It is, moreover, perfectly immaterial whether the assessment is made on the employer or on the employee. In either case the industry will have to bear it, for the contribution of the laborer will eventually, and of necessity, be added to the expenses of the industry. There is a general complaint that the average wages of the laborers make the saving of a surplus impossible. If you wish, therefore, to add a burden to the laborers whose present wages are no more than sufficient, the employers will have to increase the wages, or the laborers will leave them for other occupations.
The previous speaker called the bill defective, because the principle of relieving the laborer from all contributions had not been consistently followed; and he spoke as if this principle had not been at all followed. Laborers, receiving more than 750 marks in three hundred working days, are, it is true, not affected by it; and this is due to the origin of the bill. The first draft read that one-third of the contributions should be made by those county associations which would have to support the injured man in conformity with the poor-laws of the State. We did not wish merely to make a gift to these associations, which at present are responsible for 80 per cent. of all injured working-men, that is for those who do not come under the law of liability. We, therefore, accepted as just the proposition that these associations should pay one-third toward the insurance of those men who formerly would have become their charges. Laborers, however, whose pay is large enough to keep them from becoming public charges, when they meet with an accident, hold an exceptional position. I am, nevertheless, perfectly willing to drop this exception in the bill, as I have said repeatedly. But since the Reichstag in its entirety has thus far placed itself on record as opposed to any contribution from the State, I should not gain thereby any votes for the bill. I wish to declare, however, that this limit of 750 marks is of no consequence compared with the theory on which the bill is based. It arose from a sense of justice toward the county associations, which were not to be burdened with higher taxes than would equal their savings under this bill. Later it was discovered from many actual examples that the insurance according to the existing county associations was impossible, because the State, which really is responsible for the care of the poor, had distributed it in an arbitrary and unjust way on the various county associations. Small and weak country communities are often overburdened with the care of poor people, while large and wealthy communities may have practically no charges, since the geographical position alone has determined the membership in the various county associations. The result, therefore, of levying the necessary contributions on these associations would have been a very uneven distribution of the assessments. Being convinced of this, I suggested the substitution of "provincial association" for "county association"; and thus the bill read for several weeks, until we yielded to the wishes of the allied states and of the Economic Council, and left to each state the question whether it wished to take the place of these various associations or preferred to call upon them in any way it chose. These are the steps by which we reached the 750 mark exemption, and the unconditional share which is to be paid by the State. This share is nothing but a hint to the legislature how to distribute the care of the poor to the various county—and other associations. Whatever is done, you will agree with me that we need a revision of our poor-laws. Just how this will eventually be accomplished is immaterial to me.
I am not astonished that the most divergent views are held on this new subject, which touches our lives very intimately, and which no experience has as yet illuminated. Because of this divergence of opinion I am also aware that we may be unable to pass an acceptable law at this session. My own interest in this entire work would be very much lessened if I were to notice that the principle of a State contribution were to be definitely rejected, and that the legislative assembly of the country were to vote against State-contributions. This would transfer the whole matter to the sphere of open commerce, if I may say so, and in that case it might be better to leave the insurance to private enterprise rather than to establish a State-institution without any compulsion. I should certainly not have the courage to exercise compulsion, if the State did not at the same time make a contribution.
If compulsion is exercised, it is necessary for the law to establish a department of insurance. This is cheaper and safer than any company. You cannot expose the savings of the poor to possible insolvency, nor can you allow any part of the contributions to be used for the payment of dividends or interest on stocks and bonds. The representative Mr. Bamberger based his opposition to the bill—you remember his strong words—largely on his sorrow at the impending ruin of the insurance companies. He said they would be crushed and annihilated, and he added, that they were soliciting the gratitude of their fellow-citizens. I always thought they were soliciting the money of their fellow-citizens. If in addition they can get their gratitude, they are turning a very clever trick. That they should be willing, like good souls, to sacrifice themselves in the interest of the workingmen, and establish their institutions of insurance without issuing any shares, I have never believed, and it would be difficult to convince me of it. According to my feeling of right and wrong, we cannot force anybody to join private insurance companies which may become bankrupt even under good management, owing to fluctuations in the market, or to panics, and which have to arrange their premiums so that dividends are realized for those who are investing their capital, or at least interest on the invested money and the hope of dividends. To this I cannot lend my assistance. If the State is going to exercise compulsion, it must, I believe, undertake the insurance itself. It may be the empire for all, or the individual State—but, without this, no compulsion!
