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U.S. DEPARTMENT OF LABOR
JAMES J. DA VIS, Secretary
BUREAU OF LABOR STATISTICS
ETHELBERT STEWART, Commissioner •
BULLETIN OF THE UNITED STATES}
BUREAU OF LABOR STATISTICS •
M
I S C E L L A N E O U S
· · · · · No. 380
SERIES
POSTWAR
LABOR CONDITIONS
IN GERMANY
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By R. R. KUCZYNSKI
"(,a,~Nl'o;;:
.
.~·y~
~
~~o■~i
~AITEsof."'
MARCH, 1925
WASHINGTON
GOVERNMENT PRINTING OFFICE
1925
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CONTENTS
Introduction______________________________________________________
!.-General survey_______________________________________
Population___________________________________________________
Occupation___________________________________________________
Pace
Unemployment_____________________________________________ __
Standard of living and wages___________________________________
Labor movement______________________________________________
11.-Standard and cost of living ______________________ :_____
CHAPTER
Food ________________________________________________________
Housing ______ . ______________________________________________
Standard and supply before the war _______________ r--------Housing conditions during the war------------------------~Situation since the war ____________________________________
7
7
7, 8
9-67
9-33
33-47
33-38
38, 39
39-47
light======.=========================================
~~fht~:
_______________________________________________
Transportation
!Z:iY
CHAPTER
1
2-8
2
2-7
52-55
Taxes ________________________________________________________ 55-62
Minimum cost of subsistence ___________________________________ 62-67
CHAPTER 111.-Collective agreements _______________________________ 68-77
68
Legislation_________________________________________________ __
Actual development ___________________________________________ 69-72
Legal regulation ______________________________________________ 72-77
Definition ________________________________________________ 73-75
75
Policy of nondeviation__ ____ _ _ __ __ _ ______ __ _ __ __ __ __ _____ __
Agreements declared generally binding _______________________ 75-77
CHAPTER IV.-Trade-unions_ _ ___ __ _ __ _ ___ _ ___ __ __ __ __ __ __ __ __ __ ___ 78-93
Membership __________________________________________________ 80-84
Finances _____________________________________________________ 84,85
Internal organization __________________________________________ 85-87
___ -------------------- _____________________ 87-90
Internal difficulties
90-93
policy ______________________________________________
Economic
CHAPTER V.-Hours of labor ______________________________________ 94-124
Situation before December, 1923 _______________________________ 94-107
94-98
Legislation_______________________________________________ 98-104
Actual development ______________________________________
Opposition to eight-hour day _____________________________ 104-107
Situation since December, 1923 ______________________________ 107-120
Decree of December 2, 1923 ______________________________ 107-112
Scope of decree _____________________________________ 108,109
~ngth of working day _______________________________ 109-112
113
Enforcement of decree_________________________________
113
Hours of labor in hospitals_____________________________
Actual development_____________________________________ 114-120
Spare-time work____________________________________________ 120, 121
Vacations __________________________________________________ 121-124
CHAPTER_ VI.-Wages and efficiency of labor _______________________ 125-145
General trend of real wages___________________________________ 125-134
Piecework __________________________________________________ 134-141
Efficiencyof labor ___________________________________________ 141-145
CH.A'.PTER VIL-Unemployment_ ________________ -----~-------- ___ 146-189
Number of unemployed workers ______________________________ 146-148
Unemployment relief________________________________________ 148-164
Legislation in 1918_ __ __ _ __ _ __ _ __ __ ___ ___ __ _ __ __ __ ___ __ _ _ 148, 149
Amount of unemployment relief_ __________________________ 149-158
Expenses of unemployment relieL-----~------------------- 159-161
Unemployment relief work _______________________________ 161-164
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1V
CONTENTS
VII.-Unemployment-Conclude d.
Employment offices _____________________________ ___________ _
Operations of employment offices _________________________ _
Organization of employment offices _______________________ _
Communal public employment offices _________________ _
State employment offices ____________________________ _
Federal employment office __________________________ _
Trade departments __ ~ ______ -~ ______________________ _
Equipartisan boards ______________________________ __ _
Management of employment offices ___________________ _
Personnel of employment offices _____________________ -~
Appellate procedure ________________________ --·,- _____ ..
Expenses of employment offices _____________________ "_
Private employment offices __________________________ _
Principles governing employment service_.: ____ - r ______ _
Obligatory reporting of vacancies _________ _: __________ _
Special departments __ ~ _________________ -~ ___ :_: ____ _:_:
C~APTER VIII.;--Cooper~tive ~ov_ement __________________ --~-- __ "Consumers cooperative societies _____________________________ _
Position at outbreak of war_ ____________________________ _
Situation during the war _____________________________ ___ _
Condition after the war ______________________________ ___ _
Cooperative building societies and building guilds ______________ _
Cooperative building societies ____________________________ _
Building guilds _____________________________ ___________ _
CHAPTER
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Page
164-167
167-171
171-189
171,172
172,173
173,174
174,175
175-177
177
177-178
178
178
179-181
181-183
183
u,3-189
190-199
190-195
191
191, 192
192-195
196-199
196-198
198,199
BULLETIN OF THE
U.S. BUREAU OF LABOR STATISTICS
N0.380
WASHINGTON
MARCH, tUS.
POSTWAR LABOR CONDITIONS IN GERMANY
INTRODUCTION
~
Before the war a person who went to Germany to study labor conditions S'enerally was at first struck by the a_p_parent rm.possibility
of secunng adequate information. After a while, however, he was
p)IZ~led by the great number of sources he could use with advantage.
While no general census of production had ever been taken, no general
investigation of housing had ever been made, and no general study of
wages had• ever been attempted, the statistical publications of some
States, of a large number of municipalities, and of many tradeunions, as. well as the annual reports ol factory inspectors, housing
inspectors, chambers of commerce, employers' associations, etc.,
contained so much data on labor conditions that it was possible after
~II to get a. pretty clear insight into a large _number ~f labor sub3ects. The lack of adequate central statistical service, however;
made• it impossible to cover the whole ground.
The difficulties which the student of postwar labor conditions now
encounters in Germ.any are still greater, but the extent to which such
difficulties have increased is not generally known. No census of occupations, of manufactures, of agriculture, of mines, of transportation,
etc., has been taken since 1907. Municipal statistical offices which,
before the war, made a special feature of the study of labor conditions either have been closed or have suspended publication of their
studies. State statistical offices, factory mspectors1 housing inspectors, chambers of commerce, employers' associations, ana tradeunions have considerably curtailed their investigations, and some·of
them now.issue no reports. The number of labor subjects on which
it is ·still possible to secure adeguate information is therefore much
smaller than before the war and it is utterly impossible to give anything like a complete report on postwar labor conditions in Germ.any.
All that can be done in the following chapters is to point out developments along certain lines. 1
1 The author is Indebted for assistance rendered to him In preparing this report to Theodor 0111!88U,
Jrmgard Feig, and 4rthur Krause.
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1
Chapter L-GENERAL Sl]JlVEY
POPULATION.
an
At the outbreak of the World War Germany had area of 209,000
sguare miles, with a population of 67,900 1000. As a consequence of
tlie treaty of Versailles she lost 27,000 .square miles and retained an
area of 182,000 square miles, which at the outbreak of the war had a
population of about 61,000,000, at the census of October 8, 19191
59,900,000, and at the end of 1923 al>ont 63,500,0,00. At the end 01
1923, the male population was almost·3,000,000 less than it was at
the outbreak of tlie war, while the female population had decreased
almost 1,500,000. The decrease ani(')ng- both sexes was gi;eatest
am~ng children under 15 years of age; mdeed the decrease among
females was confined to this single group. . The group from 15 to 20
y~ars among both males and females· remained about the same.
While there was a considerable decrease among males from 20 to 45
years, among females of the same age there was a slight increase.
Both males and females from 45 to 65 years are much more numerous
now than before the war. The group of persons over ·55 years of age
among both sexes held its own. The proportion of females to 100
males has increased from 102 to 108. Before the war the excess was
practically confined to persons over 45 years of age. There were then
about as many males as females m tlie group from 20 to 45 years,
while there is. now an excess of females amounting to one-sixth, and in
-the group from 25 to 30 years the excess reaches two-sevenths.
The most conspicuous results of this development are:· 1. The decrease in the number of children (under 15 years) to be supported by
the breadwinner-before the war they_ constituted 33 per cent and
now they constitute 28 per cent of the· total population; 2. The increase of the proportio11; of females in ~he most productive age of life-befo:re the war they constitute~ 50~er cent and now they constitute
54 per cent of the total populat10n between 20 and 45 yea.rs of age,
'
OCCUPATION
.The tre~d toward the cities,.which before the wa~·resulted in a co~tin1;1ous .decre~e !ll .the ,proportion of the popw~tioii~ engaged in
agncultu.ral pursU1ts,- does not seem to have been of.er-3it:rve after the
war., , The dread of starvation and the certainty o being better fed
in. a :rui:a.l than,ih an _urban district pi:evented young men ~ho otherWJSe might have drifted to the c1t1es .from leavmg '. tl;i.eir homes.
Moreover, ·the compulsory military service,. a cause whiQh,before the
war had led young agricultural laborers to the towns an.d had occasionally induced .tJ::i.em to stay there once _they_ had expe~enced the
better opportumt1es and pleasures of city life, has disappeared.
Also girls from the rural districts do not so frequently go as servant
girls to the cities, as the demand for domestic servants decreased with
the increasing impoverishment of the middle classes. On the other
2
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8.
OCCUPATION
hand, some agricultural laborers who before the war had gone to live
in the cities, out who still had relatives in the country, returned home.
because of the scarcity of food in the cities. There is reason to assume
that the agricultural breadwinners in the restricted territory a.re now
almost as numerous a.s those in the larger pre-war territory of Germany. This, however, does not mean that there is everywhere a.
sufficient supply of agricultural workers. . There wa.s a. scarcity
before the war, the gaps at that time being filled by foreign migratory
laborers from the East who came r0J?Ula.rly for a. few months ea.ch year
and then returned home. These foreign la.borers do not now come
to Germany, since they can earn a better living at home. This explains the la.ck of help in the culture of sugar beets, for instance,
because, before the war, this work was performed to a very large
extent by foreign labor.
The number of persons employed in mines was considerably larger
after the war than before in spite of the fa.ct that Germany lost a. considerable pa.rt of her mineral resources through the treaty of Versailles. The increase was especially conspicuous in the lignite mines,
where 144,752 workers were employed in 1921 as against 58,958 in
1913. Workers in the lignite briquet plants also increased from
20,069 in 1913 to 38,989 in 1920; workers in the coal mines from
654,017 in 1913 to 812,804 in 1921; workers in the salt mines, from
43,232 in 1913 to 52,273 in 1921. There was1 on the other hand, a.
decrease in the number of workers emplo_yed m iron-ore mines, from
42,296 in 1913 to 29,478 in 1921, as well a.s in most of the other
mines; smelters and iron and steel works, too, showed in general a
sli,ght decrease. Altogether the number of workers employed in
mmes, smefters, and iron and steel works has increased from
1,290,000 in 1913 to 1,530,000 in 1920-21, or almost one-fifth. The
number of persons employed in the different kinds of mines, smelters, •
and iron and steel works is shown in Table 1.
TABLB 1.-NUMBER OF PERSONS EMPLOYED IN MINES.L. SMELTERS, AND moN
AND STEEL WORKS IN GERMANY, 1913 ·i·O 1921
Industry
1917
1919
Llgnlte
mines
Coal mlnes
••••______________________________________
-·-·--··------------------------------_ 654,017
Iron mines .• _______________________________________ _ liS,958
Lead, silver, and zlnc mines ________________________ _ 42,296
Arsenic and copper mines___________________________ _ 21,282
13,292
Other ore mines ____________________________________ _
1,554
43,232
Salt
mlnes---·----··-··-----------------------------Petroleum production. ______________ • ______________ _
964
S68, 00)
63,583
36,660
661,581
103,614
28,068
17,047
12,196
3,473
31,919
3,094
20,069
29,256
Coal-6rlquet
plants----------·----------------------_________________________________ _
Coke plants •••.•••
Llgnlte-nrlquet plants--------·---------------------Llgnlte, slate, and peat distilleries __________________ _
1913
1,022
41,908
Blast furnaces •••••• ·-·--··---·--···-··---··--------- 154,300
Jron and steel foundries----·-------------------------
Weld-lrOn workS •••••• ---·--·--------------·--------lnltot Iron and Ingot steel works __ -------------------
Rolling mllls.·-·-··-·-··------·---------------------
Lead, silver, and Iron works·-----------------------·
Zinc works •• ·--·--·-------------------------------··
Other metal
works
___ ----------------·--------·----·
Sulphuric
acid
factories
______________ • ______________ •
2,698
42,118
128,785
9,446
13,003
1,776
6,785
18,223
16,122
3,743
27,an
1,430
2,688
20,586
1,043
46,238
l,'llYT
38,083
3,072
32,933
1,497
36,724
33,879
139,196
134,660
1,279,
1,087
43,229
61,
142,849
107,212
10,605
9,266
9,273
10,3681
3,063
3,048
6,237
4,723
1681
1920
1921
na, 199 812, 804
136,484
144, 7112
29, 101
29, 478
18, 018
19, 336
10, 849
11, 436
3,271
2,673
69, 692
62, 273
1,624
1,918
37,864 -----·---2, 927 --------·38, 989 -----·----
1, 863 ----·---·-
36, 745 ·----·---149, 062 ----·-----
973 -----·-------------
47, 186
119, 617
11, 767
8, 690
3, 157
6, 732
-----·---·---·-··-·--·--····------···
-------·--
The increase in the number of workers employed was probably
still larger in the chemical industry, while there was a considerable
decrease in the building industry where only about 1,000,000 workers
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CHAPTER !.-GENERAL SURVEY
were employed after the war as compared with 1,7501000 before the
war. Altogether there seems to have been a slight mcrease in the
number of men employed in mines and manufactures, and certainly
there was a large increase in the number of females employed. Although statistics of the plants subject to mine and factory inspection
can not convey a true picture of the development of the country at
large, it may be incidentally mentioned that from 1913 to 1922 the
number of males employed in such plants increased• from 5,794,037
to 6,196,433, and the number of females from 1,592,138 to 2,019,189.
