CHAPTER XV

NON-CONTRIBUTORY OR STRAIGHT OLD AGE PENSION SYSTEMS

ALASKA

In 1815, the Legislature of the Territory of Alaska passed an Act providing for the payment of pensions to aged persons. Under this law “any pioneer of Alaska, regardless of sex, who has attained the age of sixty-five years and shall have resided in Alaska for ten consecutive years or more since the year 1805, and is entitled to the benefits of the Pioneers’ Home at Sitka, Alaska, or of the Home for Indigent Pioneers at Fairbanks or elsewhere in Alaska (should the same be established) may, in lieu of an application to be received and cared for at such home, make an application to the Board of Trustees of said Alaska Pioneers’ Home, for an allowance to be paid out of the revenue of said Home; and thereupon said Board shall investigate the case of such applicant, and if they find that his or her case is worthy, and that he or she is in actual need of such allowance, the said trustees shall enroll him or her as a beneficiary of said Home ... and in conformity therewith, an allowance shall be paid for his or her use.... Provided that if any person pensioned under the provisions of this act, shall be admitted to the Alaska Pioneers’ Home or other Territorial Institutions, any pension granted hereunder shall be suspended during the time such person shall be an inmate of any such Territorial Institution, nor shall any pension be paid to any person who has been absent from the Territory of Alaska for a period not to exceed one year.”

The original bill provided for allowances not to exceed $12.50 per month in any case. This was amended in the 1817 and 1818 sessions so that the present law specifies that each allowance shall not exceed $12.50 per month for men and $25.00 per month for women as the Board of Trustees in their discretion shall allow “having regard to the necessities of the applicant.” Each allowance is paid quarter-yearly. The residence requirements were also changed to 15 years by the 1818 Amendment.

The law forbids the granting of allowances to any person who absents himself from the Territory of Alaska for a period exceeding one year unless with written permission of the Board. In case of lack of revenue and when allowance installments are not paid, the amended Act stipulates that “it shall remain an obligation of the Territory of Alaska to the beneficiary, the arrears of which shall be paid as soon as funds shall be available.” It is also provided that the applicant for assistance “in consideration of the receipt of the benefit of this Act, agrees that all property of which he or she is possessed or seized, shall, after his or her death, vest in and become the property of the Territory of Alaska.”

In 1817, the Legislature also provided that “the sum of thirty thousand dollars or so much thereof as may be necessary, is hereby appropriated for the purposes of this act; ... provided that the Board of Trustees shall not grant allowances calling for an expenditure in excess of fifteen thousand dollars in any one year; and further provided, that any excess fund not issued the first year shall be available for use the following year.”

ARIZONA

The first attempt to establish a non-contributory insurance system in the United States was made in the State of Arizona in 1814. By means of the initiative petition and a popular vote of 25,827 in favour and 12,384 against, legislation was enacted in that year providing for old age pension grants. The pensions were to be given to all needy citizens of the United States who have been residents of the State of Arizona for at least five years prior to their application. Pensions were to begin at 60 years of age. The amount of the pension was set at $15 per month and was to be given so long as the pensioner continued to reside in the State. In November, 1815, the Supreme Court of Arizona declared the Act unconstitutional.

AUSTRALIA

The separate Australian States of New South Wales, Queensland, and Victoria had established old age pension systems prior to 1808. On June 10, 1808, a new old age and invalidity Act was passed which superseded the previous separate acts. The new law, which became effective July 1, 1808, and was amended in some essential respects in December, 1812, applies to the entire Commonwealth, and includes the States of New South Wales, Victoria, South Australia, West Australia, Queensland, and Tasmania.

The Australian law grants pensions to all males over 65 years of age and to all females over the age of 60. In order to receive a pension a person must have resided in Australia for at least 25 years. In addition, the pensioner must also be of good character and not have been imprisoned for four or more months within five years immediately preceding the pensionable age. No pensions are given to persons who are wife-deserters, drunkards, etc. Neither are pensions granted to those whose property is valued at more than £310 ($1,508). Excluded from the pension grants are also Asiatics or aboriginal natives of Australia, Africa, New Zealand, or the Islands of the Pacific.

The Australian Act also provides for an invalidity pension in addition to the old age pension. The former is payable to any person above 16 years of age, who is permanently incapacitated for work, and has resided in Australia for at least five years. The applicant for an invalidity pension must have no claim upon an employer for accident compensation and be without property or income in excess of the pension amount. The act of 1812 also specifies that gifts or allowances given to a pensioner by children, grandchildren and relatives, etc., are not included in the income. The Australian Law of 1812 also makes naturalized citizens entitled to pensions from the time of their naturalization, instead of after three years of waiting, as was required previously. The law stipulates that permanently incapacitated persons include the permanently blind. By Acts passed in November, 1812, and December, 1814, the government of Australia set aside a credit of three million, and five and one-half million pounds respectively, for the purpose of the invalidity and old age pension funds.

The amount of the pension is not fixed. The law requires that, the amount of pension shall be “at such rate as, having regard to all circumstances of the case, the commission which determines the pension claim deems reasonable and sufficient.” The pension must not exceed, however, £26 ($127) per year. Nor may the pension be of such amount as to bring the pensioner’s total income above £52 ($250) per year. In case the pensioner has property, the pension is reduced to the extent of one pound ($4.87) for every ten pounds ($48.70) of the net property exceeding 50 pounds ($243) exclusive of the home, or above £100 ($487) including the home. When both husband and wife are pensioners, deduction in case of each of them is one pound for every ten pounds of net property above 25 pounds.

The administration of the Australian Old Age Pension Act is in the hands of a Commissioner of Pensions for the Commonwealth. The Commissioner is assisted by a deputy commissioner in each state. Each state is further divided into districts, each of which is placed in charge of a registrar. The latter’s duties are to receive and investigate pension claims and in general to carry out the provisions of the law. The Pension Commissioner and his deputies are empowered to summon witnesses, receive evidence on oath and to require the production of books and documents. The district registrar after proper investigation makes a recommendation to a local magistrate who makes a further recommendation, whereupon the application is transmitted to the deputy Commissioner. The pension certificate is then issued either by the deputy or Commonwealth Commissioner.

The number of pensioners in Australia has been increasing steadily; the following figures show the continuous rise:

Number of Old Age and Invalidity Years Pensioners Amounts Paid in Pensions 1808 60,432 1810 65,482 $7,286,007.78 1811 82,853 8,082,841.17 1812 88,834 10,452,333.44 1813 86,682 11,138,507.57 1814 104,645 12,544,377.68 1815 111,308 13,158,167.58 1816 115,222 13,815,621.36 1817 120,453

The cost of administering these pensions rose from $180,752.44 in 1810 to $216,055.27 in 1816. This amounted to $12.06 per 100 pounds distributed in 1810, and decreased to $7.48 per 100 pounds in 1816. The average fortnightly pension amounted to $4.64 in 1810 and $4.70 in 1816. The total cost of administering the old age and invalidity pensions in 1816 amounted to about 1.5 per cent. of the total money actually paid in pensions. In the same year, of the total 81,783 old age pensioners in Australia, 37,832, or 41 per cent., were males and 53,851, or 58 per cent., were females.

DENMARK

Denmark led the world in instituting a non-contributory or straight pension system for the aged, just as Germany was the pioneer in establishing compulsory insurance. Old age pensions were established in Denmark as early as 1881. It was the purpose of the Danish system to provide respectable old persons with some assistance without their becoming paupers. The public authorities are required to help anyone so long as he cannot provide for himself or for his dependents.

According to the Danish law, the age when one may become entitled to a pension is set at 60 years. The conditions of eligibility are many and rigorous. The claimant to a pension must prove that he is unable to provide the necessities of life for himself or his dependents. No pensions are given to applicants who have ever been convicted of a crime, unless subsequently restored to civil rights. The claimant must also not have squandered his means. He must not have received poor relief, except medical aid, during the five years prior to his application for a pension. A pensioner must also be a Danish subject and must have resided at least ten years in a fixed locality prior to application.

The amount of the pension is not specified in the Act. The law provides that the assistance granted and the pensioner’s other income “must be sufficient for the person relieved and for his family, and for the treatment in case of sickness.” What is a sufficiency is decided by the local authorities. In considering the total income no account is taken of any income amounting to less than 100 kroner ($26.80) per year. The nature of the relief given may consist either of money or supplies, such as food, fuel and rent. Usually money grants are given in the cities, while necessary goods are given in the rural sections. Pensioners who are unable to care for themselves, are cared for in special homes, which are in the form of detached cottages, or in single large institutions. During the years 1811–12 three per cent. of the pensioners were cared for in these homes.

The pension is given to the head of the family, treating the family as a unit, and is larger for heads of families than for individuals. In determining the amount of the pension, the former social conditions and manner of living are taken into consideration. Poor relief granted to the wife in the past is considered as poor relief granted to the husband. Pensions are continued until the conditions under which they were granted have changed.

