treason to his country." This would not have been true of the pension which Johnson himself subsequently received, nor of a considerable, though perhaps not the largest, portion of those granted in his time; it would not now be true of any. A modern pension is as much a payment for undoubted services as salary or wages, the difference being that pensions are paid in respect of past, salary or wages in respect of present, services. In England a certain number of persons in private employment, and the majority of persons in government employment, are remunerated partly by salary or wages, and partly by deferred pay in the shape of pensions. When, therefore, the conditions of service include a right to pension, the salary or wages must be assumed to be less than the full market rate, the difference representing the value of the pension.

The total cost of the pensions, and of gratuities in lieu of pensions, in the services of the crown in the United Kingdom, is known as the non-effective charge of those services. In the estimates for the financial year 1911-12, the non-effective charges were as follows:

ments including Old Age Pensions 71,866,000 13,245,000 Besides the amounts thus annually submitted to parliament, which is at liberty to vote or not to vote them without any breach of positive law, there are certain pensions, charged by statute on the consolidated fund, for judicial officers and certain others, whose independence is deemed to be better secured by this arrangement. The total amount for pensions out of the consolidated fund during the financial year 1910-11, was £299,933. A complete list of such pensions, with the names of the recipients, is set forth in the annual "finance accounts,' published by authority.

Perpetual or Hereditary Pensions.-The British government formerly rewarded eminent public services by the grant of a pension, usually accompanied by a peerage, and payable not only during the life of the original grantee, but to his heirs for ever. Thus hereditary pensions were granted to the first Duke of Marlborough, to Lords Exmouth and Rodney, and to the brother of Lord Nelson (after the death of the latter at Trafalgar); payable in perpetuity to all heirs of the original grantees to whom those titles should descend. In the Stuart times royal favour was Sometimes signalised in the same way. Thus hereditary pensions were enjoyed down to the present day by two peers, as the heirs of natural sons of Charles II. Some years ago the late Mr. Bradlaugh, M.P., inveighed against these perpetual payments, and a committee of the House of Commons was appointed to enquire

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into the subject. A treasury minute presented to the House on 20th July 1888 (House of Commons paper 292 of 1888) sets forth the recommendations of this committee, and the extent to which they Steady had been adopted by the government. progress has since been made with the process therein indicated of commuting hereditary pensions, by arrangement with those interested, of course at a fair market value; and the only pensions now (1907) remaining, which have a currency beyond the lifetime of the present recipients, are those to the heirs of the Duke of Schomberg (£720), to Lord Rodney (£2000), and to Earl Nelson (£5000)—in all £7720, chargeable on the consolidated fund.

The

Army and navy pensions, or, as they are officially termed, retired pay, are granted by the secretary of state for war and the lords commissioners of the admiralty respectively, according to conditions prescribed by royal warrant for the army, and by orders in council for the navy. These conditions may be varied by the sovereign from time to time by amending warrants or orders in council, but so long as they remain in force they cannot be departed from in any particular at the pleasure of the executive. retired pay of the officers, non-commissioned officers, and men of the army and navy depends on the rank attained by the recipient and on the length of his service, with special additions for wounds received in action, or for physical breakdown caused by the nature of the service. There is, also, a strictly limited number of special pensions for distinguished service, known as "good service pensions." No infirmity or unfitness for duty is necessary, as in the case of the civil service, to enable retired pay to be granted in early middle life, as the men are discharged on the completion of their term of engagement, while officers are automatically placed on the retired list on reaching certain ages, which vary according to the rank of the officer.

Civil Service Pensions are granted by the treasury under conditions prescribed by act of parliament. The acts dealing with the subject are very numerous; the principal are the superannuation acts of 1834, 1859, and 1887, especially the act of 1859 (22 Vict. c. 26). Of this act, which governs the great majority of civil service pensions, the main principles are as follows, viz. (a) pension only to be granted on the attainment of sixty years of age, or on the abolition of the office, or on an officer becoming permanently incapacitated, by infirmity of mind or body, for duty; (b) after less than ten years' service no pension to be granted, but a gratuity of a month's pay for each year of service; (c) for ten years service or upwards the rate of pension to be not exceeding one-sixtieth of the retiring salary or wages for each year of service, subject to a maximum of two-thirds of such retiring salary or wages; (d) the full rate of pension not to be granted unless upon a certificate from the authorities of an officers' department to the effect that he has served "with diligence and fidelity, to their satisfaction ; (e) any officer to whom pension is granted under the age of sixty to be liable to serve again if required.