There a.re no data available to show the increase in the number of
persons employed in commerce, but there is not the least doubt that
this incre8$e was enormous. This is especially true of the banks,
which in 1923 probably employed ten times as many employees as
before the war.
A strong increase of personnel likewise took place in transportation.
The average number of officials and workingmen employed by the
State railways (excludim? Alsace-Lorraine) in 1913-14 was 741,000;
in 1919-20-in spite of the reduction of railway mileage, due to the
treaty of Versailles-1,122,000, or 51 per cent more. In 1920-21
the number was 1,090,000; in 1921-22, 1,051,000; and in 1922-23,
1,028,000. The exact figures for the separate years are as follows:
1913-14 _______________ 740,504
1914-15 _______________ 719,452
1915--16 _______________ 692,996
1Q16-17 _______________ 714,609
1917-18 _______________ 768,775
1918--19_____________ 913,396
1919-20 _____________ 1,121,745
1920-21 _____________ 1,089,839
1921-22----~-------- 1,050,898
1922--23 _____________ 1,027,522
In the report submitted in January, 1924, to the committee of experts of the Reparations Commission (Dawes committee), the German Government estimated the average railway personnel for 1923-24
• (April 1, 1923, to March 31, 1924) at 975,000, an increase of 32 per
cent as compared with 1913. In the meantime officials and especially
workers have been dischar~ed on a very large scale, but it is doubtful
whether the railway service· can be permanently maintained at its
.
full efficiency with the reduced force.
·In the postal department the postwar increase of personnel was
still greater. ·The average number of officials and workers in 1913-14
was 266,404; in 1921-22, 427,109; and in 1922-23, 408,492. The
Government's estimate for 1923-24 was 374,871. The reduction in
the last few months has not been so sharp as that in the railway
service. ·
.
·
It may seem surprising that the number of breadwinners in agriculture, mines, manufactures, commerce, transportation, and government service should have either remained the same or increased
as compared with. pre-war times while the population as a whole
has decreased. There are four main reasons for this: 1. The decrease
of the population was to a large extent due to a· decrease in the
number of children under breadwinning age; 2. The number of
women who have to earn their own living has considerably increased;
moreover, the decrease in the demand for domestic servants induced
some hundreds of thousands of women (who ordinarily would have
gone to other households) to follow other pursuits; 3. Men who
had retired from business were obliged to return to work when the
revenues on which they had theretofore lived dwindled with the
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OCCUPATION
5
depreciation of the currency; 4. The reduction of the army from
800,000 to 100,000 automatically increased the number of men
looking for employment.
It may also seem astonishing that the number of breadwinners
increased at a time when production in agriculture and manufacture
decreased, and transportation, bank transactions, exports and imports, etc., were considerably reduced. There are three princiJ>al
reasons for this: 1. The reduction of the working hours; 2. The
increase in unproductive work; 3. The diminished efficiency of the
employees.
1. The hours worked by the total number of employees was reduced
by the introduction of the eigJit-hour day and by the extension of
vacations. (Both facts are fully discussed in Chapter V.)
2. The main cause of the increase in unproductive work was the
dl;lpreciation of the currency. It affected wages, prices, taxes, and
investments and led to a large increase in clerks and officials.
Prior to 1918 some employers, such as :mining companies and the
railway adlninistration, paid their workers once a month. With the
depreciation of the money it became necessary to pay wages weekly.
In the case of the railw~s this change resulted in the emJ>loyment
of 3,548 more clerks. . When the depreciation oontinued, 1t became
unavoidable to pay wages twice a week, and even oftener. At the
same time, changes of wages became, of course, more and more frequent (see Chapter VI). As early as 1921, 4,000 clerks in the railway
administration did nothing all year round but compute the
(nominal) rises in salaries a.nil wages due to the fall of the mark.
The de_preciation of the money necessitated a constant change of
prices, wliich actually changed much more frequently than salaries
and wages. In the c:lepartment stores, as elsewhere, all prices had
to be adapted each day to the exchange rate of the dollar. Bills
for electric light and gas, which in former times were pa.id monthly,
had to be collected every week. Payments by check became unacceptable to the creditor, and so all bills had to be paid. in ca.sh at
once. E~imates of costs had to be made again and a.gain. All this
necessarily absorbed the time of a large number of clerks.
With tlie changes in wages and prices, taxes had to be continually
changed. This ca.used a large increase in the number of revenue
officials, but it also meant a heavy burden for industry. It may
suffice to mention in this connection the deduction l:>y the emplo:yer
of the income tax from wages (see Chapter II). This tax, which
was introduced in 1920, would under any circumstances have necessitated the appointment of a l~e number of additional clerks.
Indeed, from the vecy beginning the railway administration employed
1,706 clerks on the deduction of this tax exclusively, and this task
became the more cumbersome the oftener the wages changed. The
same was true as to the deductions from wages for compulsory social
insurance, etc.
·
The depreciation of the currency made it impracticable to keep
money in cash or to deposit it at a savings or commercial bank. As
the purchase of foreign exchange, which would have been the safest
way of preservinE the value of one's ea.mi~, was forbidden to the
general public, tlie only possibility of diminishing the risk of deprecijl,tion of money was to mvest it m shares of stock. This was done
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CHAPTER I.-GENERAL SURVEY
b_y millions of people who never before had thought of buying such
shares. They could not, however, keep such secunties for any length
of time, but had to resell them after some day;s or weeks, perhaps
buying new shares the next month. This was the main cause of the
enormous increase in the number· of bank clerks and explains why
the banks, which had lost a large part of their overseas connections
and which in view of the lack of deposits could do very little to finance
industries, employed as many hundreds of thousands of employees
in 1923 as they had employed tens of thousands in 1913.
While the depreciation of the money was the main cause of the ·
increase of unproductive work, it was not the only one. Another
cause, whose importance has been in' general overrated, was that
after the creation of works councils some of the council members
devoted .their time exclusively to work~ council affairs and did no
productive work, but yet were paid by the employer. The Ministry
of Railways estimated that at the end of 1920 the duties of works
councils absorbed 2,212· railway officials and workingmen.
·
. The influence of the increase of unproductive worlt upon the mnn_ber of employees-was, of course, very different in the various industries and vaned greatly between establishments in the same industry.
.One of the largest German· elec~rical plants, located in Berlin, which
from 1914 to 1923 increased the number of its workers by 29 ~er
cent and the number of its clerks by 71 per cent, experienced the
following "inflation" of clerks in "unproductive" departments:
NUMBER OF CLERKS :tN SPEOinED DEPARTMENTS OF A LAROE GERMAN
ELECTRICAL PLANT, 1914, AND um, AND PER CENT OF INCREASE
'
· Department
'fe:o~e1::::::::::::::::::::::::::: _· :::::::.:::::::: .:::::::::::::::::
Sickness
lnsurance--------------·-----------·-··-----------·-----------·--
!~~~~-~~~=====================-----------·---··-:::::::
Clerks,
1111,
180
46
20
13
32
Clerks,
1923
520
229
67
95
131
Per cent
of
Increase
189
897
235
631
309
While .the additional work after the war was in general unpro.ductive work, there were cases where additional work was absolutely
,nec~sary •for the .sake of production. For the railways all the ite,ms
heretofore mentioned cut very little figure as compared with the
considerable· increase in the amount of work.to be done in the rehabili·tation of the railway·equipm,ent. Even if the war had terminated
'with a peace more ,favorable to Germ.any, the German railwap would
have come out of the war in. a-bad state. Practically all the loco·motives needed to· l;>e repaired, and the same was true o_f most of the
cars. The lack of copper and other materials not produced in Germany and which could not be imported during the war had led to
the use of substitutes, which had greatly impau:ed the condition of
the locomotives especially. The obligation to surrender after the
'armistice 5,000 locomotives, 20,000 passenger cars, and 150,000 freight
cars made necessary their repla~ement, resultin____g_ ~ the employment
'of tens of thousancls of additional' workers. While befo;re tlie war
:the Prussian-Hessian railways employed 70,000 men in their repair
shops, the number of sucli workers on November 11 1918, was
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LA.BOB MOVEMENT
7
108,000; on January 1, 1919, 143,000; and in July, 1919, 166,300.
The decrease of traffic did not always make it possible to dispense
with a corresponding number of employees. A good many- operations in railway work require just as many men whether they are
repeated often or seldom during a day. Just as many switchmen
must be employed whether 8 or 12 trains pass. As to the train
personnel, where one would first expect a diminution, the reduced
efficiency of the railways has partly resulted in the employment of
even more men. The reduction of the speed of the trains, for example, which was necessary immediately after the war on accoun~
of the bad condition of the road and the lack of coal, has caused the
employment of more fersons.
·
3. The efficiency o labor was reduced through the moral effect of
the war upon the workers, thro~h the insufficient feeding of the
workers, through the abolition of piecework; through bad man~gement of the plants, and through legal provisions which compelled
employers to appoint incompetent employees and prevented them
from dismissing inefficient employees. (These items are discussed in
Chapters II and VI.)
UNEMPLOYMENT
While on the whole there was, then, a strong demand for workers
and especially for.clerks, at certain times-for example, immediately
after the war and again at the end of 1923 when the Government
ceased to print paper money-there was a good deal of unemployment. Measures were therefore taken to asSist the unemployed and
to increase the public employment offices. (The amount of unemployment and tlie provisions as to unemployment relief and employment agencies are fully discussed in Chapter VII.)
STANDARD OF LIVING AND WAGES
In spite of the g~nerally favorable situation of the labor market
and in spite of all efforts to reduce the hardship connected with unemployment, the general standard of living was very low. Food, fuel,
and clothes were very_ scarce immediately after the war, and when the
blockade ceased and imports might have filled the gaps, the low level
of real wages prevented much improvement in the standard of living.
For many years after the war the majority of German workers did not
earn the minimum cost of subsistence of a family, and no noticeable
illlprovement took place until after the stabilization of the mark.
(The standard and cost of living and the trend of real wages are
fully discussed in Chapters II and VI.)
LABOR MOVEMENT
The situation of the German working class after the war was, .
however, not due to a lack of organization on their part. As a consequence of the :political revolution, trade-unions became very strong
and succeeded m enlisting practically all workers in mines, manufactures, and transportation, as well as many farm laborers, salaried
employees, and officials. Their strength manifested itself especially
in the conclusion of collective agreements which are now protected by
law. The wage terms agreed upon were, however, most of the time
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CHAPTER I,-GENERAL SURVEY
very unfavorable. Moreover, the power of the unions dwindled with
increasing inflation and their situation became most precarious, with
their financial breakdown in the fall of 1923. They became so weak
that they were unable to·prevent the suspension of the 8-hour day.
With the stabilization of the mark they liave recovered to a certam
extent. The cooperative movement, in general, did not make any
considerable progress after the war. The consumers' societies were
hampered by the scarcity of food and by the reduced purchasing
power of their members, and the building societies by £he lack of
building material and the high cost of building. The only noticeable
exception has been the building guilds, which m the few years of their
existence have attained considerable success .. (The trade-union
movement is discussed in Chapter IV, collective agreements in Chapter III, and the cooperative movement in .Chapter VIII.)
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Federal Reserve Bank of St. Louis
Chapter Il.-STANDARD AND COST OF LIVING
FOOD
The best general information on the fluctuations in the cost of foocf
can be derived from the food-cost index computed since February,
1920, by the German Federal Statistical Office. The articles comprised in this index are as follows: 47~900 grams of rye bread; 4,000·
grams of fl.our; 11,000 grams of nooru.es, oat flakes, barley groats,
beans, peas, rice, etc.; 70,000 grams of potatoes; 15,000 grams of
vegetab1es; 3,000 grams of meat; 1,500 grams of haddock; 1,500 grams
of baconi 4,500 grams of fats; 1,000 grams of salt herring; 3,000 grams
of dried truits (cheapest kind); 3,500 grams of sugar; 10 eggs; 28 litersof milk; and 1,750 grams of skim-milk cheese.
Table 2 compares the total price (weighted average price for all
cities included m index) of these quantities in 1913-14 with that in
each month from February, 1920, to December, 1924. It will be·
seen that the total price was 1,512 billion times as high in December,.
1923, as in 1913-14. From and after Januarv, 1924, the index is.
based on rentenmarks, one rentenmark being ~equal to one trillion
paper marks.
TABLE 2,-INDEX NUMBERS OF THE ~(~ltJT~.FOOD IN GERMANY, 1920 TO 1924, BY
[1913-M-1)
Month
1920
~'!ii~.::::::::::::::::::::::::::::::::::::::::: .....9"" Ag.
March.............................................
11. 01
.:============================================
i~t::::::::::::::::::::::::::::::::::::::::::::
~~ ~
November.........................................
December.........................................
13. 43
14. Zl
e
~!
i:ber..... --· ····-···-.. ·---.... -............. fr =
1
Based on rentenmarks.
1
Mllllons.
1921
14. 23
13. 62
13. 52
13.M
13. 20
13. 70
14. 91
15.89
16.M
17.57
21.89 ,
23. 57
1922
1924
1923
24.63
30.20
36.02
43. M
ttl.80
51.19
68.36
97.46
154.17
266. 23
5411. 82
807.02
11.27'
11. 1T
11.20·
11.23
. 11. 26·
11.20
11.26
11.22'
11.25
11.M
11,35
11. 85
1366
3183
3315
3500
4620
9M7
46510
670485
1 17.8
14301
'862
11512
•Billions.