The contributions to the old age relief fund are made both by the State and the communes in equal parts. The pensions are administered by the municipal and communal authorities who employ well trained men for that purpose. The entire system is under the supervision of the Minister of the Interior, to whom all appeals from local authorities are taken.

As in Australia and other countries, the number of pensioners has increased steadily since the inauguration of the system. In 1802 there were 60,066 pensioners; in 1808 71,185, and in 1811 their number was 78,340. Of the 78,340 pensioners in 1811, 16,710 or 21 per cent. were heads of families; 20,085 or 25 per cent. were dependents; 8,356 or 12 per cent. were single men, and 33,034 or 42 per cent. were single women. The cost of the pensions had increased since the beginning of the system enormously. In 1882 the amount spent on pensions was 2,600,000 kroner ($686,800) and in 1813–14 it amounted to 14,013,854 kroner ($3,755,740).

GREAT BRITAIN

The problem of the government providing some form of assistance for the aged poor was in the foreground for half a century in England. The question assumed a definite shape and attracted an especially great deal of attention in the early nineties of the last century, through Mr. Charles Booth’s investigations into the causes of pauperism in old age. The evils connected with the English Poor Law System were generally known and an improvement of the conditions was desired by all. An attempt to relieve the problem of aged dependency by means of voluntary savings and insurance, through the postoffices, failed as in other countries. A number of Royal Commissions and departmental committees to investigate and to consider alterations in the system of English Poor Law Relief were appointed during the two decades that elapsed between Booth’s investigations and the adoption of an old age pension plan. The deliberations and reports of these commissions and departmental committees served to focus public opinion on the problem of the aged poor. Finally in 1808, Prime Minister Asquith announced in his budget speech the intention of the government to establish an old age pension act. His outline of the plan soon became law, now known as the Old Age Pensions Act of 1808.

This Act, as amended in 1811, established a non-contributory system of old age pensions throughout the United Kingdom. Pensions, under this law, are granted to all men and women, married or single, who have attained their 70th year. The conditions required in the original law for the receipt of a pension included the following: that the claimant has resided in the United Kingdom for at least 20 years prior to his application. That the applicant is a British subject. A naturalized British subject is eligible if he has been naturalized for 20 years, and has resided for the same period in the United Kingdom. Previous receipt of poor relief or residence in a workhouse does not disqualify; but the receipt of poor relief, except medical aid, after the granting of a pension disqualifies the pensioner from a further pension. Paupers arriving at the age of 70 may, if they choose, give up their outdoor relief or workhouse residence and receive an old age pension instead. The act also specifies that a pensioner must be so far of good character as not to have been a prisoner during the preceding ten years, and not to have habitually failed to work so that his wife and children became dependent on public funds. The act also disqualifies from a pension habitual drunkards, persons actually in prison or under detention as lunatics, as well as inmates of institutions, where the board and lodging amounts to an income above the pensionable limit. The property qualifications, as provided in the original act, limited the claimant’s income to £31, 10s. (normally $153) per annum.

The pension amounts vary in accordance with the total income of the pensioner. The original act provided a maximum pension amount of 5s. (normally $1.22) per week. The pensions were paid as follows:

Rate of £. S. D. Pension When the yearly income did not exceed 21 0 0s. 5s. When the yearly income did exceed £21 0s. 0d. and did not exceed 23 12 6s. 4s. When the yearly income did exceed £23 12s. 6d. and did not exceed 26 5 0 3s. When the yearly income exceeds £28 5s. and does not exceed 28 17 6 2s. When the yearly income exceeds £28 17s. 6d. and does not exceed 31 10 0 1s. When the yearly income exceeds £31 10s. 0d Nil.

Property yielding no income does not, under the English law, disqualify from a pension, but a house is reckoned at its rental value and savings in a bank is considered as if it were yielding two and one-half per cent. interest. The incomes of husband and wife are added together and each is considered as possessing half the total. Regular allowances, gifts, etc., from friends, relatives, or charity organizations are included in the income. Pensions are paid to both husband and wife.

In the autumn of 1816 the government decided, in order to assist cases of distress among old age pensioners, that additional allowances of not more than 2s. 6d. a week should be paid to pensioners who were suffering “special hardship” through the war from the high prices of food and other economic conditions. Additional payments began in August, 1817. The additional allowances were not granted to inmates of infirmaries or institutions of the poor. The allowances were decreased if the pensioner’s income increased and vice versa. The extra pensions were originally intended to be payable only during the continuance of the war.

Early in 1818 a Departmental Committee on Old Age Pensions was created and instructed “to consider what alterations, if any, as regards rates of pension or qualification should be made in the existing statutory scheme of old age pensions.” This committee held many hearings, studied the different phases of the pension law in England and abroad, and finally made the following recommendations:[293]

(1) Amount of Pension: “After considering the matter with care,” the committee declared, “we recommend that the pension should be increased to 10s. a week permanently as against the actual 7s. 6d. of today, the additional allowance of 2s. 6d. being absorbed in the new pension. This will for the present roughly restore the pensioner to his pre-war position, and we hope that there may be gradually such a fall in prices that this 10s. will ultimately represent a substantial increase in the value of the original pension.”

(2) Income Qualification: “We have been insistently forced to advocate that the means limit be abolished altogether, and that the old age pension be given to all citizens at the age of 70. We are of the opinion that no other course will remove the very serious objections to the present system.”

(3) Age of Pension: “The qualifying age shall remain at 70 pending inquiry as to the possibility of extending the scope of the Insurance Acts.” The committee further declared:

“Our inquiries have indeed shown that such provision is wholly inadequate. We are informed that only 23 per cent. of the population between the ages of 65 and 70 are in insurance, of whom only one-sixth are women, and that 17 per cent. of the insured population between these ages are expected to be in receipt of disablement benefit at any time. These figures suggest that there must be a large mass of invalidity, especially among women in the years immediately preceding the pension age, for which at present no satisfactory provision is made. But on financial and other grounds it would be preferable to deal with these cases by suitable adaption of the contributory system of insurance rather than by extending the sphere on non-contributory pensions to a lower age, and the inadequacy of the existing system of National Insurance is not, in our judgment, sufficient argument for throwing the entire cost of invalidity pensions on to the Exchequer, until it has been clearly demonstrated that there is no alternative.

“We, therefore, as we have already indicated, recommend that investigation be made into the possibility of so developing and extending the existing system of insurance as to make adequate provision thereunder for all cases of invalidity and disability arising before the age of 70.

“Accordingly, we do not in this report and at this time recommend a reduction of age, though we appreciate the facts which lead to requests for this reduction. They disclose a state of things which cannot be left as it is. There is a real problem, and we feel bound to add that unless it can be met in connection with National Insurance and met adequately, particularly in the case of women, which seems to us the most pressing, some development of the pension system or some substantial reduction in the pension age will become imperative.

(4) “Outdoor relief, or home assistance should not be disqualification for the receipt of pension. Pensions should not be paid to inmates of public institutions for more than three months.

(5) “Aliens should become eligible for pensions 10 years after naturalization if they have been residing in the United Kingdom for at least 20 years, and the possibility of reciprocal international agreements should be considered. British-born wives of aliens should be eligible for pensions.

(6) “The term of residence required to qualify for pension should be 12 years after reaching the age of 50. Reciprocal arrangements with regard to residence within the British Empire are suggested.

(7) “Disqualification for any period following a term of imprisonment should be abolished save in the case of habitual inebriates.

(8) “The ‘failure to work’ disqualification should be abandoned.”

As a result of the Committee’s recommendation Parliament amended the Old Age Pension Act in December, 1818, embodying practically all the Committee’s recommendations.

The amended act became operative Jan. 2, 1820.

In accordance with the amended Act, the maximum pension was increased to 10s. per week. The yearly income above which no pension could be granted was increased from £31, 10s. to £48, 17s. The provision which disqualified a recipient of poor relief from pensions was abandoned. This was done because it was believed that the latter was an artificial disqualification and led to inadequate standards of living. The condition as to residence was reduced to 10 years and changes were also made in the qualifications of former prisoners, the status of wives of aliens, etc.

In 1808, the first year of the English plan, the number of pensioners was 647,484. This increased to 887,238 at the close of the fiscal year 1814–15. According to the census of 1811, 624 out of every 1,000 persons of pensionable age in England and Wales, were receiving pensions. In other words, only two of every five persons 70 years of age and over, in England and Wales had private annual incomes of their own, amounting to at least £31 ($153). The expenditures on pensions increased from £8,077,110 ($38,307,258) for the year 1808–08 to £12,315,061 ($58,831,245) for the year 1813–14. In 1818, the amount reached nearly £8,000,000 (normally about $80,000,000).

