The Washington herald., 1921-01-05
INSURANCE FOR !
THE UNEMPLOYED
REQUIRES STUDY
Civic Federation Makes Com
mittee Report
Public.

Unemployment being a present.
day problem, the number of un-
employed apparently steadily in
creasing, those who regard insur-
ance as the primary ameliorative
agency are reopening their efforts
to- secure legislative enactments to
provide relief. A recent study of
unemployment insurance, with par
ticuiar reference to the British ex-
peffence, indicates that this method
of State provision for the neces-
sttous must be given more serious
attention and be inquired into more
fully before it can reasonably be
included in a platform for social
reform
This Is conclusion contained
in the Second Report Of the Com
mfttee on Foreign Inquiry" made
10 the Social Insurance Department
of The National Civic Federation.
According to the committees re-
port, the British compulsory un-
employment insurance is still in
the early state of experimentation.
restricted to a limited field, and
presents many puzzling problems.
Il is clear that the British law.
the only precedent for compulsory
unemployment insurance, would not
apply to the unemployment situa-
tion in the United States.
The Civic Federation's Commit
tee on Foreign Inquiry is composed
of the following members: J. w.
sullivan, chairman, representing
waSe-esrners, member Typographi-
cal Union, American Federation Of
Labor; Arthur Williams, represent
sng employers, New York Edison
Company; P. Tecumseh Sherman.
sttorney-at-law and Frederick l..
HOFFMAN. third vice president and
ststistician, the Prudential Insur-
ance Company Of America
That committee. in addition to
covering unemployment insurance,
Inquired into the British expert
enee with particular reference to
sickness insurance, made a brief re-
view Of European social insurance
experiences in general
Insurance Wrong werd.
The committee heartily indorsed
all efforts which may aid in the
reduction Of the economic conse-
quences OF illness, accidents, and
tnhrmity among wage-earners and
the public at large, but emphati-
caily expressed the opinion that
the term insurance is completely
misused in this connection and per
Verted from its accepted sense
when applied to social insurance
as generally understood. Social
Insurance is generally compulsory
and subsidized either by the contri-
buttons Of employers or the State,
or both. To the extent that this
IS the case, all social insurance
is q form of relief and practically
a poor law in disguise.
From such studies of European
experience as we have been able to
make, particularly in Great Britain
and Germany" said the report, we
are convinced that:
Ceneral compulsory sickness in
surance is hopeIessly Inefficient for
the. prevention of illness.
Medical benefits, appropriate to
and practicable with sickness in
surance OF wage-workers cannot be
efricient for the sure or correction
Of such common ills as tuberculo-
sis feeble-mindedness, congenial
de8cts and the results of neglect
in childhood.
Maternity benefits are inexpedi-
ent and out of place in wage
workers sickness insurance.
IN compulsory insurance it
would be both inequitable and in
ekpedient to provide benefits for
chronic diseases
sickness insurance ought not to
apply to vice diseases or to cases
OF disability due to or prolonged
by bad or vicious habits"
II is certainly desirable that the
community, collectively and indi-
vidually, should bestir itself to
reduce the hardships from loss of
EARNINGS resulting from i'll health.
Thes hrst and most important
nethod for such purpose is the
prevention Of disease: the second
Is ne cure of disease, and the
third and least is money relief.
EsshasiEe III-HeRIth Importance,
As regards need of money relief.
emphasis should be given to the
nisfortunes resulting from i'll
heaith in the order of their impor-
spee. which is Usually as follows.
l. Premature permanent invalid
7ty. Of breadwinner.
Premature death of same.
Long sickness of same.
4 Short sickness OF sane.
For protection against the first
three misfOrtunes mentioned in
sursnce, involving the accumula-
ton of funds in accordance with
highly technical principles, is gen
erally essential. and many classes
OF workers may need help to pro-
vide it. But, for short sickness, in
sursnce is often unneeded.
ne American people generally
most positively in
|cluded-are capable of providing
fora themselves against economic
misfortune better than the State
can do II for them. And they are
learning to do so in continually
numbers. The need of
State Intervention for such purpose
can relate only to the submerged
Exceptions for whom generally
poor relief is a necessary remedy
in nisfortunes; and the advantage
of Disgusting such poor relief un-
der the name of insurance is doubt
full But the prevention Of disease
and the establishment Of means for
adequate and economical care and
trsatment of the sick is largely
comHunity problem, to be solved
by the State
Leaves Insurance Field.