OLD-AGE PENSIONS.
[TO THE EDITOR OF THE "SrEcraTov..-] SIE,—The problem of old-age pensions is a very difficult one,. as every one must know who has ever seriously thought about it. It is one of the good signs of our time that it has at last come to the front, and will have to be dealt with in earnest.. I do not propose to discuss, or give an opinion on, either of the- alternative proposals before the nation, but should like to. submit to your readers a "more excellent way" in which the
problem has been solved by an Industrial Association to which I have the honour to belong, though only as a small shareholder. The Nutclough Works of the Fustian Manu- facturing Co-operative Society at Hebden Bridge, were started on a very humble scale twenty-three years ago. From the first, a share of the profits has been set apart and capitalised as a bonus in favour of the workers, each of whom, from the day of entering the factory, is credited with a pro- portionate share, carried to a separate account. I may add (though it goes without saying) that before this apportion- ment in favour of labour is made, all current outgoings, in. eluding salaries, and 5 per cent. on capital, have been paid. By our rules, every worker must become a holder of £20 in shares, which are allowed to be paid up by the gradual accumulation of bonus, any cash-payment in respect of shares being voluntary.
Now let us look at the result. I subjoin an extract from our books of the accounts of three of the workpeople which our secretary has made from the ledger for me. They are not exceptional cases, but those of workers only earning the ordinary rate of wages. No. 1 is a labouring dyer who has been a member eighteen years. During that time, as you will see, he has had credited to his account, as bonus on labour, £28 10s. 6d., and as interest on shares paid up, £20 3s., and has withdrawn £37 6s. 3d. at different times. But for these withdrawals he would now have had £48 13s. 3d. to his credit. As it is, he has had to pay £8 12s. 9d. in order to keep his minimum of £20 in shares, which amount he still holds. No. 2 is a fustian-cutter, who but for withdrawals would now have £54 13s. 10d. to his credit; and No. 3 is a woman finisher, who has still £40 in shares to her credit, and but for with- drawals would have had £50 8s. 11d. These results—viz., £48 13s. 3d., £54 13s. 10d., and £50 8s. 11d.—would have been obtained, be it remembered, without any cash-payment what- ever from the workers. These are all cases of workpeople who have been many years in the factory ; so I will give one other instance of the working of onr method. workman who has been only six and a half years in the factory, has £20 in shares to his credit, on which he will now draw 5 per cent. interest, without having paid a penny in cash.
Our manager, Mr. Greenwood (to whom the success of the Association is no doubt mainly owing), looks with much dis- favour on assisted pensions. " The thing, I cannot but think," he says, "is wrong. Charity to the most worthy of our population [the provident] cannot be considered the right thing. They do not need any such thing when a righteous regulation is practicable." I think, Sir, you will agree with him, and wish, as I do, that there were many more managers of his stamp at the head, not only of Industrial Societies for production, but of private firms.—I am, Sir, &c.,
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