New-York tribune., 1909-06-20
LIBERAL ACTIVITY
Reform AdminiStration-Whdt 1t
Costs the Nation.
London. June 2.

labor resfstries established in the centres OF
population; and these to be supplemented
by sickness and disability funds. with cCntribu-
tons from workmen. employers and the state.
1t is an election programme devised for political
effect for the sake of strengthening the coali-
! ton between Radcalism and Labor; and while
! it cannot be carried out without an appeal to
! the country, the measures likely TO be taken
up by Unonist or Tariff Reform administra-
tion, if there be public reaction against reform
! bills, there in 1874. Governments may
/ stand fall. but social reform seems destined
/ to go on whether financed in way in
other The Lords will neither amend reject
any Liberal measure which is strongly advo-
! Gated by trade unionists. The Conservatives,
when they return to power. will be constrained
! to continue the work of the Liberals in provid-
! ing emergency funds German lines for old
! age. unemployment sickness and disability.
There may be partisan condemnation of these
policies as unsettling and demoralizing for the
masses, but social reform has got into politics
and is in the way of being worked out at the ex-
penss OF the classes.
| The newest project is stale insurance
| scheme against sickness and disability. Mr..
| Lloyd George and Mr.. Winston Churchill have
discussed It informally from the platform, and
| the friendly societies and trade unions are re-
ducing 1t TO definite form. At conference in
Sheffield this week Mr.. Gilchrist formulated
| plan based upon contributions from employers.
! workrnen and the state. Sickness and perma-
nent disability were included in a single sys-
| TEN, with a payment OF five shillings week.
| whether ailments were temporary or chronic.
Friendly societies and trade unions were named
as the proper bodies for carrying out the admin
istrative details with the assistance of local
| committees, and membership in them would in
clude workers of both sexes between the ages
of sixteen and seventy. The employers and the
state were each to give penny for every three
pence deducted from the worIznen's weekly wages
| for this class of insurance; and there would be
facilities for obtaining larger payments than
five shillings, although there would be no com
| pulsion for exceeding the minimum rates. There
would be provision for temporary sickness medi-
| cal and special aid. chronic invadty and treat
ment in sanatoria. and, indeed. for everything
arranged for in Germany with the exception Of
funeral benefits This is a tentative proposal
| from The friendly societies. which complain
ing of the alarming iDcreass in sickness liabili-
ties due to Industrial conditions the prevalence
Of worklessness and social depression. The
trade unions are discussing similar schemes and
are favoring larger contributions from employers
and the state.
The Germans have been operating a system
| OF insurance against sickness during the last
! twenty five years. It is compulsory in certain
| trades and classes OF employment Is applied to
| wage earRers of both sexes. lapses whenever
| there is no work and is resumed when occupa-
| ton is regained. Two thirds OF the contrbu-
| tions from the worSmen and one-third
| from the(r employers. The state supervises the
administration Of the sick funds but does not
enlarge them. The minimum benefit is one
| half Of the daily wages which the premiums
have been based. and this continues. with free
| medical attendance and medicine, for twenty
six weeks the longest period. The funds are
administered by various parish. industrial.
trade guild and miners associations and the
workpeople and their employers have the main
share in the management of them Invalidity
pensions form a different class OF insurance, for
which the premiums evenly divided between
employers and men. with a final subsidy Of
80 marks from the state in each instance. The
premiums are payable for every working week
in five wage classes and are levied in stamps
sold at postofilces and affixed TO cards. The
general work OF insuring men against disability
is conducted by societies formed for communal
unions, districts states, and subject TO gov
ernment supervision. German workmen con-
tribute to every form OF insurance except for
accidents for which the entire liability. as In
England, falls upon the employers. The state
pays a small subsidy for every disability or old
age pension but otherwise is at no expense
beyond administrative service
The Liberal government in England having
begun by pensioning off men and women over
seventy without contributions from them and
entirely at the expense Of the state. has created
an appetite for gratuties. The project of
insurance against unemployment apportOns the
cost impartially among the insured, the EN-
ployers and the state The sickness and invalid
ity classes of insurance will be grounded. 1t now
seems probable upon lavish state aid in addition
TO contributions from employers and workers
The trade unions and friendly societies are bent
upon getting as much money as possible out OF
the treasury, and employers when confronted
with the necessity of helping TO insure their
workers against sickness and invalidity will
want to divide the burden with the state. Social
reform with these various branches or emer-
eencv insurance threatens to become enormously
expensive to taxpayers. The same services in
voIve annual expenditures Of over $125 100000 in
Germany; but only a small fraction of ii comes
from general taxation. In England at present
there Is a mania for pauperizing the masses by
dispensing with the requirements of thrift. If
Radicals like Mr.. Winston Churchill are allowed
to have their way. insurance against the ener-
sencies of working life will be largely at the
cost Of taxpayers and employers. The workers
themselves will not be taught to begin with
saving their pennies for the rainy day. Nor will
the foundations be laid for better understand
ing between employers and employed by cordial
co-operation in carrying out triple or quadru-
ple system of Industrial insurance.
There are many signs that the country is
harassed and bewiidered by the legislative ac-
tivities of the Asquith government brilliantly
led and laboriousy served as it is in the various