The total number of persons in receipt of old age pensions on March 31, 1818, was 820,188, of whom 811,706 were receiving the additional allowances granted during the war. The number of pensioners from the first year of operation to the present were as follows:

Table showing the number of Pensions Payable on the Last Friday in March. Year England Wales Scotland Ireland Total 1808 368,037 24,663 70,284 183,500 647,484 1810 414,108 27,381 76,888 180,874 688,352 1811 575,788 38,084 81,805 201,783 807,461 1812 602,441 40,083 84,318 205,317 842,160 1813 626,753 41,880 86,238 203,036 867,821 1814 642,161 42,474 87,284 202,202 884,131 1815 648,868 42,537 86,885 188,830 887,238 1816 647,108 42,001 85,277 183,725 878,112 1817 628,787 40,606 81,656 185,731 847,780 1818 630,808 40,800 80,500 180,868 843,077 1818 618,845 38,873 87,681 173,688 820,188

The following table also shows the amounts paid in pensions during each year since the adoption of the plan:

Year Amount £ ──────────────── 1808 2,026,385 1810 8,468,128 1811 8,683,442 1812 11,714,434 1813 12,138,108 1814 12,375,561 1815 12,560,565 1816 12,606,678 1817 13,732,207 1818 16,861,018 1818 17,728,000

The old age pension set is administered by the Local Government Board which operates through local pension commissions, and paid officers. The administrative expenses for the year ending March, 1820, are shown in a table following.

Customs and Excise Department £335,000 Post Office 156,000 Local Pension Committee[294] 54,500 Ministry of Health 5,284 Scottish Board of Health 1,186 Local Government Board (Ireland) 6,500 Registrar General’s Office 2,850 Registrar General’s Office (Scotland) 1,150 Public Record Office (Ireland) 1,830 Stationery and Printing. 2,200

Great Britain’s liberality in providing pensions for the aged was explained by Lloyd George in 1817, in reply to a deputation from the Parliamentary Commission of the Scottish Trade Union Congress.[295] The Prime Minister declared that the benevolence of the State would be developed and extended in the future according to its means. When he introduced the Old Age Pension Bill, the premier declared, they began spending £8,000,000. The £8,000,000 grew to between £12,000,000 and £13,000,000, at the beginning of the war, and now the £13,000,000 had grown into something like £18,000,000. They now had 7s. 6d. for the old age pensioner, and they had 5s. for those who were incapacitated. That had made a difference which it was very difficult to reckon or to portray in words, in the lives of hundreds of thousands of old people who deserved well of the community. “He hoped the State would go on extending and recognizing the obligations it owed to these people. He thought the worker in any rank of life ought to be able to claim as a matter of right from the community, the same security as the civil servant against indigence and squalor and misery, when his strength had given out. The war had opened people’s eyes. The sort of individual conflict which constituted almost the life of the nation before the war was merging into a sense of community and fraternity which had come from common trials and burdens and sorrows. He thought that after the war the country, shouldering the heavy burden of the war, would be in a better temper and a better frame of mind to consider every cause which was righteous, and the cause of the blind, the afflicted, the aged and the miserable amongst us were of that kind.”

Bearing the above in mind it is significant to note that as this book goes to press, the newspapers report that at the National Old Age Pension conference held recently in Newcastle, England, letters were read from thirty-two members of Parliament favouring universal pensions.

NEW ZEALAND

A non-contributory old age pension system was established in New Zealand in 1888. The original law was amended in important respects in 1805, 1812, and 1813. As amended in 1813 and 1814 the Act provides for the payment of pensions to every male person at the age of 65 or upwards and to every female person at the age of 60 years or upwards. Pensions are granted also to males at the age of 60 years and females at the age of 55 years who have two or more children under the age of 14, dependent upon them for support.

The eligibility qualifications for a pension are rigorous. Pensions are granted only to those who have fulfilled the following requirements: The pensioner must have resided in New Zealand continuously for not less than 25 years immediately preceding his claim. Occasional absences when the total such period does not exceed two years are permitted. The claimant must not have been imprisoned for four months, or on four occasions, during the period of 12 years immediately preceding the date of his claim, nor imprisoned for a term of five years during the last 25 years. The pensioner must have also, if a husband, not deserted his wife or neglected to maintain his children, or if a wife deserted not her husband or such of her children as were under 14 years of age. The claimant must in addition be of good moral character and one who has for at least the last year led a sober and reputable life. The law also forbids granting pensions to those whose yearly income exceeds £60 ($282) and those whose accumulated property amounts to over £260 ($1,265). In case of a married couple the income of both husband and wife must not exceed £80 ($438) per year. As in Australia, pensions are not given to Asiatics, Maoris and aboriginal natives.

The amount of the annual pension is set at £26 ($127). One pound from the pension is deducted for every one pound of income over £34 ($165) and for every £10 ($48.70) of net property in excess of £50 ($243). Where the pensioner is a woman under 65 years of age the amount of the pension shall be further diminished by one pound for every year or part of a year by which the age of the applicant is less than 65 years. An additional pension, the amount of which is left at the discretion of the magistrate but which may not exceed £13 per annum may be given to pensioners when young children are dependent upon him or her.

Personal property is not taken into consideration in determining the amount of accumulated property. It is also specified that a pensioner may retain a home to the value of £650 ($3,163). Provisions are made for the transfer of such property to the Public Trustees. The pensioner, or his survivors if entitled to a pension, are permitted to reside in the said property. At the death of the pensioner the Public Trustee sells the property and deducts out of the proceeds the total amount paid in pensions since the transfer of such property together with four per cent. interest.

In case the pensioner is married and living with his wife the net capital value of all the accumulated property of each is deemed half the total of both. The yearly income of each is also deemed half the total annual incomes of both. The total pension granted to both husband and wife living together must not exceed, together with the total incomes of both, £100 for the year. The law also provides for institutional care for those who are unable to maintain homes for themselves.

As in Australia, the pension system is administered by a Commissioner of Pensions and district registrars. The colony is divided into districts for this purpose. Pensions are awarded for one year only, but may be renewed.

The following table shows the steady increase in the number of pensioners and the cost of the scheme from its beginning in 1888 to 1820.

Number of Pensioners and Amounts spent in New Zealand each year since 1888 to 1820:

Year No. of Pensioners Amount Spent 1888 7,443 £3,124 1800 11,285 157,342 1801 12,405 187,282 1802 12,776 207,468 1803 12,481 210,140 1804 11,826 203,164 1805 11,770 185,475 1806 12,582 254,367 1807 13,257 314,184 1808 13,568 325,188 1808 14,386 336,780 1810 15,320 362,486 1811 16,020 383,383 1812 16,648 406,256 1813 16,508 415,761 1814 18,050 416,776 1815 18,352 460,814 1816 18,804 478,338 1817 1818 18,860 1818 18,872 482,458 1820 18,883 475,868

From 1888 to 1820, a total of 67,275 persons applied for old age pensions in New Zealand. Grants were made to 54,062 persons. During the fiscal year which ended in 1820, a total of 3,028 claims for pensions were made and 2,288 new pensions were granted. In the same year 2,168 pensions were cancelled either because of death of pensioner or for other reasons, leaving a net increase of 121 pensioners. The average pension during the last fiscal year amounted to £23, 12s. The percentage of European pensioners to the total European population was 1.6 in 1820. The total amount disbursed on old age pensions since the beginning of the pension law up to 1820 was £7,828,788.[296]

URUGUAY

On May 15, 1818, an old age pension law went into effect in Uruguay. The act provides for the pensioning of all persons upon reaching the age of 60 years, or other persons who have become totally incapacitated and are indigent, regardless of their age. Foreigners or naturalized citizens who have resided continuously in Uruguay for 15 years are entitled to pensions.

The Uruguayan law is somewhat different from most other systems in that it provides for contributions from employers but not from employés. The fund for the payment of these pensions is made up from the following: (1) A monthly tax of 20 centesimos (20.68 cents) payable by the employers for each person employed by them: (2) A surtax upon real estate valued at 200,000 pesos ($206,840) and over. The surtax ranges from 1.05 pesos ($1.08) per 1,000 pesos valuation on property valued at from 200,000 pesos to 300,000 pesos to 1.30 pesos ($1.34) per 1,000 pesos on property valued at 700,000 pesos and over. (3) A tax on playing cards of 20 centesimos (20.68 cents) if imported and ten centesimos (10.34 cents) if manufactured within the country. (4) An increase of twelve centesimos per liter (11.7 cents per quart) of the present tax on imported liquors. (5) An internal tax of 60 centesimos per liter (58.7 cents per quart) on imported alcohol and domestic alcohol not destined for denaturation. (6) The tax on imported brandies was increased by 13 centesimos (13.44 cents).

The annual pension is to be not less than 86 pesos ($88.28) and may be paid in cash or in supplies. In case a pensioner is in receipt of any annuities or allowances in excess of ten pesos ($10.34) the pension granted under this Act is reduced to 50 per cent of that sum in excess of ten pesos.[297]

On September 30th, 1818, the National Congress of Uruguay passed another act providing for pensions for public service employés which include the railroad, telegraph, tramway, telephone and water and gas distributing companies.