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When a civil servant-an expression which includes, for pension purposes, such widely different classes as e.g. consuls, clerks, postmen, and workmen in dockyards-is injured, without his own default, on duty, and from some accident arising from the nature of his duty, the treasury is empowered by the Superannuation Act of 1887 to make a special addition on that account to his pension, or to award him a gratuity, by way of compensation, in cases in which no pension can be granted. If he dies from the injury, a pension can be awarded to his widow, or to his mother, if he leaves no widow, and if his mother was wholly dependent upon him.

All persons serving in public civil departments are not entitled, without distinction, to pensions. A considerable number are engaged at the full market rate of wages, without any pension rights. By the Superannuation Act of 1887 already referred to, the treasury is empowered, subject to certain conditions, to award gratuities to such persons, on the termination of their employment, at the rate of a week's pay, or one pound, whichever is greater, for each year's service.

A

Certain classes of pensions deserve special notice (1) Political Pensions-These may be granted to persons having held certain high political offices, such as that of first lord of the treasury, chancellor of the exchequer, secretary of state, president of the board of trade, or any other of what are generally known as ministerial offices. The pensions are of three classes. first-class pension is £2000 a year, a second-class £1200 a year, and a third-class pension £800 a year. The class of pension awarded depends on the office held, and on the length of service therein. No award can be made unless upon a declaration that the recipient's other resources are not sufficient to maintain his station in life. Only one political pension can be granted in any one year, and the total number in force at any time must not exceed four of each class. The awards are made by the treasury, under the political pensions act of 1869, and are charged consolidated upon the fund. (2) Judicial Pensions - Any judge, on completing fifteen years' service, or on becoming permanently incapacitated for duty, whatever the duration of his service, may be granted a pension equal to two-thirds of his salary, chargeable on the consolidated fund. (3) Civil List PensionsThese pensions are granted by the sovereign upon the recommendation of the minister, generally the first lord of the treasury, and paid out of a special sub-head of Her Majesty's civil list. limit of pensions to be granted in any one year is £1200 per annum. Under the act 1 & 2 Vict. c. 2, § 6, the pensions are to be granted to "such persons only as have just claims on the royal beneficence, or who by their personal services to the crown, by the performance of duties to the public, or by their useful discoveries in science and attainments in literature and the arts, have merited the gracious consideration of their sovereign and the gratitude of their country." (4) Old Age Pensions-A movement has grown into prominence of recent years in favour of a system of pensions in old age for the whole

The

England, p. 90; C. Booth, p. 90; Modifications of C. Booth's plan, p. 90; Contributory Schemes, Canon Blackley, Mr. Jos. Chamberlain, p. 91; Germany, p. 91; Denmark, p. 91; France, p. 91. England. The case for some scheme of old age pensions can hardly be put more forcibly than in the words of the report of 1895. "It appears from existing statistics that nearly 20 per cent of the total population above the age of sixty-five receive relief in one day, and nearly 30 per cent in the course of one year. If, however, a deduction be made from the total population of those belonging to classes which are not likely at any time of their lives to be in want of relief, it is evident that the percentage of those actually relieved to the population below the well-to-do must be greatly increased." To meet this large amount of aged pauperism many schemes for state-aided or state-provided pensions have been laid before the public. [See PENSIONS, OLD AGE, Appendix.]

C. Booth's Scheme.-The most complete and comprehensive of these is that suggested by Charles Воотн. His proposal is that, subject to certain limitations, every person, male or female, on attaining the age of sixty-five, shall be given for the remainder of life a sum of 5s. weekly, out of public funds. He contends that this amount will not be sufficiently large to discourage thrift, while the fact that it is offered to all alike on the single condition of having attained the age of sixty-five, will avoid the necessity of invidious and difficult distinctions between rich and poor, or deserving and undeserving. Moreover, unlike the contributory schemes, it will at once reach the class which is most in need of help. The first and most important objection to this scheme is its enormous cost. Mr. Booth himself admits that the annual expense in England and Wales would be nearly £18,000,000. If Scotland and Ireland were added they would reach £24,500,000, while the direct saving as regards poor-law expenditure upon the aged is not estimated at more than £2,000,000. These figures alone seem to place the scheme beyond the range of practical politics, even if it were free from the economic objections which have been raised against it. Moreover, the absurdity of paying 5s. a week to the wealthy is obvious, yet it seems impossible to draw a line which would not lead to that further separation of classes and masses which it is the main object of such a scheme to avoid. There are also minor objections, such as the difficulty of obtaining satisfactory proof of age, and the complicated and probably costly system of administration which so large an undertaking would involve.

