New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-11-29
PENSIONS FOR LABORERS.
HOW THE STATE SYSTEM IN GERMANY is
WORKING.
Berlin, November IL.

| has been in force ten months. IL is really
not an insurance system at all, but an Old-age
annuity system; and being universal and COM
| pulsory is of the most extraordinary specimens
| of mingled paternalism and socialism that any ex-
isting Government can show. Throughout the
Empire its working has been watched with close
interest, and the popular verdict seems at present
TO be almost unanimously in its favor In other
countries, too, notably in England, it is closely
studied with view to its possible adoption,
WITH of course, such notifications as the different
circumstances and the public spirit might require.
Statistics of it's operation in all the States of the
| Empire are no yet accessible but enough is posi-
| lively known to vindcate fully the wisdom of the
| act.
| The Grand Duchy Of Baden has been somewhat
| ahead of the rest of Germany in taking advantage
of the law and in Systematically reporting upon its
working. There has been published at Carlsruhe
a detailed statement of the work done by the An
nuity Department during the first six months of the
law, from January l to June 80 of the present
year. Perhaps these statistics make rather more
favorable showing than those Of almost any other
State would; because in Baden there was the most
complete preparation for the law, both in machin-
| cry for executing it and in instruction of the
| people regarding it. However this may be- in
Baden the system is great success. The num-
months were as follows January, 4ss: February,
! oil March, 563; April, 81; May, 174 and June
170-a total of 2,677 In the me months the num-
Der of annuities granted were January, 800 Feb
| ruary, 5S5 March, 32I April, esq., May, 232,
| and June 254-a total of zoos. or course, they
will not keep on at anything like such rate. The
total population Of Baden is less than 1000, 900.
| II has this year had to grant anuuties to all
eligible applicants of seventy years old and up
ward but henceforth 1t will only be called on
to grant them to new applicants as fast as they
| reach that age. AS the State only pays fifty
marks year to each pslsioner, the cost of these
zoos annuities is only 100,25O marks year.
The balance of the pensions, 1874, 1907 marks comes
from the pension fund, which is contributed, one
half by holders of the policies and one-ha by their
employers
For the purpose of this system the working
population is divided into four classes In the
| first are all who earn less than $50 marks a
year each. They are required to pay into the
| pension fund seven pfennig a week, and
ceive, after their SEVENTEEN year. an annuity of
O6 marks 80 pfennig each. The second class
| comprises those who earn from $50 to $50 marks
a year. They pay 10 pfennig a week, and re-
ceive an annuity Of 1875 marks The third class
comprises those whose earnings range from $50
to $50 marks. They pay l2 pfennig a week and
|
fourth class includes those who earn from $50
TO 1000 marks year. They pay Is pfennig
week and get an annuity Of l9l marks 40 pfennig
| Persons earning more than 1000 marks year
| do not come under the operation of the law. II
| is reckoned that they ought to be able to save
| enough to take care of themselves in old age
| Moreover, each applicant must prove that he
earns at least onethrd or the average of wages in
his district. Persons incapable Of earning so
much are objects of charity, and this annuity
system is not in any sense charity Each appli-
| can't too, must have been, before receiving his
| annuity, contributor to the fund for at least
thirty years; though that provision does not. of
course, apply TO those who are now seventy wears
old. All persons who were more than forty
years old when the law went into effect
are allowed TO subtract from the thirty wears
required the number by which their ages at
that time exceeded forty. Thus a man who
on January l was seventy years old, could get
| his annuity at once; one who was sixty can get
IL In ten years. one who was fifty can get 1t in
twenty; and one who forty can get it in
| thirty.
These annuities are small They range as
| stated, from about S26 TO about S48 year
Even the latter sum seems a beggary pittance
IL is to he remembered however, that the annui-
ties are intended TO aid in procuring only the
|
costly in Germany than in America. And they
are paid, moreover, TO all who reach the aye of
seventy, matter what their condition It is
| to be supposed that considerable proportion of
| those receiving them will be able also to 90 on
| earning wages for some years to come so that
the annuity will not be by any means their sole
| support And, of course many more will have
| saved something beside, will have relatives
who will contribute TO their support. AS to the
cost Of the system TO the Government it is
claimed that it is an actual saving of money
The Government pays between Sl2 and SIS a
year TO each pensoner. By this means it pre-.
vents any Of the classes affected from becoming
paupers. To maintain q pauper costs about four
times much as is paid TO each pensioner
Therefore, Il without the annuities one-fourth
Of the people now aided by them would become
paupers, it actually pays in dollars and cents, to
come paupersP That would surely be q startlingly
large proportion. One can only say that Of late
years the number of paupers in nearly all Euro
pean countries has been increasing at terri
bic pace. The number Of almshouses and kindred
institutions is legion And until the American
Government oegan 10 take vigorous means TO pre-
vent it. there was vast army Of assisted pauper
emigrants sent TO the United States every year
Indeed, 1t is interesting TO observe that the
| origin OF this annuity scheme comedies in date
pretty closely with the closing Of Americas doors
against beggars from over the sea
This system, as already stated, is compulsory
No German workman is allowed To choose whether
or not he will take advantage of il. AS soon as
he is sixteen years old, whether he wills to do
so or not, he is compelled TO pay his weekly
quota to the pension fund His employer like
wise, is compelled TO pay an equal sum for him.
Thus, when he reaches the AGE of seventy years
| he enters into the enjoyment of his pension with
no loss OF independence or self-respect He does
not receive il as gratuity but as the legitimate
result of his own savings, albeit the saving was
enforced upon him. Thus the system is in one
view, u piece of arbitrary Government tyranny,
and in another, il Is practical socialism And
SO, while IL is pet scheme Of this autocratic
Government, it is equally popular with the peo-
| pie perhaps most POPULAR wherever as In Baden,
democratic and socialistic ideas are most ad-
vanced