Table 3 gives similar figures for each date on which prices were·
ascertained from the time of the stabilization of the mark on the
basis of $1 equals 4.2 trillion paper marks, which equals 4.2 renten•·
marks, i.e., from and after November 26, 1923.
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Federal Reserve Bank of St. Louis
~-
10
CHAPTER II.-STANDARD AND COST OF LIVING
TABLE 3.-INDEX NUMBERS OF THE COST OF FOOD IN GERMANY ON SPECIFIED
DATES, NOVEMBER 26, 1923, TO DECEMBER 30, 1924
[1913-14-1]
Date
Nov. 26, 1923•••••••••••••••••••••••••••••
Dec. 3, 1923.•.••••••••••••••••••••••••••.
Dec. 10, 1923•••••••••••••••••·••••••••••••
Dec. 17, 1923•.•••••••••••••••••••••••••••
Dec. 22, 1923.••••••••••••••••••••• a ••••••
Dec. 29, 1923..•••••••••••••••••••• + •••••
Jan. 7, l924,. .•••••••••••••••••••••••••••••
~~: ~f: '1:t:::~:::::::::::::::::::::::::
~~~·1t9:.. ·········~··················
Feb. 11, 1924•••••••••••••••••••••••••••••
Feb. 18, 1924•••••••••••••••.•••••••••••••
Feb. 25, 1924•.•••••••••••••••••••••••••••
1
Mar: 17, 1924•••••••••••••••••••••••••••••
Mar. 24, 1924•••••••••••.•••••••••••••••••
Mar. 31, 1924.. ••••••••••••••••••••••••••••
Apr. 9, 1924.•••••••••••••••••••••••••••••
Apr. 16, 1924..••••••••••••.••••••••••••••
~:: ~o. r~~ :: ::::::::::::::::::::::::
VIy~:J~.............................
~:~
~t }~:::::::::::::::::::::::::::::
May 28, 1924•••••••••••.•••••••••••••••••
June 4, 1924•••••••••••• ·••••••••••••••••••
June 11, 1924 •••••••••••••••••••••••••••••
Index
number
2. 05
1.94
LM
L38
1.36
1.36
1.33
1.29
1.25
1.21
1.17
Ll6
1.17
LIS
l. 19
1.19
L20
L20
l. 20
1.21
1.23
1. 24
1.25
1.27'
1.28
1.25
1.22
l. 22
1.21
Index
number
Date
June 18, 1924 .•.•••••••••••••••••••••••••
Ifu!ri:t:::::::::::::::::::::::::::
i; ?1~::::::::::::::~::::::::::,:::.
July 16, 1924•••••••••••••••••••••••••••.•
i:· ~: ~~-···························
Aug. 27, 1924 ••••••••••••••••••••• ••• ' ••.
1~ .....••.•••.• ••.•••.••.••.
Sept. 17, 19~•••••••••••••••••••••••••••
Sept. 24, 1924...••••••••••••••••••••••••.•
Oct. l, 1924.•••••••••••••••••••••••••.•••
Oct. 8, 1924..••••••••••••••••••••••••••.• _
t~t ~0.
~
~
f!_ijll!. ~·· ·-·-· · · · · -:"~·· ·
ig:
E:• g: m~· ·······-···~··~········,···
Pi~=========================== ··
Dec.10, 1924••••••••••••••••••••••••••••
Dec. 30, 1924•••••••••••· ••••••••••••••••
1.21
1.19
L27
1. 31
1.25
1.26
1.23
1.22·
1.22
1.22
1.23
1.24
· 1.25
1.26
1.28
1.30
1.34
1.36
1.36
1.37
1.36
1.35
1.36
1.36
1.34
1.35
L36
1.36
1;36
Table 4 shows how many times as high as in 1913-14 the dollar
e~chan,ge rate of German marks at Berlin. was in each month from
January, 1920, to December, 1924. From and after December, 1923,
the index is based on rentenmarks.
TABLE 4.-INDEX NUMBERS OF DOLLAR EXCHANGE RATE OF GERMAN MARKS IN
BERLIN, 1920 TO 1924, BY MONTHS
[1913-14-1]
Month
1920
1921
1922
1923
1924
·----•-:
~~~::~:> ~=' :::::::·::::::::::::::::::: :: :
March•••••••••••••• · -···-·-·····-·-·············•·
April ............· ••••••••••••••••••••••••••••••••••
May.: ••••••••· ·•••••••••••••••••••••••••••••••••••
June.••••••••••••••••••••••••••••••••••••••••••••• ·
July ••••• ·········-•••••••••••••• ••••••••••••••••••
August .•.•••••••••••••••••••••••••••••••••••••••.•
September .•••••••.•••••••••••••••••••••••••••••••
October.--·-····················-·················
November•••••••••••••••••••••••••••••••••••••••••
December •••••••••••••••••••••••••••••••••••••••••
1 Based on rentenmarks.
15.44
23. 61
19. 98
14. 21
11.07
9.32
9.40
11.37
13. 81
16.24
18. 40
17. 39
I Millions.
15. 46
14.60
14. 88
15.13
14. 84
16. 52
18. 27
20.08
24. 99
35. 78
62.64
45. 72
45. 69
49.51
67. 70
69.32
69.11
75.62
117. 49
270, 26
349.18
757. 73.
1m.os
1807, 83
4281
6650
5048
5826
11355
26202
84186
1100632
2 23. 5
2 6017. 2
a 522. 3
IJ
11.00
11.00.
11.00
1 1.00
1 1.00
11.00
11.00
11.00
11. 00 ·
11.00
11.00
11.00
• Billions.
Table 5 shows the fluctuations of the general food~cost index from
month to month, beginning with February, 1920, on the basis of the
average dollar exchange value:
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Federal Reserve Bank of St. Louis
ll
FOOD
T.lBLII
So-INDEX NU:MBERB OF THE 0OBT OF FOOD IN GERMANY,_ 1920 TO, 1924, ON
BASIS OF DOLLAR EXCHANGE RATE, BY M0.'1THts
[1913-14-1)
Month
1920
1921
0.92
~~:::::::::::::::::::::::::::::::::::::::::::: ••••• 0. 40
March...............................................
tfa1;1·.:-:::::::::::::::::::::::::::::::::::,::::::::::
June.................................................
July.................................................
A11g11St..............................................
~~~~ber·::::::::::::::::::::::::::::::::::::::::::
November...........................................
December...........................................
.93
. 56
.91
.88
.89
.83
1::
L 37
.82
L 35
L 03
• 79
.65
.49
.35
.62
-.: 73~
. 82
1922
O.M
.61
.53
.63
.68
.68
.53
.36
.44
.36
,32
.46
1923
0.32
.48·
.66
.60
.41
.36
.56
..61
73
.n
L65
1.51
1924
L27
Ll7
L20
L23
1.26
1.20
1.26
1.22
1.25
1.34
1.35
1.36
. This table shows very !'.llearly the irregular course of the cost offood
in Germany when measured by the dollar. In February, 1920, food
cost in Germany only 40 per cent of what it cost before the war, while
in the United States 1t cost 200per cent.1 By June, 1920, the German
food cost, measured by the dollar, had climbed to 137 per cent of the
pre-war cost (the highest po_int reached from the begmning of 1920
until November, 1923), while the American food cost in the same
month was 219 per cent 1 (a maxim.um never reached before or after
that· month). From September, 1920, to October, 1923, the food
cost in Germany was in each month "below par," but it went up to
165 per cent in November, 1923 (when in tlie United States it was
only 151 per cent),2 and it was as high as 205 per cent on November
26; i. e., more than six times as higli 'as in January, 1923. It then
dropped to 116 per cent on February 11, 1924, but again somewhat
increased, on December 30 being 136 per cent.
The food-cost index calculated by the Federal Statistical Office
comprises a large number of cities and is therefore necessarily inelastic,
i.e., it hardly takes into consideration the market situation prevailing
at different times in the different places. There has therefore been
computed for January, 1920, to December, 1924, the minimum cost in
Greater Berlin of the weekly food requirements of a c~d (11,200
calories), a woman (16,800 calories), and a man (21,000 calories). In
case the quantities of food rationed in 1920 and 1921 did not contain a
weekly average of 11,200 calories, these rationed quantities were supplemented by foodstuffs having sufficient nutritive value to brin_g the
total to 11,200 calories. A woman would have to buy 5,600 calories
more than the amount allowed for a child and a man a further additional quantity of 4,200 calories. The computation was limited as
far as possible to the cheapest foodstuffs; i. e., if the supply of the
cheapest foodstuff was practically unlinnted, each person was supposed to ea~ as much thereof as could reasonably be demanded, then
as much as possible of the next cheapest, and so on. But if the
supply of the cheapest foodstuff was limited, each person was supposed to eat thereof in proportion to the supply, and then to proceed
to the next cheapest. The figure shown for January, 1920, 41.34 marks
means, then, that, taking into consideration the pnces, the supply, and
the _physiological and _psychological necessity of a certain variety of
food, a man could not buy foodstuffs having a nutritive value of 21,000
calories for less than 41.34 marks. Table 6 shows the results of this
computation for each month from January, 1920, to December, 1924.
1 Monthly
Labor Review, A11g11St, 1920, p. 53.
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Federal Reserve Bank of St. Louis
I
Idem, January, 1924, p. 41.
TABLE 6.-MINIMUM WEEKLY FOOD REQUIREMENTS OF CHILD, WOMAN, AND MAN, AND COST THEREOF, IN GREATER BERLIN, 1ANUARY,
1920, TO DECEMBER, 1924
.JANUARY TO
January
.TUNE,
February
I-'
.~
1920
March
May
April
June
Article
Quantity
Cost
Quantity
Cost
2,!n 2:~ 2, *' 2Ji
i~i~;~~~~~~~::::::::::::::::::::::::::::::::: ----~::- -----2~:- \i ~~
~~:a~·
Rationed:
CHILD
Gra1118
Marb
Gra1118
Marb
Quantity
Cost
Quantity
Cost
Quantity
Cost
Quantity
Cost
GraTM
Marb
Grams
Marks
GraTM
Marks
Gram•
.Marb
2,000
2. 74
1,900
4.04
2.65
4. 50
1,900.
1,900 456
1.27
190
.52
172
.47:
178
.52
25
.06 •••••• 280·
31
.12
100
• 70
125
• 50
50
.20
1.60
475
3.29
112
.85
2,000
1.20
1,900
1.37
2,125
1. 70
3,750
2. 65
2o0
4.33
250
5.36
·-250 ••• 5.4s·······250·······4.57
20
. 68
20
. 71
20
• 75
20
. 75
Butter_------··-·-·-·-·---········-···-·--·-·····
20
. 50
20
. 55
67
1.
28
59
1.
12
125
4. 41
187
5. 93
Margarine, coco faL------··-···-··-·---·--··-···
56
.82
105
2.00
123
4. 13
150
5. 69
125
5. 00
50
2. 00
Lard, tallow···-·-·-·-············-···-·-·--·····
82
2.01
45
1. 52
175
.49
175
.49
175
.70
269
1.06
Sugar.-··-·····-···-······-····-···-··-··-- ___ --·
175
• 36
175
. 49
125
. 92
100
. 74
125
1. 13
187
1. 92
Jam, honey substitute•••••••••••• -·---·--·-·--·----··-·--····-·······
62
. 37
Total.······-····-······------·····-·-·-··--·-· ;...-••-.••-.••-.1---l-l-.3-9-+-._-••-.-••-.-__+--13-.-07-+---+--17-.30-:1-.••
--••-.• •-.-.1---20-.26---1---+--27-.-09-1------1---24.-7-5
etc________________________________
Beans, peas______________________________________
In open market and by Illicit trade:
Vegetables_······-···················-····--·---- --····-··· ··-····-··
500
Total, child_-···.-··_._ •••••••• _••• _••••••••••• _•••••••••
11. 39 ••••••••••
. 22 -········· -·-·······
1,500
13, 29
17. 30 ·····-··-·
2. 25
I 25.'19 .•••••••••
22.50
1 22. 28
WOJIIAN (ADDITIONAL QUANTITIES)
[;J!i:l~~.::::::::::::::::::::::::::::::::::::::: -·---·=- ···•-:::. -··•--::- -·---:::. -···•-:= -·-•-:.:-.
~ .
!:il ......~......!:~.
Potatoes-----·····-······------·----·-------·-··-········----········--·--·----·----------·----·-------··-····-·--···-·-----··-·--·-·····-·-·-·-·-··-·-·Vegetables __ ······--·-·-·-·--··---·-·-···-·-·····-··· · 4,500
1. 80
3,500
1. 54
4,500
2. 70
2,000
3. 00
1,500
3. 00
J'am_·············-·····-·-----·--················-···
500
Total, woman___ ······-·.···--·····-···--··-·-· ••••••••••
3. 50
500
22. 34
3. 70
26.23
500
4. 00
31.20
500
7. 00
500
750
3. 40
250 1,500
500
1.20
1.05
6. 50
43. 74
42.40
1. 76
32.15
JIIAN (ADDITIONAL QUANTITIES)
Noodles, etc--··-···-········--·--·---·-·-··--····-·-· •••••••••• -····---·-······-------·--·--···-····--···--···-·-··-···-··- .. ··-----· ·····-···· ········-·
Rice .. ···--··················-·-··---·------·-·-···-·
250
3. 75
250
4. 60
250
6. 00
250
6. 00
125
2. 60
Beans,
peas------·······--·-·-·····-·-·-···---·~-·-·-
250
2. 25
125
1.15
250
y~~!!bles_ •.• -········-·-·----·--·-··---········-··· ·······-·· -··--·---· -·-·----·- ----··-··- -·----500-
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Federal Reserve Bank of St. Louis
2. 70
250
2. 25
250
2. 25
250
260
250
2.00
4. 00
1. 75
-··· 'foo· ..•. ~:~•....• ~:~•••••~:~•..••• ~:~. :::::::::: ::::::::::
C
0
~
!!