Modifications of Mr. Booth's Plan have been suggested by Mr. Hardy and Mr. Leslie Probyn, who propose that the pension-right should be recognised only for the proved impecunious aged, or, Mr. Probyn's amendment, by supplementing the income of any acquired property up to some reasonable limit. The pension is estimated at 10s. a week, and the pensioner must be over sixty-five and must give up all work. The chief objections to this are that so large a pension, from which savings would be deducted, would inaterially lessen the stimulus to thrift, and that in all probability very few aged persons would work if they could obtain 10s, a week on the sole condition of not working. The first should be a fatal objection to any scheme, and the second seems to show that the expenses would be little less and the advantages scarcely greater than those of Mr Booth's plan. Other proposals have been made by Rev. Frome

Wilkinson and Mr. Bartley, M.P., but both involve an enormous amount of discrimination and investigation as well as very heavy expenses.

Contributory Schemes.-Canon Blackley had earlier (see 1887 Inquiry), advocated a scheme of compulsory insurance, by which all young persons from eighteen to twenty-one should be required to contribute to a statecollected or state-secured fund, a sufficient amount to entitle the contributor to a pension at some fixed age. In considering this, it is evident that a compulsory scheme must be universal, and that it is practically impossible to obtain contributions from those who are unemployed, or only in casual employment. It is also probable that such a scheine would be exceedingly un. popular with the working classes, even if the amount required were within their scope.

The most important of the contributory schemes is that associated with Joseph Chamberlain's name. This contemplates three classes of pensions. The first, a pension of 5s. a week, payable at sixty-five, is obtained by the payment of a lump sum of £2:10s. before twentyfive, and subsequent annual payments of 10s. for forty years. The state credits each contributor at 25 with a bonus of £10, both sums accumulate at compound interest and provide the annuity of £13 per annum at the age of sixty-five. Payments of the second class, which are twice as large, provide not only for the pension of 5s. but also for certain other benefits, of which the most important are payments to widows and children in case of death. The third case provides "that any person after depositing 30s. if male, 25s. if female, into the post office, and insuring in any society for £6:10s. or £3:18s. respectively, shall have his or her pension doubled at sixty-five by the state," and aims at securing the co-operation of the Friendly Societies. The main objections to Mr. Chamberlain's scheme are, (1) that it would not affect the classes which are most in need of help, and would merely act as a new form of insurance for those who are already able to provide for old age. (2) The scheme would have no direct effect for forty years, and if any measure at all is required it is one which can come into speedy operation. (3) The expenses of administration would be exceedingly heavy. (4) With regard to the third case, the friendly societies regard any scheme of state subvention with extreme suspicion, as likely to involve state interference, and their influence is too important to be disregarded.

It appears then that no scheme hitherto laid before the public is free from very grave objections. The question remains whether any scheme of state pensions is really necessary, or whether, on the other hand, it is not possible to hope that existing institutions will furnish the true solution of the problem. In the first place, the statistics of old age pauperism are somewhat misleading, for (1) a considerable number of applications may have been made by one person, (2) much aged pauperism is due to chronic infirmity which needs special care, and cannot be treated outside the workhouse, (3) more than two-thirds of the whole number of aged paupers are receiving out-door relief, and no doubt many of these ought to be maintained by private endeavour. The annual reports published by the local government board show a marked and steady decrease in the numbers of paupers, due both to improved economic conditions and to stricter administration of the poor law. Much, probably, is to be hoped from careful administration, together with the co-operation of the poor-law authorities with charitable institutions, as at Whitechapel, St. George's-in-the-East, or Brixworth and evidence shows that charity, both private and endowed, is directly stimulated by strict administra tion. The amount available from endowed charities alone is estimated at nearly £100,000 per aunum, and that from voluntary charity is also extremely large, while the value of voluntary work in charity organisation can scarcely be overestimated.