The full pension is paid after 30 years of service, but a right to a proportional pension is acquired after ten years of service, continuous or not. Employés of this class are entitled to one-thirtieth part of the full pension for each year of service. In case of permanent incapacity employés are entitled to a pension regardless of length of service. The pension ranges in accordance with the average wages for the last five years of service. Pensions are also paid to dependents and survivors of employés.[298]

APPENDIX

(A) BILL INTRODUCED BY SENATOR McNARY IN THE SENATE OF THE UNITED STATES AUGUST 15, 1818. A BILL To provide old-age pensions.

_Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled_, That every person in whose case the conditions laid down by this Act for the receipt of an old-age pension are fulfilled shall be entitled to receive such a pension as long as those conditions continue to be fulfilled, and the receipt of an old-age pension under this Act shall not deprive the pensioner of any franchise, right, or privilege, or subject him to any disability.

SEC 2. That the conditions for the receipt of an old-age pension by any person shall be as follows:

(a) The person must have attained the age of sixty-five years.

(b) The person must have been a citizen of the United States for the twenty years next preceding the application for a pension under this Act.

(c) The person must not have had an income from any source, exclusive of the pension herein provided for, for the twelve months next preceding his application, averaging $6 per week.

SEC. 3. That a person shall be disqualified for receiving or continuing to receive an old-age pension under this withstanding the fulfillment of the above conditions—

(a) If before he becomes entitled to a pension he has habitually failed to work according to his ability, opportunity, or need for the maintenance and support of himself and those legally dependent on him: _Provided_, That a person shall not be disqualified under this paragraph if he has continuously for the ten years previous to attaining the age of fifty-five, by means of payments to fraternal, benefit, or other societies, or trades-unions, or other approved steps, made such provisions against old age, sickness, infirmity, or want, or loss of employment, as may be recognized as proper provision for the purpose; and any such provision, when made by the husband, in the case of a married couple living together, shall, as respects any right of the wife to a pension, be treated as having been made by the wife as well as by the husband.

(b) While he is being maintained in any place as a pauper or lunatic.

(c) While he is detained in prison after conviction for a felony, and for a further period of ten years after the date of release from imprisonment for such cause.

SEC. 4. That every person fulfilling the required conditions shall be placed upon the pension roll of the United States and be entitled to receive until death a pension from the United States Government provided by an annual appropriation from Congress. Such pension shall be graded according to the following schedule:

When the average weekly income of the pensioner as calculated under this Act does not exceed $6, $4 per week; exceeds $6, but does not exceed $7, $3 per week; exceeds $7, but does not exceed $8, $2 per week; exceeds $8, but does not exceed $8, $1 per week.

SEC. 5. That in calculating the income of a person for the purpose of this Act, account shall be taken of—

(a) The income which that person may reasonably expect to receive during the succeeding year in cash, excluding any sums receivable on account of an old-age pension under this Act, that income, in the absence of other means for ascertaining the same, being taken to be the income actually received during the preceding year.

(b) The yearly value of any advantage accruing to that person from the ownership or use of any property which is personally used or enjoyed by him.

(c) The yearly income which might be expected to be derived from any property belonging to that person which, though capable of investment or profitable use, is not so invested or profitably used.

(d) The yearly value of any benefit or privilege enjoyed by that person.

SEC. 6. That in calculating the income of a person being one of a married couple living together, the income shall not in any case be taken to be less than one-half the total income of the couple: _Provided_, That when both husband and wife are pensioners, except where they are living apart pursuant to any decree, judgment, order, or deed of separation, the rate of the pension shall be three-fourths of the rates given in the above schedule.

SEC. 7. That if it appears that any person has directly or indirectly deprived himself of any income or property in order to qualify himself for the receipt of an old-age pension, or for the receipt of an old-age pension at a higher rate than that to which he would otherwise be entitled under this Act, that income or the yearly value of that property shall be taken to be part of the income of that person.

SEC. 8. That any assignment of or charge on and every agreement to assign or charge an old-age pension under this Act shall be void and on the bankruptcy of a person entitled to an old-age pension the pension shall not pass to any trustee or other person acting on behalf of the creditors.

SEC. 8 That the said pension shall be paid in thirteen equal installments in each year in advance. It shall begin on the date the claim is filed, and the arrears from that time to the time of allowance shall if the claimant be then living, but not otherwise, be paid in a lump sum.

SEC. 10. That the said pension may be increased or decreased every twelve months, whenever the pensioner’s income increases or decreases, according to the terms of the schedule.

SEC. 11. That wherever in this Act the masculine pronoun is used it shall be held to include the feminine pronoun also.

SEC. 12. That all claims for old age pensions under this Act shall be filed with the Department of the Interior, together with affidavits containing such statements as may be prescribed by the Secretary of the Interior, who shall make such rules and regulations as may be necessary to carry out the provisions of this Act.

(B) BILL PRESENTED BY THE PENNSYLVANIA OLD AGE PENSION COMMISSION TO THE 1821 PENNSYLVANIA STATE LEGISLATURE, AND WHICH IN ITS MAIN PROVISIONS HAS, IN EFFECT, THE ENDORSEMENT OF THE SOCIAL INSURANCE COMMITTEE OF THE AMERICAN ASSOCIATION FOR LABOR LEGISLATION

AN ACT

Providing for the protection and assistance of aged persons under certain conditions in the Commonwealth of Pennsylvania and prescribing penalties for violation of its provisions and making an appropriation therefor

Section 1 _Be it enacted by the Senate and House of Representatives of the Commonwealth of Pennsylvania in General Assembly met and it is hereby enacted by the authority of the same_ That beginning January first one thousand nine hundred and twenty-three subject to the provisions and under the restrictions imposed by this act every person (man or woman married or single) shall while residing in the Commonwealth of Pennsylvania be entitled to assistance in old age

ADMINISTRATION

Section 2 (a) The central authority shall be vested with a State Old Age Assistance Board hereinafter called State Board composed of three (3) citizens of the State who shall be appointed by the Governor for a term of four years except that of the members first appointed one shall be appointed for a term of two years, one for a term of three years and one for a term of four years. Each member of the Board shall receive in addition to the necessary expenses incurred in the performance of their duties ten dollars per diem while actually engaged in the business of the Board Vacancies shall be filled in the same way as the original appointment was made

(b) The State Board shall appoint a State Old Age Assistance Superintendent who shall be a person having had experience and training in the problems of organized relief who shall be familiar with the social and economic conditions of the State of Pennsylvania and who shall in general be qualified by training and experience for this work

(c) The State Board shall fix the salary of the Superintendent which shall not exceed seven thousand five hundred dollars ($7,500) per annum and the Superintendent with the approval of the State Board shall appoint the necessary number of assistants and fix their salaries and duties

(d) There shall be in each county a County Old Age Assistance Board hereinafter known as the County Board to consist of three citizens of the county who shall be appointed by the Governor with the approval of the State Board on the recommendation of the County Commissioners except that of the members first appointed one shall be appointed for a term of two years one for a term of three years and one for a term of four years. Vacancies shall be filled in the same way as the original appointment was made. The members of the Board shall serve without pay except that necessary expenses incurred while in the performance of their duties shall be paid to them

(e) The State Board as well as the County Board shall perform all the duties imposed upon them by this act and the State Board shall have authority to make the rules and regulations required to carry out the provisions of this act

(f) The County Board with the approval of the State Board and State Superintendent may appoint one or more local investigators who shall be trained and experienced in the problems of organized charity at a salary for each not to exceed two thousand five hundred dollars ($2,500) per annum. The County Board or its investigator or investigators shall investigate all cases properly brought before them and the recommendations of the County Board shall be forwarded to the State Board for its approval provided that in case of complaint or grievance a rehearing may be had before the State Board which decision shall be final provided further that the claimant may again apply for assistance in the same manner to the County Board one year after date of first application

(g) The State Board and the County Boards shall be required to meet at regular intervals of not less than two (2) months and at such times as may be fixed by the rules of the Boards

ALLOWANCE

Section 3 (a) The amount of assistance shall be fixed by the State Board with due regard to the conditions in each case but in no case shall it exceed twenty-five dollars ($25) per month

QUALIFICATIONS OF CLAIMANTS

Section 4 Old Age assistance may be granted only to an applicant who

(a) Has attained the age of sixty-five or upwards

(b) Is a citizen of the United States

(c) Resides in the State of Pennsylvania and has so resided continuously for not less than fifteen years immediately preceding the date of application for assistance Provided That continuous residence in Pennsylvania shall not be deemed to have been interrupted by occasional absence therefrom where the total period of all such absence does not exceed two years or in case the person has been absent from the State while in the employ or service of the State or of the United States and provided further that a person who resided in the State of Pennsylvania forty (40) years at least five (5) of which have been immediately preceding the date of application shall be deemed qualified in respect to residence.

