countries. A recent study by the United States bureau of labor statistics (bulletin whole no. 158) has grouped the different systems of government aid under the following classification: (1) Building directly for rental or sale, for government's own employees or for working people generally; (2) Making loans of public funds, including also government guaranty of loans to local authorities, non-commercial building associations, to savings banks whose deposits are guaranteed, or to employers or individuals; (3) Granting exemptions from, or concessions, in taxes or fees or granting some other form of subsidy to building associations or others. Under these various methods different foreign countries have expended large sums of public funds to aid in the erection of low cost dwellings for wage earners. State loans for purchase of homes. Under the Constitution of North Dakota, as recently amended, this state may engage in substantially any industrial enterprise. North Dakota legislation of 1919 declares that "for the purpose of promoting home building and ownership the state of North Dakota shall engage in the enterprise of providing homes for residents of the state," and creates a Home Building Association for the purpose of conducting this business. An Appropriation of $100,000 was made for the work of this association, and further provision was made for the accumulation of funds out of the earnings of the association. No home is to be built or purchased and sold at a price exceeding $5,000, except in the case of farm homes, in which case the selling price may not exceed $10,000. Home Buyers' Leagues are to be organized. Whenever a member of a league has deposited with the association a sum equal to twenty per cent of the total selling price of a home or farm house, the association is required upon his application. to purchase or build such home and to convey it to him upon a cash payment of twenty per cent, the balance to be secured by a mortgage, and further payments to be made on an amortization plan so as to extinguish the debt within a period of not less than ten nor more than twenty years. In case of accident, crop failure or other event which reduces the buyers' reasonable income by one-half, all payments under such contract may be extended from time to time for a period of one year. In the commonwealth of Australia the separate states have gradually developed legislation under which workers have been enabled to borrow government funds for the purpose of acquiring homes. All of the six states of the commonwealth lend money to farmers for buying homesteads in the country, and five of the states lend their funds to workers in general, for the purchase of city or surburban homes. The money advanced is loaned directly by a government administrative board or bank to the individual borrower. In addition to making loans direct to individuals, Western Australia and New South Wales also buy private land or use crown land for the erection of dwellings to be sold or rented to workingmen of limited means; in such cases long term leases have been the rule. The administration of the system in the different Australian states is delegated to a special board usually within the treasury department. The funds are raised either by annual appropriation or by the issue of bonds. A prospective borrower must show that he is a wage earner, as determined by his income. The maximum amount loaned to an individual varies in the different states. The terms of loans range from 15 to 42 years with the privilege of anticipating repayments at any time. Legislation in force in Australian states. The following legislation providing for the use of government funds in the purchase of homes for workers has been enacted in Australia: New South Wales: Savings Bank Amendment Act, 1913. Queenland: Advances for Homes Act, 1909; amended 1911, 1912. 1912. Victoria: Savings Bank Act, 1890; amended 1896, 1900, 1901, 1903, 1910, 1912. Western Australia: Workers' Homes Act, 1911; amended 1912. In New Zealand, government aid to housing is granted under two different systems embodied in two acts: The Workers' dwelling act, 1910; and the State advances act, 1913. The official year book of New Zealand for 1913 gives a full account of these two systems. Under the State advances act money may be loaned for the purpose of pur chasing or erecting a dwelling on a land allotment. The loan may not exceed $2,200, and in no case may it exceed the value of the house to be erected. Application for the loan may be made to the postoffice or to any representative of the valuation department. To be entitled to a loan a worker must show that he is engaged in manual or clerical work, and that his income is not over $973 per annum. A first mortgage is required as security. Interest is charged at a rate of five per cent and is reducible to four and one-half per cent upon prompt payment. Payments are made in equal annual or semi-annual instalments. At the time of taking a loan a deposit of about $50.00 is required, together with a small valuation fee of about $2.00. The main purpose of the Workers' dwellings act is to set apart crown lands or to acquire private lands for the erection of homes for workers. The purchase of a dwelling is effected by a deposit of about $50.00 and the payment of equal annual instalments distributed over a period of 251⁄2 years. Under this system workers may secure their homes by the payment of amounts about equal to ordinary rent. The houses are arranged in convenient groups to suit the requirements of the workers concerned. The act defines a worker as one whose earnings do not exceed $850 per annum, and who is landless. In his annual report for 1911 the superintendent of workers' dwellings thus summed up the benefits from the act: "Except for the deposit of ten pounds ($48.67) no capital is required; the land is cheap, the government being able to secure convenient