~
E::~:=::::::::::::::::::::::::::=::=:= ------=- -----~ =-----=- -----:=- ------=- ---~-:- ------=- ----~~-:=::~:r: :•~~1:
:=:t•~=
I: ~
Total, m!III.. •••••••••••••••••••••••••••••••••••• -··-·····-
41. 34 ·······-·-
47.18 -·-·······
58. 90 -·-······-
69. 90 ---·····--
68. 49
00
l
t.:>---------------------.--------,------.------""T"""----------July
August
September
October
lULY TO NOVEMBER, 1920
o
t
November
Article
r~r:.~s.
Quantity
Cost
Quantity
Cost
Quantity
Cost
Quantity
Cost
Quantity
Cost
Gra'ITI/J
Marks
Gra'ITI/J
1,900
Mark,
4.50
2. 61
Gram.,
1,900
120
Marks
4. 50
.97
Orama
1,900
88
Marki
Gram,
Marki
CHILD
Rationed:
etc:::::::::::::::::::::::::::::::::::::::::::::::::::::
2
'
~
~~
,~::~···-···-·--·---··-···-···-·-·---·---·---·-----------·------ - ---1,300 -···- L 06Meat •••• -········---···-------·-----···---·- ----·-----·-------------260
6. 11
Butter_-·---·----------·-·-·-·-----·-------------------------------·--
20
l~~
ra~~~w~-~t_:::::::::::::::::::::::::::::::::::::::::::::::::::
f::,1"honey substitute_________ -· _____ ._. ______ --··-•••• _---· ---· --- ___
ff~
Total---·-·-----·----------------·--·-----·-·-·-·----··--··------·-----···-·--
t=
• 75
.:
340
31
3• ~
20
187
269
125
23. 02 ······-·--
4. 50
.52
1,900
4.50
• 22 -·-·------ ---·------ -·······-- ·······-··
37
• 27
t.75
g} • 1•;gg t :t ······200- ·----a.-si- -·-··-200- -···--4.-53
.75
12
.47
20
6. 60
2. 13
1.47
150175
50
25. 76 ---·-·----
ID ifou'::8:"e~:~~~~t:._~~l~~~t-~~~~~~-------··---------------------------·-- ____________________ --······- _---·-·····
0
• 70
• 73
-
250
62
18. 69 --------··
1. 25
.80
1. 10 --·-··---· -···-----·
3. 75
.91
87
175
62
16. 06 -·--·--·-·
16.18
2. 75
,~::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: :::::::: :::::~:~: :::::::::: :::::::::: ____ ~:~. ---·-~~~- t~
itig
t~ . fl::
22. 21
22. 93
24. 27
• 24. 21
20. 99
500
3. 85
1.33
.90
500
Total, chfld ____ ·-----------------------------------------··--·····-- ---·-·----
250
20
32
6.10
2. 75
WOYAN (ADDITIONAL QUANTTTIF~)
~l gg
25
250
2.00
500
3.40
---- 500 - -- 2. 70 ·----500
-- 2. 40 - - 500
1,500 __________
a: oo
1, ooo
90 ·-·------1, ooo ···------. 70
1,500
Vegetabt,i:i_. ________________________________________________ -----··------- __________
1,500
l.. 50
1,500
Margarine ___ ----·-----·······-··----·-----·--··-----···-·----·---·--·---125
2. 90 ------·-·- ---·-·---250
6. 25
250
··-·-a. 00
·-· "500
t, 500
2,000
•••• 3. 00
1. 50
2.
00
125
3. 60
36.43
rl~~·
etc:::::::::::::::::::::::::::::::::::::::::::::::::::::::::
B n peas
rgg
250
P~a:~----·---·------·------------- -----------------------------·-------
Total, WOmBD---···-··-·· --··---·--········- ··--·----·-······--··--·
.......•.•
1 7 per cent deduction· for requirements Inferior to the ration.
• 10 per cent deduction for requirements inferior to the ration.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
750
3.00
500
2. 50
1.
20
l. 50
7.15
37.06
33. 86 ••••••••••
32. 84 ···-······
1 6 per cent deduction for requirements Inferior to the ration.
TABLE
6.-MINIMUM WEEKLY FOOD REQUIREMENTS OF CHILD, WOMAN, AND MAN, AND COST THEREOF, IN GREATER BERLIN, JANUARY,
f920, TO DECEMBER, 1924-Continued
IULY TO NOVEMBER, 1920-Conc!uded
September
August
July
November
October
Article
MAN (AllDITIONAL QUANTITIES)
Quantity
Cost
Quantity
Cost
Quantity
Cost
Quantity
Cost
Quantity
Cost
Gra1118
Mark.,
Gra11111
Mark.,
Gra1118
Mark.,
Gra1118
Mark.,
Gra11111
Mark,
-----s:1s- ------500- -----6.-sii- ------500- -t: i ~ ------soo~~~-~:-~t:_-_::::::~::::::::::::::::::::::::::::::::::::::::::::::::::::::
______ ____ __________
__ ____ ___ ------500·____ -----6.-45peas_------------------------------------------------ ·______________________________________
;;:i~:~~:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: ___ _.· ::------:: ----
250
1. 75
250
Beans,
2, : - -----: : - ----~~:- -----~~:- ::::~:~: :::::~:~:
t
o. 50
1. 90
m i;
6. 90 ___________________ _
125
Lard__________________________________________________________________________________________________________________________________
4. 75 _______________________________________ _
500
Jam----------------------------------------------------------------------______________________________ __________
Total, man _____________________________ .---------------------------- _________ _
48. 46
56. 26 ---------51. 22 ---------48. 34 ----------
DECEMBER, 1920, TO APRIL, 1921
January
December
February
April
March
Article
Quantity
CHILD
Gram,
Rationed:
Rye bread ________ ------------------ __________________ ---------------1,900
180
etc:::::::::::::::::::::::::::::::::::::::::::::::::::::
Y~11Ji:1'e~•
50
Meat, bacon _____________________________________________ •• • _. _______ •
Butter __ ----------------------- -- ---- -- -- --- --- -- --- -- ------ ---- ------
Sugar - - - ---------- --------- -- ------------------ -- --- -- - ---- - --- ------ -
250
16
'i!l5
Total _______________________________________________________________ ----------
In °8~
Cost
Quantity
Cost
Quantity
Cost
Quantity
Cost
Quantity
Marka
4. 50
1. 80
.80
Gra11111
Marks
Gram,
Marki
4. 50
Gram,
Mark,
4. 50
Grams
1,900
150
4. 50
1.'i!l
.64
2. 09
250 - --- 5. 50
.90
23
1. 33
175
14. 52
13. 50
4. 69
1,900
150
3t
250
175
2. 20
90
~!~~~~~-~=-~~~~:-~:~~~~-----------------------------------------------------------------------------0------------ ---------- ---------- ______ 250 ______1· 45 _______
: ~ : groats_ -- - Potatoes______________________________________________________________
Vegetables____________________________________________________________
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
250
3,000
750
1.
250
1,900
1.43
.50
5. 80
-
1.33
13. 56
Marki
5.38
1.45
100
2. 52
1.26
30
'i!l5
1. 50
2. 09
3( ------ 1. 60
1. 33
175
11. 87
9. 76
285
-
2,200
200
Cost
1. 80 ---------- ---------- ---------- -------··250
250 ______ 1· 40 _
------iisii3. 30
3,000
3. 30
3,000
3. 30
3,000
------i2s- ------:sii-
------rio
3. 09
3,000
• 90 ______________________________________________________________________ -··-··-·-·
3. 30
I-"
~
Canned meat ___________________________________________________________________ ---------- ---------- ---------- ---------- ---------Margarine____________________________________________________________
125
3. 60
125
3. 25
125
2. 88
Total, child ______________________________________________________________ •• __ _
22.94
23.49
24. 22 ---------WOYAN (ADDITIONAL QUANTITIES)
t
i
~::l.Sr~q _________________________________________________________________ ----- 375 - --·--2. 85 -
~
gg
~
~
Barley groats _________________________________________ ·------------------- __________ ---------- __________ ----------____________________
Beans_____________________________________________________________________
500
3. 25
500
2. 85
500
2. 50
250
4.45
2. 70
125
-
250 - -----1. 67250
1. 40
250
1.13
250
1. 25
1,500
1. 65
1,250
2. 00
Potatoes_----------------------------------------------------------------1,500
1. 65
1,500
1. 55
1,500
1. 65
Vegetables________________________________________________________________
3,500
4. 20
2,000
2. 80
1,250
1. 88
Salt herring _____________________________________________________________________________________________ ---------- __________ --------------------__________
~arlne ______________________________________________________________________ 125 ______3. 60 _______ 125 ______3. 25 _
2.
mi r:
38. 74
39. 77
125
22.88
Peas ______________________________________________________________________ ------------------------------------------------------------
Total, woman________________________________________________________________ _
4. 00
2. 40
250
20.56
------uo· ---·-·1:00
1. 40
. 55
1. 25
250
125
250
1,500
1,250
500
1. 65
2. 50
2.15
ii ------~~- ------~-~
gi
36. 91
35.63
aa..ll6
YAN (ADDITIONAL QUANTITIES)
Rice---------------------------------------------------------------------500
6.
500
6.
500
4.
1. 50
250
1. 00
75
250
1. 25
50
~~~bles ____________________________________________________________________ 1, 500 ______1. SO _____2,500 _____ 3. 50 _____2, 500 _____ 3. 75 _
90
500
250
3.60
1.25
500
Margarine________________________________________________________________
Jam_______________________________________________________________________
3. 60
2. 50
125
125
125
s. oo
-i2ii125
125
Peas______________________________________________________________________
250
125
250
Total, man ____ • __ -------------- _____ ------------------ ______________________ _
125
125
3. 25
1. 13
125
125
2. 70
. 95
50.42
53.37
&6.07
2. 88
1. 13
250
3. 70
1.25
------a:oo
47.13
2. 41>
1. 20
45.51
MAY TO AUGUST, 1921
May
July
June
August
Article
Quantity
CHILD
Rationed:
Rye bread ________________________________________________________________ _
Flour, cereals, etc ____________ ----- ---------- ----- --- --- ---- ------ -------- --Sugar ___________________________ --- -- ---- ----- -------- -- ----- ------ --------
GramB
1,900
294
234
Cost
Mark3
5. 00
1.96
1.87
Quantity
Cost
GramB
1,900
Mark3
5.00
105
.48
375
3.00
Quantity
Grams
1,900
212
175
Cost
Mark3
5. 00
}: :
Quantity
Cost
Grams
Marks
1, 900
5. 98
-287- --------2. 30
f----1--------,f-----!----+----+---+---+----
Total __ ------------------------------------------------------------------ -----------In open market and by illicit trade:
Rye
Oat groats ,.___________________________________________________________
Barley
125
8. 83 ------------
8. 48
7.93
flour ____________________ ---------------------------------------------- ____________ ____________
250
2. 00
125
1. 00
flakes------------------------------------------------"----------------- ------------ ____________
250
1. 45 -----------375 ___________
2. 29_
• 70 ________________________
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
8. 28
250
250
250
1. 70
1.91
1. 86
TABLE 6.-MINIMUM WEEKLY FOOD REQUIREMENTS OF CHILD, WOMAN, AND MAN, AND COST '.l'HEREOF, IN GREATER BERLIN, JANUARY,
1920. TO DECEMBER, 1924-Contlnued
MAY TO AUGUST, 1921-Concluded
May
June
July
August
Article
Quantity
Cost
Quantity
Cost
Quantity
Cost
Quantity
Cost
Gram
Marki
Gram,
Marki
Gram,
Marki
Gram,
Marki
cnn.D-concluded
ID open market and by illicit trade-Concluded.
Beans______________________________________________________________________
250
1. 05
. 125
~it~rii::~~-------------------------------------------------------------- ______a,:--------::: ::::::1,
Margarine._--------------------------------------------------------------125 -----------2. 44
Milk_______________________________________________________________________ -----------Total, child _________ - --------------------------------------------------- ___________ _
0. 54
125
0. 56
~
760 :::::::2. 80: ------ :::______ }
(') 125
20. 22 ------------
2. 60
4.
00
125
(1)
i
_ 2,
000
ll&_ :::::::::::: ::::::::::::
2. 54
60
3.
(') 125
24.28
21. 87
a. 60
3.
3. 00
75
24.00
WOMAN (ADDITIONAL QUANTITIES)
ifI;~~·:.-:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
ill250
! --------~250 ------- I.
f:l~:Y~e~i:::::::============================================================ ____ }~________!:~~ I.
1.
500
Peas._-------------------------------------------------------------------------
1
:
Bacon______ -------------------------------------------------------------------- ___________ _ ____________
Salt herring____________________________________________________________________
500
60
Margarine.-------------------------------------------------------------------125
2. 44
Jam________________________________________________________________________________________ ____________
Total, woman_ ______________________________________________________________________ _
1: :•
1. 25
1
, 125
125
250
a.. 79
--------?: -------1: gf --------:- ________;~
250
I. 29
1
• 125
t!00
28
~
t 250
~
600
44.66
43.04
46. 60
HAN (ADDITIONAL QUANTITIES)
Rice___________________________________________________________________________
600
3. 26
3.60
600
1.08
250
Beans. _______________ -- -- __________ - --- --- ----- -- -- ------- --- -- -- ---- --- --- ---- --------- - -- - ------- -- -Peas._------------------------------------------------•-----------------------250
1. 25 ________ _ _______
Bacon_________________________________________ ·-------------------------------125
._ 25
125
._ 25
Salt herring____________________________________________________________________
Margarine.. ___________________________________________________________________
250
125
• 80
2. 44
250
125
t*
::
._ ::
25
4. 63
125
5. 00
76
2.
..J.. 25
2.