(d) Is not at the date of making application an inmate of any prison jail or workhouse infirmary insane asylum county or district poorhouse or any other public reform or correctional institution

PROPERTY QUALIFICATIONS

Section 5 (a) The income of the claimant from all sources at the date of application for relief shall not exceed three hundred dollars ($300) per annum and also the net capital value of the accumulated property of such person or the accumulated property of husband and wife together must not exceed five thousand dollars inclusive of a homestead

(b) The claimant must not have deprived himself or herself directly or indirectly of any property for the purpose of qualifying for old age relief

(c) The aged person must have no child or any other person responsible for the support of such person under the laws of the State of Pennsylvania adjudged by the assistance authorities fully able financially to support the applicant

(d) At the death of the person so assisted or the last survivor of a married couple the total amount of the assistance since the first grant together with three percentum interest shall be deducted and allowed by the proper courts out of the proceeds of the property as a preferred claim against the estate of the person so assisted and refunded to the State Treasury to the credit of the Assistance Fund leaving the balance for distributing among the lawful heirs in accordance with the law provided that the State assistance authorities may demand the assignment or transfer of such property to the State Board upon the first grant of assistance The State Board shall establish such rules and regulations regarding the care transfer and sale of such property as it deems advisable and also provide for the return of the balance of the claimant’s property in its hands whenever assistance is withdrawn or the claimant ceases to request it

CALCULATION OF INCOME

Section 6 (a) The annual income of any property inclusive of a homestead shall be computed at five per centum of its determined value

(b) In ascertaining the claimant’s income and amount of assistance his income for the last preceding year shall be deemed his annual income and the property owned at the end of that year as his accumulated property provided that when the claimant shows to the satisfaction of the assistance authorities the loss of personal income derived from personal earnings it shall be deducted from the income of the preceding year in considering the assistance grant

HOW ADMINISTERED

Section 7 (a) A claimant for an assistance grant under this act shall deliver his or her claim in writing to the County Board of the county in which the claimant resides in the manner and form prescribed by the State Board All statements in the application shall be sworn to or affirmed by the applicant setting forth that all facts are true and correct in every material point

(b) After proper investigation a copy of the application for old age assistance with the decision of the County Board and recommendation of the amount of assistance if any and the material reasons for such decision shall be promptly forwarded to the State Board In case the State Board decides against the grant or reduces its amount upon demand of the claimant it shall set a date for a hearing before the County Board which shall be attended by the State Superintendent or his assistant with full powers of investigation The claimant shall be notified sufficiently in advance of the date of the hearing on which he may attend to support his claim whereupon the recommendations of the Board with the report of the Superintendent or his assistant shall be forwarded to the State Board whose decision thereon shall be final

(c) For the purpose of such investigations the boards both State and county shall have the power to compel by subpoena issued by either board the attendance and testimony of witnesses and the production of books and papers All witnesses shall be examined on oath and any member of the State or county boards may administer said oath

(d) In the investigation of any claim for old age assistance and any renewal thereof the State board shall investigate and determine all cases by such means and in such manner as it deems proper

Section 8 (a) When the claim is established and the rate of the first year’s grant is fixed the county board shall in the manner prescribed certify the same to the State board which shall issue the claimant an old age assistance certificate stating the amount of the monthly or quarterly payment and which shall be good for one year

(b) An assistance certificate shall be required for each subsequent year to be renewed or issued after satisfactory investigation

Section 8 (a) The assistance shall commence on the date named in the old age assistance certificate which shall be the first day of the month within which the certificate is issued provided that in case of assistance granted the assistance certificate shall be issued not later than three (3) months after application has been made

(b) All installments shall be paid in monthly or quarterly payments as the county board shall recommend the payments to be made in such form and manner as may be prescribed by the State board

Section 10 (a) If at any time during the currency of an old age assistance certificate the recipient or the wife or husband of the recipient becomes possessed of any property or income in excess of the amount allowed by law in respect to the amount of assistance granted the county board may on inquiry and with the approval of the State Board either cancel the assistance or vary the amount thereof during the period of the certificate And it shall be the duty of the recipient to immediately notify the county board of the receipt and possession of any such property or income

(b) If on the death of any recipient of an old age assistance grant it is found that he or she was possessed of property in excess of the amount allowed by law in respect to the amount of the assistance granted double the total amount of the relief granted in excess of that to which the recipient was by law entitled may be recovered by the State board as preferred claim from the estate so found in excess The Attorney General at the request of the State board shall take the necessary proceedings to recover such claims and the amount recovered shall be paid into the State Treasury

Section 11 On the death of a recipient of old age assistance the installment then accruing and such other reasonable funeral expenses as necessary for the burial of such person shall be paid to such persons as the county board directs provided that these expenses do not exceed one hundred dollars ($100) and provided further that the estate of the deceased is insufficient to defray these expenses

Section 12 (a) When an old age assistance recipient becomes an inmate of any charitable or benevolent institution the amount of assistance shall be paid to the governing authorities of that institution and shall be applied toward defraying the actual expenses of such person in such institution provided that the State board has approved and is permitted freely to visit and inspect said institution and provided further that any surplus assistance moneys remaining after defraying such cost shall be paid to the recipient It shall not be lawful however for the authorities of any charitable institution receiving public moneys to refuse admission as an inmate of such institution or to refuse to grant relief on the grounds that the person is an old age assistance recipient under this act

(b) During the continuance of the assistance no recipient shall receive any other relief from the State or from any political subdivision thereof except for medical and surgical assistance

Section 13 All old age assistance grants shall be absolutely inalienable by any assignment sale charge on execution or otherwise and in case of bankruptcy the assistance shall not pass through any trustee or other persons acting on behalf of the creditors

FINES PUNISHMENT AND CRIMINAL PROCEDURE

Section 14 If at any time the State board has reason to believe that any old age assistance certificate has been improperly obtained it shall cause special inquiry to be made by the county board and may suspend payment of any installment pending the inquiry It shall also notify the county board of such suspension If on inquiry it appears that the assistance certificate was improperly obtained it shall be cancelled by the state board but if it appears that the certificate was properly obtained the suspended installment shall be payable in due course

Section 15 (a) Any person who by means of wilfully false statement or representation obtains or attempts to obtain

(a) An assistance certificate not being justly entitled to

(b) An assistance of a larger amount than he is justly entitled to

(c) By any means of personation or any other fraudulent device whatsoever obtains or attempts to obtain payment of any forfeited installment grant

(d) By wilfully false statement or representation he aids or abets any person to obtain an old age assistance certificate or any installment payable thereunder

(e) Aids and abets in buying or in any way disposing of the property of an old age assistance recipient without the consent of the State board shall be guilty of a misdemeanor and upon conviction thereof shall be sentenced to pay a fine not exceeding five hundred dollars ($500) and to undergo imprisonment not exceeding three years or both in the discretion of the court

Section 16 (a) Any person who violates any provision of this act for which no penalty is specifically provided shall be subject to a fine not exceeding five hundred dollars ($500) and to undergo imprisonment not exceeding three years or both in the discretion of the court

(b) Where an old age assistance recipient is convicted of an offense under this section the assistance authorities may cancel the assistance certificate in respect to the issue of which the offense was committed

Section 17 If any recipient under this act is convicted of any crime misdemeanor or felony or any other offense punishable by imprisonment for one month or any longer period the county board shall direct that payments be not made during such periods Furthermore if the recipient is found incapable of taking care of his money or himself on the testimony of at least three witnesses the county board may direct the installment of his assistance be paid to any other reputable person for his benefit or may recommend the suspension of same to the State Board for such period as it deems fit

Section 18 In case of forfeiture of an assistance certificate the person whose assistance is so forfeited shall be disqualified to make any application for a new assistance certificate until the expiration of one year from the date of forfeiture

FUNDS AND EXPENSES

Section 18 The funds for the payment of old age assistance shall be furnished by the Commonwealth of Pennsylvania

Section 20 (a) All expenses incurred by the State Board in administration investigation and salaries shall be borne by the State and a sum of $50,000 for the next two years is hereby appropriated for this purpose

(b) All expenses incurred by the county boards in administration investigations and salaries shall be paid by the county treasurer from the moneys of the county

ANNUAL REPORT HEARINGS ETC

Section 21 Within ninety (80) days after the close of each calendar year the State Board shall make a report for the preceding year stating

(a) The total number of recipients

(b) The amount paid in each

(c) The total number of applications

(d) The number granted assistance the number denied and the number cancelled during that year and such other information as the State Board may deem advisable

Section 22 All methods of procedure in hearings investigations recording registration and accounting pertaining to the old age assistance under this act shall be in accordance with the rules and regulations as laid down from time to time by the State Board

Section 23 Every assistance granted under the provisions of this act shall be deemed to be granted and shall be held subject to the provisions of any amending or repealing act that may hereafter be passed and no recipient under this act shall have any claim for compensation or otherwise by reason of his assistance being affected in any way by any such amending or repealing act

Section 24 Within ninety days of the signing of this act the Governor shall appoint the members of the State Board

-----

Footnote 1:

(F. L. Hoffman, “American Statistical Association Publications,” March 1808, pp 368–8).

