AN INQUIRY INTO THE MUTUAL SYSTEM 5 1 



1st., That the State, should supervise the investment of the funds of 

 the mutual societies that have not civil personality; 2nd., that a federation 

 should be formed among the mutual aid societies ; 3r-d., that the Olhce 

 itself should draw up model rules with the object of extending the scope 

 of the societies ; 4th., that an organic law on mutual aid associations 

 should be drafted. 



In fact the efforts of the group in the domain of thrift must be co- 

 ordinated and concentrated, their action encouraged and extended. It s 

 en these principles the bill on mutual aid societies recently laid before 

 congress is based. 



It is proposed in the first place to give a legal basis to the mutual instit- 

 utions, and clearly to define their character, so that they may be easily 

 distinguished from capitaHstic societies. They will be granted civil person- 

 aUty by the executive authorities. 



In addition to the usual objects of mutual assistance in case of sick- 

 ness or death (funeral expenses, subsidies to widows etc.), the draft law 

 makes provision for old age and disablement pensions, life insurance, 

 and, finally, the institution of profes.sional services for the benefit of 

 members, such as labour bureaux, professional schools, clubs, and Hbraries. 



To attain these objects of a higher rank, local unions and, a national fed- 

 eration will be required. Therefore, considering that private initiative 

 cannot succeed in organizing a complete system of thrift and assistance, 

 it has been thought advisable to ask the State for financial aid to encourage 

 and complete private action. Thus, with the free associations, there would 

 be subsidised societies : the mutual aid societies that posesss certain quali- 

 fications guarantejing their administrative action may receive subsidies 

 to the amount permitted by the situation of the public funds. 



The assistance to be given by the State is fi>:ecl in proportion to the estim- 

 ated risks each society has undertaken : in the case of sickness insurance 

 the subsidy is one peso per year per member, and 50 centavos more if the 

 society gives aid in sicknesses of long duration, or has a family assistance 

 fund. In the case of old age pensions or life insurance, the State must pay the 

 third part of the special contribution of each member, provided always this 

 contribution does not exceed 12 pesos a year and the fourth part if the con- 

 tribution exceeds that amount. In no case shall the State contribution exceed 

 6 pesos per ann. per member. Ever)'' year the funds for these subventions 

 shall be shown on the National Estimates of Expenditure. 



The bill finally proposes the foundation of an inspection service, 

 dependent on the Department of Justice as well as a Superior Board of 

 Mutual Aid Societies. 



It is trusted that this reform will give a great impulse to the mutual 

 societies, n; t only in urban, but also in rural centres. The mutual 

 aid societii s will prepare the way for the more complex forms of associ- 

 ation, such as co-operative societies that are now considered also in Argentina 

 as one of the most effectual means for the improvement of the agricultural 

 classes. 



