Poor Law.—A law passed by the North German Confederation of the 6th of June 1870, and subsequently amended by an imperial law of the 12th of March 1894, laid down rules for the relief of the destitute in all the states composing the empire, with the exception of Bavaria and Alsace-Lorraine. According to the system adopted, the public relief of the poor is committed to the care of local unions (Ortsarmenverbände) and provincial unions (Landarmenverbände), the former corresponding, generally, to the commune, and the latter to a far wider area, a circle or a province. Any person of eighteen years, who has continuously resided with a local union for the space of two years, there acquires his domicile. But any destitute German subject must be relieved by the local union in which he happens to be at the time, the cost of the relief being defrayed by the local or provincial union in which he has his domicile. The wife and children have also their domicile in the place where the husband or father has his.[5]
Relief of the poor is one of the chief duties of the organs of local self-government. The moneys for the purpose are mainly derived from general taxation (poor rates per se being but rarely directly levied), special funds and voluntary contributions. In some German states and communes certain dues (such as the dog tax in Saxony), death duties and particularly dues payable in respect of public entertainments and police court fines, are assigned to the poor-relief chest. In some large towns the Elberfeld system of unpaid district visitors and the interworking of public and private charity is in force. The imperial laws which introduced the compulsory insurance of all the humbler workers within the empire, and gave them, when incapacitated by sickness, accident and old age, an absolute right to pecuniary assistance, have greatly reduced pauperism and crime.
Workmen’s Insurance.—On June 15, 1883, the Reichstag, as the result of the policy announced by the emperor William I. in his speech from the throne in 1881, passed an act making insurance against sickness, accident, and incapacity compulsory on all workers in industrial pursuits. By further laws, in 1885 and 1892, this obligation was extended to certain other classes of workers, and the system was further modified by acts passed in 1900 and 1903. Under this system every person insured has a right to assistance in case of sickness, accident, or incapacity, while in case of death his widow and children receive an annuity.
1. Insurance against sickness is provided for under these laws partly by the machinery already existing, i.e. the sick benefit societies, partly by new machinery devised to meet the new obligation imposed. The sick-funds (Krankenkassen) are thus of seven kinds: (1) free assistance funds (Freie Hilfskassen), either registered under the law of 1876, as modified in 1884 (Eingeschriebene Hilfskassen), or established under the law of the separate states (landesrechtliche Hilfskassen); (2) Betriebs- or Fabrikkrankenkassen, funds established by individual factory-owners; (3) Baukrankenkasse, a fund established for workmen engaged on the construction (Bau) of particular engineering works (canal-digging, &c.), by individual contractors; (4) gild sick funds (Innungskrankenkassen), established by the gilds for the workmen and apprentices of their members; (5) miners’ sick fund (Knappschaftskasse); (6) local sick fund (Ortskrankenkasse), established by the commune for particular crafts or classes of workmen; (7) Gemeindekrankenversicherung, i.e. insurance of members of the commune as such, in the event of their not subscribing to any of the other funds. Of these, 2, 3, 6 and 7 were created under the above-mentioned laws.
The number of such funds amounted in 1903 to 23,271, and included 10,224,297 workmen. The Ortskrankenkassen, with 4,975,322 members, had the greatest, and the Baukrankenkassen, with 16,459, the smallest number of members. The Ortskrankenkassen, which endeavour to include workmen of a like trade, have to a great extent, especially in Saxony, fallen under the control of the Social Democrats. The appointment of permanent doctors (Kassenärzte) at a fixed salary has given rise to much difference between the medical profession and this local sick fund; and the insistence on “freedom of choice” in doctors, which has been made by the members and threatens to militate against the interest of the profession, has been met on the part of the medical body by the appointment of a commission to investigate cases of undue influence in the selection.
According to the statistics furnished in the Vierteljahreshefte zur Statistik des deutschen Reiches for 1905, the receipts amounted to upwards of £10,000,000 for 1903, and the expenditure to somewhat less than this sum. Administrative changes were credited with nearly £600,000, and the invested funds totalled £9,000,000. The workmen contribute at the rate of two-thirds and the employers at the rate of one-third; the sum payable in respect of each worker varying from 1½-3% of the earnings in the “communal sick fund” to at most l½-4% in the others.
