weeks or calculated weeks of labour. 14. Anntjities. — Under this insurance system workers are divided into five classes, according to the amount of their annual earnings, thus : Glass I., those whose yearly earnings amount to not more than 350 marks (£17 lOs.) ; Class II., from 350 to 550 marks (£27 10«.) ; Class III., 551 to 850 marks (£42 10s.) ; Class IV., from 850 to 1,150 marks (£57 lOa.) yearly; and Class V., those with more than 1,150 marks, with the hmitations mentioned in (2). A compulsory insurer's class is decided by multiplying his average day's pay by 300 to find his yearly income, 300 days being taken as the official year. A " free-will " insurer can place himself in any class that he chooses. (a) Invalid Pension. — The invalid annuity is based upon a certain fixed sum (Orundbetrag), varying for each class, and with a minimum nuiaber of 500 weekly payments. This foundation sum is increased according to the number of weeks and the rate at which an insurer has paid. Thus the foundation sums for the five classes are as follows, viz. : Class I., £3 ; Class II., £3 lOs. ; Class m., £4 ; Class IV., £4 lOs. ; and Class V., £5 ; and the enhancing allowances {Steigerungsatz) per weekly contribution (Beitragswoche) for the five classes are : (1) 0'3d. (3 p/ennige, a pfennig in each case being taken as O'ld!., and a mark as U); (2) 0-6d. ; (3) QSd.; (4) VQd.; (5) l-2d. Then to each pension the Empire, out of the general taxation of the country, and apart from the funds drawn from the insurance payments, contributes 50 marks (£2 10s.) per annum., and so we get for the five classes as the real foundation sum the follow- ing : Class I., £5 10s. ; II., £6 ; III., £6 10s. ; IV., £7 ; and V., £7 10s. For the time that an insurer is unable to earn money, either by reason of military service or on account of illness, he is credited with so many weeks, just as if heihad paid, but these credit weeks are weeks in Class II., regardless of the actual class in which the insurer had been paying. And if he has paid less than 500 weeks, then for the number of weeks that he is short of this total the foundation sum of the first class (£3) is taken. Now, to take as an example a case where less than 500 weeks' payments have been made, we will suppose that a man has paid 100 weeks in Class III., 200 weeks in Class IV., and has been iU and so received sick pay ten weeks (Class II.), this gives a total of 310, Digitized by Microsoft® 12 Geemah Woekees' State Insukance System. or a deficiency from the required 600 of 190 weeks. The invalid pension is then , , ^ , . „ . 100 X 80 + 200 X 90 + 10 X 70 + 190 X 60 calculated as follows, viz. . ^7:7: = oUu 76*20 marks (or shillings) as the foundation sum. The enhancing allowance is : 100 X 8 + 200 X 10 + 10 X 6 pfennige = 28-60 marks. Then to these two sums the Imperial contribution of fifty marks must be added, and the total of 154-8 marks (£7 15s.) is the amount of the pension payable. This represents a total number of weekly payments equal to less than six calendar years. But, taking the case of a man entering, say at sixteen years of age in 1891, and becoming an invalid in 1930 and so completing forty years of insurance, doing his full mOitary service equal to 140 weeks, being ill 250 weeks, and pay- ing 200 weeks in Class 11. {2d.) and 450 weeks in Class III. {2-4d.) and 1,000 weeks in Class IV. {3d.) we have an instance of one of the higher pensions. Here the foundation period of 500 weeks in the fourth class being more than completed, he gets for this the foundation sum of 90 marks. The calculation of the enhancing allowance is 590 X 6 + 450 X 8 + 1000 X 10 = 171-4 marks. Adding to this the foundation sum. of 90 marks and the Imperial grant of 50 marks, we get a total of 311-4 marks, say £15 lis. 6a!. yearly. The sum such a man would pay in this long time amounts to only 224 marks (£11 4s.), or less than a single year's annuity. The maximum invalid pensions payable, say after fifty-four years of fifty weeks' payments (age 16 — 70) would be, for the five classes, as follows, viz. : — £9 lis., £14 2s., £17 6s., £20 10s., and £23 4s., whilst after twenty similar years' payments they would be £7, £9, £10 10s., £12, and £13 lOs. respectively. (6) Old-age Pension. — The foundation sums in this case are : Class I., £3 ; aass n., £4 10s. ; Class HI., £6; Class IV., £7 10s. ; and Class V., £9, and the foundation period, with the exception shown below, is the same as the waiting time, viz., 1,200 weeks of insurance payments. Taking as an illustration a man who has paid 500 weeks in Class I., 300 weeks in Class III., and 400 weeks in Class IV., whilst he has further 200 weeks military service and sickness reckoned, as before explained, in Class II., this gives a, total of 1,400 weeks. He has not 1,200 weeks in any one class, and the excess of the total over 1,200 weeks is taken ofl the lowest class. The calculation then becomes (500 - 200 = ) 300 X 60 -f- 200 X 90 -f- 300 X 120 -|- 400 X 150 pfennige = 110 marks. To this has to be added the Imperial grant of 60 marks, making a total of 160 marks (£8). If a total of less than 400 weeks shall have been paid, then the deficient Digitized by Microsoft® Gbbman Woekebs' State iKSTJEAifCE System. 13 number of weeks telow 400 is reckoned as belonging to the first class. Thus, a man reaching seventy years of age after only 360 weekly payments, made up of 210 at 2'4(i., 120 at 3'Od., and thirty weeks' illness reckoned in Class II. at 2'Od. Here is a shortage of forty weeks from the required 400, and these forty weeks are reckoned in Class I., and the calculation is : 210 X 120 + 120 X 150 + 30 X 90 + 40 X 60 ^^^^^.^^ ^ ^^O-To marks, to which must be added the Imperial grant of 50 marks, making a total of 170'75 marks (£8 10«. 9d.) per annum. The maximum old-age pensions, those for instance payable after fifty-four years of fifty weeks' insurance payments (age 16 to 70) amount to £5 10«., £7, £8 10»., £10, and £11 10s. respectively. An old-age pension, however, may give way to an invalid pension or, as explained later, a person who on reaching seventy years of age is already in receipt of an invalid pension retains the latter instead of taking the lower old-age allowance. In other words, a person entitled to both pensions may take the higher, whichever it is. The invalid allowance is higher than the old-age pension, because it is reckoned that in old age the family claims will not be so great as during the earlier years when the insurer is liable to become an invalid. 