RECEIPTS AND EXPENDITURES OF THE RELIEF INSTITUTIONS OF THE FRENCH RAILROADS FOR SPECIFIED YEARS, 1892 TO 1908-Concluded. a This total is not the correct sum of the items; the figures are given as shown in the original report. Data not yet available. Not including local railroads. NONCONTRIBUTORY PENSIONS UNDER THE OLD-AGE RELIEF ACT OF 1905. HISTORY. The old-age relief act of 1905, especially as amended in 1907, presents an intermediary form between old-age relief proper and an old-age pension system. Its history is intricately interwoven with the movements for old-age insurance and obligatory poor relief, which have at the same time, all through the nineties and the last decade, attracted the attention of the French legislators. In the National Assembly the bills aiming at these two objects frequently overlapped and were simultaneously discussed. As early as 1895, when the idea of compulsory old-age insurance was gaining its first adherents, counterprojects of voluntary insurance on the one hand. and straight old-age poor relief on the other, were frequently made, and thus the act of December 31, 1895, concerning the subsidizing of voluntary old-age insurance with the National Old-age Retirement Fund, was passed as a compromise, and a very few days before this law was passed, on December 27, 1895, the Chamber of Deputies. adopted a resolution urging the Government to make an appropriation in the budget of 1897 for the purpose of taking the preparatory steps toward a system of relief of invalids and superannuated persons. LAW OF 1897. In accordance with the resolution, an appropriation of 590,955 francs ($114,054) was made in the budget law of March 29, 1897, and conditions for its use were included in the law. The State was required to subsidize old-age pensions of not less than 90 francs ($17.37) nor more than 200 francs ($38.60) in amount, granted by Departments or communes to indigent persons of French nationality incapable of earning a living, and either over 70 years old or suffering from an incurable disease or infirmity. The number of persons to be subsidized by the State was not to exceed 2 per 1,000 of the population, and the contribution was not to exceed 50 francs ($9.65) per pensioner, the general rules of subsidizing the Departments being identical with those of the medical aid law of 1893. Thus the first steps toward the old-age pension system were established. The conditions were clearly laid down, but the granting of the pension (revocable at will) was left to the option of the local authorities, the state's function being simply that of financial assistance, after the local authorities (Departments or communes) have acted. But notwithstanding this liberal subsidy, the law of 1897 did not prove very effective. Only in a very few cases were such pensions granted, and only a very small portion of the appropriation of the State was used for that purpose. In 1902 another effort was made to extend the subsidized optional system. A provision was inserted in the budget law of March 30, 1902, by which the share of the commune was decreased by 10 per cent, and that of the State was increased by that amount, as compared with the previous mode of division, and the maximum state contribution was increased from 50 to 60 francs ($9.65 to $11.58) per subsidized person, and the minimum limit of pensions was reduced from 90 to 50 francs ($17.37 to $9.65). The other conditions were left undisturbed, and the new regulations were made applicable only to new pensions. In this way the communities were enabled to provide small pensions at a very much smaller expense to their own treasury than under the law of 1897. The law of 1902 did succeed in producing a certain increase in the number of such pensions granted, but this remained very small, as is shown by the following table: PENSIONS GRANTED BY DEPARTMENTS AND COMMUNES UNDER THE LAWS OF 1897 AND 1902, AND AMOUNT OF STATE SUBSIDY, 1897 TO 1906. [Source: E. Campagnole. L'assistance Obligatoire aux Vieillards, aux Infirmes et aux Incurables. While the number of pensioners has thus evidently increased between 1897 and 1901, and further increased under the influence. of the amendments of 1902, it fell far short of the allowed maximum of 2 per 1,000 of the population, which would amount to some 78,000. The total amount of state subsidy paid in 1906, which was the greatest for the ten years, did not equal $3 per pensioner. Moreover, the pensions granted were very small, as is shown by the following data, available for 1904: NUMBER OF PENSIONS GRANTED IN 1904, BY CLASSIFIED AMOUNTS. [Source: E. Compagnole. L'assistance Obligatoire aux Vieillards, aux Infirmes et aux Incurables. Paris, 1908.] Amount. Under 60 francs ($11.58).. Over 60 to 70 francs ($11.58 to $13.51). Total... HISTORY OF ACT OF 1905. This lack of response to the appeals of the Government for an optional system of relief of aged, infirm, and incurables, emphasized the necessity for the organization of a compulsory system. Several bills were introduced to that effect in 1895, and again in 1898 when the new National Assembly had convened. They were referred to the commission of social insurance, together with the bills for old age pensions. But the commission considered a separate treatment of these two proposals necessary, and presented a separate report concerning this old-age relief on February 19, 1900-i. e., almost at the same time it presented its report on old-age pensions. It was