a year toward the support of an institution which has been instrumental in bringing about this immense annual saving to our people. One might even go so far as to hazard the suggestion that the people of Massachusetts are getting an extraordinary good return on an exceedingly small investment.”*

The extent that voluntary insurance against old age may be expected to relieve the problem of aged dependency in the United States, may be seen from the experiences of the Massachusetts system. On February 8, 1919, after ten years of existence there were in force 14,085 level premium life insurance policies amounting to $7,396,826; 8,091 employes group insurance policies amounting to $2,926,400 and only 215 old age annuities amounting to $30,468. The total annuity contracts written since 1908 was 288, of which four were terminated by death, 20 terminated by surrender, six more by lapses and 43 changed to other forms of insurance. These figures show clearly to what extent voluntary insurance is succeeding in the United States.

Miss Alice H. Grady, altho, admitting that "from the above it might be inferred that the people are not willing to purchase annuities," contends, nevertheless, that "this inference is not entirely correct, the simple fact being that the people do not know about them. For lack of funds we have not yet been able to demonstrate what could be done by means of an educational campaign to teach the people what deferred annuities are and the advantage of this form of savings against old age.

"We believe that if the time shall come when we are able to bring home to our people, by means of a systematic educational campaign, the knowledge and benefits of this system, we shall find them both intelligent and responsive to this form of appeal, and ready to make voluntary saving against old age, as they are now learning to do against sickness and death."

SPAIN.

The "Spanish Old Age Insurance Institution" was established in 1908. It is chiefly modeled after the Italian system. It provides insurance for wage workers and state employes. Salaried, or official employes, may be insured if their earnings do not exceed 3,000 pesetas ($579) per year. The amount of the pension to be secured is left to the discretion of the insured. The maximum amount, however, is 1,500 pesetas ($289.50) per year. The amount of the subsidy is also left to the discretion of the directors of the institute but must not exceed 12 pesetas ($2.32) per person, during the first ten years of the institution's existence. For the benefit of those who were of advanced years, at the time of the establishment of the institution, special subsidies are granted. State subsidies are given only to those persons who have made some payments into the fund during the pre

*Bulletin of U. S. Bureau of Labor Statistics, No. 212, p. 903.

ceding year. The latter are denied also to those who are receiving pensions either from the government or private sources and to those classes who pay a direct tax above a certain sum. The participants in the state subsidies must also be Spanish citizens, living in Spain, and over 18 years of age.

The government has endowed the fund at its inauguration with 500,000 pesetas (96,500). In addition it contributes annualy not less than 125,000 pesetas ($24,125). The insurance fund is kept separated from the government treasury and there is close relation between the national insurance institution and other old age insurance funds. Altho the government encourages private insurance institutes, it does not grant them subsidies.

SWITZERLAND.

In Switzerland there are two contonal insurance organizations, the Social Insurance Fund of Canton Neuchatel and the Old Age Insurance Fund of Canton Vaud. The former is a mutual organization with optional membership which was established by the cantonal law of May 15, 1906, and which enjoys a contonal subsidy. It provides straight life insurance policies as well as mixed and annuity policies.

Of the total number of policies during the year 1913, 6,620 policies, representing insurance to the amount of $1,242,920, were straight life insurance policies, and 7,707 policies, representing $2,653,750, were mixed policies and 545 policies, representing $50,180, were annuity policies.

The Old Age Insurance Fund established in Canton Vaud, by the law dated March 2, 1907, combines old age insurance with various forms of savings deposits. The premiums or deposits may be either definite or provisional; the latter may be withdrawn within 10 years after payment. The principal purpose of this is to enable employers to provide old age insurance for their workmen without being compelled to risk losing such payments, in case of the premature death or disability of the insured. This insurance fund also makes special efforts to encourage deposits by women and children, especially school children. The cantonal government further makes very liberal contributions to the premium or deposits of citizens of the Canton, who are industrial tradesmen or workmen, whose annuities do not fall due before their 55th year, and whose annual premiums or deposits range from 6 francs ($1.16) and do not exceed 60 francs ($11.58).

The total number of the insured during the years 1912 and 1913 were 13,823 and 14,996 respectively; the total premiums received were $30,141 and $33,531, to which there was added $15,052 and $16,664

cantonal contributions. The total payments to the insured amounted to only $470, and $724, respectively. The comparatively low payments are explained by the fact that the fund has been in existence a short time.*

WISCONSIN.

A State Insurance System was established in Wisconsin in 1911. The State sells both annuities and life insurance. Unlike the Massachusetts plan, the expense of administration is not borne by the State, but is paid from the insurance funds. No detailed information is available.

II. COMPULSORY-CONTRIBUTORY OLD AGE INSURANCE.

AUSTRIA.

Agitation for a system of insurance for salaried persons, private officials, etc., began in Austria as early as 1888. A bill for that purpose was introduced in 1901. The first such law, however, did not come into effect until January 1st, 1909. This act provided a limited system of contributory old age and invalidity insurance, restricted to certain classes of salaried employes. This act was amended in essential respects by an imperial decree on June 25, 1914, and was intended to become effective on the first of October, 1914, but due to the outbreak of the war, an order dated August 24, 1914, provided that the benefits should be retroactive as from the First of August, 1914.