125
2. 60
125
3. 00_
2. 60
25 _______________________________________________
. 88
2. 60
3.60
1.12
250
_ _____
_
125
._ 63
·260
1.
125
2. 60
500
________
00
500
.. 25
250
125
250
125
l. 60
5. 00
1. 25
3. 00
l---r--l----+----+----+----l----+----1---Total, man __________________________________________________________________________
_
61.60
67.61
65.46
46. 78
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
J-1
~
SEPTEMBEB TO DECEMBER, 1921
October
September
November
December
Article
Rationed:
CHILD
ffo~r::eals, etc::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
Quantity
Cost
Quantity
Grama
Marki
Grama
1,900
160
370
6. 95
L16
3.25
2,025
269
125
Cost
Marki
7.53
1.81
1.00
Quantity
Cost
Quantity
Cost
Grama
Marki
Orama
Marki
2,050
325
Bu.gar - -------------- ---- -- --- ------- ---- ---- -- ---- ------- --- -- ---------- -- Total ___ ----------------------------------------------------------------- ____________
lL 36 ____________
10 34 ___________ _
In o~~ ~!et and by illicit trade:_ 1 ----------------------------------------- _______________________________________________ _
250
Barley groats_______________________________________________________________
250
1. 96
250
2. 11
t:
tlfr ________________________________________________________ -------------- ---- <•f ____ -------a.so
if!:~e:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
3'
~
Total, child------- __________________________________________________________________ _
r:
<•>
2'
125
24.38
i.:
l :g
2, 500
125
250
(')
7.65
2. 00
2,150
160
1.16
9. 65 ------------
9.41
2. 60
250
3.10
5. 65
6. 65
2. 60
5. 00
3, 000
125
250
(')
7. 44
6. 90
2. 90
6. 20
32.15
26.65
8. 25
35.95
WOMAN (ADDITIONAL QUANTITIES)
Rye bread ________________________ :____________________________________________
500
2. 50
Rye flour______________________________________________________________________________________________
250
1. 28
250
1. 60
____________ ____________ ____________ ____________
250
125
1. 92
1.15
~~1'i!:8:::::::::::::::_:::::::::::::::::::::::::::::::::::::::::::::::::::::: --------~~- -------~:~- --------~~- -------~:~~- --------125- ------Tso- --------125- --------1~m
!!~rf~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
t~~X:U.ine:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
~: illi · tt:fi
Total, woman _________________________________________________ ----------_ ------------
tm
~:
iu
i:
~: m
g~
52. 32
48,26
t~:li
1: m
~:
66.60
Jt:~
74. 78
MAN (ADDITIONAL QUANTITIES)
Rice - - - ---------- _____________________________________________________________ _
Peas __________________________________________________________________________ _
Bacon_________________________________________________________________________ _
500
250
125
250
125
4. 60
L95
5. 50
1.25
3.42
Total, man _____________________________ - ---- ---- ------- --- - --- -------- - -- -- --- --- ------
64.98
tii::..'T~~g::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
• 1 liter.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
500
250
125
250
125
4. 75
2. 02
5.88
1. 31
4.06
70.34
500
250
125
250
125
6.40
2. 60
7.50
L50
6.65
91.25
500
250
125
250
125
7.90
3.05
8. 25
L 75
6. 90
102. 63
TABLE 6.-MINIMUM WEEKLY FOOD REQUIREMENTS OF CHILD, WOMAN, AND MAN, AND COST THEREOF, IN GREATER BERLIN, JANUARY,
1920, TO DECEMBER, 1924-Continued
JANUARY TO JUNE, 1922
January
February
April
March
May
June
.Article
cmLD
Quantity
Cost
Quantity
Cost
Quantity
Cost
Quantity
Cost
Quantity
Grams
Marks
Grams
Marks
Grams
Marks
Grams
2,012
50
250
250
125
2,000
Marks
14. 85
. 36
Grams
2, 000
125
250
125
8.50
5. 40
2. 50
8. 75
W-:ei'[EJr~-,_-_:::::::::::::::::::::::::::::::::::::::
----~~~~~-----~-~R
fl
250
2.30
2,
g~
lf: ~:
oif fl~~==:::::::::::::::::::::::::::::::::::::::::: 250 3. 05 ----·-2:so- ----~a:o:s1~~1~!~~~:s::::::::::::::::::::::::::::::!'::::::::::
----2;wii- -----ii:iio- ______ '.~~- ____ :'.~~~Vegetables___________________________________________
1, ooo
2. 80
1,250
6. 75
Margarine___________________________________________
125
5. 85
Jam __________________________________________________ --------·- •••..•...•
tll~~=:::::::::::::::::::::::::::::::::::::::::::::::
<·/50
Total, child.-·--···-·-·-·-· .. -·-·-·-·-·-----·-· _··--·----
~Jg
125
125
(1)250
6. 60
1. 80
2,300
15. 48
-•----250- -----3.40250
3. 50
J~
1,
1,000
125
250
7. 40
4. 50
250
Quantity
·Marks ·
15. 36
4. 35 ·-
Grams
2, 000
• 250- •
Cost
Marks
15. 97
4. 50
250
3, 000
5. 00 ---· -250 · ··---- 5. 25
16. 20
3, 000
12. 60
125
250
125
s.75 -- ·125·- -··9_50
6. 00
250
7. 00
3. 50
125
4. 50
8. 85
(')
10. 00
ui - - - - 1 - - -ui- + - - - - t - - - - - t - - - - t - - - - + - - - · 1 - - - <·/25
43. 24
38.00
!:5. 30~8
3.80
4.45
2. 30
12. 40
Cost
(')
54. 97
(')
68. 01
63. 31
69. 32
WOMAN (ADDITIONAL (;'UANTITIES)
Rye bread·-···-·-····--··--···-·-·-··---···---·-·-·250
2. 00
500
4. 30
500
5. 50
500
6. 20
Oat flakes·-·---······-··-----·-··-"··-··-····----·--· ·-··--···· ·····-···· ·-~····--- -····--·-- -·-···-··· -····-···· -·-··-···· ·--···-···
~!~!~-~~:s_-::::::::::::::::::::::::::::::::::::::::
~~g
. ~: ~
i~g
500
250
6. 35
5. 05
500
250
6. 55
5. 50
}~g ·-····'.~~- -···-~~~~- ··-··-'.~~- ..-.. ~~~~. ···--·2:so· -··-·4:iio· -····-2:so· ·--·--4;75
Peas·-·--·····-···-··-··-···---··-···--······-·-·---····-·····-··-·---··········-·-······-···
250
3. 75
250
4. 30 ····-··-·- -···•-···· -········- ···---·-·Potatoes_ ..••••.. _._._ .••• _._._ ••...• --·····--·-····1,000
2. 65 ······---- ······---·
1,000
4. 40
1,000
6. 20
500
2. 70
500
2.10
Vegetables ...•.... ·-·--··-·-·-···---·····-···----·-··
1,500
2. 40
1, 750
9. 45 ·-····250· ···-11. 10· ·- ···250· .• ·15_00- ···- 250
16.00 -· ·250
• 18.00
Canned meat.·-·-·-·······--···-·-···-·-···-··-···-··
250
9. 75
250
10. 00
125
9. 80
125
14. 00
125
14. 80
125
17. 00
Bacon.·-··-···-·--·-···-···--··-·-···--······-·--····
125
8. 20
125
8. 25
250
3. 45
250
4. 00
250
5. 00
250
6. 00
Salt herring .• ·-·-·-··-····-······-····-····-·-········-····-··· ··-·······
250
2. 45
125
7. 40
125
8. 50
125
8. 75
125
9. 50
Margarlne.·--···---·-·-·-··----·-·-·---·-·--·-·-·--·
125
5. 85
125
6. 60
Jam·-·----··-··-··-··-·--·-·----·-·-·--··-·--·-·-···· .......... ··--······
125
1. 80 ·-·-··---· -····--··· --··-··-· -· .-·-···· ---··-·-·- ·-···-···· --······-· ······-··103. 02
123. 81
131. 26
138. 72
Total, woman.·-·-·-·-·----·-·-··-··-·····--····---·----·
77. 00 ·--··---··
91. 04
MAN (ADDITIONAL QUANTITIES)
Rice.---------···-····-··-·-····--·-··········-···--·
500
7. 75
500
9. 40
Beans __ ·····-·-·-··-·····-------·-·-··-··-··-··--·-· •. ··-·--··. ··-·--- .. _ ···-···. __ .•.•. ·- ...
Peas •. ·--···--······-·-··------··-·-··----·--··--·-··
250
3.15
250
3.40
Bacon_··-·--·-······-··-····-·-·-···-·····----···-···
125
8. 20
125
8. 25
Salt herring··-··--··--··-······-·-···-····--·-·-·····
250
1. 75
250
2. 45
Margarine ••••••• ·--·----···-···-····-----------·--··
125
5. 85
125
6. 60
500
250
10. 15
4. 05
500
250
11.60
4. 30
125
250
125
9. 80
3. 45
7. 40
125
250
125
14. 00
4. 00
8. 50
lioo
12.45
500
13. 00
250
125
250
125
4.70
14. 80
5. 00
8. 75
250
125
250
125
4.90
17. 00
6. 00
9. 50
----1----1-----+---+----l----l---'---+----f----l----t----f----
Total, man .. ·--·---·····-·-·-·-----····-·-··-·--·-·······
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
103. 7~
121.14
137. 87
166. 21
176. 96
189. 12
1--'
00
IULY TO NOVEMBER, 1921
1uly
Augost
September
November
October
Article
CBJLD
Bye bread• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••
Bye flour •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••
Oat :flakes•••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••
Barley groats••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••
Potatoes •• ····················-······-···········--·················-··-··
~-:.::::::::::::::::::·:::::::::::::::::::::::::::::::::::::::::::
LT:·:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
Quantity
Cost
Quantity
Cost
Quantity
Cost
Quantity
Cost
Quantity
Cost
Gt-am11
Marki
17.15
5. 50
Gt-am11
.ICIZJ'b
Gt-am11
Marb
36.0li
Gt-am11
.Marb
Gt-am,
Marb
46.00
35.00
1,900
2,000
250
125
250
1,250
1,000
125
250
250
(•)
Total, ohild·-·········································-' •••••••••••• -·········
3. 75
6. 50
14.00
12. 00
13. 00
8.00
11.90
11.70
1,940
250
25.95
1,,900
10.45
250
250
3, 250
12. 10
25. 60
125
28. 15
• 250
3, 000
1, 000
125
21. 75
~- 00
11. 00
48. 60
250
250
3, 000
1, 000
125
250
24. 30
19. 10
250
(•)
34. 40
37. 60
(•)
(')
1,900
250
232. 70
145.65
103. 50
19.30
•••33. 75.
40. 50
20. 00
78. 76
42. 00
60. 85
107.85
250
85.00
·····-250 - ···--87. 50
3, 000
46. 20
1, 000
25. 50
125
207. 60
•
250
(')
•••48. 00
134. 25
741.80
366.85
WOMAN (ADDITIONAL QUANTITIES)
fli:il~:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: ····-·~· --···~:~. --··--~· ....~~:~.
:l
:~
:l
:. :
Beans·-·································-··-·······-······--··-··········
250
22. 25
250
37. 50 ·········- ····-·····
Oat :flakes••••••••••••••••••• _•••• -···--·-····-······················-·····
125
250
3. 75
6. 25
250
250
:l
1: :
Ml
1-' 60 ······-·-- -··-·----· ·····--·-- ---·------ •••••••••• ·--··--···
13. 50
Peas ••••••••••••••••·--···························--···-···-······-······· ······---- ---··----- -··-··-·-· ······-·-· ······---- ··--·---·· ···------- ·-··--·-·· ···-----·- ----··-···
Potatoes •• ·················--·····-········-·-···········---········---···
1,000
11. 20
500
3. 96
500
4. 00
500
6. 75
1,000
15. 40
1,000
250
125
~ : -·-··· 125 ·--
Vegetables •• ·-············-··-·······-···--·---··--·············--·--·····--·-··-·-- --···--·-· -····--·-· ······---250
28. 00
250
53. 00
125
28. 00
125
45. 00
Caimed meat-·- •••• ·······················-·--········--···-··--·········
Bacon--··-··················-·-······-····--·-········-··-···--········-·
t1~:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
~
Total, woman. ___ -····················-·--···-····················- ••••••••••
1t ~
~
519. 20 ••••••••••
332.85
210. 06
11. 00
1,000
20. 00
2,000
51. 00
75. 50
250
135. 00
250
280. 00
70. 00
125
126. 25
125
266. 25
48. 60 •• - 125 • 78. 75 ·····-125- ----207. 60
863. 96
1,802.60
ll'.AN (ADDITIONAL QUANTITIES)
Bice._.··············---·····················-···--··-··················-·
500
18. 60
500
34. 20
500
55. 60
500
94. oo
Peas_ ••••••••••••••••••• --···-·····················--·········-········--·
Bacon •••• ···········-·····-·················----···-······· ···········--·
Salt
Mlll's:arine---································-·---········-·-···········-·
250
125
250
125
6. 75
28. 00
7. 00
13. 00
250
125
250
125
.14. 70
45. 00
11. 60
28.15
250
125
71.10
70. 00
21.10
48. 60
250
125
40. 00
126. 25
Beans.----·-·-·---·-··············-······--·--··-···-···········-·--·------- -·-··-·--- ---·------ --·····--- ··--··---· ·-··------ ····--·--- -····-----
herring-······················-·········-··--···-··----·-···········--
Total, man ____ --···················-······-··········-···--····-·-· ··-·-···-·
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
• l llter.
283. 30
466. 60
I
Rationed.
