2. GENERAL REVIEW OF THE IMMEDIATE PROBLEM. During the year 1913 the problem of unemployment in the United States became pressing, particularly during the latter part of the year. In consequence, the literature on the subject of unemployment has reached a volume unapproached in any year, at least during the present decade. More significant however than any mere increase in volume of printed matter is the change in character of the discussion of the problem itself. Formerly the literature on the subject had reference particularly to the more or less spectacular demonstrations by the unemployed, or was merely descriptive of the temporary relief measures adopted in those centres (principally urban) where the unemployed had concentrated in large numbers. But during the past two years much has been written in an endeavor to bring to public attention constructive plans for the ultimate solution of the problem through the adoption of permanent measures not confined to any single locality or industry.

An examination of the numerous articles on various phases of the subject of unemployment written during the past year leads one to conclude that there has been no lack of effort, to co-ordinate the work of the various individuals, associations, or public bodies which have been actively engaged in devising and putting into operation the many different plans for reducing the amount of unemployment in the immediate communities in which their activity has been principally exercised. This growing spirit of co-operation is amply evidenced by the numerous conferences which have been held recently for the very purpose of organizing the movement against unemployment on a national and international basis and of bringing together those experienced students and workers who have given special attention to the subject.

Three years ago an association known as the International Association for the Struggle Against Unemployment was organized in Paris, which, since its organization, has made careful investigation of the problem of unemployment, its causes and remedies, both tried and proposed, has issued a series of monographs and bulletins on the subject and "has sought to secure concerted action in the adoption of some efficacious and farreaching treatment." In response to the call of this Association, 16 nations and 130 cities were represented at the first general congress on unemployment which met at Ghent1 during the second week in September, 1913.

1 For a report of this congress, see article entitled "Unemployment, a World Problem, and the Congress at Ghent," by Miss Katherine Coman, published in The Survey, Vol. XXXI, No. 22, February 28, 1914, pages 667-669.

3. SOME RECENT CONSTRUCTIVE MEASURES.

In the following paragraphs will be considered several of the more important measures of a constructive nature that have been recently adopted or proposed with a view to permanently reducing to a minimum the number of unemployed.

A. SUBSIDIZED UNEMPLOYMENT INSURANCE.

Many attempts to provide funds for the payment of subsidized unemployment insurance to workingmen have been made, the earliest recorded having been that in the city of Berne, Switzerland, in 1893. Some of these attempts have proven successful while others have resulted either in complete failure or have become merely modified forms of public relief. One attempt, that in the city of Ghent, Belgium, has proven so highly successful in its. operation that many other European cities have established similar systems of unemployment insurance.

1

B. PAYMENT OF UNEMPLOYMENT BENEFITS BY TRADE UNIONS. In the United Kingdom many of the trade unions have adopted unemployment insurance as a special feature of their beneficiary systems, and it is undoubtedly in recognition of the real value of this practice that Parliament made provision in 1911 for the payment of unemployment benefits to workmen in certain important trades. The Act has undoubtedly encouraged organized workmen in other trades than those covered by the Act to adopt unemployment benefit features similar to those in operation prior to the passage of the Act. In Continental Europe, also, trade unions have provided insurance of this character and in several of the countries and cities (notably Ghent)2 aid in the form of subsidies has been granted to the organizations which pay benefits of this character.

In the United States but very few of the national and international organizations of workingmen have adopted unemployment insurance features although several unions have done so with marked success. During the year ending September 30, 1913, seven international organizations affiliated with the American Federation of Labor reported having paid unemployed benefits amounting to $69,445.70, the amounts paid

3

1 For a description of the Ghent System, see Social Insurance, by I. M. Rubinow, 1913, Chapter XXVII on "Subsidized Unemployment Insurance," pages 464, 465.

2 See Miss Coman's article in The Survey referred to in the note on the opposite page.

* See Table published in Report of Proceedings of the Thirty-third Annual Convention of the American Federation of Labor, 1913, page 24.

by the several unions having been as follows: Cigar Makers, $42,911; Spinners, $13,000; Molders, $6,277; Pattern Makers, $6,000; Diamond Workers, $720; Pulp and Sulphite Workers, $500; Elastic Goring Weavers, $28; and Steel Plate Transferrers, $10. Traveling benefits, which are virtually a form of unemployed benefits, in that they enable members to travel in search of new positions, were paid by two unions, the amounts being as follows: Cigar Makers $33,113 and Tunnel and Subway Constructors $580. The aggregate of these payments by no means constitutes the full amount paid by labor organizations for these purposes, for many local unions assist their unemployed members either from local insurance funds, maintained independently of the international organizations, or by special donations in individual cases that may have been brought to their attention.

Whatever the probability of the ultimate adoption in this country of a system whereby unions paying unemployment insurance shall receive. subsidies from the national or state governments, or even from municipalities, there certainly is no immediate prospect of its adoption, particularly in view of the present indisposition of nearly all of the international unions to include unemployment insurance as one of their beneficiary features, notwithstanding the fact that this form of insurance has been repeatedly recommended by leading labor officials who have observed the great advantages resulting in those cases where such features have been adopted.