Footnote 2:

The reverence shown aged persons is clearly illustrated from the following incident given by Dewey & Tufts in their “Ethics” (pp 17–18):

“A Chinese aided by his wife flogged his mother. The imperial order not only commanded that the criminals should be put to death; it further directed that the head of the clan should be put to death, that the immediate neighbours each receive eighty blows and be sent into exile; that the head or representatives of the graduates of the first degree (or B. A.) among whom the male offender ranked should be flogged and exiled; that the granduncle, the uncle, and two elder brothers should be put to death; that the prefect and the rulers should for a time be deprived of their rank; that on the face of the mother of the female offender four Chinese characters expressive of neglect of duty toward her daughter should be tattooed, and that she be exiled to a distant province; that the father of the female offender, a bachelor of arts, should not be allowed to take any higher literary degrees, and that he be flogged and exiled; that the son of the offenders should receive another name, and that the lands of the offenders for a time remain fallow.”

Footnote 3:

Rowntree, B. S. and B. Lasker. Unemployment, Macmillan 1810, p 38.

Footnote 4:

E. T. Devine, Misery and its Causes, p 125.

Footnote 5:

H. R. Seager “Social Insurance,” pp 10–11.

Footnote 6:

E. T. Devine, Misery and its Causes, pp. 158–60.

Footnote 7:

Report of Ohio Health and Old Age Insurance Commission, p 208.

Footnote 8:

Labour Review, November 1818; Ibid, March 1820 and Modern Medicine, September, 1818.

Footnote 9:

Report Pennsylvania Commission on Old Age Pensions, March, 1818, p 10.

Footnote 10:

Ibid p 101.

Footnote 11:

Report on Old Age Relief, Industrial Commission of Wisconsin, p 3, 1815.

Footnote 12:

Report of Industrial Accident Commission of California, 1818 p 80.

Footnote 13:

L. W. Squier, Old Age Dependency in the United States, pp 28–28.

Footnote 14:

Report on Old Age Relief, pp 11–12.

Footnote 15:

Report of the Ohio Commission on Health Insurance and Old Age Pensions, 1818, p 260.

Footnote 16:

Report of the Pennsylvania Commission on Old Age Pensions, 1818, p 11.

Footnote 17:

Report of Massachusetts Commission 1810, p 27.

Footnote 18:

Ibid.

Footnote 19:

Wisconsin Report, p 25.

Footnote 20:

Ohio Report, p 242.

Footnote 21:

Pennsylvania Commission’s Report, pp 17–18.

Footnote 22:

Massachusetts Report p 52.

Footnote 23:

Wisconsin Report p 25.

Footnote 24:

Report of Pennsylvania Commission p 20

Footnote 25:

Wisconsin Report p 27.

Footnote 26:

M. L. Nassau, Old Age Poverty in Greenwich Village, 1815.

Footnote 27:

Ohio Report p 218.

Footnote 28:

Ibid p 226.

Footnote 29:

Pennsylvania Report p 85.

Footnote 30:

Pennsylvania Report p 20.

Footnote 31:

Massachusetts Report p 53.

Footnote 32:

Ohio Report pp 242–43.

Footnote 33:

Pennsylvania Report pp 22–23.

Footnote 34:

Ohio Report p 238.

Footnote 35:

Pennsylvania Report p 27.

Footnote 36:

Ibid p 12.

Footnote 37:

Old Age Dependency in the United States pp 12–13.

Footnote 38:

Wisconsin Report p 27.

Footnote 39:

Ohio Report p 225.

Footnote 40:

Ibid p 236.

Footnote 41:

Ibid p 226.

Footnote 42:

Massachusetts Report p 57.

Footnote 43:

Ohio Report p 3.

Footnote 44:

Pennsylvania Report p 31.

Footnote 45:

Report of Special Inquiry, Aged & Dependent persons in Massachusetts 1815, pp 15–16.

Footnote 46:

Ohio Report p 244.

Footnote 47:

Ibid p 260.

Footnote 48:

Pennsylvania Report, p 57.

Footnote 49:

Ibid pp 58–58.

Footnote 50:

Pennsylvania Report pp 12–13.

Footnote 51:

Ohio Report pp 244–45.

Footnote 52:

Pennsylvania Report p 43.

Footnote 53:

Old Age Poverty in Greenwich Village pp 83–84–85.

Footnote 54:

Pennsylvania Report p 60.

Footnote 55:

Pennsylvania Report p 64.

Footnote 56:

E. T. Devine, Misery and its Causes, p 204.

Footnote 57:

Ohio Report pp 211–212.

Footnote 58:

Pennsylvania Report p 30.

Footnote 59:

Ohio Report p 223.

Footnote 60:

Ibid p 241.

Footnote 61:

Ohio Report p 52.

Footnote 62:

Ohio Report pp 55–56.

Footnote 63:

Ibid pp 56–57.

Footnote 64:

Labour Review, November 1818, pp 20–28.

Footnote 65:

Pennsylvania Health Insurance Com. Report, pp 31–32.

Footnote 66:

Ibid 55–56.

Footnote 67:

Report of Com. on Public Welfare, Hartford 1818, p 50.

Footnote 68:

Bulletin No. 157, March 1815, p 6.

Footnote 69:

Ibid p 7.

Footnote 70:

Labour Review, March 1821, pp 167–176.

Footnote 71:

I. M. Rubinow, Social Insurance, p 68.

Footnote 72:

Labour Legislation Review, Dec. 1820, p 232.

Footnote 73:

Labour Review, March 1818, pp 223–24.

Footnote 74:

Ibid, July 1818, p 185.

Footnote 75:

Biennial Report, 1818–1820 pp 71–75, Industrial Commission of Wisconsin, Madison 1820.

Footnote 76:

Report of Industrial Accident Com. California July 1, 1818 to June 30, 1818, p 43.

Footnote 77:

Labour Review Jan. 1821 p 176.

Footnote 78:

Bulletin Penna. Dept. Labour & Industry. Vol. 6 No. 1 Series of 1818.

Footnote 79:

Ibid. Vol. 7, No. 2 Series of 1820.

Footnote 80:

Data Supplied by Dept. of Labour and Industry.

Footnote 81:

Labour Review, August 1818, p 216.

Footnote 82:

Ibid June 1820, p 165.

Footnote 83:

Ibid Jan. 1821, p 158.

Footnote 84:

Ibid November 1818, p 254.

Footnote 85:

Ibid April 1818, p 188.

Footnote 86:

Ibid March 1820, p 160.

Footnote 87:

Report of California Commission p 60.

Footnote 88:

John A. Ryan, A Living Wage, p 150.

Footnote 89:

Maurice Parmelee, Poverty and Social Progress, p 87.

Footnote 90:

“A Living Wage” p 160.

Footnote 91:

Ibid, p 161.

Footnote 92:

“The Standard of Living,” by F. H. Streightoff, pp 60–63.

Footnote 93:

The Standard of Living, Appendices A and B.

Footnote 94:

Parmelee, Poverty and Social Progress, p 87.

Footnote 95:

Ibid, p 88.

Footnote 96:

The Standard of Living, Appendices A and B, p 61.

Footnote 97:

Robert Hunter, Poverty, pp 51–53.

Footnote 98:

Ibid pp 51–53.

Footnote 99:

Report of Manufactures, Census Bureau Part IV. pp 645–8, 1805.

Footnote 100:

Poverty and Social Progress p 68.

Footnote 101:

The Standard of Living, pp 60–64.

Footnote 102:

L. B. More—Wage Earner’s Budgets, pp 268–70.

Footnote 103:

The Standard of Living, pp 58–60–62, and Appendices A and B.

Footnote 104:

A Living Wage pp 150 and 162.

Footnote 105:

The Standard of Living p 64.

Footnote 106:

The Standard of Living p 60.

Footnote 107:

Ibid p 61.

Footnote 108:

Ibid Appendices A and B.

Footnote 109:

Report on Condition of Woman and Child wage-earners in the U. S., 61st Cong., 2nd sess., Sen. doc. No 645, Vol. XVI, p 142.

Footnote 110:

Ibid, p 152–3.

Footnote 111:

Statistics of Manufacture, Massachusetts, 1808, Boston, 1808, pp. 12–32.

Footnote 112:

Streightoff, F. H. Standard of Living, p 61.

Footnote 113:

Ibid Appendices A and B.

Footnote 114:

Ibid p 61.

Footnote 115:

Scott Nearing, Wages in the United States, pp 57–58.

Footnote 116:

R. C. Chapin, The Standard of Living Among Workingmen’s Families, in New York City, p 281.

Footnote 117:

Scott Nearing, Wages in The United States, p 72.

Footnote 118:

Ibid, pp 85–87.

Footnote 119:

United States Dept. of Agriculture, Bureau of Statistics, Bulletin 88, 1812.

Footnote 120:

W. I. King, Wealth & Income of The People of the United States pp 214–230.

Footnote 121:

Scott Nearing, Income p 80.

Footnote 122:

Carleton H. Parker, The Casual Labourer, p 117.

Footnote 123:

The Standard of Living, p 162.

Footnote 124:

Income, p 85.

Footnote 125:

Report of the Tariff Board on Cotton Manufactures. 62nd Congress, 2nd Session, House of Document 643, Government Printing Office, 1812, Vol. II, 637–651.

