LABOUR INSURANCE.

Dominion, Volume 6, Issue 1738, 1 May 1913, Page 9

LABOUR INSURANCE.

ITS GOOD INFLUENCE ON THE OB It MAN NATION. The Germ, in Imperial Insurance Offico has. issued a memorandum on ''The New Principles of Labour Insurance in the German Empire," which contains an official defence of social insuraace c,gainst criticism which has lately been passed upon it. The memorandum denies that tho socalled "pension mania" is widespread among tho population, and declares that attempts to get pensions by simulation <.r exaggeration of disease are not numerous and iire beiug successfully combated. To the charge that Germa-i industry is suffering from tho burden of contributions to insurance, tho memorandum replies that an equivalent burden is coraplainoi of in countries whore there is no social insurance, the only difference being time the burden, there tabes the form of poor law taxation. The general effects of social insurance on the nation arc, says tho memorandum, good. "Insurance has developed into a rational social-politioal school. Its educative influence affects both employers and employed. "Stimulated by the social reform, many employers are extendiug tlwi care of their workmen far beyond the measures legally imposed." The bringing together of employers and employed in the honorary management of the lrsurance institutions has a reconciling influence, and is leading to tho smoothing dowt of opposition betveen the two classes. The judicial and administrative,functions entrusted to the workmen aro schooling them for tho matngoTient of their affairs and the affairs <>f others. The objection that compulsion,. tho indispensable prinoiple of German Labiur Insurance, weakens the will-power of the workman in the struggle for existence is not a valid objection. The instinct of the workman, for voluntary provision for himself is being awakened by tho insurance. The increase in'«iving3 banks deposits ajid the increase of insuranco with private companies show that tho greater prosperity of the working-class, a result of State care, has been accompanied by a strong tendency to thrift." Tho total amount paid out in insuranco pensions, eto., to tho end of 1911 is given as The memorandum mentions ns a good feature of the insurance system that it has put largo sums of money at the disposal of movements which mako for working-class betterment. Thus of the accumulations of tho sick insurance institutions .£18,100,000 have been inVested in the provision of working-class dwellings; 000,000 havo gone ill supply-, ing farmers with credit; and .£24,100,000 in general social improvements. "The general judgment on German Labcur Insurance must," says the memorandum, "be a favourable judgment. Germany thaaks it for her productive and willing w jrking-class. That the tremendous improvement in German notional production synchronics with the improvement of tho lot of tho workers is no coincidence.