While well-directed charity and careful administration may be expected to do much for the poorest classes, those which are slightly better off profit much and might profit more by friendly societies. Evidence shows that there is practically no class which cannot afford to belong to a society, and if members begin to insure at an early age the payment required is exceedingly small. Should an effective demand for pensions arise, the great friendly societies, the management of which is steadily and greatly improving, are admirably lapted to meet it. Most trades unions provide super

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annuation for their members, the number and scope of thrift agencies, such as building societies or co-operative societies, is steadily increasing, while the post office provides facilities for the purchase of annuities or for small savings. A committee of experts-Lord Rothschild (chairman), Sir F. Mowatt, Sir C. Boyle, Sir Spencer Walpole, Mr. Finlaison, Mr. Brabrook, Mr. George King, Mr. A. W. Watson, and Mr. A. Chapmanconsidered the whole question, and their report (1898), on the whole, was unfavourable.

Germany. The German scheme, which came into operation under the law of May 1889, makes insurance compulsory, broadly speaking, upon all wage-earners, while certain other classes have the option of insurance (for particulars see INSURANCE, STATE (Germany)). The scheme is worked by means of insurance cards through the post office, and great care has been taken to avoid over-centralisation, the main burden of adininistration falling on local institutions. Time alone can show how the experiment will work, but the prima facie difficulties seem to be the extreme complication of the procedure and the comparative inadequacy of the results. The pension is very small; contributions cannot be exacted from the casual or irregular worker; and no provision is made for widows and married women.

In Denmark, under the law of 1891, pensions are awarded only to persons who can prove that during the previous ten years they have been neither in receipt of poor-relief nor convicted of mendicancy. They must be over sixty and in genuine need of help. The amount of the pension is not fixed, and the scheme is administered by the communal councils, the expenses being divided between these bodies and the government. The system seems to be little more than an extension of out-relief, with the usual disqualifications attaching to poor-law relief, but, as with the German scheme, time alone can show whether the experiment will prove successful; and the results of both will be watched with great interest.

In France various proposals and suggestions have been made, and M. Méline has recently (October 1897) promised legislation on the subject, but his scheme has not advanced beyond the stage of political programines, and no details have yet been given.

[Graham Brooks, Compulsory Insurance in Germany and other European countries. — France (Office du Travail): Étude sur les derniers résultats des assurances sociales en Allemagne et en Autriche. -Germany: De Zacher, Invaliditäts- und Alterversicherung. Dr. T. Bödeker, Die Arbeiterversicherung in den europäischen Staaten. T. Menzel, Die Arbeiterversicherung. Belgium (Office du Travail): L'Assurance contre l'invalidité et la vieillesse en Allemagne.-Report of Royal Commission on the Aged Poor, 3 vols. (c. 7684), 1895.-Report of Select Committee on National Provident Insurance, 1887 (H. C. 257).-Charles Booth, Pauperism and the Endowment of Old Age.-C. S. Loch, Old age Pensions and Pauperism.-J. A. Spender, State and Pensions in Old Age.-G. Drage, Problem of Aged Poor.-Publications of Charity Organisation Society.]

L. I.

PENSIONS IN THE UNITED STATES.* The pension system of the United States had its origin in the revolutionary war in the halfpay provisions made for officers. Early in the war, under the advice of General Washington, provision was made that all commissioned officers who should serve throughout the war, take an oath of allegiance to the United States, and reside in the country, should receive halfpay for seven years after the close of the war, provided that they held no office of profit under the states. In 1780 the act was extended to the widows and orphans of those who died during the war; and in that same year the period of half-pay for life was changed to full pay for five years, the sums being paid in interest-bearing certificates that soon depreciated in value.

Besides this provision of the general govern. ment for officers, some of the states, notably

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Pennsylvania, had made similar laws. In 1785 congress suggested that the states provide pensions for invalids; and three years later the United States agreed to give credit to the states "for such sums as may become due to invalids." In 1808 the central government finally assumed the pension obligations of the separate states.