15. SiOK AND Accident Ailowances. — For accident allowances a separate insurance premium is paid to a special accident office, the rate being fixed according to the degree of danger attaching to the employment, and these accident premiums are paid wholly by the employers. In case of an " accident " (as defined) an insurer can in certain cases take both the sick and the accident allowance. Attention may be given first to the ordinary cases of (fl) Sickness.— Theae cases are covered by a combination of local and Imperial organisation. Local sick associations are concerned with the lighter cases of sickness as well as with the provision of assistance at the time of child-bearing, or in the case of the death of a member. In the more serious cases of Ulness, which may prove to be, or which may develop into, permanent " invalidism," the State comes to the assistance of the local associations by the provision of sanatoria, the help of such institutions tending to diminish the number of cases of "invalidism," the burden of which falls wholly upon the general funds. The combination of the two makes provision for sick-pay, free medical and surgical attendance with medicine, surgical appliances, spectacles, etc., together with treatment in special sanatoria — as, for instance, for lung disease, rheu- matism, etc. — ^nursing homes, baths, or convalescent homes, etc., where the case Digitized by Microsoft® 14 Gerhait Woekees' State Insueance System. calls for it. The sick-pay commences in many cases from the first day of sickness, but Taries with the resources of the office, so that it may be the third day. It amounts as a maximum to one-half the average daily earnings of a " worker " employed in the locality where the sick person lives and of the class to which the worker belongs and according to which he pays. If the case is suitable and the sick person goes to one of the above institutions, no money payment is made unless the patient is married and, therefore, has others depen- dent upon him. In such a case half of the sick pay is devoted to their support. Aiter twenty-six weeks of unbroken illness the sick pay ceases and "invalid " pension begins. We may take as an illustration of a local Sick Fund Association a small town association formed by two little towns and two villages, situated all within a radius of two miles, and having a total of between 3,000 and 4,000 inhabitants. This is called an " Ortskrankenkasse," or "Local Sick Office." Here, as in the general insurance scheme, the insurers are divided into five classes, with the maximum income of £100. The range of income, and there- fore of class, is from " less than 1'16 mark '' per day in the first or lowest class to 3'84 marks or more in the fifth or highest class, the average for each class being fixed at 1, 1'5, 2'o, 3'5, and 4 marks (or shillings) per day respectively. All compulsory insurers must belong to a sick fund office and "free-will" insurers are also eligible, as in the general scheme. The payments or subscrip- tions amount to 3 per cent, of the average pay, that is, l'8d., 2'7d., 4'5d., S-Zd., and 1-2(1. per week each respectively, according to class, together with an entrance fee of 3d. The latter is paid whoUy by the insured, but of the weekly payments one-third is paid by the employer and two-thirds by the worker, instead of being equally divided as in the case of the invalid and old-age insurances. For those in regular employment payment is made quarterly by the employers, the two-thirds payable by the worker being deducted from wages as in other cases. Those in irregular employment pay personally every Saturday. In these cases actual money is paid, and the secretary, who is also treasurer, receives the invalid and old-age payments at the same time. For the latter subscriptions he purchases insurance stamps at the Post Office, and places a stamp on each quittance card in his possession (see 17). Out of the sick insurance premiums he pays the sick pay allowances, and therefore no stamps are placed on the quittance card as regards such receipts. This particular office has about 600 members. The great majority are in the third class (2s. 6d. daily wage), the maid-servants are in the second class, school teachers in the third class, and governesses and private tutors in the fourth class. The office gives sick pay from the third day of iUness, such pay Digitized by Microsoft® Gbekait "Workers' State Insurance System. 15 amounting to half the fixed average wages, viz., 0-5, 0'75, 1-25, 1-75, and 2-0 marks per day respectively, with, free medical attendance, medicine, etc. If the case is suitable and the man goes to a sick institution, then to a single man no pay is given, but he is sent there free of cost and kept there without any charge. If, however, he has a wife, children, or other dependents, then, in addition to himself being cared for, one-half of the normal sick-pay of the class is devoted to their sustenance. If the niember is a woman, then the above general arrangements apply, and in case of child-bearing the sick-pay is given for six weeks, provided that she has not had sick-pay within the previous six months. In case of general iUness, either following chUd-bearing or at other times, ordinary sick-pay is given. In the case of death of a male or female m.ember, burial money of 20, 30, 50, 70, and 80 marks respectively, according to the class, is paid. Members of such a sick association pay only when in work and, of course, when well. (5) Accidents. — When an accident of the defined character occurs, the effect of which lasts more than thirteen weeks, the insured becomes entitled (a) (1) to free medical and surgical attendance, medicine, surgical appliances, etc. ; (2) a pension equal to two-thirds of the person's average earnings ; or (6) in case of death, to (1) death money equal to one-half of the wages earned by the deceased in one year, but not less than £2 10s., and (2) annuities, (a) for the widow 20 per cent. ; (6) for children up to fifteen years of age 20 per cent. ; and (c) for other dependents 20 per cent, of a year's wages. A person in receipt of an accident allowance can also draw an " invalid " or an " old-age " pension, but the total must not exceed 7^ times the foundation sum of the invalid allowance. If he meets with such a labour accident as is referred to under (9), he may, perhaps, be able to earn something, say one-third of his former earnings, but if as a consequence of the accident he becomes permanently disabled, then, with the limitation just mentioned, he becomes entitled also