250
125
741.60
250
125
500
250
200.00
85.00
78. 75
125 • ·-266. 25
250
86.00
125
207.50
l,~L96
2,647.35
39. 00
••
T.illLE 0.-MINIMUM WEEKLY FOOD REQUIREMENTS OF CHitD, WOMAN, AND MAN, AND COST THEREOF, IN OREATE-R BERLIN, JANUARY,
_
1920, TO DECEMBER, 1924-Continued
DECEMBER, 1922, TO MAY, 1923
December
Article
January
February
March
April
May
Cost
Quan•
tity
Cost
Quan•
tity
Cost
Quan•
tity
Cost
Quan•
tity
Cost
Quan•
tity
Gra'TTI/J
1,900
250
250
:l~oats :: : : : : : : : : : : : :: :: :: : : : : : : :: : : : : : : : : : : : : : : : : : : :: : : : : : 3,000
1,000
125
250
Milk••••••••••••••••••••••••••••.•••••••..••••.••.....•..•••••••.
(')
Mark3
275.35
102. 50
112. 50
48.90
35.00
246. 25
90.00
185. 80
Gra'TTI/J
1,900
250
250
3,000
1,000
125
250
(')
Mark3
458. 75
140.00
170. 00
87. 00
65. 50
367. 50
140. 00
255. 25
Gram,
1,900
250
250
3,000
1,000
125
250
(')
Mark3
708."45
412. 50
437. 50
363. 00
117.50
1, 050- 00
252. 50
616.85
Gra'TTI/J
1,900
250
250
3,000
1,000
125
250
(')
Mark3
871.60
332. 50
452. 50
330.00
'01.50
800.00
415. 00
715. 35
Gra'TTI/J
1,900
250
250
3,000
1,000
125
250
(')
Marks
900.00
357. 50
437. 50
228. 00
232. 50
725.00
557. 50
917. 35
Gra'TTI/J
1,900
250
250
3,000
1,000
125
250
(')
--------
1,096.30
--------
1,684.00
--------
3,958.30
~~:::
500
270. 90
Quan•
tity
CHILD
Rye bread• •••••••••••••••••••••••••••••••••••••••••••••.••.••••.
J
Fu$!ri!ie:::::::::. :::::::::::::::::::::::::::::: ::::::::::::::::
Total, child •••••••••••••••••..•••••••••••••••••••••••••••••
4,144.45
4,355.35
Cost
Marks
917. 74
475.00
520.00
366.00
370.00
1,325.00
562. 50
956.13
6,492.37
WOMAN (ADDITIONAL QUANTITIES)
~:~~~························································
~ •••••.••..
Oat flakes .••••••••••••••••••••••••..•••••.•.••••••••.•••..•.. · ... ....••••
500
756. 60
500
681.00
500
681. 55
·500
934. 16
250
186. 00
250
497. 50
250
487. 50 • 250 •• 440. 00 • • 250
587. 50 ·
Potatoes......................................................... 1,000
16. 30 1,000
29. 00
1,000
121. 00
1,000
110. 00
1,000
76. 00
1,000
122. 00
Vegetables •.••••••.•.•••.•.•••....••••....•••••••...••......·•.... 2,000
70. 00 2,000
131. 00
2,000
235. 00
2,000
455. 00
2,000
465. 00
2,000
740. 00
Canned meat ••••.•..•••.•.......•.•••....•...••....•••..•....•• '-".
250
365.00
250
600.00
250 1,650-00
250 1,550-00
250 1,550-00
250 2,800.00
Bacon............................................................
125
337 r.o125
662. 50
125 1,537.50
125 1,452.50
125 1,387.50
125
2,075.00
Margarine.......................................................
125
246. 25
125
367. 50
125 1,050.00
125
800. 00
125
725. 00
125
1,325.00
,---1----+-------1---+-----t----+---1-----1---+---1----1--Total, woman.............................................. •••••••• 2, 429. 05
3, 93o. 90
9,805.90
9, 680-45
9, 68o. 40
14,076.03
MAN (ADDITIONAL QUANTITIES)
500
416.00
500
990.00
975. 00
Rice •••••••••••••....•••••••••••••••••••.•••.•• - ••••••••••.......
500
265. 00
500 1,160.00
500
500
1,400. 00
250
182. 50
475. 00
250
465.00
451. 25
Beans............................................................
250
115. 00
250
250
250
625. 00
125 1,452.50
125
662. 50
125 1,387.50
Bacon............................................................
125
337. 50
125 1,537.50
125
2, 075. 00
250
240.00
625. 00
250
600.00
587. 50
Salt herring......................................................
250
140. 00
250
250
250
750- 00
125
367. 50
125
soo. 00
125
725. 00
125 1,050.00
Margarine ••••••.••••• -•••••••••••••••••.••••••••...••.••.•..•••• ,___1_25--1--24-6._25-+----+----+---+---1-----1------1---+----+--12_5--+--1,_3_25._oo
13,987.95
20,251.03
6,799.40
Total, man•••••••••••••••••••••••••.•.•••..••••••••.••••••••••••••• 3,532.80
14,653.40
13,806.65
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
--------
--------
--------
ta
O
IUNE TO NOVEMBER, 1923
July
June
Article
Quan•
tity
Cost
Quan•
tity
August
Cost
Quan•
tity
October
September
Cost
Quantity
Cost
Quan•
tity
Cost
November
Quan•
tity
Cost
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -----1----+-----1---1-----1----1·----1--CHILD
Grams
Marks
Grams
Marks
Gra1118
Marks
Gra1118
Marks
Gra1118
Million
marks
Grams
Billion
marks
Rye bread•.................................................. 1,900
2,523
1,900
6,203
1,900
98,967
1,900
2,703,000
1,900
3,077.6
1,800
378
1,850,000
Rye flour....................................................
250
1, 100
250
4,250
2_50
250
60,000
467.5
250
250
75. 5
Oat flakes.................................................... ........ .•...•....
250
5,400
Barleygroats.................................................
250
1,200
250
5,000
250
82,500
250
2,350,000
250
515.5
250
86.3
Beans..............................•.................•.•·...•...................
125
2, i25 ........•.••..•...••••••.••.......•...•...••...••.•..•.••••••.••••••••••..••
Peas.........................................................
125
606 ..•..... ···-··---· ..................•..•....................••....•......••.•.....•.••••...•••
Potatoes..................................................... 3,000
1,575
2,000
17,200
3,000
138,000
3,000
2,070,000
3,000
885
3,000
117
Vegetabl•····················-··-···-·-·-··················· ........ .•........ ........ .•........ 1,000
77,500
1,000
945,000
1,000
227
1,500
76.5
Margarine...................................................
125
2,975
125
7,500
125
162,500
125
4,062,500
125
912.5
125
133. 7
Sugar........................................................
250
750
250
1,650
250
56, 000
250
2,070,000
250
762. 5
250
143
Milk.........................................................
(')
1,663
(4)
4,734
(4)
75,097
(')
3,152,533
(•)
756. 5
(')
132. 5
Total, child....................................................
12,392
54,662
19,203,033
• 750,564
7,604.1
1,142.5
WOMAN (ADDITIONAL QUANTITIES)•
Rye bread ... ············--··--··--··--··---·--··············
500
1,993
750
12,779
500
99,140
500
2,800,617
500
822
500
105
Oat flakes....................................................
250
1,275 ........ .........•
250
95,000
250
2,575,000
250
531.3
250
92.3
Rice............................................................................
250
5,625 .....••.•.••.•••.••••••..•...••..•....••.......•....•.....•••..•.••••••.••••
250
5
450
250· ···· 1,212· .••• •...• '
.
Potatoes..................................................... 1,000
525 .....••• ••...•...• 1,000
46,000
1,000
690,000
1,000
295
1,000
39
Vegetables........................................................................................ 2,000
155,000
2,000
1,890,000
2,000
454
2,000
102
Cannedmeat..•.•..........•.....•.•.......•.................
250
5,350
250
17,500
250
325,000
250
9,500,000
250
2,065
250 •••• 500 ·•
Frozen meat .. ·······--·········-········--·················· .......... ·................•..................................................................
Bacon........................................................
125
4,375
125
15,750
125
325,000
125
9,2.'i0,000
125
2,542.5
125
756. 2
Margarine...................................................
125
2,975
125
7,500
125
162,500
125
4,062,500
125
912. 5
125
133. 7
J::!'s: ::::::::::::::::::::::::::::::::::::::::::::::::::::::: ····
Total, woman..................................................
1:::::::: :::::::::::: :::::::: :::::::::::: :::::::: :::::::::: :::::::: ::::::::::
30,097
119,266
49,071,150
1,958,204
15,226.4
2,870.7
MAN (ADDITION AL QUANTITIES)
Rice ..•.••••••..•....... _....................................
500
3, 400
Beans........................................................
250
1,250
Peas......................................................... . .... ... ...... ....
Bacon........................................................
125
4,375
Salt herring..................................................
250
1,600
Margarine...................................................
125
2,975
11,250
500
210,000
500
5, 200, 000
500
1,162.5
100, 000
325,000
92,500
162,500
2,875,000
9,250,000
2,500,000
4,062,500
250
125
250
125
185.5
100.5
250
125
250
125
250
125
250
125
500
250
5,500
15, 750
3,600
7,500
708. 8
2,542.5
574
912. 5
125
250
125
756. 3
152
133, 7
1---+----11----t-----1---t-----+----t-----+---+----+---•1----
Total, man............................................. .•.•.•••
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
500
250
125
250
125
•lllter.
43,697
• Rationed.
162,866
2,848,204
73,858,650
• Rationed, June to September.
21,126. 7
4,198. 7
'l'ABLE
6.-MINIMUM WEEKLY FOOD REQUIREMENTS OF Cii:ILD, WOMAN, AND MAN, AND COST THEREOF, IN GREAT.ER BERLIN, 1ANUARY,
1920, TO DECEMBER, 1924-C~ncluded
DECEMBER, 1923, TO A.PBIL, 1924 7
January
December
February
March
April
Article
CHILD
Quantity
Cost
Quantity
Grams
Pfennigs
Grams
~
I~:~~:~----------·------·----------------------------------·-----·--·-··
~~
~
Cost
Quantity
Cost
Quantity
Cost
Quantity
Cost
Grams
ptennios
Grams
Pfenniga
Grams
Pfennigs
Pfmnigs
~
~
~
~
1,
1,
6g
1,
1,
g:1!:~ats.-----------------------·-------·----·-·-----··-·-·---··--··-- -·---· 250 • ···---· 15• ·-·---250 -------12- ----- •250• -------10- --·-•-250 • ·------1024
3,000
23
3,000
ZT
3,000
26
3,000
Potatoea. ··------····-----·---------:--.--------~-·-·········-············
20
1,500
18
1,500
21
1,500
16
1,500
Vegetables.-·---··----·------·········--··································
15
126
16
126
17
126
20
126
Margarine.·-········-····················································
:~
(')250
~
(')250
:~
(•)250
:;
(•)250
t~:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
Total, child •••••••••••••••••••••••• ····-··-· •••••.••••••••••••••••••••••••• _••
213
177
199
1,800
250
250
50
8
3,000
'}{T
1,500
126
250
(')
10
26
15
21
29
186
180
WOHAN (ADDITIONAL QUANTITIES)
14
500
14
500
14
500
• 16
500
20
500
Rye bread·-··-····························-······························
10 •••••• • .•••••••
250
10
250
12
250
Oat flakes .• ·•··--····-···············---·································· .•.•.•.... .•.•••.•..
10
250
Barley groats••••.••.•••..•••••••• ·-···-··-····································-········----·-··---·-····----·---·- __________ ---------··-··-········-----··
16
250
Rice_.··---·-·-··········--······-······················-·················
9
1,000
8
1,000
8
1,000
9
1,000
34
2, 000
26
2, 000
24
2, 000
28
2, 000
~: 38:l
~:!=es···---·· •• ·-···-_ ••• ·-•.•••.•••••.••. ·-· ••.•.••..• ·····-........
30
250
29
250
28
250
33
250
40
250
Frozen meat_·-··.........................................................
34
125
38
125
36
125
47
125
80
125
Bacon....••• ·--········-·-·········----··-·······-·····-..................
15
125
15
125
16
125
17
125
20
125
l\llargar!ne __ • __ •••.• ···-·-·---· •• ·-. ·--· ••.•. -·. ·-·-·-·-. _. ..• . ••••. •• ••• .
2!
1----1----+----1----1-----l----f----1-----1-----~---
313
361
Total, woman .••. --··-.··-.··-· •••• ··- __ ••.•.•. ·-····--····-··-•••.. _··--··-••
332
320
HAN (ADDITIONAL QUANTITIES)
Rice ..... ····-·-··-·--·------ --- ··-- - ·-·· ··· · · ··· · · · · ·· ··--··-··-···-·--· ·
Semolina .•. --·-····------·-------·--····--·--··············-········-····
Beans.•••• ·-·-·-··-·--·---------··--···-·····-···············-·······--···
Bacon.••.• ·-········--·----·-·---····-·····················-··············
f:1~::-t~::::::::::::: :::::::::::::::::::::::::::::::::::::::::::::::::
250
250
250
126
250
125
Total, man... ·- ____________ ·--·-----····-----·-·---------··--··-··-•.•.• ·····-
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
16
16
20
500
200· ··-----17
47
125
19
250
17
125
695
488
20
80
26
•
25
500
260 ••••• 14
36
125
18
250
16
126
422
500
250
125
250
125
24
••• 13
38
17
15
427
500
250
125
250
126
23
- • 13
34
18
15
1!¢
tQ
HAY TO DECEMBER, 1924'
Cost
Quantity 1----,----,----,-----,-----""T"----""T"-------May
June
July
August September October November December
Article
Grama
CHILD
1,800
Rye bread_-------------------- -- -- ---- ---- -- --- ------ --------------------Rye flour _____ -- -- -_________ ------- ---- -- _______ --- _---------------------·Oat flakes ___ ·---- --·--·-·---·---·---·-·-···--------·---··-·--·--. -·--·---Barley groats. -• -- --·--·--•••• --• --• ·---·--•• --- ---·-. ·--··----·-·---·--··-
250
250
250
Peas_________ --·····----. _·--· ----. ·-------------------·-···-·-------. ··---
Potatoes _____ --··-·---···········-···. --- --·-. ·-· •-- •--•-·. •-·- -•- -·- •-· --Vegetables ___ ··--- -• --··-----------·--·--- -- --- --- --- • -- ----- • -• ---·------Margarine---······-·----·-------------·--------------·-------------------Sugar ____ ---------·-···-----·--- __________________________________________ _
Milk ____ -·-· ·------·- ______ ----··········-·--- ---·-··-- ____ ·----- ________ _
125
3,000
1,600
125
260
(')
Pfennigs
60
8
10
.... -.... ------
Pfennigs
60
Pfennigs
60
Pfennigs
60
8
7
10
10
15
5
1 31 •••••••·'rl ·
33
30
16
17
18
20
29
31
8
••••••••10.
