THE "ACHILLES HEEL" OF CIVILISATION.

Evening Star, Issue 14117, 21 July 1909, Page 8

THE "ACHILLES HEEL" OF CIVILISATION.

[Br A. R* Barclay.] " We are honestly more anxious about our armies of unemployed than all foreign invaders."—Rev. R. L. Gwynne. NoTlr. [Previous articles published in 'Star' of June 26, July 3, 10. and 14. Touching the suggestion of unemployed insurance, there is much to be said, and the subject is difficult. Who should contribute the premiums? Shoidd the insurance be by trades, or should there be a general insurance fund for all workers? Should insurance be voluntary or compulsory? A State subsidy is considered a necessary feature of nearly all proposed schemes. Now on this subject we have Mr Good's opinion : " The only scheme capable of fulfilling these conditions would be one of national and compulsory insurance against unemployment—or, more correctly speaking, against hunger in the event of unemployment." Now, so far as ordinary voluntary insurance is concerned, there have been two municipal experiments in Germany—at Strasburg and Cologne. The former is only new, the latter began in 1896, but it did not prove a success, the explanation offered lieing that the only workmen who will contribute to a voluntary scheme are those who are specially and particularly liable to unemployment. As for compulsory insurance, we shall find no example in Germany, or, indeed, in any part of Europe, except in a Swiss town, St. Gall, where a very badly managed and illoiganised exiierirncnt in 1895-97 ended in complete failure. However, the official Teport of the Board of Trade says: "The manner in which the St Gall scheme was carried out was so unsystematic, and in its organisation so much want of judgment was shown, that its value as an 'experiment is not great." The.most successful scheme of insurance in force at present seems to be what is known as the Ghent system, because it was first established in Ghent" in 1901. The leading principle is that the communities guarantee subsidies to trade societies that grant their unemployed members allowances. This system has spread through Belgium, France,* Holland, and Denmark, and even extended into Switzerland, Italy, and Germany, though to only a few towns in these latter places. The funds are raised by contributions from workmen and employers alike, supplemented by a subsidy fiom the local community. The* trouble is, however, that so many workers have no trade union or arc not members of the union of their trade.

Dr Deutsche suggestion is shortly as follows:—C'ompul-ory in each calling or trade. But tin- ,i„,k:rwn's insurance money would doubters be paid in with his other moneys to his uniuii. Workmen and employers each to pay a certain proportion. State to guarantee a. proportionate cash eoiUribution, Managing committee of two-thirds workmen and one- ' hiirl employers. State to have right of inspection and superintendence. As is uell known, Germany has a system which may be called an insnirance system against the risks of old age, accident, invalidity, and sickness, but is only just starting on unemployment. The fault of the German system is that the benefits are too mean and niggardly, yet poor as wo may be apt to consider it, it has been the subject of slowing panegyric. Mr Harold Spender eays:

'I he. German example has taught us this great lesson—that the principle of insurance, which is need so freely in our own country to protect tho more prosperous classes from the risks of fire, accident, disease, and death, may be even more successfully extended to protect the unproeperotis. In the science of living this process has become an immense alleviation of the troubles of humanity, and tho great contribution of Germany is that she ha* shown tho world how, with the assistance of tho State, the lives of vast multitudes may be gilded with this alchemy. The world looks on with amazement when it sees how, within a few years, practically the whole ■if the working classes of Germany will be mado immune from tho quadruple risks of old age, accident, invalidity, and sickness, while the State that' has brought that, about will be contributing little more than the cost of administration.

Still more weighty, perhaps, are the words ot Mr Lloyd-George :n his Budget speech, delivered only, as it were, the other day: When Bismarck was strengthening the foundations of the German Empire one of the first tasks he undertook was the organisation of a scheme which ensured the German workpeople and their families against the worst evils which come from the common accidents of life. And a superb scheme it is! It has saved an incalculable amount of human misery to people who never deserved it. Wherever f went iu Germany, north or south, and whoever I met, whether it was an employer or a workman, a Conservative or a. Liberal, or a Socialist or a trade union leader, all were of one accord in speaking in the most laudatory terms of the

excellent effects which had been achieved by that great system.

Surely there is a lesson here for us. If we wish to strengthen the foundations of the Empire, it is the foundations we must strengthen, the mass of the people—the workers. It is a positive fact that if England to-day is degenerate, it' it is degenerating, it is owing to the vices of extreme wealth and idle luxury on the one hand, and on the other to the vile conditions of the lives of millions of her workers, who could not but degenerate under the influence of hunger, famine, poverty, dirt, and degradation, enhanced by the vile, insanitary, filthy hovels called dwellings, in which so many perforce must, live. If there be anyone who questions this let him read John Foster Eraser's last book, 'Life's Contrasts,' and he will surely no longer doubt, And Mr Eraser is, in politics. I understand, a Conservative. Wc in New Zealand have our lesson to learn, too. We had better learn it ere it be too late. Surely the same forces are at work here as have produced such evil results in the Old Land, and the same results, too, will follow here, enervating, vitiating, and degrading the race. Let us bo warned in time. Let us make strong " the foundations" of our country—the masses of our workers.

Much is said just now of the value and importance of our military army and of our navy. Believe me that her industrial army is of more importance still to every country, and its physique, stamina, and bodily and mental requirements should be matter of as great care, of as much anxiety, and of as free an expenditure as are the ranks and the bodies of our soldiers and our sailors.

Wc want a guarantee against hunger and degeneration arising from unemployment. We have none such at present. But by the adoption of what is best in the Echemos already outlined we can do much to prevent the appalling waste of human energy, and even of life itself, that all men may see to-day in what are called civilised Christian lands. The entire abolition of the curse of unemployment we shall probably never see until a country's industries are directed and controlled "as one large harmonious whole, as a great machine into which all the parts tit with exactness and smoothness, instead of the present happy-go-lucky, every man for himself and the Devil take the hindmost, cut-throat, wasteful, extravagant, cruel, and wicked system. P. S.—Since writing these reflections two important items of news have arrived—first, that the English Government propose to establish an unemployment insurance scheme; and, second, that the Australian Federal Government propose to do the same thing. .Mr Lloyd-George says: The Government are now giving, careful consideration to the best methods for making a provision of this kind. We are investigating closely the plans adopted by foreign countries, and I hope to circulate papers on the point very toon. We have put ourselves into communication with the leaders of some of the great friendly societies with, a view

to seeking their invaluable counsel in' this matter, because we could not possibly get safer or more experienced advisers. All I am in a position now to say is that, at any rate in any scheme which we may finally adopt, we shall be guided by these leading principles or considerations: The first is that no plan van hope to be successful in this or any other country which does not include an eloment of compulsion. The second is that for financial, as well as for other reasons, success is unattainable except on the basis of a direct' contribution from the classes more immediately concerned. The third is that there must be a State contribution, substantial enough to enable those whose means are too limited and precarious to sustain adequate premiums to overcome the difficulty without throwing undue risks oh other contributors. The fourth, and by no means the least important, is that in this country, where benefit and provident societies represent such a triumph of organisation, _ patience, and selfgovernment as probably no other country has ever witnessed, no scheme would bo profitable or tolerable which would do the least damage to those highly-benefi-cent; organisations.

P.P.S.—The first public suggestion of unemployment insurance made in New Zealand, so far as I am aware, was made by myself in an address' delivered at Timaru on the 7th June, 1909. Since then full reports of Mr Lloyd-George's Budget speech, from which a quotation is given above, have come to hand, and our own Government seems now to have picked up the idea and to bo making the most of it. Previously it did not seem to have occurred to Ministers. (Concluded.)