C. COMPULSORY UNEMPLOYMENT INSURANCE IN THE UNITED KINGDOM. The establishment of a national compulsory unemployment insurance system in the United Kingdom in 19111 has given an unusual impetus to the study of the problem of unemployment insurance, and the experiment has been watched with great interest, particularly as there was no definite information available which would enable the authorities to determine, with any degree of accuracy, the probable cost of maintaining the system.

The First Report on the operation of the compulsory unemployment insurance system in Great Britain issued by the British Board of Trade, which board was charged with the administration of the system, has been issued and from that report has been taken the following extract descriptive of the operation of the system during the first year, but covering

1 A brief summary of this act may be found in Bulletin 102 of the United States Bureau of Labor Statistics and also on page 25 of Bulletin 96 of the Massachusetts Labor Bulletin.

a period of six months only during which unemployment benefits had been paid.1

It is too soon to judge of the ultimate economic and social effects of the scheme of National Insurance against unemployment. So far it has only operated during a time of exceptional trade prosperity. We have yet to experience its working during a period of depression in the labour market. What, however, can be said is that the initial difficulties of bringing the scheme into operation have been successfully overcome; that so far the scheme itself has been proved to be administratively practicable, and has justified the actuarial calculations on which it was based; that it has increased five or six fold the number of workpeople protected by insurance against distress caused by unemployment, and that it has at the same time tended to encourage rather than to discourage voluntary provision for the same object. Finally, it may be added that there is a prospect that the insured trades will enter upon their next period of depression with an accumulated reserve fund of some millions sterling, laid up during the present period of prosperity, together with an organization already in being, capable of applying that reserve to meet the needs of each of the trades in every part of the United Kingdom.

D.

DECASUALIZATION OF LABOR.

(a) Organization of Industrial Enterprises.

An effective method of reducing the amount of unemployment which is at the present time engaging considerable attention in this country is that usually termed "decasualization of labor", that is, the provision of regular employment for those who ordinarily have been but irregularly employed. The principle is by no means a new one, and has perhaps its best illustration in the definite plan by which, several years ago, employment of dock laborers in London was organized in such a way that a much larger number of men were assured of more regular employment than had formerly been the case, thus reducing the number of casual laborers employed as longshoremen at the docks.

One method of decasualizing labor is by making the industry continuous throughout the year. Thus in the manufacture of boots and shoes the usual slack season in the Spring of the year has been practically eliminated by one company through the organization of its factories in such a way as to distribute the work more uniformly throughout the year. Other progressive employers are already making an effort to so organize their establishments as to avoid "seasonal fluctuations" in their plants, and it has been suggested that efforts be made to impress upon employers generally their responsibility with reference to the furnishing of regular

1 Unemployment Insurance — First Report on the Proceedings of the Board of Trade under Part II of the National Insurance Act, 1911. [Cd. 6965.] Issued in 1913. See Prefatory Note by the Permanent Secretary of the Board, page iv.

employment to their entire labor force in so far as that may be possible. That some form of inducement be offered to employers to so regulate their business has also been suggested, and that, in some cases, employers be penalized for their failure to do so has even been seriously proposed. While it would doubtless prove difficult to provide legislation of this character which might not work injustice to employers in certain instances, steps have already been taken in this direction, legal provision having been made in several States for the giving of due notice to employees about to be discharged from service. In South Carolina this principle was even further extended in 1912 by an Act1 providing in effect, that:

Employers who require notice of quitting work must, in turn, notify their employees of shutdowns by posting in every room a printed notice stating the date of beginning the shutdown and its approximate length. These notices must be posted at least two weeks before the shutdown, or for the same time that is required of employees before quitting. Shutdowns caused by some unforeseen accident to machinery, "or by some act of God or of the public enemy," are excepted. Maximum penalty, $5,000. In addition to the penalty, employers are liable to each one of their employees for damages suffered by the failure to give notice.

In those cases, as in the building trades, garment making, etc., where it is practically impossible to so regulate the business that the workmen shall be employed throughout the entire year, it is proposed to "dovetail” the active working periods in such industries with those in other industries, the periods of activity of which may often follow closely. Owing to the dissimilarity in the nature of the several trades this may be difficult of accomplishment in any single locality, but through the organizing of industry by means of a national system of labor exchanges this plan may, possibly, prove a practicable one. The migration of farm laborers from point to point in the West as the harvest season advances is an illustration of this method of "dovetailing" in a single industry and the northward movement of domestic help in the summer months from southern hotels where they have been employed during the winter months is another illustration of this character. As also illustrative of this method may be mentioned the plan, adopted in certain hat factories in Foxborough and Boston, of adding felt hats as one of the products of the establishments in order that the workmen who were formerly laid off at the close of the straw hat making season might be retained in continuous employment. Similarly in certain shops in New York City in which formerly artificial flowers only were manufactured, the making

1 No. 424, Acts of 1912, in effect February 23, 1912. For digest here quoted, see American Labor Legislation Review, Vol. II, No. 3, page 490.