NOTES AND ABSTRACTS 703
Insurance against Non-Employment in St. Gall and Berne. — The chances for the prosperous development of insurance against non-employment in Switzerland have recently materially decreased. Frost has nipped the early buds of plans and projects. It almost looks as if with the extinguishing of the first enthusiasm this once warmly commended remedy lor non-employment would also disappear. The difficulties of carrying out this branch of insurance have dampened the ardor Df many of its friends. To the considerations and scruples which were recognized as valid from the start is now added, as a weighty argument, the collapse of the bank for the unem- ployed (Arbeilslostntasse) in St. Gall. The experiences there have been cited, without criticism, against the principle of insurance for non-employment, and have already demonstrated their influence in the grand council of Zurich. This event will doubt- less be cited in Basel also, as an argument against insurance for non employment, where already a paralvzing standstill has succeeded the first enthusiasm. The fate of the banks for the non-employed of the two cities of Berne and St. Gall has not fulfilled the prophecies made at their founding. The bank at Berne was prophesied a short life, because it rested upon the voluntary principle, while the compulsory insurance against non-employment of St. Gall was regarded as the pioneer of the only right method for this branch of labor insurance. The bank of Berne has existed for more than hve years, and has contributed materially to the solution of the problem of the unemployed of that city. But the insurance against non-employment at St. Gall collapsed after two years. The causes of this contradictory phenomenon are many. Along with inner causes inherent in the organization itself, the political conditions and personal qualities of the administrators play an important role. Both these banks show a notable agreement in their experiences which is valuable for the solution of technical questions connected with this kind of insurance. To these questions belong especially those of occupation, residence, status, age, and wages of the insured.
I. Insurance against non-employment must take into consideration the risk by means of gradation of premiums. The occupation of the insured is the first means of measuring this risk. Therefore a gradation in the risk according to the groups of occupations must be sought. For example, out of 4,220 insured of the city of St. Gall, 430 men reported themselves in the first year as out of work, according to which the total average of non-emplo\Tnent amounted to 10.2 per cent. But in the irregular occupations an average of 19.6 per cent, was shown, while among thatchers and day laborers non-emploj-ment amounted to over 30 per cent. Therefore any system of insurance against non-employment must be based upon statistics of occupation.
II. The question of the origin of the unimployed is very important for the problem of*' insurance against non-employment. The fear of immigration and of pretended settlement is widespread. Reprisals on the floating element in general, and foreign- ers in particular, have essentially influenced the practical form of this branch of insurance. Therefore it has been proposed either fully to exclude foreigners from insurance or to exclude those merely who are not permanently located. The experi- ence of Berne, however, does not confirm this position. Berne originally limited the right of insurance to laborers of Swiss extraction, but after two years' experience authorized the admission of all laborers settled in the commune. In St. Gall, the first year, out of 430 reported out of work 27.4 per cent, were foreigners; the second year foreigners were represented by 36 per cent. But 72.4 per cent, of the foreign unem- ployed had dwelt six years or more in .St. Gall. Therefore this would seem to show that the chief source of the non-employed is not from those fluctuating elements of which people suppose the crowds of unemployed in cities to be composed, but from permanently settled laborers. The conclusion is that a limitation of the right of insurance to the permanently settled laboring element is unnecessary and unjustified.
III. The family status of the non-employed is of significance for this kind of insurance in two respects. First, it makes a difference in capacity for assessment with premiums, while, secondly, it seems to justify a differentiation of benefits. While 27.4 per cent of the total insured in St. Gall were single men, only 23.9 per cent, of the 430 reported out of work the first year were single. The danger of non-employ- ment seems to be considerably greater with the married than with the single. In St. Gall, of the married insured, 15.9 per cent, were out of work, while of the single, 4.1 per cent. If it is desired to derive advantage for the insurance fund from the unmar-