urged in this report, in favor of the measure, that the poor relief facilities in the country were inadequate and that even when the old-age insurance law was adopted it would leave many thousands unprotected. It was necessary to make this form of poor relief compulsory for the communes, because of the lack of response to the appeals of the Central Government for a voluntary organization for such relief. In addition to institutional relief, outdoor relief was also advocated. While the relief was to be granted by the communes, subsidies from the provincial governments and the Central Government were contemplated. Of the two bills proposed, the one dealing with insurance was taken up first, but when final action on this was postponed by the call of the Chamber of Deputies for a new investigation, the attention of the Government was once more concentrated on the substitute measure of gratuitous old-age pensions to the indigent, aged, infirm, and incurables. On April 4, 1903, a bill to that effect was introduced in the Chamber by the commission on social insurance, and passed the Chamber after a very prolonged discussion and many important modifications on June 15, 1903. The bill for the first time recognized the important principle of the right of each indigent Frenchman to relief under certain conditions, as well as the duty of organized society to render such relief, and established the principle that such aid as must be furnished is an obligation of the community, but that the organization must be by larger units, namely, by Departments. The bill as adopted by the Chamber, was introduced in the Senate on June 18, 1903, referred to a special commission, reported back on February 22, 1904, and referred to the finance committee because the question of probable cost of such assistance was very seriously discussed. On December 16, 1904, the finance committee thought the additional burden of 17,000,000 francs ($3,281,000) which this bill would impose upon the state treasury (not to consider the additional expense of departmental and communal treasuries) would be excessive for the existing budget, unless new sources of revenue were correspondingly established. Notwithstanding this adverse report, the measure came up for discussion in June of 1905, and the Senate voted its immediate consideration on the ground of urgency, and after prolonged discussion adopted the bill with some modification on July 7, 1905. The agreement between the two branches of the National Assembly was reached on July 13, 1905, and the bill was signed on the next day, being the national holiday of the French Republic. ANALYSIS OF THE LAW OF JULY 14, 1905. PERSONS ASSISTED.-The original act granted the right of relief to every Frenchman without financial resources, over 70 years of age, and unable to earn a living through disability, or, if under 70 years of age, when afflicted by an incurable disease which produces such disability. The law was made more liberal by an amendment passed in connection with the budget of December 31, 1907, which so modified the language of the first section as to make the act applicable to all French persons over 70 years of age, without permanent resources, whether or not disabled. Thus the law at present grants the right to a subsidy to the aged as well as to invalids. METHODS OF ASSISTANCE.-The law provides for both outdoor and institutional relief. The predominant form is that of outdoor relief, to which all aged, infirm, and incurables having a communal or departmental domicile (legal residence) are entitled, whenever such outdoor relief is practicable, otherwise they may be placed in public or private institutions. In no case is the decision as to the form of assistance final; it is subject to change and depends upon circumstances. Outdoor relief consists in payments of a regular monthly allowance, and this approaches old-age pensions. AMOUNT OF BENEFIT PAYMENTS.-No uniform amount is prescribed for the entire country. For each community, the amount is decided upon by the municipal council of that commune upon approval of the general council, an elective body of the district (arrondissement), which is a part of a Department, and the Ministry of the Interior. The law provides, however, that this monthly relief shall not be less than 5 francs (97 cents), nor more than 20 francs ($3.86), unless under exceptional circumstances. Such a rate in excess of 20 francs ($3.86) may be established only if, after having been voted upon by the general council of a district, it is approved by the Ministry of the Interior upon the advice of the superior council of public assistance. If the rate is above 30 francs ($5.79), then the excess is not taken into consideration in computing the departmental or state subvention, which will be spoken of presently, nor in settling accounts between individual communes. When the person assisted has certain resources, the amount of these is subtracted from the amount of pension to be granted. But here again, a certain exception is created up to 60 francs ($11.58) per annum when these resources are derived from savings, and especially when in the form of old-age pensions. This exemption is raised to 120 francs ($23.16) per annum for applicants who can show that they have raised three children up to the age of 16 years. For resources derived from savings in excess of this exempted amount, only half of the excess is deducted from the monthly allowance, but a further 46598-10-59 |