to an invalid allowance. Taking the example given under 14 (a), the foundation sum of the invalid allowance may be 76'20 marks, and 7J times this equals 671'5 marks compared with the normal invalid allowance payable in such a case of 154'8 marks. If now this insurer has an accident pension of 380 marks, the addition of the invalid allowance of 134'8 marks would make 534'8 marks, i.e., within the above amount, and he would get both accident and invalid allow- ances. But if the accident allowance were 460 marks, then with the invalid allowance we should get 614'8 marks, which exceeds the 511-5 marks' limit, and m such a case the invalid allowance would be cut down to 1H"5 marks. If the amount of the accident pension precludes the insurer drawing any invalid Digitized by Microsoft® 16 German Wobkers' State Insurance System. pension, then, if claimed within two years from the time of the accident, the half pajTnents made by the insurer will be repaid him just as in the case of a woman getting married (23). In all cases allowances payable to persons who, from drinking habits, etc., cannot be trusted with money are not paid to them, but provision is made to the extent of the pension or allowance for dwelling, food, drink, and clothing, or part may be spent in wood, coal, com, potatoes, meal, etc. 16. How FxmDS FOR the Pensions aee Provided. — The Empire contributes toward each invalid or old-age pension a sum of 50 marks (£2 10s.) yearly, as already explained. The remainder is made up of equal contributions by the employer and the worker. Thus in the case of an invalid pension of 200 marks (£10) the State gives 60 marks (£2 10s.), and the remainder is m.ade up out of the contributions by the worker and his employers of 75 marks (£3 15s.) each, provided out of weekly payments made by them both, as is now to be explained. These payments vary with the class of the worker (see 14), and, combined, amount to 14, 20, 24, 30, or 36pfennige respectively weekly, half paid by the employer and half by the worker. (Note. — These sums may be taken as 1-id., 2d., 2-4rf., 3d,, and 3-6d., respectively.) The workers contribu- tions amount to 3'64, 5'20, 6-24, 7'80, or 9'36 marks (or shillings) respectively per year of fifty-two weeks each. And so a worker of the third class, earning 600 marks (£30) a year, and paying for twenty years, 6-24 marks annually, will actually contribute 124'8 marks (£6 4s. lOd.) in that time. Now such an one is entitled to an invalid pension of 210 marks £10 10s.), and if he becomes an invaKd at forty, and lives twenty years, he will, during the latter time, receive a total of 4,200 marks (£210). Or, to take a more extreme case, if a worker is in the fourth class and contributes fully only for the minimum 200 weeks, say four years, and then at the age of twenty-five becomes an invalid and lives until he is sixty-five, he will in that time receive 5,680 marks (£284) against his contribution of only 30 marks (£1 10s.). A manufacturer employing 1,000 hands of the third class will contribute yearly on their account (1,000 x 624) £312. The little home or independent workers (see 6), who join of their own free will, having no employer to pay half the contribution, have naturally to pay the whole for themselves, and so such contribute at least double the amount paid by an employ^ such as he to whom, as an example, reference has just been made- The exact amoiint will depend upon the class in which the insurer chooses to place himseU. Digitized by Microsoft® German Workers' State Insurance System. 17 The State contribution of 50 marks is, of course, drawn from the general taxes of the Empire. 17. How THE CoNTEiBTJTiONS ABE PAID. — Every worker has a quittance card {QuittungsJcarte) allotted to him. This is divided into fifty-two weekly and four quarterly spaces. Stamps of a special kind, but like postage stamps, are sold by the Post Office. These stamps ( Versicherungs Marhen) differ in colour according to the value, viz., Vid., 2d., 2-id., 3d., and 3-6i., and in each of the divisions of the quittance card the appropriate stamp representing the payment due must be stuck. Thus for a worker in the second class there is placed each week a 2d. stamp, and for one of the fourth class a 3d. stamp in the weekly space, or an equivalent stamp representing a quarter's payment, where so paid, is placed in the quarterly space on the quittance card, so that mere inspection of the quittance card shows for how many weeks and in what class payment has been made. So many stamps, so many weeks' or quarters' payments made. Payments cannot be made in advance, nor is double stamping, i.e., the payment of more than the proper weekly due permitted. The quittance card itself is obtained from different sources according to circumstances. To a certain office ^Kasae) each worker is attached, and the several offices have different names, some being connected with recognised trade associations, and some being village, town, or in other words, local offices, such as that referred to under 16 (a). To the latter all domestic servants are attached. To each office must the card obtained from it, it in the insurer's possession, be from time to time taken ; those not attached to a works Kasse going to the local office (Ortskasse). As regards those workers who are in regular service, the employers pay the whole to the office in a lump sum, deducting from the wages the half due from the worker, and the stamps are then put on the card at the office. Those in irregular service receive the employer's half from the employer, and put the stamp on the card themselves. As an example of the larger payments, a factory having 200 workers may have 60 in the first class, 40 in the second, 70 in the third, and 30 in the fourth class. In this case the payments due from the workers are deducted from their wages, and the total with the appropriate master's payments are paid over to the Kasse in a lump siun, and the stamps put into a quittance book, 60 at l'4d., etc., a total of 42'20 marks, the payments being made by the employer every fourteen days. Por sums received by such trade or local offices a commission of either 3 or 6 per cent, is allowed as cost of collection. [The Secretary (Eechner) of the Ortshranherikasae referred to in (15, a) received 6 per cent, of the amount received by him on account of the invalid and old-age Digitized by Microsoft® 18 German Workers' State Insurance System. funds,] With a servant in private employ the employer may deduct from the wages the amount payahle by the servant, and