The principle adopted was that all persons disabled in the service-whether regulars, volunteers, or militia men, soldiers or sailors, under the United States or the separate states -should be pensioned. Safeguards against fraud were made, and on the whole well maintained. In 1818 a demoralising measure was passed, giving pensions to all soldiers of the revolution "who, by reason of reduced circumstances, shall stand in need of assistance from their country for support," provided that they had served in the army at least nine months. Wholesale frauds followed. 27,948 persons applied for relief; over 18,000 claims were allowed. Men who had never served, men who deeded away their property in trust, or gave it to their children, were put on the list. Finally the expense and the abuse became so great that, in 1820, Congress passed a new law with stricter requirements for examination, which caused one-third of the new pensioners to be stricken from the rolls. Later laws produced more abuses, to which President Jackson in his message of 2nd December 1834 refers; but the chief evil came from the above-mentioned act of 1818, which had a very great pauperising effect, in addition to the unexpected burdens laid upon the treasury.

After the civil war, pension legislation repeats the history of the earlier times; but the number of pensioners is so much greater that the sums of money involved are enormous, and the danger of political corruption great. At first the general principle followed was that all, regardless of rank, "wounded or disabled while in actual service," should be cared for at

the public expense. This principle was extended, naturally, to cover also those dependent on the soldier. The amount granted for total disability ranged from $8 to $30 per month, according to the official rank of the pensioner. Some acts were passed granting definite sums for specific injuries, and these were from time to time increased, e.g. :

Per month.

1864. For loss of both feet. 1866. Loss of both feet or both hands, or sight of both eyes, or such disability from other causes as required the personal attendance of another person

1872. This increased to

$20

25 31.25

50

72

from war causes 1889. Those losing both hands

72

. 100

Similar changes were made in other respects, as well as specific provisions for artificial limbs, trusses, etc.

January 25, 1879, the so-called "Arrears of Pensions" Bill became a law. This provided that pensions granted before or after the passage of the act should commence from the date of death or discharge from the army of the person on whose account the pension was granted. In many cases this added a round sum of hundreds or even of thousands of dollars to pensions lately granted. The prize was so great that within the next eighteen months more than 170,000 new claims were filed, and the expenditure for pensions leaped from some $33,000,000 annually to more than $60,000,000 within five years, with a steady increase to nearly $90,000,000 in 1889.

In 1890-largely probably as a result of political pressure and the fear of offending the old soldiers and their friends if the bill were not passed-the Dependent Pension Law went into effect. This provided that "all persons who had served . . . ninety days or more

and who were suffering from a mental or physical disability of a permanent character, not the result of their own vicious habits, which incapacitates them from earning a support by manual labour," were to be pensioned at from $8 to $12 a month, in proportion to the degree of their disability. The first commissioner of pensions after the passage of this act, by a very liberal ruling, included under it specific disabilities, and the "capacity of a claimant . . . to perform manual labour was no longer even considered in adjudicating his claim." The expenditures increased very rapidly. In 189293 the amount paid for pensions exclusive of office expenses was $156,740,467.14. For 1895 the total estimates, including surgeons' and agents' expenses, were $162,631,570.

A new commissioner of pensions in 1893, believing that many pensions had been illegally granted under the act of 27th June 1890, appointed a board of revision to examine the cases allowed under that act, and many fraudu lent cases have been found and the pensions withdrawn. For the year ending 30th June 1896 the commissioner estimates the needed expenditure for pensions at $148,000,000. Liberal as the United States have been in thus granting pensions, the demoralisation wrought by so many liberal and by the appeals of pension agents has led to a vigorous demand, which it is hardly likely will be granted, for a law granting a pension to every person who had been sixty days or more in military or naval service.

acts

Besides the general laws, special laws by the thousands have been passed granting pensions to those not receiving them under the general acts, or increasing the sums allowed them. In

one day, 3rd March 1891, ninety-six such bills became laws.

Of late years ex-presidents' widows have been given pensions-first Mrs. Lincoln, then Mrs. Garfield, Mrs. Polk, Mrs. Tyler; and retired judges of the U.S. supreme court receive them. There has also been discussion of pensions for the life-saving service, railway mail clerks, etc. But the country has on the whole limited its pensions to those who have served in the army and navy.

