OLD AGE PENSIONS. Allowances paid to the aged workman either by the Government or by the employer. The term is commonly extended so as to include allowances from a fund to which the recipient has contributed, but which is de rived only partially from such contributions. Old age pensions are usually defended on the ground that a large class of laborers are unable to make adequate provision for old age, and hence are certain to become paupers when no longer able to work. Of these aged paupers, a large num ber have been sober and industrious workers, and for this reason their fate serves to discourage the workmen of the lowest paid classes. Op ponents of old age pensions contend that if pro vision for old age is made by the State, one of the chief incentives to thrift will be removed. Defenders of the plan argue that it is simple justice that a faithful workman should be de cently fed and housed when incapacitated for work by age. It is questioned whether such sions actually discourage thrift; whether the despair of escaping pauperism which is common in certain classes does not do more to destroy in dustrious habits than a judicious plan of old age pensions. Tn Europe the provision for old age is a subject of great practical importance. The recognition of State responsibility is an in novation of the last decade. A system of State pensions has been established in Denmark and compulsory insurance obtains in Germany and Sweden. Similar laws have been enacted for coal-miners in Austria (1889), France (1894), Rumania (1895), and Belgium. The State may create institutions for voluntary insurance and may offer inducements to the workmen to insure themselves, as in France and Belgium. Privately organized institutions, e.g. friendi? societies con trolled by the State, may perform this function, as may also be done through funds set apart by the employer—a common plan in transportation, mining. and the iron and steel business.
Compulsory insurance originated in Germany. Dr. Schaeffic. the founder of State insurance, con ceived the plan in 1867. In the early seventies
it was generally discussed, and Wagner and other economists gave it their support. The present law (Invalidity and Old Age Insurance, 1889; revised July, 1899) was enacted through the in fluence of Bismarck. who hoped thereby to check the growth of socialism. All workmen, assist ants, journeymen. foremen, engineers, servants, clerks, and teachers, who are sixteen years of age and upward, and who do not receive more than :14500 yearly. must contribute to a pension fund, to which the employer must contribute equal sums, while the Empire adds $12.50 an nually to each annuity and pays the cost of ad ministration. Thirty-one institutions have been provided to which payments are made by means of stamps. Pensions are paid to septuagenarians.
Sweden introduced insurance in 1889 and Iceland in 1890. A Parliamentary com mission to investigate the subject was appointed in Norway in 1S94. In Finland old age insur anee is voluntary, with local pension funds ad ministered by the State. Denmark (1891) grants small pensions in the form of additional income to the worthy poor. This differs from poor relief in that the recipient retains his right to vote.
In Belgium, the Caisse Gim(lral et de Retraite (1850) is guaranteed by the State. The system has rapidly developed since 1891. Subsidies are offered to friendly societies, and the attention of employers is called to the bene fits of insurance. The new accounts increased from 568 in 1888 to 43,873 in 1898. In France the Ca isse Nationale des Retrait es pour la Vieil lesse ( 1850) has not been popular. It is used by the railroads and other corporations provide pensions for their employees. Among the many corporations which provide old age pensions may be mentioned the ;Joint Stock Com pany of Vielle (zinc workers) and the Gas Company of Paris. The pension funds are usual ly supported by contributions from the employees, but sometimes entirely from the profits of the company.