the employer pays over the whole sum quarterly to the Kasse. It is understood that in such oases it is a common practice for the employer who is satisfied with the servant to pay the whole without deduction. If not so satisfied, the deduction from wages is made. The deductions must be made at the time of payment, or at alternate payments at the outside, or cannot otherwise be recovered from the worker. Thus from a worker paid weekly the limit is two weeks ; for one paid monthly, two months ; and for one paid quarterly, a half-year. An employer must under penalty inform the burgermaster or other chief of an office within three days of the employment of any fresh worker. If a worker goes from one district to another, then before leaving the first place he gets his quittance card from the office showing the amount he has paid up. At his new place of residence he takes his card to the office of that district. Supposing he remains there twenty-six weeks, that office will receive from the new master, if the man is in the second class, 5-20 marks (26 x 20 pfennige), half of which has been deducted weekly from the man's wages. If he leaves at the end of this time the amount is written upon the card, which is then handed to him to take on to his next place, and so on. When the card is full, a new card is provided on which is written up the total that has been paid to that time ; so that when a worker reaches the age of seventy, the last card shows all that he has paid in the several classes. Those workers who are employed in various places keep their owa quittance card and themselves attach the stamps, getting the half payment from the employer at the time the wages are paid. These must get the stamps from the Post Office, and the stamps must be affixed each week. The stamps are required in that ease to be cancelled by the worker himself drawing a line in ink across the middle of the stamp and placing above the line the day, and under the line the month. From the person who first employs him in the week he draws the employer's 10 pfennige (Id.), if the worker is in the second class, and he must then at once put a 2d. stamp in its proper place on the quittance card, and deface it as just described. If the worker goes to another employer the next day, or later in the week, the latter will demand to see the card. If it shows the stamp this employer has nothing more to do, but if there were no stamp for the then current week, he would know that he was the first employer, and he would attach the stamp and deduct the Id. from the wages, and so on. These compulsory insurers have yellow cards. The small independent worker or free-will member has a grey card and him- Digitized by Microsoft® German Wobkees' State Insurance System. 19 self attaches tie stamps to Ms card and defaces tliem in the required manner. He pays the whole of the 20 pfennige {^id.), if in the second class, as before explained. In December each year he produces his card at the office and has it countersigned, or gets a new one. As the cards are filled they are kept at the office issuing the first card to this "free-will" member. In the case of any card belonging to either a compulsory or a free-will insurer not containing twenty weekly pay- ment stamps over a period of two years, then the payments already made become lost. Actually a card belonging to a compulsory insurer must be exchanged within two years, and that belonging to a free-will insurer once a year. If a card is lost the owner must at once report it to the office, and furnish a state- ment of the number of stamps it contained. If he can in any way prove the correctness of the statement, a new card is given him with the value marked on it, but if not, then, unless the card is found and brought to the office, he can only get a card with the amount of the last complete card written up. 18. The Controlling Auihomties. — For the whole of Germany there are thirty-one principal offices controlling the invalid and old-age pensions. The greater States have more than one, each province having its own, whilst the smaller States are associated together or are connected with one of the larger States. Thus for the Grand Dukedom of Hessen there is a State Insurance office ( VersicherungsaTistalt) situated at Darmstadt, and all workers in Hessen, whether native or foreign, are associated with that institution. If a worker becomes employed from time to time in several States — say ten years in Prussia, and ten years in Bavaria, and then goes to Hessen or to some other State, and there becomes an invalid, he wiU be paid by the last State to which he has made payments. These principal offices (Anstalten) each have a council consisting of the chief officer assisted by four assessors, two appointed by the employers and two by the workers of the State or district which the office represents. When a pension becomes payable the worker applies to the burgermaster of his town or village, who looks into the case, and after finding all is in order, sends the papers to the head office of the province or State, which ia turn grants a pension. If the applicant is satisfied with this, weU and good, but it the pension be refused or the worker is dissatisfied with the amount allotted to him, then he must within four weeks apply to the Arbitration Court {ScMedsgericht) established in connection with aU the principal offices {Anstalten), and which for Hessen is situated at Darmstadt. This court is presided over by a judge, with whom are associated (at least) four assessors or arbitrators nominated respec- tively, two by employers and two by workers. If the worker is dissatisfied with Digitized by Microsoft® 20 German 'Woekbes' State Insiteance System. the decision of this court he can appeal within four weeks to the Imperial or High Court (Reichsversicherungsamt), whose decision is final. In like manner can the Anstalt appeal to the Imperial High Court from the decision of the Court of Arbitration. Though the pension is granted and paid by the office of the State where the worker's last contributions were received, yet that State only contributes in proportion to the number of weekly contributions actually paid to it, the other portions being drawn from the different States in which the pensioner has worked and paid at former times. Taking as an example the case of a man who after 1,200 weekly payments becomes an invalid in Hessen, and has always been in the third class, this works out as follows, viz. : He is granted, say a pension of 218 marks (£10 18s.), out of which the State contributes 50 marks, leaving 168 marks to be provided from the payments made by the man to the several States in which he has worked. These are 200 weeks in Bavaria, 400 weeks in Wurtemburg, 200 weeks in Baden, and 400 weeks in Hessen, and the 168 marks is found by these States in exact proportion to the fraction which these several numbers of weeks make of the total number of weekly contributions, that is to say, J, J, J and J, respectively. Hessen and Wurtemburg, therefore, each con- tribute 56 marks, and Baden and Bavaria each 28 marks. The arrangement of the division in such cases is made by the Finance Division of the Chief Office at Berlin. 