Nor have I the courage, as I have already said, to exercise any compulsion if I cannot offer something in return. This contribution of a third is, as I said before, much smaller than it looks, because the associations will be greatly relieved of the old burdens which the State had imposed on them. If this is communism, as the last speaker called it, and not socialism, I do not care one iota. I shall call it again and again "practical Christianity legally demonstrated." If, however, it is communism, then communism has been extensively practised in the districts for a long while, and actually under State compulsion.
The previous speaker said that by our method the lower classes would be oppressed with indirect taxes in order to collect the funds for the care of the poor. But I ask you, gentlemen, what is being done in the large cities, in Berlin for instance, which the speaker thinks is splendidly governed by the liberal ring? Here the poor man is taken care of with the proceeds of the tax on rents, which is exacted of his slightly less poor brother; and to-morrow he may have this brother as his companion in misery, when a warrant is executed against the latter for the non-payment of this tax. That is more cruel than if the payment were made from the tax on tobacco or on alcohol.
The previous speaker said that I had spoken against the tax on alcohol. I really do not remember this, and I should be grateful if he would prove this by quoting one word. I have always mentioned tobacco and alcohol as commodities on which larger taxes should be levied, but I have expressed a doubt whether it is right to tax the alcohol in factories while it is being made. Many States, as for instance France, do not levy any tax on alcohol, or assess it at a different time. The representative, therefore, has made a mistake—no doubt unintentionally. When, however, this mistake will be printed, without refutation, in many papers, which are under his influence, it will, I am sure, make no mean impression.
I will not dilate on the defects of the law of liability, which will be discussed by experienced men, who have had more to do with it than I. These defects, however, added their weight to the promise we made when the law against the Socialists was promulgated—you undoubtedly remember it and I have been reminded of it often enough—and were my chief reasons for submitting to you the present bill. Our present law of liability has shown surprisingly bad results. I have convinced myself, by actual occurrences, that the suits arising under this law often terminate unexpectedly and unfairly, if they are successful. And if they are unsuccessful, they are frequently equally unfair. I have been assured by many creditable people that this law does not improve the relations between the employer and the employees. On the contrary, the bitter feeling between them is increased, wherever there are many such suits, especially where there are shyster-lawyers who like to sow discord with an eye to the elections. This is in strong contrast to the good intentions of the law. The workingmen, however, consider themselves injured by it, because not even a decree of the court will convince them that they are wrong, especially if they have lawyers who tell them they are right, and that they should appeal their cases to four or five higher courts, if there were as many.
These observations made me wish to introduce a system which would work smoothly, and in which there would be no question of suits-at-law, or investigations into anyone's culpability. The latter is quite immaterial for him who has been injured. He remains unfortunate, crippled, and unable to earn a living, if this has been his lot, or, if he has been killed, his family is left without its bread-winner, whether the accident was due to criminal neglect, carelessness, or unavoidable circumstances. These are not questions of corrective or distributive justice, but of protection. Without a proper law a great part of our population is helpless before the hardships of life, or the consequences of an accident. Without any capital of their own these people have no redress against the cruelties which are the lot of the pauper who has become a public charge.
I will not reply at length to the reproach that this is communism, but I should like to ask you not to discuss everything from the point of view of party-strategy, or faction-strategy, or from the feeling "away with Bismarck." We have to do here with matters where not one of us can see his way clearly, and where we must search for the right road with sticks and sounding-rods. I should like to see another man in my place as speedily as possible, if he would continue my work. I should gladly say to him, "Son, take up your father's spear," even if he were not my own son. This undesirable way of discussing matters showed itself the other day, when the gentlemen fought for "the poor man," as if they had to do with the body of Patroclus. Mr. Lasker took hold of him at one end, and I tried to snatch him away from Mr. Lasker as best I could. But where do imputed motives, and class-hatred, and the excitement of misery and suffering lead us? Such behavior comes too near being socialism in the sense in which Mr. von Puttkamer exposed it the other day.