blocks at a lower price than is ordinarily paid for single sections; the cost of erection is reduced to a minimum. there are practically no legal charges, and every facility will be given to purchasers to pay any extra sums off the principal owing whenever they may be able to do so." (1911 Report, p. 2.) Government guaranty of bonds of building companies. The province of Ontario, Canada, has developed a method of combining government aid and private initiative through the guaranty of bonds of incorporated companies which devote themselves to the improvement of housing accommodations. A recent report of the Bureau of Labor of the province gives the following account of the plan: "An important act was passed (May 6, 1913) to encourage housing accommodation in cities and towns. This law enables city or town councils to guarantee the bonds of an incorporated company with a share capital, whose main purposes are the acquisition of lands in or near a city or town in Ontario, and the building thereon of moderate sized dwellings to be rented at moderate rents, if the council is satisfied that additional housing accommodation is urgently needed, and provided that the main purpose of the company is to help in supplying need and not to make profits. The by-law guaranteeing the bonds must be approved either by the ratepayers or by the provincial board of health. Before the guaranty is given the location of the lands selected and the general plans for the houses shall be approved by the council, or a committee thereof. The total amount of the securities to be guaranteed shall not in the first instance exceed 85 per cent of the value of the lands and improvements. A council which guarantees the bonds of such a company may be represented on the board of directors by one member of the board. The company may not declare a dividend exceeding 6 per cent per annum, but if the dividends in any year do not amount to 6 per cent, the deficiency with interest may be made up in any subsequent year or years. Any profits remaining after paying a 6 per cent dividend, making up any deficiencies, and providing a reasonable contingent fund, shall be expended in acquiring more lands, improving the housing accommodation, or redeeming the capital stock. The shares so redeemed shall not become extinct, but shall be held by a board of trustees."1 Under this act and very shortly after its passage, the city council of Toronto voted to guarantee bonds to the amount of $850,000 in 1 Fourteenth Report of the Bureau of Labor of the Province of Ontario, 1913. Toronto, 1914, p. 308. favor of the Toronto Housing Co. This company had been active in pushing the above legislation." Farm loans and housing in cities. The problem here under discussion has two aspects: (1) The provision of proper housing facilities. (2) Ownership of homes. The matter here under discussion bears a close relationship to the problems of farm tenancy and farm loans, discussed in Bulletin No. 13 of this series. 2 United States, Department of Labor, Bureau of Labor Statistics. Bulletin, Whole No. 158, Government aid to home owning and housing of working people in foreign countries. Ost. 15, 1914. Washington Gov. print, 1915, p. 439. IV. SOCIAL INSURANCE. Compulsory health insurance. Compulsory health insurance has been adopted in a large number of industrial countries since its first adoption in Germany in 1883. For some years there has been a strong movement for the compulsory health insurance in this country, and this movement has been primarily directly by the American Association for Labor Legislation, which has prepared a model bill upon the subject. The proposal of this association has been introduced in a number of state legislatures. The movement for compulsory health insurance did not begin actively in this country, until after workmens' compensation laws had been passed in a number of states. In a number of states, commissions have been appointed to investigate the subject of health insurance. A Massachusetts commission reported in 1917 in favor of compulsory health insurance, but a second commission in 1918 made a contrary recommendation. Perhaps the three most important reports prepared by state commissions are those of California in 1917, and of Ohio and Illinois in 1919. The California and Ohio commissions reported in favor of health insurance, and the Illinois commission against health insurance.1 In view of the fact that compulsory workmen's compensation laws have been upheld by the United States Supreme Court and that some of these laws are organized upon an insurance basis, it is possible that the courts would uphold the validity of compulsory health insurance. However, this matter is doubtful, and the California commission recommended the adoption of a constitutional amendment expressly authorizing compulsory health insurance. A proposed amendment was submitted in California in 1918 and rejected by the people. The text of this proposed amendment is here quoted: "It is hereby declared to be the policy of the State of California to make special provision for the health and welfare and the support during illness of any and all persons, and their dependents, whose incomes, in the determination of the legislature, are not sufficient to meet the hazards of sickness and disability, and for the general industrial welfare in this connection. The legislature may establish a health insurance system applicable to any or all such persons, and for the financial support of such system may provide for contributions, either voluntary or compulsory, from each of the following, namely, from such persons, from employers, and from the state by appropriations. 1 A full review of the subject with respect to Illinois will be found in the Report of the Health Insurance Commission of the State of Illinois. 1919. p. 647. See also Report of the Ohio Health and Old Age Insurance Commission, 1919, p. 448. |