New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-04-06
THE KAISER'S SOCIALISM.
DISPLAYED IN A COMPULSORY STATE IN
SURANCE SYSTEM.


men undertaken in Germany of late years, per-
hans the most interesting, if not the most inn
oortant is the national insurance system. when
has now been in operation for several months
This system aims to provide every laDorer'
workman or wagc-earncr of any KIND IN 'hc
Empire with some material assistance "he"'
through mental or bodily ailments. he Is uh-
able longer 10 earn his own living. or Wheh'
having reached the acc of seventy he has be-
come supcrannuated. 1t is reckoncd that luiy
$4,000 900 persons will thus be benehted. 10
accomplish this work the State undertakes 10
contribute a large proportion OF the funds TO
Quired the total amount needed beng estimated
at So, 100000 per year. besides S3,00o'ooo
yearly as costs of administering the system.
This enormous State subsidy was vigorously OPP
posed at the outset because in the first place,
il was deemed strongly Socialistc in tendency,
and also because of its supposed pauperl2lng IN
qucncc: while others claimed that il would len"
to additional indirect taxation, of which the
burden would fall upon the poorer classes Inc
promoters of the scheme, however. argued that
the money could never he raised by direct con-
iTbutions, especially the system is taken out
of the ordinary business category by the prin-
cirle OF granting pensions for old age lmmedi-
atcly upon the act coming into force and those
for disability at the end of one year. II thus
sinking fund, q State subsidy became a necessity.
On this principle the amount of the State con-
tribution was fixed AZ ST. 80 a year for each
allowance The State subsidy WILL il is cstl-
mated, amount to 81 500, 600 in the first year
and steadily increase for about eighty years
AZ that time it will have reached Sl',2oO,ooo
per wear. and then for the first time. an APP
proxirsate balance will he established between
the number of allowances paid and the amount
Of capital collected Then the State subsidy
will no longer be needed and will be gradually
abolished.
This system is made compulsory upon all per-
sons sixteen years Of age who are employed for
wages as workmen. assistants, apprentices or
servants: all who are engaged in business as
assistants in shops and apprentices who receive
wages not regularly exceeding $500 per year en-
ceptng assistants and apprentices of apohccaries:
also all persons employed for wages members
OF the crews of German ships. The provisions
of the act may also be extended - persons who
do not employ regularly at least one paid work
man, and to small masters who employed by
others. The civil officers of the State and sol
diers also employed as servants are not included.
The persons insured are divided into four
classes according 10 the amount of wages received.
The first class consists of those whose yearly
WAGES amount 10 SS7 80 or less; the second. from
(flat sum 10 clof %. lnc tnru, from iHdt 10
S2l2 jo and tic fourth. all above the latter sum.
The contributions, which to he paid half by
the employer and half by the insured. are fixed
for the first ten wears of the working of the act
follows: Class !, ii pfcnninss weekly less
than ) centSj class >, 30 pfcnnings Il cents
class ,, "A p.cDnings NEARLY cents and class
4. 30 pfcnnineS Is cents 1t is reckoncd that these
contributions will meet all nceGiul expenses for
tie first ten years even under the most adverse
conditions, and after that time they may he newly
adjusted every five years. At the end of eighty
Years. when balance has been reached and the
state subsidy ended. the highest rate Of contri-
buttons Will not exceed 20 piennngs or cents, Il
week for the first class and Ga pcnnings, nearly
IL cents. week for the fourth
Every person Of whatever age above sixteen
wears who has become permanently unable to
work is entitled 10 a pension. Inability means
that in consequence OF his physical mental con-
uislOn OAc is not able 10 earn sum which, paid
according 10 his powers and capabilities. il equal
10 ~ least oncsiNth Of the average rate OF wages
pane him during the preceding five years. On
reaching the age of seventy years every person is
entitled 10 pension. whether he is able t. work
or rot. Persons who bring upoA themselves any
infrnitv purposcy, while committing any
criminal action. orc not entitled 10 an allowance
In order TO become entitled 20 an allowance for
disability after the first i've years of The act.
must have paid contributions for five years
foi'Y-scyen weekly payments are recloncd to con-
see. being made for the benefit OF persons who
ere n"r IN steady employment during The entire
wear The amount Of allowances for iHfmiiy
ranges from 81 IS in the lowest wage elias, 10
Ma % in The highest. Afier fifteen year, they
VIII range from $50 % per year in the Lowest
class 10 $i03 - in the highest. The allowances
Tor age per wear range from S26 - in Class
10 Sis - III Class 1. These pensions are very
small, and il has been suggested that they should
he made larger, but the Government decided that
ii WAS necessary 10 proceed cautiously and not i'm
pose too Great burden upon the working people
1T the start These pensions. however 40 not
seem small when il is considered that they
amount 20 more than Onc-third Of the average
yearly earnings of the people 10 whom they are
granted. Nor was il intended that the pensions
henefciarics. bat simply an addition to
whatever means Of support the pensioners may
otherwise possess. III IS provided, moreover. that
il an insured person dies before he comes into
ccipt Of an allowance the payments made by him
out Of his wares 10 the insurance fund shall be
returned 10 his widow and orphans.
The system of collecting ties, small contribu-
fons from i2,0OO,OO0 persons weekly is very SIM
pic. Four kinds Of stamps. corresponding in valuc
20 the contributions Of the four classes issued
The employer purchases these stamps in advance
and on payday dcducts onc-half of the coniribu-
lions for 'he previous week from the wages Of all
his insured employees. The other half. Of course
hc pays himself Then he pasics an insurance
stamp equal in value 10 the entire contribution
upon the receipt card Of each insured workman.
These cards contain each foitv-scvcn spaces. one
Tor each week Of the Insurance year. The cards.
filed away. This system, Of course. does rot in
tcrfcrc with any Insurance or mutual benefit SIS
tens already in existence. whether local or for
trade or Government service. All such are left
untouched by the new law. which recognizes their
existence and relieves their members Of compulsory
Insurance. provided that the regulations Of such
funds meet certain conditions corresponding u
those Of the Government insurance. The Govern
ment system has now come into full operation.
Int no satisfactory estimate OF its working effects
can be made until the end Of its first wear