Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-08-28
Unemployment Insurance.


Gov. Roosevelt, addressing the con.
kention of the New York State Fedora.
tion of Labor, promised that he viii
seek the establishment of o State.
supervised system Of unemployment in
surarce and expressed the hone that the
next session Of the Legislature will
take up practical, definite study OF
unemployment insurance, avoiding, OF
course. any form of dole, and basins
their investigation on sound insurance
lines under which the State, the en-
ployer and the employee will all be joint
premium payers"
The Governor anticipates immediate
attack upon his proposal as savoring of
$bolshevism," not to mention socialism,
paternalism and other fearful "isms''
that are supposed to be waiting around
the corner to doom Just such expert
s1ents at the outset But intelligent
criticism will not depend upon the
~isms" at all. If unemployment insur-
knce can be made as practical and as
workable as workmens compensation
laws, for instance, and other forms of in
demnity against the hazards of life and
industry, no reasonable objection will
lie against it. The dificulty is that
experiments in unemployment insur-
Ance have not progressed far enough
30 prove whether its practice is as hope
kul as the theory.
Germany and Great Britain have
probably gone further In State-adnin-
istered unemployment insurance than
any other country. Yet Germany's two
million unemployed and EngIand's dole
Are not encouraging testimonials. Trade
unions have written" unemployment
insurance for years, and their benefit"
funds for the relief of members out of
work, either through strikes or let
Towns In employment, are, of course,
wen known. The first attempt at COM
'pulsory unemployment Insurance was
made in st. Gall, Switzerland, Is far
back as 1895, but the scheme failed
after two years Of operation. Under
.fzas "Ghent system" municipalities and
bther local authorities supplemented
from local revenues the benefits paid
hw trade unions or other voluntary un-
employment funds, and this system Of
tD-operation between local authorities
md trade unions has received its great
est support In Belgium, Holland and
France. In England some fourteen acts
Of Parliament have dealt with unem-
pIoyment insurance since the principal
act of 1920, which repealed all former
legislation and insured at the outset
some 100000 workers. Compulsory
schemes exist outside of Great Britain,
Ia Russia, Italy, Austria. Poland, Irish
free State and Germany, while volun-
taEy systems, aided by the state, are in
operation in Denmark, France, Norway.
the Netherlands, Finland, Spain, Bel
GUM, CzechoSlovakia and Switzerland.
Compulsory unemployment insurance
has made no Roadway in the United
States, though In times Of unemploy-
ment 1t has been frequently discussed
Public sentiment, shared by trade un-
ions and employers alike, has been
against it. The Presidents Unemploy-
uent Conference of 1921 provided fol-
IA exhaustive study Of the various
types of unemployment insurance, but
Eefrained from recommending State In
Burance. Several voluntary plans have
come into existence in the United States
since 1920, but they are limited to SIN
gle plants or portions of an industry
and in 1929 covered less than 10000
persons. Gov. Roosevelt mentions one
Of the companies experimenting with
the principle, the General Electric Co..
but the most extensive system employ
ed in this country is in the mems cloth
ing industry, by agreement between the
ciothlng manufacturers and the Anal
garnated Clothing Workers of America
and covering about $4,000 persons.
Previous attempts to introduce State
Unemployment insurance in Massa-
ohusetts, New York, Wisconsin, Penn
sylvania, Minnesota and Connecticut
have failed. But the theory is still
held out as one Of the most effective
provisions for relief Of the unemployed
It does not prevent unemployment, anc
highlands experience has shown that
s!kone of the companies entering int
the agreement were prevented, by bust.
ness depression, from carrying theil
end Of the load.