19. How Payment of the Pensions is made. — The pensions are paid monthly in advance, so that in the case of a 240 marks pension (£12), 20 marks (or £1) is paid on the first of each month. The payments are made through the post office of the place where the person lives, each pensioner receiving from the pension office an order on the post office for the amount due. He is not obliged to go to the post office himself. He can send for the money, but he must take care not to lose Ms order. If he changes his place of residence the order will be made payable at the new place on request being made to the pensions office. The money paid out by the post office it is, of course, reimbursed from the pension funds, the account being kept by the Finance Department of the Head Office in Berlin, to which reference has already been made. 20. Some Exceptional Oases. — Illness. — ^When a worker (compulsory insm-er, i.e., not of free-will) is ill for more than six days, and in consequence is unable to work, then, as already stated, for the time that he is ill the payments that he would in the ordinary way have to make on account of the invalid and old-age pension are reckoned to his credit without his paying anything. He is, Digitized by Microsoft® Gbbman Woekbes' State Insurance System. 21 however, during this time placed in the second class, whatever be the class in which he has been actually paying, and for the payments of the second class alone is he credited. He will naturally inform, the chief of the sick insurance office of which he is a member, so that he may receive his sick pay, and these weeks will be entered on his quittance card, which normally will be at the same office ; or if the card is in his own possession, then when he gets a new quittance card the period of Ulness will be entered as so many weeks accounted for in Class n. 21. MiLiTAKT Seevice. — If a worker goes on military service, either for his training periods or in war time, then, when he gets a new quittance card it will, on the production of his military papers, be so entered that for the period of this service he is in the same position as if he had paid his weekly dues in Class n. The payments for such periods are made from the Imperial funds, the account being arranged through the Finance Department of the Head Office at Berlin before mentioned. 22. Unemployment. — If a worker is out of employment, and therefore has no employer to pay half of his weekly dues, then he can become for this period a " free-will " member, paying out of his earnings, or with the help of friends, the not very heavy sum of l'4i. at least which under this system becomes due. If, however, he is unable to find even this sum, then the payments may be for the time suspended, and the pension eventually payable is only correspondingly reduced. A limit, however, to this is provided by the regulation that if in any period of two calendar years from the date of the quittance card less than twenty insurance stamps, or, in the case of a free-will insurer, less than forty such stamps, are placed on the quittance card, then the right to, or expectation of, a pension becomes lost. Any person, however, once insured may regain the position at any time, if not already an invalid, but he must ia any such case of rejoining pass through the waiting period (para. 13), and can get no benefit until he has completed his 200 weeks of payment. If a worker during a period of unemployment, and therefore possibly of non- payment of dues, becomes an invalid, he is all the same entitled to his invalid pension, provided he has fuUy paid up over his waiting period {Wartezeit) of 200 weeks (compulsory insurer), or 500 weeks (free-will insurer) as the case may be. 23. Maebiage of Female Wokkees. — If a female worker becomes married, two courses are provided, either of which she may select. (1.) If she has not Digitized by Microsoft® 22 German Workees' State Insurance System. received a pension she may obtain repayment of the half of the total payments made on her account which she has herself paid, provided that not less than 200 weeks in all have been paid. If, for instance, a young woman has paid for ten years in the first class, she can get back 36'4 marks which she has herself paid ; but in such a case she must claim repayment within one year from the day of marriage. (2.) Instead of getting a return of her money however she may continue her insurance as a free-will member. Then she pays Vid. as a minimum per week, and eventually becomes entitled to her pension, which, it is unnecessary to say, she may later, as for instance on the death of her husband, find very convenient. If, again, a woman, say a miU- worker in the first class, marries a day- worker, and still continues to go to work, then she must also continue, as a worker, to pay. But she may, if she pleases, obtain the marriage repayment as in the case just mentioned. In the latter case, however, she has to begin anew the state of insurer. She must, that is, pass through the waiting period ( Wartezeit), and gets no pension if she, after a period of less than 200 weeks, becomes disabled. 24. Death WTTHOTrT having become a Pensioner. — It is of course possible that a worker may pay for as long a period as, say, thirty years, and then die suddenly without having drawn either an invalid or an old-age pension, whilst his own payments (the half of the whole), if he were in the fourth class, for the time just mentioned, would amount to as much as 234 marks (£11 14s.). In such a case the 234 marks are paid over to the widow, or, in the absence of a widow, for the benefit of dependent children, i.e., under fifteen years of age. To the fatherless children of a female insurer who dies without having received a pension, this money is also paid over ; or, if in consequence of the illness of her husband, such a woman was the bread-winner of the family and dies leaving a husband, then he gets the money. In this way, therefore, a sort of burial- fund is provided where advantages in the shape of invalid or old-age pensions have not previously been obtained, and so an insurer's payments, at the least, are restored either to himself directly or to his family, if he has any dependent upon him. 26. Woekers who become Master-Workers. — A working locksmith may become a master locksmith, or a waiter become the master of a restaurant or a small hotel. In such a case these sometime " workers " can become free- will members, paying for themselves the whole of the weekly contribution. If, Digitized by Microsoft® Gbeman Woekbes' State Insurance System. 