"Nor is it true that even the artisan will find the purchase of an annuity the best thing to be aimed at. To buy a house or some furniture; to start a small business; to expend his savings in tiding over periods of slack or failing work; to avail himself of the advantage which some fluctuation in the market gives to the man who can transport himself promptly to a new locality or a new business is often far more to his advantage. Above all, money expended in settling his family is often his best policy as well as the course which is most beneficial to the community. At present a large proportion of working men look forward to their children to help them in their old age, and make it a main object of their lives to place them in a position to do so. It does not seem to me a wise thing for the State either to emanc.i.p.ate children from this duty or to induce every married working man to sink his savings in an annuity which will end with his life and from which his widow and children can derive no benefit. It is certainly not for the advantage of the country that in selecting between alternative ways of providing for old age he should be induced to choose that which throws the greatest burden on the State. With the vast increase of population, with the great fluctuations of modern industry, and with the rapid development of the colonies, it is extremely desirable both in the interest of the working men and of the State that they should be induced to transfer themselves from congested towns and from exhausted industries to new fields. A general pension system would certainly contribute most powerfully to prevent them from doing so."
It has been proposed by others that the pension fund should be placed in the hands of Friendly or Benefit Societies, and that they should be intrusted with its administration, or that subscription to such societies for a certain number of years should be taken by the State as the thrift test. On the first proposal it is sufficient to say, that these great voluntary societies are themselves opposed to it; for if they were directly subsidised by the State, they would be obliged to submit to a State control of their management and their finances which they do not desire. It is observed that only a very small proportion of the subscribers to these societies ever find it necessary to come upon the poor rates; and if a system of old-age pensions were confined to these limits, it would act in the most unequal manner. Their members are drawn in a far larger proportion from the lucrative and flourishing trades than from those which are struggling and underpaid. Few women belong to them. In Ireland, which is the poorest part of the Empire, Friendly Societies scarcely exist; and the same thing is true of large districts in Wales and Scotland.
The main result of such proposals would be to concentrate the new State fund for the relief of poverty on the richest parts of the Empire, and on the trades that need it the least.
The extreme difficulty of finding any efficient test of thrift is very evident; and those proposed by a large number of the advocates of old-age pensions are so easy as to be almost worthless. Some consider it sufficient that a man has for a certain number of years not been in receipt of poor-law relief, except medical relief or relief granted under "exceptional circ.u.mstances." Others would accept the mere fact that a man has lived to be sixty-five, as the drunken and disreputable workman seldom lives so long. A large number of resolutions have condemned Mr. Chaplin"s report on the grounds that old-age pensions ought not to be confined to the "deserving" poor; that they ought to begin at an earlier age than sixty-five; that they ought to be administered by a body totally unconnected with the poor law, so as to carry with them no taint of pauperism or eleemosynary relief. They ought, it is said, to be universal; to be looked on as a matter of strict right; to be considered as of the same nature as the pension given to the soldier or the Civil Servant.
It is obvious that all this may carry us very far. It is estimated that some of the most popular proposals would involve an annual expenditure of considerably more than twenty millions of pounds--making allowance for the saving that might be effected in the ordinary poor-law relief, but not counting the cost of administration.
And this expenditure would be a growing one; and once accepted it could hardly be withdrawn. The vast addition to the national debt that might follow a great European war or the great shrinkage of the national income that might easily follow some revolution in trade or manufacture, might render the burden of taxation incomparably more serious than at present; but once the great ma.s.s of the population had learned to regard State support in old age as their normal prospect and their inalienable right, it would be impossible, without producing a social revolution, to recede. All the advantages gained by generations of economical administration of the national finance would be nullified; while the certain result of this crushing addition to taxation would be to weaken incalculably the spirit of thrift, providence, and self-reliance, and at the same time to lower wages, by removing one of the great considerations by which they are regulated.
And this reduction of wages would fall not only on the recipient of the pension, but also on mult.i.tudes who would never live to attain it.
Nothing can be more certain than that a general system of pensions attached to the labour of the wage-earner must lower wages, at least among all those who are approaching the pension age; while it would prevent or r.e.t.a.r.d their natural increase over a far wider area.
It would also most certainly bring with it the gravest danger of corruption. It would not be easy to secure the pure and the impartial administration of these vast funds; but the political dangers would be much more serious. It is proposed that the pension system should be first introduced on a small scale, but gradually extended till it included all the aged poor, or at least all who were deserving. Such a question would infallibly pa.s.s into the compet.i.tions of party warfare.
It would become in most const.i.tuencies one of the most prominent of electioneering tests. Rival candidates would be competing for the votes of a wage-earning electorate who had a direct pecuniary interest in increasing or extending pensions and in relaxing the conditions on which they are given. Can it be doubted that in many cases their first object would be to outbid one another, and that national and party politics would soon be forced into a demoralising race of extravagance?
I cannot conclude without protesting against the supposition that those who think with me are indifferent to the great evil of old-age dest.i.tution and propose nothing for its relief. The committees which have most clearly pointed out the dangers of old-age pensions have also urged, that within the lines of our present poor-law system it is quite possible to do much, by an improved cla.s.sification, to distinguish among the recipients of poor-law relief between the respectable and the worthless. Much has already been done, and in the most important unions the guardians have introduced a large amount of cla.s.sification by merit. As I have already said, the immense majority of the respectable aged poor are now relieved only in their own homes or in comfortable infirmaries. The severe test of absolute dest.i.tution has in practice been greatly relaxed; there is a legal provision preventing those who are receiving help from Friendly Societies from being disqualified for relief; husbands and wives are no longer separated in the workhouse; and in some unions of which we had evidence much more has been done. This, however, depends too much on the will of particular Boards of Guardians, and there are in consequence great inequalities of treatment. The condition of the deserving poor may be greatly improved by relaxation in points of hours, discipline, and visitors, and by workhouse arrangements securing more universally that paupers who have lived respectable lives should not be obliged to mix with the drunken, the disreputable, and the hopelessly idle. And, though extensions of outdoor relief should be carefully watched, and entail great dangers, yet under wise and strict administration something more may be done in this direction.
But all this should be regarded as essentially poor-law relief, and not as the recognition of a claim of right for services supposed to have been rendered to the community. No form of State Socialism is more dangerous than the doctrine which has been countenanced by Prince Bismarck, and which is making many disciples in England--namely, that an industrious man, who has pursued his course in life with perfect independence, made his own contracts, chosen his own work, and been paid for it by stipulated wages, is ent.i.tled, if he fails in obtaining a sufficiency for his old age, to be placed as a "soldier of industry"
in the same category as State servants, and to receive like them, not on the ground of compa.s.sion, but of right, a State pension drawn from the taxation of the community. There is no real a.n.a.logy between the relief that is very properly granted to such workmen in their dest.i.tution, and the pensions--largely of the nature of deferred pay--that are given by the State or by private employers, under the terms of distinct contracts, and for specific services duly rendered, to those who have entered into their employment and placed themselves under their control.