......................
••• ··37 ·······-25"
'rl
36
16
16
21
19
30
26
Pfennigs
61
•
• •
Pfennigs
Pfennigs
67
67
9
10
11
• 10 ••••••••11. ····-··11
Pfennigs
67
11
••••••••12
21 •••••••• 24" ·-······ 24• ••••••••• 24
24
24
21
18
19
19
19
20
20
17
16
33
35
33
34
24
1-----i--------,i---------,1-------,----1------i------t----+----
T ot al, child._··--------·--·---·-·-·-·-- _________ -· ______ ••••••••••••• ········-··
199
100
600
14
14
10
250
1,000
2,000
• 10
11
36
204
WOMAN (ADDITIONAL QUANTITIES)
Rye bread_ •••••• ·-.•••••••••••.• _.. ·•.•••••.••• ·- __ • _____ --·-- ---·-·-----Oat flakes. _____ --·----·----- _______________ ·----·- ___ ·----··----·----·---·
Barley groats._ •• __ ···----··- _____ ·--· •• ·-- __ • __ • __ -·-·--- •• ____ ··----·--·Potatoes- -.---·-·--- --- -- --- - -- -- -- -- --·-·---• --- -·-·------ ---- - -• -·- -•· ··Vegetables_ ·---·-·-·-··--- •••. ---- -- -·-----.••• ·-.•• --•• -. ---- •• ---- • -----·
Frozen meat_ ••• __ •• ··-·--····- __ ·-·-·- ____ ·-. __ -·-•• __ •.••. ___ •.. ___ • ____ _
Bacon ___ ... _. _________ ···---·.·-·-·-·--··-·-···-··-·-••• _____ ·--. _______ ••
Margarine.. __ ._. ___ • _____ ---···- __ -········----···-·- ___ ·--•••• ---· --·--·-
260
260
125
125
10 28
••
·········s. ••••••
48
29
28
32
16
30
16
15
44
193
1116
14
18
11
----------10 •••••••••• 7.
II
40
26
30
16
29
33
17
32
30
40
18
353
345
352
210
206
204
19
19
19
12
12
13
·······-·8- ·······--8. ··········8
32
32
28
32
32
35
45
45
45
111
111
19
!,;I
0
g
1----1----1------"1--------,r----1----+----+----+----
Total, woman. ___ -·- __ ·-. _____ •• ____ • _____ ··-··-·.···--···--······- __ --········
348
377
373
371
MAN (ADDITIONAL QUANTITIES)
24
'rl
28
30
500
22
23
30
23
Rice ••••••••••••• -•. ···-·--·--·-----------------·-------------·----··-·-·-·
13
13
11
11
12
13
H
260
13
Peas·-·---·---··-·-··········-··--·-·--·-·---·-----·--·--------·---·--···-Bacon .••••• _-· __ • -· _-·-· __________ -· -· -· __ --· _____ • --- ___ ------ ----- -----40
45
45
30
125
32
30
33
45
16
16
16
16
18
16
17
260
16
Salt herring .•••••••••••••••••••••••• -·· •••••••••••••••••.••.•••••••• -···-·
17
19
111
16
125
16
16
18
19
Margarine·-··········-·-·-····--·-······--·-···-·········-·········-······
1----1-----1-------------,r----f----+------i----+---466.
498
4116
4115
Total, man •••••••••••••••••••••••••••••••••••••••••••••••••••••••• __ •••••••••••
448
446
~9
4431
• l liter.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
r Prices based on rentenmarks.
1
l25arama.
1 2,000Kram&.
111,000 grama
to
Ci:»
24
CHAPTER II,-STANDAB.D AND COST OF LIVING
While, as previously mentioned, th~ physiolo~cal and psychological necessity of a certain change of food (or the necessity of a
certain minimum of protein) was not disregarded, the monotony in
the diet chosen for the calculation of the minimum cost of subsistenc&
doubtless characterizes it as a true minimum; yet this minimum, as
will be shown in the chapter on wages (pp. 125 to 134) could not be
attained by the great majority of married workers having children.
It will be interel!tmg,· then, to· note how such families lived before the
war. The followin_g six families may serve as exam_ples:
Family No. 1.-Bricklayer with wife and three cliildren of 15, 14,
and 13 years of age. Total expense for food 'in April and May, 191'3,
253.35 marks·:
Family No. 2.-Unskilled laborer with wife and three children of
7, 5, and 3 years. Total expense for food in April and May, 1913,
. ,.
200.59 marks.
Family No. 3.:......ci.ty employee, laborer, with wife and two children
of 14 and 12 years. Total expense for food in April and May, 1913,
•
.,
231.74 marks.
Family No .. 4.-City employee, gardener, with wife and two children of 8 and 5. years. Tota.I expense for food in April and May, 1913,
186.16 marks.
Family No. 5.-Machinist with wife and 'one child of 19 years.
Total expense for food in April and May, 1913, 259.58 marks.
Family-No. 6.-Printer, with wife but no children. Total expense
for food in April and May, 1913, _149.95 marks.
The average food expense per capita per day was 91 pf~nnigs~
equivalent to 22 cents.
·
Table 7 sets forth with all necessary detail the quantities of food .
consumed by each of these six families in April and May, 1913, and
the total amount spent therefor. ·
·
T.t.BLB 7.-FOOD OONSUMPTION OF SIX WORKERS' FAMILIES IN GREATER BERLIN
IN APRIL AND MAY, 1913, AND TOTAL OO8T THEREOF
ME~T
Quantity comwned b)"Article
Total
Unit
Beef:
.
Round of beef, top part Kllo __
of sirloin steak.
Bolling beef---------•-- ___do__
Soup meat"(brl$ket) _______ do__
Liver----------------,-- ___ do__
~=y
Family Family Family Family Family Family Q~tlty Oost
No. 1 No. 2 No. 3 No. t No. 5 No. 6
2. 250
1. 500
3. 625
O. 625
3. 075
. • 375 -------2. 750
1. 500 -,------
3. 375
• 625
1. 000
0. 625
• 750
2. 750
L 125 ________
3. 659
L 250
1. 250
0. 500
L 000 ________
8. 075
3. 750
17. 309
'- 375
·-:::::::::::::::::do::: . :::.: :::::". · :::::::: :::::::: :::::::: ___: 750______ : 750_
Udder---------------•-- Kilo __ -------- -------- ________ ________ ________
• 750
• 750
. 750 ________ ________ ________ ________
• 750
.155 ________
.875
L375
.625
3.405
• quality.
.
• 250 ________ ________
.-750
Minced meat, mixed ___do __________ ----···- • 500
with fat.
.
.
Beef and pork:
.
.
Minced beef and pork, ___ do__
• 625
• 813 ________
. 500
• 875
L 875
'- 688
Oanned meat ______ ,_: _____ do__ ________
Minced meat, best ___ do__
.375
mixed.
Stewing (goulash) _________ do__
LOOO
• 750
• 750
.500 --------
,375
Pork:
Small steaks from best ___ do __________ -------- ________ ----···· ••••••••
• 8711
D8rt of leg.
·
Clio_ps, lower end of • __ do -- 2. 826 L 750 2. 500 1. 750 Ii. 876 L·ooo
lom.
Thin end of shoulder _._do •• L 71111 ~ •••••• _ -------- L 3711
• 500 • . •••••
3.375
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
L8711 •••••••
.8711
• 7IIO
16. 911
1.1r.
29.911
10.60
.90
.20
.60
L80
7.76
L25
7.96
6. 811
• 3711
.90
16. 200
38. 'IO
3. 625
6. 'IO
B.000
11.10
(&Au/t).
Flank--·-•-·•-········ ...do •••••••••••• '....
Marl:a
25
FOOD
'TABLB 7,-FOOD OONSUMPTION OF SIX WORKERS' FAMILIES IN GREATER BERLIN
IN APRIL AND MAY, 1913, AND TOTAL OOST THEREOF-Oontlnued
MEAT-Concluded
Quantity consumed by-
Total
Unit
Article
Family Family Family Family Family Family Quantity Oost
No. 1 No. 2 No. 3 No. 4 No. 5 No. 6
Pork-Ooncluded.
Kilo ____________________________ ·----l'igs' knuckles and pigs' ___ do__ l 000
1500
3. 500 ________
Loin--------------------
feet.
Ears
_______________________ do __ ________
l 875 _______ _
l 000 _______ _
• 760 _______________________________ _
Tripe ------------------ ___ do -- -------- -------- -------- --------
Minced pork, SBtlSOned ___ do -- -------- -------.1215
and unseasoned •
• 500
2. 000
. Smoked best end ofloin____ do __ 1375
Salt lower end of loin ______ do__ ________ ________
• 375
Ham, rolled ham __________ do__ 2. '37
1. 400
1375
Lean bacon ________________ do__________ ________ ________
Fat bacon _________________ do __
• 625
• '35
2. 250
Mutton:
1. 000 -------l 760
-------- -------l 000
2. 000
• 500
________ ________
• 250
________ ________
• 625
________
.125 _______ _
• 660
• 500
1. 175
a~ ---------- .~ ---.
~
=
~uey
____________________
760- -------- -------Thin
end
of flank __________ do__
• 375 ________ ________
• 500
.876
• 760
Liver ______________________ do__
.375
.250 ________________ -------·
.500
Not spooifted ______________ do__ ________ ________ ________
• 500
l 875 _______ _
Veal:
J~ __
·
Mara
1.875
7.000
3. 75
5. 60
• 760
1000
.56
!-871>
~25
7.375
.625
li.837
.125
li.635
14. 00
125
20.20
1. 796
1.250
2.500
1. 125
2. 375
. 3. !Iii
. 2. 4li
4. 4li
2.80
4. 60
.70
• 35
1185
1. 760
3.85
1.000
2. 00
1500
2. 50
7.925
16. 30
1.250
2. 20
Not specified ______________ do__ 2. 760 _______________________________________ _
2. 760
5.50
Miscellaneous:
•
Bones ___________________________________________________________________________________
_
.80
Skin____________________ Kilo__________________________ 1000 ________ ________
1.000
(()
OhicJren________________ .Each __ -------- 1. 000 ________ ________ 1. 000 ________
2. 000
4. 4li
Bllced cold meat and Kilo __ 5. 813
7.1133
6. 313
9. 760
7. 375
5. 314
a. 498 104.M
!i:~nd of loin________
·-1.000- ---. 500- --~-:- ________ --~-~- ____: _
li~1e:::::::::::::::: :::1~ :: --~:~- ___ :~~ ___:~- ::::::::1
t ~ ___:~-
.
S8US8g8.
Thick S8US8g8S (bock- Each__ 4. 000 -------- -------- -------- -------- -------wurst).
8mall sausages__________ Pair __ 11. 000
5. 000 30. 000 ________ 3. 000
6. 000
4.000
55. 000
.M
4.80
FISH
Lemon sole_________________ Kilo___________ 0. 500 ________ ________ l 000 _______ _
· Plaice _________________________ do __ -------- -------- 2. 500 _______________________ _
Flounders and mackerel. ______ do__ ________ ________ ________ ________ 2. 500 _______ _
Pike ___________________________ do-- -------- -------- -------- ________ ________ 1. 000
Haddock (fresh) and cod ______
do __ -------1. 643
2. 000 -------- -------- 1. 250_
Roach---------------------___ do-1. 500 _______________________________________
Herring_____________________ Each-- 15. 000 53. 000 15. 000 ________ -------- _______ _
Salt herring ___________________ do-- 8.000 -------- 4.000 -------- 6.000 13.000
Bricklinge
of bloater) ____
do.- -------- -------3. 000 -------9. 000
6..125
000
Kiel spratts(kind
(smoked)_______
Kilo___________
________ ________
0.125 ________
Smoked "salmon" herring Each__________ ________ 2. 000 ________ 1. 000 3. 000
L
~
large -variety). --- ___
Kilo
___ -------21;0
Smoked
salmon-----------do__________
•• 236
Anchovies! Mediterranean __ -do •• ________
• 125
(sardelleJ.
in on______________ can___ ________ 1. ooo
Sardines
Herring and eel in Jelly _____________________________
Pickled herring_____________ Each__ -------- 2. 000
Pickled herring rolled
do-- -------- -------with cucumber ( li'ol mopa). butter ____________ Tube__________________
Anchovie
uf. ___
1.500
2. 500
2. 500
1.000
4.893
1.500
83.000
31.000
18. 000
.260
6.000
-------- -------- -------- -------________ ________ ________
.125
________ ________ ________
• 045
.250
.361
.170
________ ________ ________ ________ 1. ooo
-------- _________________________________ _
-------- -------- -------- -------2. 000
________ 4. 000 -------~ 2. 000
6. 000
1. 000 _______________________ _
1.30
1.90
LOO
.90
3. 70
1.80
2. 00
3. 10
1. 55
.55
1.10
.36
• 9li
.M
• 4li
1. 00
.25
.30
1.000
.30
39. 735
9. 946
.250
lo. 688
lo. 675
1.100
.050
109. 09
FATS
Butter______________________ Kilo __
Margarine_____________________ do__
Palmine (vegetable fat) _______ do __
Lard __________________________ do__
Lard, purest ___________________ do..
