prizes, and by so doing will not only see his capital increase, but also his earning power. Sixth, the annuity provided is not a "starvation income, which will barely allow body and soul to cling together," but is sufficient " to insure plenty even to a single person living alone, and when two or more live together, which is almost invariably the case, then ease, comfort and dignity." Seventh, finally, the scheme will not only diminish poverty directly, but will stimulate education, technical knowledge, assiduity in work and military service.

This plan has been laid before the British Parliament in a bill introduced August 23, 1909, the text of which is as follows:

CONTRIBUTORY ANNUITIES BILL. - A BILL TO ESTABLISH A SYSTEM OF LIFE ANNUITIES FOR PERSONS OVER FIFTY-FIVE.

Be it enacted by the King's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:

1. The postmaster-general shall establish a contributory annuity department for the purpose of securing annuities as hereinafter provided for persons who have attained the age of 55 years.

2. Every person of British nationality who has attained the age of 15 years shall be entitled to receive an annuity book, in which shall be inscribed the name, address and birthplace of such person, and the names and addresses of his parents.

3. When the holder of an annuity book attains the age of 55 years · there shall be deemed to stand to the credit of such person, in addition to the sums contributed by such person and any additions made to such sums by way of interest or otherwise as hereinafter provided, the sum of £30 and any one or more of the following special grants (that is to say):

In the case of a person holding an elementary education certificate, £5.

In the case of a person holding a technical education certificate, £5. In the case of a person producing evidence of assiduity, £10. In the case of a person who has served in the navy or army, £5 for each year of such service.

In the case of a person who is certified by the secretary of state for war to be proficient in the use of the rifle, £5.

In the case of a married woman or widow who has borne children who have attained the age of 5 years, £5 for each such child.

4. Examinations in elementary education and in technical education shall be held annually in every public elementary school in accordance with regulations which shall be made by the board of education for this purpose. Any person holding an annuity book who has not attained the age of 20 years shall be entitled to attend either or both of such examinations, and, if he satisfies the examiners, to receive an elementary education certificate or a technical education certificate or both such certificates.

5. Any person shall be deemed to produce evidence of assiduity who produces such evidence as the postmaster-general may require to satisfy him that such person, unless prevented by sickness, has, between the ages of 15 and 20 years, been in regular employment or under educational instruction for not less than ten months in each year.

6. There shall also stand to the credit of any holder of an annuity book when he attains the age of 55 years any sums contributed by such holder, with compound interest thereon at the rate of 4 per cent. per annum, and a special grant equal to such sums without interest: provided, that such special grant shall not exceed the total of £10.

7. Any holder of an annuity book who is a workman shall be entitled to obtain from his employer contributions in accordance with the schedule of this act, and any contributions so obtained shall be deemed to be contributions by such workman. For the purposes of this section the words "workman" and "employer" have the same meaning as in the workmen's compensation act, 1906.

8. When the sums standing to the credit of the holder of an annuity book have reached such an amount that the total sum standing to his credit on attaining the age of 55 years under the provisions of this act will equal £400, no further contributions shall be received from such holder, and any sums tendered as further contributions by such holder shall be placed to his credit in the Post Office Savings Bank.

9. (1) If the sums standing to the credit of the holder of an annuity book at the age of 55 years amount to a total of less than £120, such holder shall be entitled only to receive for ten years, or until his death if he dies before the expiration of such ten years, an annual payment representing one-tenth of any sums contributed by such holder without interest. (2) If the sums then standing to the credit of such person amount to a total of more than £120, he shall be entitled to an annual payment until his death calculated upon such total at the rate of 52 per cent. per annum until he attains the age of 65 years, and thereafter at the rate of 11 per cent. per annum.

10. Every assignment of, or charge on, and every agreement to assign or charge, an annuity under this act shall be void; and on the bankruptcy of a person entitled to an annuity such annuity shall not pass to the trustee or other person acting on behalf of the creditors.

11. The postmaster-general, in conjunction with the local government board, may make regulations for carrying this act into effect. 12. Unless moneys shall be provided by Parliament for the purpose, any expenses incurred in carrying this act into effect shall be defrayed in the case of each annuitant by the rating authority of the district within which such annuitant is resident. Any difference between the postmaster-general and any rating authority with regard to the interpretation of this section shall be referred to the local government board, whose decision shall be final.

13. This act shall come into operation on the first day of January 1910.

14. This act may be cited as the contributory annuities act, 1909.

V.

THE GENERAL QUESTION OF OLD AGE PENSIONS AND INSURANCE.

1. ANALYSIS OF EXISTING AND PROPOSED SCHEMES. The various plans of old age pensions and insurance which have been adopted or proposed thus far may be reduced, on final analysis, to six main types:

(a) Universal Non-contributory Pension Schemes.

This type of scheme is associated with the names of Charles Booth of London and the late Edward Everett Hale of Boston, the most prominent advocates of universal non-contributory pensions.

The scheme proposed by Mr. Booth calls for a grant of a pension of 7s. a week to every person 70 years of age and over. Mr. Booth would exclude aliens, and possibly certain other ineligibles, from the benefits of the pension system, but remarks that it is unnecessary to burden the statement of his scheme with these details. Practically, the plan is universal in its application, and is wholly non-contributory. Any person claiming to be 70 years of age and entitled to a pension would take out an application with the registrar of the district in which he lived. The latter would forward this application to his superintendent, who would investigate and report upon it. If the application were allowed, the pensioner would then be provided with a certificate of identity and a pension book, which would enable him to draw his allowance weekly at a local post office.

The plan proposed by the late Edward Everett Hale was similar to that of Mr. Booth. Every citizen, man and woman, over 69 years of age, was to be paid a pension of $100 a year. The cost of the scheme was to be met out of the proceeds of the State poll tax. It was Dr. Hale's opin

ion that, if the expense of a pension scheme were provided for in this way, the citizens who paid a poll tax would feel no discredit attaching to the receipt of a pension, since they would themselves provide the funds out of which the pensions would be paid. The payment of an old age pension of $100 each to every citizen who had passed the age of 69 years would not, in Dr. Hale's opinion, involve a heavy burden upon the State.1

(b) Partial Non-contributory Schemes.

This type of scheme is embodied in the old age pension acts of Great Britain and Australia. The application of the British and Australian systems of old age pensions is restricted to the deserving aged poor.

The British act provides for the payment of pensions, not exceeding 5s. weekly, to persons 70 years of age and over, but excludes from the benefits of the scheme the following classes: persons who have lived in the United Kingdom less than twenty-five years; persons whose yearly incomes exceed £31 10s.; persons in receipt of poor relief; persons who have failed to work according to their ability to maintain themselves and their dependents; inmates of lunatic asylums; and persons convicted of a prison offence. The scheme is wholly non-contributory, the expenses being paid out of (6 money provided by Parliament.”

The Australian system is similar in principle to the British plan, the main differences being that the pensionable age is lower, namely, 65 years; and the amount of the pension is larger, namely, 10s. per week. The conditions of eligibility laid down in the act are: no person may receive a pension unless he has lived in Australia continuously for twenty-five years prior to the date of the application; is of good moral character; has led a temperate and reputable life for five years preceding; has not deserted husband, wife or children; and does not own property of more than £310 in value; aliens, subjects naturalized less than three years, Asiatics and aboriginal natives are also disqualified. The pensions are paid out of the general treasury.

For an estimate of the cost of universal pension schemes, as proposed by Dr. Hale, see p. 261.