23 however, ttey allow their memberahip to cease, and they fail in business and have to return to the ranks of the employed, then, if they have not been more than three years master-workers, they are allowed to return to the old position, suflering merely the disadvantage that the dues for the three years as " master ' ' remain unpaid with a consequential reduction of the amount of the pension eventually payable. In such a case they have no fresh waiting period. But if one be four years or more a "master" without paying the "free-will" or master's dues, then must the four years' waiting period be again entered, so that it is strongly recommended that a worker leaving the ranks should become a "free-will " member in order that he may not throw away his former pay- ments and the waiting period that he has completed. Vakiotjs Positions at the Commencement of the System of State Instieance (1st Jantaey, 1891). 26. Invalids. — Those who were iU — invalids — when the law came into operation could get no pensions. But those workers (compulsory insurers) who became invalids later needed only to complete one year's pajrments (forty- seven weeks), if they could show that for four years previously (188 weeks) they had been engaged in labour. In other words, the waiting period {Wartezeit] was reduced in this case to one official year (forty-seven weeks at that time). Similarly, for those who could show that they had three, two, or one years' previous service as " workers," the waiting period was reduced to two, three, or four years respectively, so as in each instance to account for five years of labour, or five years made up partly as labour years, and partly as years in which dues were paid. Thus the law having come into operation on the 1st January, 1891, if a worker could show that he had been at work since the 1st January, 1887, that is, four years, and then throughout 1891 he paid his dues, finally becoming invaUded in 1892, he was reckoned to have completed his waiting period, and so he obtained a pension. But if a person began work on the 1st January, 1889, and was invalided in 1892, he got no pension, as the waiting period of five years was not made up. The "free-will" or master members did not get the advantage of reckoning years of labour completed before the law came into operation. They had in all cases to complete five years of payments before their waiting period ended. 27. Old-age. — In the case of those who were more than forty years of age when the law came into operation, it was recognised that they could not complete the Digitized by Microsoft® 24 German Workers' State Insueanoe System. waiting period of thirty years before reaohing the age of seventy. It was there- fore enacted that, provided they had worked not less than 141 weeks in the three years preceding the Ist January, 1891, then their age over forty was reckoned as so many years of the waiting period completed. Thus a man who became sixty years of age on the 1st January, 1891, and had been for the previous five years a mill-worker, was credited on the 2nd January, 1901, with twenty years completed out of the thirty years' waiting period. And those who had already reached the age of seventy years and could show that for the last three years previous to reaching seventy they had been workers, were at once admitted to pensions on the nominal terms that they produced a quittance card with a single contribution stamp (Beitragsmarke). Proof of service lor the required three years was, of course, of the utmost importance, and all workers were urged to obtain this proof at the earliest possible moment, as obviously with lapse of time the possibility of obtaining such proof became lessened, as, for instance, by the death of the past employer or employers. Thus a worker of ten years' standing who was taken ill in 1894 could get no invalid pension without production of the necessary proof of his ten years' service prior to 1891. The proof required was obtained either by certificates from former employers or by reference to the chief local oflBcer of the places where the worker had been employed. 28. Penaities. — An employer failing to supply the contribution stamp is liable to a penalty not exceeding 300 marks (£15). He is also liable to penalties if he seeks to endeavour to make the worker pay the whole contribution, instead of half, as, for instance, by only engaging him on such a condition. Any agreement of this kind is also void in law. The re-use, and forgery, or other falsification of contribution stamps, is also subject to heavy penalty, and is, moreover, not easily effected. The surrender of old cards and their replacement by new ones also tends to prevent any fraud in connection with the stamps indicating contributions paid. 29. Summabt and Concltjsions. — (1) It will be seen that the system which has now been described is founded on two sets of payments providing for (a) Invalidism and Old-age, and (h) Sickness and Burial. Works' accidents are provided for by a special fund drawn wholly from employers. (2) The payments are at weekly rates which fall into five classes according to the wage or earning power, and of the (a) payment half is obtained directly from the employer and half from the worker, and of the {I) payment one-third comes from the Digitized by Microsoft® Gbbmah Workers' State Insurance System. 