Pensions.

Timaru Herald, Volume XIIC, Issue 13685, 29 August 1908, Page 2 (Supplement)

Pensions.

•■ i ... . THE IMPERIAL . SCHEME. ITS EFFECT ON THRIFT. By Rev. J. Frome Wilkinson, M.A. (exPresident of the National Conference■- of Friendly Societies). 'Nearly twenty years ago Mr. John Morley (now Lord Morley) said, that the man or the party who solved the question of: preventing a. man who had worked i hard all his life, maintained..his. family, and had been a good citizen from going m his old ago into the workhouse would de- | ■serve mow glory than, by winning battles [on the field. As for ""men," I have some jforty and more schemes laid on the.shelf, | and the lato Old Age Pension Committee, received, it is ; understood',,over a hundred At length, it is the "party" which is eai-m'Dg the glory, and, instead of drawing promissory bills to be paid in Tariff Reform cheques, has made financial arrangements to commence cash pavments from Januarv 1, 1909. FRIENDLY SOCIETY ATTITUDE. The Chancellor of the Exchequer has done so much to answer the • bona-fide objections to the- Government scheme as well as shown an open mind in the matter ■of practical and infrctiblo amendments, that there is no need to labour several points any further. Mr. Lloyd George iiifc the mark when he said it was not right to make a further call on the workman's earnings, and invite him to provide a long period . of . individual contribution for the disability-; of old age, as wtll as for sickness during the working period of industrial life. The present has to be adequately met, and a proper standard of comfort attained, before future can be provided for. Again, the 'limitation put upon the ground covered by. the ""industry test" is most ■ welcome. Memheiskip of friendly or benefit society or of trade union is to bo taken as a qualification without further inquisition into past life. On this head it does not appear to be recognised that friendly .societies themselves have been strong promoters of a State system of old age pensions ' very much on the lines which, we are to have a fiist instalment. -While opposing from the beginning such, a contributory scheme as w"as orignaily proposed by Mr.'.Chamber-' lam, the National Conference of Friendly Societies in 1902 passed, the following resolution:—

" That this conference, representing 3,750,000 of the members - of friendly societies, is of opinion that it is the duty of the_ State to provide 'old-age pension's of not less than 5s a. week to-all-thrifty and -deserving persons of 65 years of age and upwards who are unable to work, and in need of same; that such a scheme shall not place any disability of citizenship upon the person claiming the pension." • The rank and file of the friendly societies have been in favour of some such scheme for yeans past, and the Standing Committee of the National Conference has pronounced strongly in support. of the Bill, while at the same time laying stress on the: proviso that to the pension beneticiary should bo extended to the exempt ion of the Poor-law (Friendly Societies) Act, that any small sum( either by way of reduced sick pay or superannuation) which ho may have coming in, as the result of thrift, ought not to be considered . in the 10s a week income limit as '• proposed originally. To this claim Mr. Lloyd George replied on June 18; but I should 'suggest ' there is little financial reason against such amendment, as the cases would not be '■ likely to be numerous, while at the same time an injustice would be avoided." GERMAN PLAN NOT WANTED.. In fixing the ago limit at 70 it. is perhaps not fully realised that a, pension is not considered essential while »■ man is in work. In agricultural districts there are still a "good few" labourers at 70 or ' thereabout doing a. good day's work and trusted hands on the farm. I again and again meet with such•.veterans. To.-take ; their work away 'from them, in order that they may qualify for a-pension, would ■ •be cruel, and would be also -tfeeply resented. In a village hidden away in the heart of Salisbury;-Plain- 1 -had the privilege of chatting with three or four of these a few weeks ago, aged from-71 to 73. They were delighted to hear of their forth-1 coming pensions, but did not want them *']'ust yet," butl should' "very soon,'"' they expected; but, for the presene thanked the Lord they could do their day's 1 work and carry home . IGs a week and more on EYiday. nights. We have,' however, to remember that

the agricultural labourer stands at the top of the table, with the least mortality, in the industrial world, that his is a much favoured calling, and that the expectations ol lifo in too many occupations fall far short of that of the workers on the land. It is scarcely possible to exaggerate the importance of the hints thrown out by the Chancellor of the Exchequer by way of a scheme of national insurance against invalidity for pensions under the age of 70. years. This would entirely remove all questions of work versus pension. In this quarter, however, there is the greatest need for the guarantee given by the Prime Minister, that there should be no introduction of the German pattern, founded on the two pillars of inquisition and compulsion. There are far too many politicians who are given to asking their audiences to patronise this or that legislative article "njode in Germany," at the same time that they are busy stirring np feelings of alarm and distrust among the nations. It cannot be 'loo strongly insisted that the British -workman is not German, and that the comparison will not hold good, any more than will the respective methods of government. GRADUATION. Personally (to return to the thrift aspect of the question) I have always advocated a graduation of pension in the case of incomes over 10s a week, and not a total loss. In this case the cause of morality would also gain. A sliding-'scale starting, for financial reasons below the 10s limit is a different thing, and difficult to work. An old mane weekly income over 70 is no! fixture; it is only too moveable in amount. There would be in some cases in the ranks of skilled labour in which a reduction Of pension .would take place. The inquiries made to settle a shilling more or less are likely to introduce friction and-ill-will. ■" ■•; If" there must be any reduction of the 5s pension below the 10s limit of income, Mr. Holt's suggested scale is far preferable to that proposed by the Chancellor of the Exchequer. The danger-lies in the temptation to be in possession of no more weekly income than would allow of the personal benefit' of a pension as well as helping to pay for the pensions of others. An old age pension of 5s will encoxrrage, not discourage thrift. It is the hopleles6ness of saving sufficient to maintain - old age that is the preventive, and if necessaries are provided for, all possible means will be used to add a few comforts.' I feel more, than ever the force of what I wrote many years ago in this connection: "I know of no darker spot on our national honour (than the struggle for existence on the part of those-who, after having toiled and moiled through tho heat of the day, to try and keep themselves out of the workhouse when their-working day is past, too often lay down the burden of life in the struggle. . I believe that by giving thsm;: some better provision when working days are oyer, hope will be brought into their lives and hopelessness (tlio ..cause of so much .parlysis of thrift) prevented." And also; "Tho pension should, ba claimed by legal .'-right; the possession of which is the recognition of good ■ citizenship—this Poor-law relief (humanise it as yon will) can never be. The pension • should be the sign of a certain standard of merit given to one who has been a wealth producer for the nation, when tlio working period is- over." That the Prime Minister should say "Anieu" is the mark of a new era in the industrial world..'- ! ' ; .'■■',.