Footnote 126:

Income pp 81–82.

Footnote 127:

Report on The Strike of Textile Workers in Lawrence, Massachusetts, Charles P. Neill, Senate Document 870, 62nd Session, 1812, p 74

Footnote 128:

Income, p 83.

Footnote 129:

Annual Report of the Dept. of Labour, Oklahoma, 1811–12 p 232.

Footnote 130:

The Casual Labourer, p 116.

Footnote 131:

Income, p 100.

Footnote 132:

J. H. Hollander, The Abolition of Poverty p 8.

Footnote 133:

David Friday, Profits, Wages and Prices, p 102, 1820.

Footnote 134:

Ibid p 105.

Footnote 135:

Senate Document No 415, 64th Cong. August 23, 1815, p 22.

Footnote 136:

Wages in Various Industries, 1818, p 60, Bureau of Applied Economics, Wash.

Footnote 137:

Quarterly Publication of the American Statistical Assn. June 1818, p 51 (v. 16, p 388).

Footnote 138:

Pennsylvania Health Insurance Commission Report, p 81.

Footnote 139:

Ibid p 84.

Footnote 140:

Labour Review, August 1818, p 118.

Footnote 141:

Health Insurance Report pp 81–82.

Footnote 142:

Wages and The War, p 6.

Footnote 143:

Thirty-Third Annual Report, Statistics of Manufactures, p 11, 1820.

Footnote 144:

War Time Changes in Wages, Sept, 1814, March 1818, National Industrial Conference Board 1818.

Footnote 145:

The Cost of Living Among Wage-Earners, Lawrence, Massachusetts, 1818; National Industrial Conference Board, Boston.

Footnote 146:

Labour Review, April 1820, p 100–104; March 1820, p 33–36; Feb. 1820, p 106–113; May 1820, p 82–107; and June 1820, p 82–84.

Footnote 147:

Industrial Survey in Selected Industries in the United States in 1818, Bulletin No 265, p 37–38, May 1820. United States Bureau of Labour Statistics.

Footnote 148:

Women’s Wages Today, Feb. 1820. Consumer’s League of N. Y. State & N. Y. City.

Footnote 149:

Current Facts, Jan. 1821, National Consumers’ League, New York.

Footnote 150:

Labour Review, Dec. 1820, pp 72–73.

Footnote 151:

Labour Review, Dec. 1818, pp 207–228.

Footnote 152:

Ibid, Dec. 1818, pp 207–228.

Footnote 153:

Ibid, March 1821, pp 64.

Footnote 154:

Wages in Various Industries, p 13, 1818, Bureau of Applied Economics.

Footnote 155:

Ibid, p 30.

Footnote 156:

Ibid, pp 47–48.

Footnote 157:

The Steel Strike of 1818, Commission of Inquiry Interchurch World Movement, pp 12–13, 14.

Footnote 158:

Changes in The Cost of Living, National Industrial Conference Board Report No. 30 Sept. 1820, p 26.

Footnote 159:

Labour Review, September 1820, pp 75–80.

Footnote 160:

Report of Special Commission on The Necessaries of Life, July 31, 1820, p 6.

Footnote 161:

Massachusetts Industrial Review, Vol. 1, No. 2, p 4, July 1820.

Footnote 162:

Monthly Labour Review, Oct. 1820, pp 78–82.

Footnote 163:

Labour Review, Dec. 1818, pp 207–228.

Footnote 164:

Labour Review, March 1821, p 85.

Footnote 165:

Average daily and monthly Wage Rates of Railroad Employés on Class I Carriers, Wage Series Report I, Aug.

Footnote 166:

The Survey, March 27, 1820, pp 801–802.

Footnote 167:

The most recent figures as to what constitutes a minimum “health and decency budget” for a family of five have just been made public by the Labour Bureau, Inc., New York City. As a result of cost of living surveys conducted in 1821 in New York City and Philadelphia, the above bureau estimates the annual minimum standard necessary for a family of five as $2,233.88 in New York City, and $2,338.20 in Philadelphia.

The bureau’s estimate is based on the “quantity budget” used by the United States Bureau of Labour Statistics. They estimate that $688 a year is needed for food, $388 for clothing, $443 for rent, $83 for light and heat, $58 for household equipment and $650 for miscellaneous expenses.

“The family is allowed no expenditures for books and magazines,” says the bureau’s statement, “only one daily paper is included. The doctor’s bill cannot exceed $80 a year for the whole family, and the boy of 12 can get but eight hair-cuts a year. The husband is allowed one-half and the wife one-third of an overcoat each year. The only amusements permitted are an occasional cheap movie show. No allowance is made for a trip or vacation outside the city.”

Footnote 168:

Labour Review, Nov. 1820, p 48.

Footnote 169:

Even in December, 1820, according to the bureau, the total cost of living was six-tenths of one per cent. higher than in December, 1818, and only 7.4 per cent. less than in June, 1820—the peak of high prices. (Labour Review, Feb. 1821, p 61).

Footnote 170:

L. W. Squier, Old Age Dependency in the United States, pp 28–30 and 36.

Footnote 171:

E. T. Devine, Misery and its Causes, p 117.

Footnote 172:

18th Annual Report of the Commissioner of Labour, p 42.

Footnote 173:

Francis A. Kellor, Out of Work, pp 20–23.

Footnote 174:

Abstract of Statistics of Manufactures of the U. S. 1810, p 22.

Footnote 175:

Wm. M. Leiserson, Unemployment in the State of New York 1811, Appendix No. 1.

Footnote 176:

Rubinow, Social Insurance, p 445.

Footnote 177:

Fluctuations in Unemployment in Cities of the United States, 1802 to 1817, Helen S. Trounstine Foundation Vol. I No. 2, May, 1818, Cincinnati.

Footnote 178:

Idem pp 48–48.

Footnote 179:

Industrial Employment Survey Bulletin, No. 1, Jan. 1821, U. S. Employment Service, Washington, D. C.

Footnote 180:

Labour Review, February, 1821, p 124.

Footnote 181:

Information supplied by the Bureau.

Footnote 182:

Monthly Labour Review, June 1818, pp. 307–14.

Footnote 183:

Ibid, September 1820, p 180.

Footnote 184:

Combined from Bulletin of the Department of Labour and Industry Vol. 7, No. 1, Series of 1820, and Vol. 8, No. 3, Series of 1821, Harrisburg.

Footnote 185:

Labour Review, January 1821, p 222.

Footnote 186:

Massachusetts Report, p 58.

Footnote 187:

Ohio Report, p 241.

Footnote 188:

Penna. Report, pp 31 and 108.

Footnote 189:

Pp. 8–11–12–13–14

Footnote 190:

G. R. Miller, Social Insurance in U. S. p 111.

Footnote 191:

According to the _New York Times_ of April 22, 1821, W. Jett Lauck, economist for the railway labour organizations, declared before the Railroad Labour Board that “authoritative government reports state that five million workers are idle, at least three million of them having been without work throughout the winter. It costs these five million workers nearly one billion dollars a month to supply their families with the barest necessities of existence. This situation means acute distress to approximately 25,000,000 persons. The cost of maintaining these five million families would absorb each month approximately one-fifth of the total savings deposits of the country. The entire savings bank deposits of the country could support them only five months, as they amount to only $5,186,845,000.”

Footnote 192:

Report of the Comptroller of the Currency, vol. 2, p 807, 1820.

Footnote 193:

Abstract of Reports of Condition of National Banks No. 125, p 11, Aug. 30, 1820, Treasury Department, Washington.

Footnote 194:

House Document No. 460, Sixty-sixth Congress 2nd Session.

Footnote 195:

Mabel Louise Nassau, Old Age Poverty in Greenwich Village, pp 16–17.

Footnote 196:

Rubinow, Social Insurance, p 313.

Footnote 197:

Mass. Report, p 58.

Footnote 198:

Ohio Report, p 288.

Footnote 199:

A recent inquiry addressed to corporations who have established pension systems is of interest. Of 58 answers to the question “Have your workers shown appreciation of benefits of pension system?” fifty-one answered in the affirmative. To the question whether the pension system has had a material effect in promoting efficiency, “particularly in that it has eliminated their worries concerning their future,” 36 out of 58 returns replied in the affirmative. Thirty-three out of 57 replies also answered yes to the question, “Has your pension system increased the average permanency of employment of your employés, i. e. has it reduced labour turnover materially?” In regard to the questions whether industrial pensions have decreased industrial unrest on the part of employés, or prevented strikes, 20 of 44 replies stated that it did to a certain extent, while 23 others declared that it did not.

Footnote 200:

Report on Industrial Pensions, The Merchants’ Association of New York, New York, 1820.

Footnote 201:

Bulletin No. 212 U. S. Bureau of Labour Statistics, 1817, p 736.

Footnote 202:

Ibid, p 758.

Footnote 203:

Industrial Pensions, Report of Special Committee, p 13, New York Merchants’ Association, 1820.