25 employer and trwo-thirds from the -woiksi. These weekly Bums or Bubscriptions are as foUows : — Class. I. 11. III. IV. V. (a) Payment (total) (6) Ditto (a) + (i) Employer's proportion per worker Worker's proportion 1-4 1-8 3-2 1-9 1-3 2-0 2-1 4-7 2-8 1-9 24 4-5 6-9 4-2 2-7 30 6-3 9-3 5-7 3-6 3-6d. 1-2d. 10-8d!. e-6d. i-2d. The pensions given in invalidism and old-age are detailed under the headings (14 a) and (14 b), and the sick pay and burial money are shown under (15 a). Thanks (a) to the payment of premiums by means of insurance stamps obtained from the Post Office and to the payment of allowances by orders on the Post Office, and (6) to the utilisation of trade union associations of recognised standing, and of local sick fund societies (Krankenkassen) for the control of quittance cards upon which the insurance stamps are placed, the organisation is cheap and simple, the Imperial and State expense on this account being limited almost wholly to the cost of check supervision. This may be made clearer by a few words additional with reference to the Sick-fund Association {OrUkran- kenkasse) alluded to in 15 {a). Within its area this office does the whole of the lOcal business of the State insurance. It keeps the quittance cards of the insurers, supphes new ones, fills up all forms, entirely manages its own sick, except where and up to the point at which a person is despatched to a special hospital or other sick or convalescent institution, and makes all local inquiries. Now this office is a local association managed by an honorary committee of six persons, four being workers and two being employers, all elected by the members of the association in general meeting. This committee elects its own chairman and deputy chairman. The one paid officer, termed the Eechner, is secretary and treasurer. He is himself engaged in business, and his salary as Bechner is 500 marks (£25) per annum, whilst, for the duties connected with the receipt of premiums on account of the invalid and old-age system, as distinct from the sick fund, he receives 6 per cent, of the total amount received. Sick- money he disburses from his receipts, and pays the balance to a reserve accoimt at the Post Office Savings Bank. For the above modest payment he does all the local business, including quarterly visits for the receipt of members' payments at the town halls of the four- places which form his district. He keeps all the Digitized by Microsoft® 26 German Woekbbs' State Insttbakoe System. quittance cards of the members in regular employment, does the book-keeping, and completes all forms and returns. He also receives the members' contri- butions, gives out sick-pay, and as regards the invalid and old-age pension dues, etc., purchases insurance stamps, and places them on the appropriate quittance cards. His accounts are inspected at irregular intervals, and without notice, by an official from the head office of the district, the interval between inspec- tions being not more than three years. Although in quite a small way of business, his books were beautifully clean and neat, and his office was a complete picture of order, everything being stowed away in partitions, cupboards, and cabinets, from which could be drawn without a moment's delay any required quittance card, book, or form. His answers to all questions were as direct and precise as his office arrangements were perfect. Finally the question may be asked, Has this insurance system been a success ? And the answer must be an emphatic "Tes," both socially and actuarially. AH those interested in the working classes, including the trade organisations, appear to be united in pressing upon the workers the advantages of the system and the necessity in their own interest of becoming "free-will" members, where the obligation to insure may have ceased, and in other cases of avoiding any danger of allowing their rights to lapse or to become forfeited. Care has been taken to press these views upon the less instructed, but poverty appears to frequently lead to an abandonment of the privileges where the obligation ceases and membership becomes a question of free-will. On inquiring what was the experience in connection with poor working women who got married, the writer found that, in the local sick society referred to above and in (15 a), out of the 600 members only two were free-will women members, and it was explained that though it would be much better for them to continue their membership, yet their poverty led them to avoid the payment of the small weekly contribution. Reference has already been made to the number of persons receiving assistance under this insurance law at the present time, and it is now only necessary to add a few particulars with regard to the receipts and payments for a recent complete year. Taking 1905, the total receipts for that year, including accident msui'ance payments, amounted to £35,870,000, of which employers paid * A word of acknowledgment must be added as to the kindness of this gentleman to an inquiring foreigner calling upon him with an introduction merely as a visitor to the neighbourhood who was interested in the State Insurance System and anxious for some enlightenment. Nothing could exceed, not merely his politeness, but the willing kindness with which he placed himself at the writer's dis- posal. For many similar kindnesses, indeed, for the unvarying kindness which the writer has received in a course of yearly visits to Germany, acknowledgment may also properly be made at a time when the newspapers of both countries are a little too much occupied in finding illustrations of tension between the two peoples. Digitized by Microsoft® rsi. German Workees' State Insurance System. 27 £16,300,000 (45-4 per cent.), the insurers £13,400,000 (37-4 per cent.), the Empire £2,365,000 (6-6 per cent.), and there -was derived from interest and sundry receipts £3,800,000 (10-6 per cent.). The total payments for 1905, including sick-pay, death-money, the cost of health institutions, etc., amounted to £27,584,249, of which £13,773,241 was connected with sickness and £13,811,008 was made up of other expenditure, including £2,566,411 the cost of administration, equal to 7-15 per cent, of the total receipts. The new demands for the year amounted to £7,911,000, made up as follows, viz. : Invalid pensions £5,714,362; Old-age pensions, £973,822; Sick-pay, Cost of Institutions, etc., £814,239; Repayment of Insurers' Contributions on Marriage, £279,322; in connection with cases where accident allowances are drawn, £2,861 ; and on the death of insurers who had drawn no pension, £126,394. The total number of new pensions paid in the year was 145,431, made up as foUows, viz. : Invalid pensions, 122,868; Sick pensions, 11,871; and Old-age pensions, 10,692. In the period 1885 — 1905 the German workers paid 149'6 million pounds, and in the same time received 255'3 million pounds or nearly 106 million pounds more than they paid. The capital sums accumulated to the end of 1905 were as foUows, viz. : To the credit