Evening star., 1935-06-23
Municipalities Enter.

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Municipalities Enter.
A further development came in the
attempts of various municipalities to
establish systems or to extend regular
subsidies to some of the trade union
plans already operating.
The first of such to become really
operative was that of the city Of
Ghent, Belgium, in 1901, the prin-
ciple being che of municipal subsidy
to fund raised entirely by employe
contributions. In 1907 the program
was recognized by the Belgian gov
ernment in the form of yearly grants
to trade unions that maintained un-
employment compensation systems.
Other cities in other nations followed
suit, and France, Norway, Belgium
and Denmark all were according ma
tional assistance to these systems
when the war broke out in 1914 In
addition, the "Ghent system" as con-
fned entirely to municipalities was to
be found in many other countries of
the continent.
War time readjustments or expert
mentation with a view to improving
the system led to enactment of new
laws for the maintenance of most of
the national voluntary unemployment
insurance plans and we find existent
programs functioning under laws of
the following dates: Belgium, 1920;
CzechoSlovakia, 1921; Denmark, 1927;
Netherlands, 1916; Norway, 1915;
Spain, 1881, and Switzerland, 1924. In
France a dual system is in operation,
authorization for governmental sub
sidy to voluntary unemployment COM
penSation associations having been
approved in 1905 and like authorize
ton being granted for aid to munic-
ipal and communal efforts in 1914.
Success Used as Argument.
Although all Of these voluntary sys-
TENS achieved some degree of sue
cess, these very successes were used
as argument by those who urged COM
pulsory national systems. Depend
ent as they were upon voluntary CO.
operation, none of them was found to
cover more than one-third of the
working population of their respective
countries. Often, also, they became
almost wholly government relief pro-
grams rather than cooperative in
surance programs.
Back in 1911, however, one nation
had taken the bull by the horns when
Great Britain enacted the first ma
tional compulsory unemployment in
surance act. Necessarily experimental,
it was limited to a few select trades,
such as shipbuilding, metal-working
and construction. Finding that the
average unemployment in the some
what more than $3.50, 900 workers thus
covered was about per cent, the Brit
ish system was designed on an actu-
arial basis with employer, employe
and government each contributing
one-third of the fund. Until the
World War brought its greatly abb
normal conditions, the British act of
1911 generally was considered ef-
fective.
With those abnormal conditions,
however, came the need for more ex-
tenSive unemployment aid and the
British system was revised In 1920,
amended several times more, revised
again in 1927 and further altered in
1881.
Called Most Effective Yet.
Although this policy of the British
government in handling its unem-
ployment problem has suffered some
in this country by American distaste
for the term "dole," not applied in a
completely correct manner to the
British system, many students of the
unemployment relief problem have
hailed it as the most effective program
yet devised. Abraham Epstein, ac-
knowledged authority on the problem,
quotes several of them, including
present Secretary Of Labor Frances
Perkins, in his book, Insecurity: A
Challenge to America"
In any event, variations of the Brit
ish system were enacted in compulsory
programs of several other nations, as
follows: Austria, 1920; Bulgaria, 1925;
Germany, 1927; Italy, 1919; Luxem-
burg, 1921; New Zealand, 1880;
Queensland, 1922; Poland, dual sys-
tenn inaugurated in 1924 and 1926.
In addition, the Irish Free State con-
tinued the program imposed by the
British action In 1911.
In the United States unemployment
insurance followed o somewhat sim
liar line Of development. Trade
unions took the lead as IL Europe and