J. W. J.

PERAVY, DE. See ST. PÉRAVY. PERCEVAL, SPENCER (1762-1812), English statesman and financier, was the second son of the second Earl of Egmont. He entered parliament for Northampton in 1796, and became a strong supporter of W. PITT.

When Pitt succeeded Addington, Perceval, who had been solicitor-general to the latter, again accepted office as attorney-general. He declined to prosecute the members of the early trade-unions at the instance of the employers, on the ground that he was unwilling to commit the government to a uniform support of the employers on trade questions. He cordially supported Wilberforce's endeavours to remedy the abuses of the Guinea slave trade. Perceval devoted much attention to financial questions, and took a conspicuous part in the debates on the financial irregularities which led to Lord Melville's impeachment. On the death of Pitt (1806) he resigned; but he still took an active part in parliament.

In the Duke of Portland's ministry, formed 31st March 1807, Perceval became chancellor of the exchequer. After a dissolution the ministry returned greatly strengthened. He was successful with his first budget, and his scheme for the conversion of 3 per cent stock into terminable annuities was generally approved.

On the death of the Duke of Portland in 1809, Perceval became prime minister, retaining his old post of chancellor of the exchequer. The ministry was weak, and the times critical. Military and fiscal troubles followed on each other in quick succession. England was required to pay for the Spanish ariny in the Peninsular war, when she could scarcely pay for her own, and gold payments were demanded when gold was extremely scarce. Perceval struggled bravely against his difficulties, which were aggravated by a powerful opposition.

The budget demands in 1811 revealed the serious condition of the national finances. The chancellor's proposals included a grant of £2,100,000 for Portugal, and the ministry acceded to the recommendation of the select committee on commercial credit that £6,000,000 should be advanced to the manufacturers suffering from the over-speculation of previous years. When HORNER proposed resolutions in favour of

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the resumption of cash payments, Perceval successfully resisted them. A bill was passed in July making bank-notes legal tender, avowedly because gold was so appreciated that for currency purposes it was unprocurable, while bank notes were worth only 80 per cent of their face value.

Though Perceval now appeared to be in a strong position, difficulties soon arose. His opposition to popular reforms greatly weakened his ministry, and his policy on the ORDERS IN COUNCIL dealt it an almost fatal blow. The unwisdom of these orders had long been apparent, and it was contended that instead of injuring France they were rapidly destroying English commerce.

In the midst of his struggle against almost overwhelming odds, Perceval was assassinated by a deranged bankrupt named Bellingham, as he was entering the House of Commons on 11th May 1812. He was a man of stainless personal character, but narrow in his views and mediocre in his abilities. Nevertheless, he had a dogged persistency that carried him through crises which would have daunted abier men. As a financier he wanted originality, but framed his policy according to the dictates of expediency and opportunism.

[Alison, Europe.-Spencer Walpole, Life of Perceval.-Dictionary of National Biography, vol. xliv.-Jesse's Memoirs of George III.-Massey's History of England. -The Duke of Buckingham's Memoirs of the Regency.]

G. B. S.

PERDIGUIER, AGRICOL (1805-1875), originally a working man, was elected a representative to the French national assembly of 1848.

He wrote three books on French Compagnonnages, or local groups called Devoirs, of itinerant artizans confederated by crafts into general associations covering the whole of the country-many groups had in secret survived their abolition by law in 1791. The principal is the Livre du compagnonnage (1837), in which he gives their history, disentangled from several rather mythical stories as to their origin, describes the local institutions with their ceremonies and pass-words, and entreats them to stand firmly together-warning them against some abuses which had sprung up in the course of time. He also wrote Une scission dans le Compagnonnage (1846), and La question vitale du Compagnonnage (1861). Perdiguier was intelligent and clear-headed, deservedly esteemed by his fellow working-men.

E. Ca.

PEREIRA, GREGORIO PIETRO (18th century). Was a priest of Portuguese extraction. He wrote a treatise on money and commerce, read at the academy of Ravenna, 1757.

He follows the theories of MELON and shows the influence of PUFENDORF and LOCKE. He accepts Locke's idea of money and his theorem that the amount of metal in a coin alone constitutes the measure of its value. He shows the disadvantages produced by monetary alterations, and examines the means possessed by