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upon the resources of the bank. An entirely new set of regulations for this part of the activity of the savings bank was therefore prepared in 1905 and went into effect in the beginning of 1906. It embodied mainly the following two new principles : First, that only those depositors who actually suffer from unemployment participate in the distribution of the interest on the endowment fund. This was claimed to be more logical than the distribution of the interest among all the depositors. Secondly, right was given to withdraw the deposits after the period of “insurance” had elapsed.
The regulations adopted in 1905, and still in force, provide for the following system of unemployment relief:
The Bologna Savings Bank has a special fund of 300,000 lire ($57,900) for unemployment relief of such persons as are willing to make savings for the lean months in times when there is enough work. The benefits of this fund are open only to men between 21 and 65 years of age who live and work in Bologna, who are employed in manual labor, and who work for hire, being employed on a daily or weekly wage. In order to participate in these benefits the men must obtain special unemployment deposit books. Each person may possess only one such book. A very important provision is the rule which gives the administration of the fund the right to determine each year how many such unemployment deposit books shall be issued. Applications for these books must be made within a certain time of the year, namely, between March 1 and May 31, and are acted on in the order in which they have been made.
The deposits must be made out of the personal earnings of the depositor and must not exceed 5 lire (96.5 cents) per week. These deposits draw the ordinary rate of interest on the same conditions as all other deposits in the savings bank. In addition to this normal rate of interest, however, these deposits entitle the depositor to a participation in the interest of the unemployment fund, there being two grades of benefits. The first grade consists of depositors who deposited 40 lire ($7.72) or over, and for them, according to the language of the regulations, "1 lira (19 cents) is reserved for every lira deposited, but not over 40 lire ($7.72);' in other words, to all of the depositors of the first grade a credit of 40 lire ($7.72) is reserved. The second grade consists of depositors who have deposited less than 10 lire ($1.93); for them one-half of a lira is reserved for each lira deposited up to 20 lire ($3.86).
Both the deposits and these reservations of benefits are for the purpose of unemployment relief. Moreover, the savings of one year are intended for relief during the following year. During the current year, therefore, in which the deposits have been made, they are not subject to withdrawal. But during the next year they may withdraw such deposits, together with the share of the benefits on presentation of sufficient proof of being unemployed without any fault of their own. If, however, they withhraw their own deposits without such proof, they lose all right to the benefits. The unemployment withdrawals must not exceed 1.50 lire (29 cents) per day while such unemployments lasts. This daily allowance of 1.50 lire consists partly of their own deposits and partly of the benefits reserved, in the following ratio: For the depositors of the first grade, i. e., those who have accumulated 40 lire ($7.72), each daily allowance of 1.50 lire (29 cents) consists of 0.75 lira of their own deposits and 0.75 lira of the reserved benefits, until the limit of 40 lire ($7.72) of the latter is exhausted, and for the depositors of the second grade 1 lira (19 cents) of the deposits, and 0.50 lira (9.7 cents) from the reserves up to the limit of 20 lire ($3.86).
In order to obtain these benefits the depositors are required to present themselves in person, as often as required, and to furnish all required proof of unemployment. The benefits may, however, be given even to such depositors as have left Bologna for other localities in search of employment, if they are unsuccessful in their search, provided they are able to present satisfactory proof of such unemployment.
A complete account of the activity of the Bologna Savings Bank was recently published by the administration, covering the years 1904 to 1910. The account shows that the new regulations had the effect of restricting the deposits, especially during the first year of the full application of the new rules, i. e., 1907. Thus, not only has the total amount of benefits paid out been decreased from 11,862.97 lire ($2,289.55) in 1906 to 4,553.25 lire ($878.78) in 1909, but the proportion of the benefits to the total deposits has materially declined, from 66.6 per cent in 1904 to 26.7 per cent in 1909. As the endowment fund at the same time has been materially increased, it may be admitted that the new regulations have succeeded in preventing the threatening danger of excessive losses. For the years 1906 and 1907 the maximum limit of persons to be admitted to participation in the benefits was determined by the bank at 450, and for the following years at 750. The whole history of this experiment is therefore mainly interesting as an illustration of the serious difficulties in the way of an unemployment relief plan which is based upon the principle of subsidized private saving. The method of voluntary saving was evidently selected for considerations of character building, as being the best method of relief through a combination of economic and educational effects, while on the other hand the subsidies made exactly the opposite effect likely, unless the work was surrounded by very stringent safeguards, which narrowly limited its scope.
In the table following are shown the operations of the unemployment fund of the Bologna Savings Bank from 1904 to July 31, 1910.
OPERATIONS OF THE UNEMPLOYMENT FUND OF THE BOLOGNA SAVINGS BANK,
1904 TO 1910.
65 600 $6.083, 53 $1.917.84 $1,917. 84 $64.94 $1,657. 29 $3, 640.07 $6,935. 94 $10.20 51 752 6.935. 94 2,419.54 $96. 35 2, 545. 89 152.37 2,289.55 4.987.81, 8, 402.75 11.17 55 732 8, 402. 75 2. 444. 23
2, 444. 23 167. 62 () 2.611.85 6, 624. 61 9.05 97 729 6,624. 61 2,258.83 13. 86 2,272. 69 94. 89 884.08 3.251.66 4,257.95 5. 84 76 752 4,257.95 2.215. 69 10.95 2,226. 64 112.34 497. 17 2.836. 15 4,734. 49 6. 30 53 795 4.734. 49 2, 482.08 1.21 2.483. 29 116. 38 878.78 3. 478. 45 4.923. 39 6. 19 c 43 c 787 4,923. 39 (d) (2) € 897.78 c109.80 €376.78 01,384. 36 4,037. 65 5. 13
a The amounts reported for 1904 and 1905 were distributed among the accounts at the end of the respective years; for 1907 to 1910 the distribution was made only at the time of payment of unemployment benciits.
o On account of the change in the system no distribution of benefits was made this year,
VENICE.--The unemployed workmen's benefit society of Venice (La Società di Previdenza per gli operai Disoccupati in Venezia) was established by some private persons with a charitable purpose in 1901, and legally incorporated by the royal decree of June 30, 1901.