2. Insurance against old age and invalidity comprehends all persons who have entered upon their 17th year, and who belong to one of the following classes of wage-earners: artisans, apprentices, domestic servants, dressmakers, charwomen, laundresses, seamstresses, housekeepers, foremen, engineers, journeymen, clerks and apprentices in shops (excepting assistants and apprentices in chemists’ shops), schoolmasters, schoolmistresses, teachers and governesses, provided the earnings do not exceed £100 per annum. The insured are arranged in five classes, according to the amount of their yearly earnings: viz. £17, 10s.; £27, 10s.; £47, 10s.; £57, 10s.; and £100. The contributions, affixed to a “pension book” in stamps, are payable each week, and amount, in English money, to 1.45d., 2.34d., 2.82d., 3.30d. and 4.23d. Of the contribution one half is paid by the employer and the other by the employee, whose duty it is to see that the amount has been properly entered in the pension book. The pensions, in case of invalidity, amount (including a state subsidy of £2, 10s. for each) respectively to £8, 8s.; £11, 5s.; £13, 10s.; £15, 15s.; and £18. The old-age pensions (beginning at 70 years) amount to £5, 10s.; £7; £8, 10s.; £10; and £11, 10s. The old-age and invalid insurance is carried out by thirty-one large territorial offices, to which must be added nine special unions. The income of the forty establishments was, in 1903, £8,500,000 (including £1,700,000 imperial subsidy). The capital collected was upwards of £50,000,000.
It may be added that employees in mercantile and trading houses, who have not exceeded the age of 40 years and whose income is below £150, are allowed voluntarily to share in the benefits of this insurance.
3. Accident Insurance (Unfallversicherung).—The insurance of workmen and the lesser officials against the risks of accident is effected not through the state or the commune, but through associations formed ad hoc. These associations are composed of members following the same or allied occupations (e.g. foresters, seamen, smiths, &c.), and hence are called “professional associations” (Berufsgenossenschaften). They are empowered, subject to the limits set by the law, to regulate their own business by means of a general meeting and of elected committees. The greater number of these associations cover a very wide field, generally the whole empire; in such cases they are empowered to divide their spheres into sections, and to establish agents in different centres to inquire into cases of accident, and to see to the carrying out of the rules prescribed by the association for the avoidance of accidents. Those associations, of which the area of operations extends beyond any single state, are subordinate to the control of the imperial insurance bureau (Reichsversicherungsamt) at Berlin; those that are confined to a single state (as generally in the case of foresters and husbandmen) are under the control of the state insurance bureau (Landesversicherungsamt).
So far as their earnings do not exceed £150 per annum, the following classes are under the legal obligation to insure: labourers in mines, quarries, dockyards, wharves, manufactories and breweries; bricklayers and navvies; post-office, railway, and naval and military servants and officials; carters, raftsmen and canal hands; cellarmen, warehousemen; stevedores; and agricultural labourers. Each of these groups forms an association, which within a certain district embraces all the industries with which it is connected. The funds for covering the compensation payable in respect of accidents are raised by payments based, in agriculture, on the taxable capital, and in other trades and industries on the earnings of the insured. Compensation in respect of injury or death is not paid if the accident was brought about through the culpable negligence or other delict of the insured. In case of injury, involving incapacity for more than thirteen weeks (for the earlier period the Krankenkassen provide), the weekly sum payable during complete or permanent incapacity is fixed at the ratio of two-thirds of the earnings during the year preceding the accident, and in case of partial disablement, at such a proportion of the earnings as corresponds to the loss through disablement. In certain circumstances (e.g. need for paid nursing) the sum may be increased to the full rate of the previous earnings. In case of death, as a consequence of injury, the following payments are made: (1) a sum of at least £2, 10s. to defray the expenses of interment; (2) a monthly allowance of one-fifth of the annual earnings as above to the widow and each child up to the age of 15.