In pursuance of the policy of the right to work, the German workman is given every in centive to remain perManently in his position, and there is accordingly little changing from position to position. This German tendency to stick to the job has the effect of stimulating .German industry as a whole in a marked man ner, :since the workingman, expecting as he does to remain permanently with the one firm, ;becomes more diligent in promoting the firm's business than if he expected to remain only a short time, since his own continued prosper ity depends on the firm's prosperity. The Ger man workman also is induced to remain per manently in his position through contributions to accident, sickness and other insurance and pension funds. To change his position then means a loss of money and seniority of benefits 'so that it is often more lucrative to remain than to change.
German concerns of large size often build garden cities and erect workingmen's homes which are rented or sold to their workmen on very favorable terms, while residence in such garden cities or workingmen's villages is more economical than residence elsewhere, through the purchase of supplies in bulk and the oper ation of company's stores or of communal co operative stores.
Workingmen's An especially important feature of Germany's economic or ganization is her highly developed systems of workingmen's accident, sickness, invalidity and other forms of compensation insurance. Both employers and employees are obliged by law to contribute to such insurance funds, and the re sult is that a German workman, when injured or ill, is not left without assistance, nor his family in distress, at the moment he is incapac itated.
Compensation insurance has reached an enormous state of development, over 50,000,000 policies being in force, although there are not that many individuals insured since many are protected by more than one kind of policy. In 1910 the premiums which had been paid to workers since the inception of the system amounted to over $2,000,000,000, while over 95,000,000 cases of sickness among the insured had occurred. The following table shows the vast extent of compensation insurance: A form of communal co-operative activity which forms an important factor in Germany's economical development is that of Consumers' Unions. As will be seen from the table there are some 2,300 co-operative stores which are the retail selling depots of the Consumers' Unions. The principle upon which this form The value of Ger many's policy of economic organization is shown by the great number of co-operative societies and organizations which are in exist ence, largely the result of encouragement by the governmental departments. The tremen dous effect of such widespread co-operative endeavors is obvious and is one of the import ant factors in Germany's progress. There are
some 32,000 co-operative societies with about 5,000,000 members, of which two-thirds are agricultural in character. The most important of the societies, however, are the co-operative loan societies, numbering over 18,000 and hav ing a membership of 2,500,000 with an annual turnover equivalent to six and a quarter bil lion dollars. The increase of co-operative societies in the past generation is surprising, as will be seen from the following table: The great volume of business of the co operative loan societies may be seen from the following table, divided between the Schulze Delitzsch and other co-operative societies: of co-operative activity is based is that of wholesale purchasing for the benefit of the consumer-members. The members of a con sumers' union pay a small annual fee for their membership cards in the union and they then patronize the union's store, paying cash for their supplies. The manager of the store collects information from the members from time to time as to what their probable needs will be during ensuing seasons for the various kinds of products. This information he compiles and uses as a basis for the wholesale purchases of the store. In this manner the store is able to order the proper quantities of produce and knowing in advance when it will be required can always order to the best advantage. As vari ous stores unite into general organizations and increase further by the establishment of addi tional stores and local unions, the purchasing power of a group of stores becomes very great and the produce needed is thus obtained on the most favorable terms possible. The unions issue bulletins or small newspapers periodically, giving prices and market conditions and advis ing members of opportunities to make favorable purchases. The bulletins also contain recipes for cooking and other information of benefit to the members.
The unions do not attempt to make a profit but sell as nearly as possible at cost plus over head charges and expense of handling. A &mall surplus accumulates, however, on account of the margin being kept on the tight side. This margin is distributed to the members as an annual dividend in proportion to the aggre gate amount of their purchases. This distribu tion usually occurs just before Christmas and serves as a fund for the purchase of Christmas presents. The popularity of consumers: unions is very great and they perform a considerable service, not only reducing the cost of hying to their members but in acting as a standard by which the patrons of other stores may judge whether or not they are being overcharged.