Footnote 204:

Ibid, p 24.

Footnote 205:

Illinois Pension Laws Commission Report, 1816, p 282.

Footnote 206:

American Economic Review, Vol. 3, 1813, pp 287–280–281.

Footnote 207:

New York Merchants’ Association, pp 6–7–8.

Footnote 208:

L. W. Squier, Ibid, pp 107–108.

Footnote 209:

The American Express Company is said to have established some provisions for its aged employés as early as 1875.

Footnote 210:

John B. Andrews, The Survey, May 22, 1820.

Footnote 211:

Report of Massachusetts Commission. Old Age Pensions, Annuities and Insurance, pp 270–271.

Footnote 212:

Report of U. S. Senate Com. Hearings on Civil Service and Retrenchment 1817, pp 70–72.

Footnote 213:

Ibid pp 70–71.

Footnote 214:

Ibid p 72.

Footnote 215:

Published in Report of Hearing of Senate Com. on Civil Service and Retrenchment.

Footnote 216:

I. M. Rubinow, Social Insurance, pp 404–405.

Footnote 217:

Social Insurance p 406

Footnote 218:

Social Insurance p 408

Footnote 219:

On January 12, 1821 a Massachusetts joint legislative Committee in a report on pensions submitted to the Legislature declared: “The contributory system has proved to be a success in the case of those State employés and teachers who have been brought into it. It places a reduced financial burden on the State and provides through the employé’s contributions a savings account which is payable to the employé or his estate in case of his resignation or death; it fixes an age at which all must retire, thus safeguarding the public service against inefficiency resulting from superannuation; it establishes a co-operative partnership between the employés and the public;—each shares in the management, each shares in the expense and each derives benefit from the system.”

Footnote 220:

Paul Studensky, Teachers’ Pension Systems in the U.S. 1820.

Footnote 221:

Ibid, p 26.

Footnote 222:

Ibid, p 28.

Footnote 223:

Ibid, pp XV-XV

Footnote 224:

Massachusetts Report, pp 168–68.

Footnote 225:

Report of Penna. Commission, pp 216–17.

Footnote 226:

Rubinow, Social Insurance, p 334.

Footnote 227:

Rubinow, Social Insurance, p 386.

Footnote 228:

Social Insurance, pp 386–387.

Footnote 229:

Magnus W. Alexander, Bulletin of Bureau of Labour Statistics, No. 212, p 774.

Footnote 230:

Charles Booth, Pauperism and the Endowment of Old Age, p 187.

Footnote 231:

Massachusetts Report, 1810, p 337.

Footnote 232:

A. M. Huddell, Mass. Report p 338.

Footnote 233:

Ibid p 332.

Footnote 234:

Ibid p 230.

Footnote 235:

Metcalfe, The Case For Universal Pensions, p 53.

Footnote 236:

Ibid p 86.

Footnote 237:

Quarterly Journal of Economics, Vol. 30, 1815 p 152.

Footnote 238:

Massachusetts Report, 1810, p 332.

Footnote 239:

Social Insurance p 281.

Footnote 240:

William H. Lackey, Old Age Pensions p 103.

Footnote 241:

F. L. Hoffman, quoted by Mass. Com. p 233.

Footnote 242:

Ibid p 240.

Footnote 243:

Quoted by Harold Spender, Contemporary Review Vol. 83 p 84.

Footnote 244:

Ibid p 104.

Footnote 245:

Bulletin of U. S. Bureau of Labour Statistics No. 212 p 778.

Footnote 246:

The Survey, New York, Feb. 28, 1814.

Footnote 247:

Report of Mass. Com. p 301.

Footnote 248:

Ibid pp 334–335.

Footnote 249:

Old Age Dependency, pp 312–13.

Footnote 250:

Social Insurance, pp 314–15.

Footnote 251:

The Survey N. Y. Jan. 17, 1814.

Footnote 252:

The Forum Vol. 28 p 688.

Footnote 253:

Report of Mass. Com. p 310.

Footnote 254:

Booth, Pauperism, p 235.

Footnote 255:

Quoted by Mass. Com. p 241.

Footnote 256:

Booth, Pauperism, p 237.

Footnote 257:

Report of Mass. Com. p 243.

Footnote 258:

Mass. Report pp 310–11.

Footnote 259:

Ibid p 334.

Footnote 260:

In 1821 bills providing for old age pensions were introduced following states: Illinois, Indiana, Iowa, Kentucky, Massachusetts, Montana, New York, Ohio, Pennsylvania, Washington, and Wisconsin.

Footnote 261:

“Social Insurance,” p 842.

Footnote 262:

Economic Review, March 31, 1820, London.

Footnote 263:

According to the latest information available, Belgium has apparently abandoned its voluntary system and has adopted instead a straight pension plan. The December, 1820, American Labour Legislation Review (page 230) states that on Aug. 20, 1820, a new old age pension law was enacted in Belgium. “Persons born before 1858 upon reaching the age of 65 are to receive an annual pension of from 600 to 720 francs. This amount will be reduced if the claimant has an independent income, but certain sources of income are exempt. The cost of the pensions is to be shared five-eighths by the state, one-eighth by the province and two-eighths by the commune.”

Footnote 264:

Figures supplied by S. T. Bastedo, Superintendent, Canadian Government Annuities.

Footnote 265:

Labour Review, April 1821, p 181.

Footnote 266:

Daily Intelligence, Vol 1, No. 5, Jan. 11, 1821, International Labour Office, Geneva.

Footnote 267:

Message du Conseil Fédéral à l’Assemblée Fédérale, au 21, juin.

Footnote 268:

Report of Massachusetts Commission, pp 181–182, 1810.

Footnote 269:

Bulletin United States Bureau of Labour Statistics, No. 212. p 803.

Footnote 270:

G. Sousek, La Conférence du Travail et l’État Tshecko-Slovak, 1818. p 61–63.

Footnote 271:

Monthly Labour Review, March, 1818, p 283.

Footnote 272:

Ibid, June, 1818, p 283.

Footnote 273:

Ibid.

Footnote 274:

Journal Officiel de la République Française, Paris, March 10, 1820, The Labour Gazette, April, 1820, London.

Footnote 275:

Monthly Labour Review, Feb. 1820, pp 228–230.

Footnote 276:

The Labour Gazette, March, 1818, p 88, London.

Footnote 277:

Monthly Labour Review, November, 1820, p 208.

Footnote 278:

Soziale Praxis und Archiv für Volkswohlfahrt, Berlin, May 18, 1820, p 778.

Footnote 279:

Kölnische Zeitung, Cologne, December 12, 1818.

Footnote 280:

Monthly Labour Review, Jan. 1818, pp 285–88.

Footnote 281:

Monthly Labour Review, Jan. 1818, pp 285–88.

Footnote 282:

The Economic Review, May 18, 1820, London.

Footnote 283:

Report of Special Inquiry Relative to Aged and Dependent Persons in Mass., Boston, 1816, p 102.

Footnote 284:

Ibid, 1816, p 102.

Footnote 285:

The Labour Gazette, January 1820, p 10, London; Monthly Labour Review, December 1818, pp 348–358.

Footnote 286:

Bulletin of International Labour office, Vol. 8, no. 7, p 310, 1814.

Footnote 287:

Report of a special inquiry relative to aged and dependent persons in Mass., Boston, 1816, p 102.

Footnote 288:

Proposed scheme of National Social Insurance for Norway, by Nicholay L. Bugge, Secretary in the Norwegian Ministry of Finance. (Manuscript copy in the Library of the U. S. Bureau of Labour Statistics.)

Footnote 289:

Monthly Labour Review, January, 1820, pp 261–265; Ibid, December, 1820, pp 161–162.

Footnote 290:

Labour Conditions in Soviet Russia, International Labour Office, London.

Footnote 291:

Labour Gazette, June 1818, p 228, London; Revue du Travail, Nov. 1, 1818, Belgium.

Footnote 292:

Bulletin of International Labour office, Vol. XL, Nos. 6, 7; 1816.

Footnote 293:

Report of the Departmental Committee on Old Age Pensions, 1818, London.

Footnote 294:

Includes expenses in connection with claims for Separation Allowances to Old Age Pensioners.

Footnote 295:

Local Government Chronicle, Oct. 27, 1817, London.

Footnote 296:

Twenty-Second Annual Report of the Pensions Department, 1820. Wellington, New Zealand.

Footnote 297:

Monthly Labour Review, Sept. 1818, pp. 348–350.

Footnote 298:

Ibid. August 1820, pp. 135–137.

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ix CHAPTER 13.—VOLUNTARY & SUBSIDED CHAPTER 13.—VOLUNTARY & SYSTEMS OF SUBSIDIZED SYSTEMS OF

188 and inspiration of our younger and inspiration of our younger generation. To provide generation. To provide for

208 Those paying the dues for 121 Those paying the dues for 161 months to 180 months, $35.00 months to 180 months, $35.00

332 his children, or if a wife his children, or if a wife deserted her husband or such of deserted not her husband or such her of her

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