While the object of the insurance is to build up a right to an invalidity or old age pension for the insured person himself, it differs from most other compulsory schemes, as it is not a system of working class insurance, but rather of the middle classes. Only the following classes are compelled to insure themselves. (1) Employes working in Austria, who have the character of officials by virtue of their position; (2) those engaged in duties of a preponderately intellectual character, both of which groups must have at least a total annual income under one and the same employer of 600 kr., ($121.80); (3) those engaged in the managements of works or departments of works; (4) supervisors over the work of other persons, and (5) those serving on the staffs of offices and counting-houses. Salesmen and other clerks, come under the compulsory insurance only if they have received the required higher education. The law does not compel to insure those engaged in domestic service or as workers and apprentices in the production of goods, in industry, mining, agriculture and forestry. Exempted from the compulsory insurance are also, persons who do not enter an employment to which the insurance applies until

*Economic World, New York, June 24, pp. 825-828,

they are 55 years of age; employes of the state, commune, etc., for whom other provisions have already been made, but only in case their pension is higher than the lowest provided by the law. A number of other classes of employes are also exempt.

The obligation to insure begins at the end of the 18th year. The insured are divided into six classes, according to their annual salaries which range from 600 kr. ($121.80), for the lowest class, to over 3,000 kr. ($609) for the highest class. Allowances, gratuities, etc., are included in the total income. The premiums paid monthly for the six classes range from 6 kr. ($1.22) to 30 kr. ($6.09). The employer pays two-thirds of the premium in the four lower classes. and one-half of the premium in the two higher classes. In case of an annual income over 7,200 kr. ($1,461.60), the employe has to pay the whole premium himself.

An old age pension is paid, in the case of insured men, either after 40 years of contribution at any age, or may be paid after 5 years of contribution on reaching the age of 70. In case of women, only 35 years of contributions are required, when the age of 55 has been reached, or after 5 years of contribution after reaching the age of 65. The amount of the pension varies with the salaried classes and the number of contributions made. The pension ranges from 180 kr. ($36.54) for the lowest class, to 270 kr. ($54.81) the second class; 360 kr. ($73.08) the third class; 540 kr. ($109.62) the fourth class; 720 kr. ($146.16) the fifth class, and 900 kr. ($182.70) for the sixth class. The reduced pension amounts to two-thirds of the fixed one. Pensions of half the amounts are also paid to the widows of insured persons, who drew an invalidity or old age pension during their lives or have acquired a right to such a pension.

The administration is under a central pension institution and its local offices. In 1911 there were 108,311 persons insured in Austria. The State also has a compulsory old age pension fund for the government mining employes which was established in 1854. The State pays one-half of the contributions to that fund.

CHILE.

In February 1911, a law was passed in Chile requiring state railroads to establish a savings fund for the retirement of incapacitated salaried employes and workmen and for the compensation of persons injured in the service.

The fund is constituted (1), by deducting 5 per cent. from the employes' wages; (2) by retention of the first monthly increase in pay; (3) by the accumulation of fines and penalties, unclaimed pay, etc., and (4) by adding 54.8 cents out of every $365 of receipts.

Office employes who have been in the service for 10 years and who are completely incapaciated for work, may be retired with as many fourtieths of 75 per cent. of earnings as their years in service Day laborers employed in the maintenance of ways, etc., having ten years of service and totally incapacitated for work may be retired with 50 per cent. of wages. Persons engaged in the upkeep of rolling stock, 65 years of age, 30 years in the service and incapacitated for work, retire with 50 per cent. of wages. The year's work must be of not less than 250 days.

Persons permanently incapacitated because of accident are compensated by the payment of full wages.

FRANCE.

After experiences with voluntary and subsidized insurance schemes lasting for more than half a century, France in 1910 was the first country to follow Germany's example in adopting a national compulsory system of old age insurance. Since its first enactment it has been amended several times, chiefly by the acts of September 30th, 1912; August 17th, and December 25, 1915. The present law provides that all workers (salaried or wage-earners) earning less than, 3,000 francs ($579), must take out old age insurance. State employes who do not come under the regulations of civil and military pensions are also required to insure themselves. The law has also exempted several large industrial groups who were already protected by more liberal compulsory provisions. The insuring of a person may begin from the age of 12.

The contributions are of three kinds, depending upon the age or the sex of the insured person. Adult males pay 9 francs ($1.34) per year; adult females 6 francs ($1.16) per year; and minors under 18 years of age pay four and one-half francs ($0.87). The employer is required to duplicate this contribution and is also made responsible for the entire payment of the premiums. He is permitted to deduct the worker's share from his wages, and receipts it by a system of special stamps which are affixed to the employer's card.

The age when one may be pensioned is 65. Pensions, however, may be drawn at 55 with a proportionate deduction in both the amount of pension and the state subsidy. The amount of a pension is based upon the number of contributions made and the age of the insured. In order to obtain a regular pension, 30 payments are required. This is reduced to 28 for all men who have performed at least two years of military service; and in the case of women, one annual payment for the birth of each child is deducted from the required thirty years. The State adds to each regular pension 100 francs ($19.30). This is still more increased by one-tenth to those persons,