The purposes of this society are to facilitate as far as possible the placing of unemployed workmen, to assist them with temporary subsidies in case of involuntary unemployment, and to assist in the settlement of disputes between employers and employees.
The first purpose is met by gathering all available information concerning the demands for help, which information is furnished to persons interested, and occasionally also by furnishing traveling expenses to those who have obtained employment out of town.
The provision of the by-laws requiring the society to act as a conciliator in disputes between employers and employees has remained a dead letter, the main function being that of granting aid to unemployed persons. Although originally a private organization, the municipality of Venice went to its aid. In 1904 the amount contributed by the municipality of Venice was 10,000 lire ($1,930), by the province of Venice, 1,000 lire ($193), and the contributions of honorary members and patrons amounted to about 2,000 lire ($386).
The contributions of the wage-workers insured during the first three years of the activity of the society was 40 centesimi (8 cents) per month, but in 1904-5 were increased to 1 lira (19 cents) per month by the executive council of the society. This increase of contributions was partly offset by an increase of the benefits from 1.25 lire (24 cents) to 1.50 lire (29 cents) per day to married workmen and to widows with more than two children. But the main purpose of the increase is admitted by the administration to have been to check the rapid growth in the number of insured, which became alarming in view of the absence of all limitations as to the duration of the benefits and the cheapness of the rates.
The activity of this society is admitted by its administration to be in the nature of an experiment, requiring further study, especially for the purpose of adjusting the finances of the society. Its essential difficulty is evidently to be found in the fact that it is primarily a disguised form of charity, a very small share of the revenue being derived from the contributions of the insured.
The activity of the society for the fiscal years 1902–3 and 1903-4 is shown in the following table:
NUMBER OF MEMBERS AND NUMBER, AMOUNT, AND AVERAGE OF BENEFITS PAID
BY THE UNEMPLOYED WORKMEN'S BENEFIT SOCIETY OF VENICE, 1902–3 AND 1993–4,
[Source: Bolletino dell'Ufficio del Lavoro, Vol. II, 1901.)
a Including only iron and steel manufacturing in 1903-4.
Milan.-Perhaps the most ambitious effort in the line of unemployment relief is that made by the Milan Humanitarian Society. This is a charitable institution for various forms of social betterment, established by a legacy of Prospero Moisè Loria who died on October 28, 1892, leaving his entire fortune of over 10,000,000 lire ($1,930,000) to this institution. Because of continued litigation (see the Survey, July 10, 1909, vol. 22, p. 541), the operations of the society did not begin until 1900, by which time the accrued interest had increased the endowment up to nearly 13,000,000 lire ($2,509,000). While the scope of this institution is very broad, including technical education, housing reform, employment offices, and statistical study of labor problems, one of the main, if not the main object at present is the relief of the unemployed. The scheme of the unemployed relief or insurance adopted by this organization is especially interesting because it follows the experience of the well-known Ghent system, being based upon subsidies to labor organizations granting such relief. In this way the scheme, in addition to contributing financially to the support of the unemployed, aims mainly at stimulating self-help and mutual help among the organized workers as a means of counteracting the harmful effects of unemployment.
The unemployment insurance fund, which began its operations on July 1, 1905 is regulated by the following constitution:
CONSTITUTION OF THE MILAN UNEMPLOYMENT BENEFIT FUND. ARTICLE 1. There shall be established an institution for unemployment relief among trade associations aiming at economic betterment of their members and among savings associations, with participation and cooperation of Milan cooperative societies, of the Humanitarian Society, and of any other societies which might desire to participate.
Art. 2. This institution aims to coordinate the individual funds for unemployment relief existing within associations named in article 1. The institution helps to organize funds destined to grant unemployment relief in connection with financial assistance from the cooperative societies, the Humanitarian Society, and other organizations.
ART. 3. Only involuntary unemployment shall be subsidized, and only when caused by dull season, fluctuations in demand and supply of labor, industrial crises, and other suspensions of work, independent of the will of the worker, as removal of factories, breaking down of machinery, conflagrations, etc.
Art. 4. There may be admitted to participation in the institution such associations, which, besides unemployment relief, pursue other aims of social betterment, providence, and cooperation.
ART. 5. The individual trade associations shall determine the conditions regulating the payment of contributions by their members and the granting of subsidies to different groups of workers belonging to the same trade, with consideration of the conditions of wage payments, the possibility and intensity of unemployment. But these conditions must be approved by the council of the institution. The associations must, therefore, present copies of their constitutions signed either by their presidents or by the members of the councils in charge, as the case might be.
ART. 6. The cooperative societies which participate in the institution with their financial assistance may resolve that this financial assistance be designated only for the benefit of the same class of workers of whom the membership of the cooperative society consists.
Art. 7. The addition of the institution to the unemployment benefits, as established by the separate associations and paid out of their funds, is fixed at 50 per cent of the amount of the benefits, but must not exceed 50 centesimi (10 cents) per day, and shall be granted for not exceeding 60 working days in any one year.