of the Sick fund, 11-3 million pounds, the Acci- dent fund nearly 13 miUion pounds, and to the Invalid fxmd about 62 million pounds, these funds being partly invested in improved workmen's dwellings, credit institutions, the health institutions, and in various other ways tending to, or specially designed for, the benefit of the working classes. It is understood that the financial position at the present moment is such as to justify an exten- sion of benefit to the insurers, and that a law is in preparation conferring pensions on the widows of insurers. Over and above the direct monetary advantage which the State Insurance System has conferred upon the German worker, it is claimed that the indirect advantage has been equally great. It is perhaps difficult to precisely measure such indirect gain, but who can doubt the beneficent effect of highly-skilled medical and surgical advice placed at the disposal of the poor in the earliest stages of disease, and of treatment in specially designed and placed sanatoria, contrasted with the little that is possible in an attempt at cure in the home of a manual worker ! In Germany they point to the steady lowering of the death rate in Prussia from 30 per 1,000, for the years 1831—1840, to 23 per 1,000, for the period 1890—1900, as evidence of this indirect benefit. No doubt a considerable proportion of such a gain in the diu'ation of life must be attributed to improved sanitation and to the progress made in medical and surgical science, especially to the important progress which has followed as the wide-reaching results of the labours of the great Pasteur. Digitized by Microsoft® 28 Obeman Woekers' State Insueancb System. But when due allowance has been made for all this, everyone must recognise the vast importance to a community, and the unquestionable influence upon longevity where the whole of the hand- workers of a nation are cared for in sickness in a way that formerly was only within the reach of the wealthy. 30. Some Formalities needing Amendment. — Although the law has been so long in existence as to permit of the very considerable ntimber of beneficiaries to which reference has been made, it has recently been pointed out that some amendments of the law are needed, especially in the direction of removing disqualifying formalities in connection with conditions which may be unknown or which may be easily overlooked by comparatively ill-educated persons. From the Heidelierger Tageblatt of the 18th August, 1908, which itself quotes from Sozialen Praxis, the following two examples are taken, one afEeoting sick members and one invalid pensioners: (1) Two workers found work one Monday, and in consequence became associated with the local {Ortskrankenkasae) office. On the following Monday, at mid-day, the work ceased and the two workers lost their employment. On the Thursday of that week, whilst out for a walk, they met with an accident and were both disabled. On the next day one of them went to the office and asked for sick-pay, but was refused on the ground that, as the work had ceased, he was no longer an associate of the office, although the dues for that week had actually been paid. Strictly speaking this was correct, for he should have declared at once — the limit is one week after the employment ceases — that he would remain a "free-will" member, and this he had not done. A few hours later the second man, who had previously received advice, went to the office and declared that he would become a "free-will" member. This declaration cost him nothing. His week's dues were already paid, and for the following week were not payable in consequence of his illness, He received his sick pay. Here we have an illustration of both the advantage and the disadvantage of local organisation. The local organisation, with its strictly local funds formed from equally local contributions, naturally guards its resources in any case which, by accident or design, has the character or appearance of an extraneous or unjustifiable demand. With human nature as it is, this local watchfulness is probably a wholesome and desirable safeguard against the danger of a too-free distribution of public or communal funds. But, on the other hand, it may easily develop into a grudging administration or a disposition to take full advantage of any slight breach of a regulation, especially in cases other than those connected with persons of old local standing. Digitized by Microsoft® German Workers' State Insurance System. 29 The other case (2) shows, however, that a similar spirit is not entirely unknown even in connection with the larger organisation. In the instance adduced a female attendant at a railway station left her situation on account of weakness at the age of sixty -five. She felt that it was possible she might be able to earn at least one-third of her former wages by other work, and so did not claim an invalid allowance. In order to preserve her right to the pension later, however, she inquired what she had to do to this end, and was told that she must affix to the quittance card not less than twenty stamps of fourteen p/ennige (I'id.) each in two years, or ten stamps for one year, costing 1-4 shillings for the entire year. She understood from this that she had to pay 1'4 marks (or shillings) for the year, and accordingly she obtained from the post office 1*4 shiUingsworth of insurance stamps — not, however, ten at l'4fl!., but seven at 2-Od. It followed that at the end of two years the card did not contain twenty stamps, and the pension was lost in consequence of the non-compliance with the regulation requiring contributions representing at least twenty weeks of work in two years. The old woman had looked forward to a pension and had paid aU that was requisite, but because this payment had not been made by ten stamps of Vid., but by seven of 2'Od., forfeiture occurred. This case again is imdoubtedly a hard one. It is impossible to fully discuss it here, but the matter has to be considered in connection with the provisions of the law against prepayment of premiums, and the intention or desire apparently tmderlying such a regulation, which was probably designed to connect the benefits conferred by the national insurance system with the utmost possible regularity of work. Digitized by Microsoft® Digitized by Microsoft® BBADBUBT, AGNEW, & 00. Lr., PEINTBBS, LONDON AND TONBBIEGE. Digitized by Microsoft® Digitized by Microsoft® Digitized by Microsoft® Digitized by Microsoft® Digitized by Microsoft® Digitized by Microsoft® Digitized by Microsoft®