Suet
___________________________
do •.
Oalve's
fat ____________________ do
••
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
11. 250
6. 860
7. 000
4. 250
7. 875
2. 500
________ ________ 1.125 1. 875 4. 250
2. 695
-------• 250 _______________________________ _
3. 000
1. 250
1. 750
.125
• 375
4. 188
3. 500 -------- 2. 500
3.175
1. 500 _______ _
-------500 -------________
• 600_
________ -------________
•• 050
_______________________
18. 34
.35
15. 98
16. 30
1.10
.10
26
CHAPTER Il,-STA.NDARD AND COST OF LIVING
TABLB 7,-FOOD CONSUMPTION OF SIX WORKERS' FAMILIES IN GREATER BERLIN
IN APRIL AND MAY, 1913, AND '.1'OTAL COST THEREOF-Continued
CBBESB AND BGGS
Total
Quantity consumed by-
Article
Unit
~
Roquefprt
ohees&-----·····-
1 ~{
~l ~l ~l ~/ Quantity
Kilo ___ ----·--- ________ -···-·-- -·-·---- ________
0. 313
0.313
Romadour cheese___ ··-·-·- __ ~do-_ ________ 0. 840 ________ -······· ·····-·- ----·-··
Limburg cheese--··~····-·- -·-do.. 0. 500
• 750
Gru:rirecheese •••••••••••• _ -·-do •• -----·-· .125 L938 ·····--- 0.125
.500
Tilsft cheese•••••••••••••• -••• -do.. L 375 •••••••• L 2liO 0.125
• 500
.125
.840
=,:=-..::......_
1.260
2.688
3.375
.250
.125
9. (MM)
7. (MM)
11. (MM)
68.(MM)
-E!i__ -··-~· -·9.<MMl •••••••• ······-· ····-·-· -·--:.
Cream cheese----··········· ___ do._·······---·----···-·-····-··-·-· 6.<MMl
L<MMl
Cheese de Soldin-·········- ___ do •• -···-··· 11.<MMl ··-·--·· ·--·-·-- ····-··· -··--·-·
Cheese -from the Herz _._do.-.-·-····· 8.<MMl 42.<MMl . 6.<MMl
2.<MMl
Mountains.
Caraw~-··-····-·-· ___ do •• -···-··· •••••••••••••••• 6.<MMl
Cost
Nara
L18
L36
1.90
6.36
6.69
.60
.25
1.00
2.16
.62
2.66
· 6.<MMl
2. (MM)
.66
.Ill>
Y'orkcheese(Quarll:) mostly ___do •• 3.<MMl 8.<MMl 11.<MMl •••••••••••••••• 8.<MMl
30.<MMl
from skimmed milk.
·
Cheese, not specl1led_ •••••• __ .do•• ··---·-· ··---·-- -·-·--·- 6. <MMl
L <MMl ________
7. <MMl
EUB···•···········-······· •• _do•• 246. <MMl 108. <MMl 228. <MMl 184. <MMl 182. <MMl 118. <MMl 1,060. <MMl
3.21>
B = milk). (from sklm-.
0..
do •• ··-•·--- ·--·•··· ••••••••
L (MM)
1. (MM)
.76
65.42
POTATOES AND VEGETABLES
Potatoes..·--·---··~·-··-··-· Kilo•• _ 145. <MMl 4L 500
Savoy cabbage_ ••••••••••• _ Each__ --··-··- 2.(MM)
84. <MMl
LOOO
42. 500 67. 500 64.500
2.000 ···---·- -··-···-
~~~ba~- -·-~----- ___ gg___ ·-1. 000- --··--·- ·-··-·-- ________
C11ul111.ower_______ ~····----- ••. do...
445.(MM)
11.<MMl
t ~ ----·---
~~
2.000 ··------ -·-····· 1. <MMl
1. <MMl
L 000
6. <MMl
Cabbage turniPB---··-·-·--- ••• do ___ --·----- LOOO
2.000 ------·- ······-- 1.000
4.<MMl
Carrota._·--····-·-····-·--· Kilo___ ····---• 500
l. 500 3. 500
1. (MM)
L 000
7. 500
French
do___ 1. 250
• 21iO ····-·-• 500
2. <MMl
A~--······-·······-· ___ do._. L 500
• 500
• 2liO L 2liO L 125 1. 000
6. 626
SplnllOll.-·------·-·-······- •.• do___ 1. 000
2. 500 4. 500 ·------- 3. 500 S. 000
19. 500
Lettuce, round--···-····-·· Each •• 51.000 8.(MM) 2.000 14.000 2.<MMl 6.000
83.000
Radishes.---·········-···-- Bunch_ 11. 000
12. 000
8. 000 18. <MMl 16. <MMl
65. 000
CUOllmbers.. ••••••••••••••• _ Each__ 3. 000 ···-···· ·······- ···-···- 13. 000
16. 000
Tomatoes---·············-·· ___ dn ·- ·····--· ·······- -··-·-·- -·--·-·· -·------ 1. 000
1. 000
Onions ••• --·-·············- Kilo ••• ···-···········- 1.000 1.250 1.000 3.300
6.-500
Soup
Canned vegetables:
• 500 2. 500 6. 000
lL 000
French beana·--·-···--· Kilo... 1. 500 •••••••• 1. 500
Peas.. •• ·-·-············· ___ do•••••••••••••• _.:__ ••••••••• ·-·--··- 1. 000
• 500
1. 500
Mixed vegetables. •••·-··-·· ·--do._.-·-·--·• 500 ·-······ 1. 000 ________ 3. 000
4. 500
Beets. ••·-·-·-·-··-········· •••do ..• ________ 1. 000 ·-····-• 500
, 500 ····---2. 000
Salt oucui:nbers ••• -.•······- Each__ 14. 000 . 3. 000 6. 000 4. 000 7. 000 7,000
4.0. 000
Pickled cucumbers_ •••••••• ------·· ·-······ -·-·---- -·------ -···-·-· ·--·---- -·-····- -··-----··
Sauer
Kilo...
• 500 2. 000
a. 500 •••••••• 2. 000 , 500
s. 500
beans.·-··-····-··-· ___
greens-···--·-··-··-·--··-··········-- ...•.... -·-··-········-· .•••.... ····--·--·········
krllut-~·······-···-··-
33.4&
.90
.36
.76
1.00
.55
1.60
1.70
6. 70
2.33
6.00
1,76
4.16
.10
.9S
2.30.
4.81
.30
2.88
.80
3.25
,25
L~
CONDIMENTS
Salt--····~·-··············· Kilo••• · 3.000
0.300
2.000
2. 700
2.000
0. 700
10. 700
[~~bay leaves:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
Bovru cubes. •• ----····-·--• Each._ 4.000·
8.000 •••••••• 4.000 ..•....• 10.000
26.000
Vanllla, cinnamOD...-··-····- --···-·· ····-·-- ·-··--·- ··-••··· -·-··-·· •••••••••• ··--·- -·····-·-·
Capers·--·····-·-·-·······-···-·-···--··-·--·-··-·--····-·--···--·--···-·--·--·--··--··---·-·
prepared_·····-·- Kilo.__ • 400 , 200 • 200 .100 • 300 ,-----·-- 1. 200
Xhnegar·--··-·-··-·········_Liter__ ••: 500• •• : 150 •• 2. ooo ·······- •• 1.000 ___ • 500_ ...... 750.
Mustard,
2.46
.46
.20
L2:
.10
.15
.60
1.27
.30
SUGAB AND SWEETS
I
I
Sugar········-·············· Kilo___ 12.5001.7.500 8.625111.250 8.500
2.7li0
HoneY--····-··-··········-· ·--do__ .-·--·-•········-····-·-·-·-··-·-·---·-·.125
• 500 -······· ·······- -·····-· ··--·-·· ·-······
Sweets . ·-·-·····-·········- _._do._.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
46.1215
.125
.500
21.40
.86
.115:
27
FOOD
TABLB
7.-FOOD CONSUMPTION OF SIX WORKERS' FAMILIES IN GREATER BERLIN
IN APRIL AND MAY, 1913, AND TOTAL OOST THEREOF-Continued
ll'LO'V& AND ll'ilINACEOUS PBODUCTS
QnantJ_ty consumed by-
Article
Total
Unit
Flour______ ••••••••••••••••• Kilo___ 3. 000
3. 050
4. 750
2. 000
6. 875
2. 750
Semolina•••• _••••••••••• -•• ___ do___
. 250
• 400
• 875
2. 000
1. 000
Rioe---·······-····--·····-· ___ do___ . 250 -·------ ··-----· ··---··· • 600
• 375
Sago_____ ···---·----······-- ___ do ___ ···--·-- .150 ······-· -······· ----·--- --·----·
Oats and oat flakes--···---· ___ do ___ -··--···
• 350 ····---· ··--···· -----·-• 250
,~~i! tc:!~·-·····-···---· ___a~----·------···----· ··1.000- -·-. 125· ---.600- -··-~·
-···-··- ··--··-· -···-···
.313 -··----· ••••••••
1. 250
• 250 -··---··
-·-·····
• 250 1. 250
-····--·
• 250 _______ _
-······· •••••••• 2. 000
.500
2:400
1.500
.600
6.000
bags.
.09
,28
,16
.70
.600
.250
1.625
• 250
Corn meal---·-·-···-·-----· ___ do ___ -··--·-- ······-- • 250
Corn meal (prepared with
fruit Jui!'e) ________ ._. __ •••• -do ___ -·······________
.187
Noodles (vermloelll)-••••••• ·--do___ -·-····· . 400
• 600
Macaroni.-----·-----·-·--·· ___ do ___ ---····· ·------- ________
Yeast----------------·-----· ___ do ___ -······- ________
• 250
Soup cubes, split peas soup Each__ -······· 3. 000 ••••••••
Maru
10.67
2. ll8
,70
2U25
4.625
1.125
,150
.as .
.69
1.95
1. l!O
.80
.66
LEGUMES
Peas----·---············--· Kilo ____ ....... n liOO
White beans--·····-····-··· __ do ____ -··········----·
Lentils-_-·················· •• do-•• - -·······
• 600
I
2. 000
0. 500 ···-··-- 1. 000
2. 000
• 750 -------- -------2. 000 •••••••• o. 600
1. 000
I
2.
750
4.000
4.000
I
1.94
1.46
2.12
RUITS, PBESEBVE8, AND ll'BUIT SIBUPS
I
12. 000
• 750
221.000
39.000
13.000
75.000
2.600
.750
,030
4.600
L600
3.600
3.40
.60
10.05
2.50
.65
6.00
3.00
1.00
.10
3.55
1.50
6.00
Kilo... 81. 600 45. 900 68. 000 33. 600 38. 875 21. 000 288. 876
Rolls_···········-·······-·- Each__ 810. 000 600. 000 Mo. 000 501. 000 604. 000 270. 000 3,335.000
Rusks ••• ·-·····-····-······ ._do__ •••••••••• -······· •••••••• •••••••• P 000 ····-·-·
o 000
72.11
8L65
.15
.20
29.90
.90
.30
1.00
Apples----···········-·-···· Kilo._. 6.500
Cherries __ ••••••••••••••••••• _do____ • 250
Oranges ___ ·······--···-·-·· Each__ '6- 000
Bananas...........·-···-···- •• do_ ••• 11. 000
Lemons-······-··-········· ._do___ .····--·Rhubarb_ ••• --······-···-·- Bunch 7.000
Fruit, dried, mixed-........ Kilo __ • • 500
·1.000
3.000
0.600
1.000 ••••••••
________ ····---• 600 ________ ·-······
78. 000 36. 000 16. 000 46. 000 --······
6. 000 15. 000
8. 000 ··-····· 4. 000
2.000
2.000 --···-·- 9.000 ··-··--14.000
7.000 19.000 25.000
3.000
1. 250
• 250
• 600 -···---- -···---·
currant•···--···-·
~
600 ··-·····
Jams and marmalade ••••••••• do._ •• ·-······ 2. 750 1. 600
• 250 ···-···· -······Preserves••••• _•• _••••••••••• _do ___ .··-·--·- . 376 ·-······ .125 I. 000
Raspberry slrup_........... Liter_......... •••••••• L 500 •••••••• 2. 000
i'f~~~s
·-a~--·--····--··-··-··· .
.
BREAD, BOLL8, AND PASTRY
.Bread......................
=~'.~~~-·····-····-
.:i;o. __ •••••••• ·-····-· •••••••• •••. 750- ·······- •••••••• •••••• 750·
Grated rolls •••••••••••••••••. do............ •••••••• •••••••• . 250 ••••••••••••••••••••••••••
Baking charge••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••
COl!'ll'EE, TEA, COCOA, CHOCOLATE
Coffee...................... Kilo... 1. 438 0. 900 1. 625 L 750 2. 600 1. 185
Malt coffee and coffee substJtute (chicory) •••••••••••• do•• _. L 875
• 650
3. 600
.125
2. 000
• 475
Tea_ •.•••••••••••••••••••••••• do............ • 300 •••••••••••••••• ·····-·- ••••••••
Cocoa •••••••••••••••••••••••• do....
• 625 •••••••• •••••••• 1. 000 1. 000
• 250
Chocolate_ ••• ~ ••••••••••••••• do.... • 600
.188 •••••••• • 600
• 600 ••••••••
Cbooolate bonbons ••••••••••• do.c.. •••••••• •••••••• •••••••• .125 ••••••••
• 250
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9.398
29.20
8.625
4.92
1.68
8. 75
3.65
L20
.300
2.875
1.688
.375
28
CHAPTER II.-STANDARD AND COST OF LIVING
,TABLB 7.-FOOD CONSUMPTION OF SIX WORKERS' FAMILms IN GREATER BERLIN
IN APRIL AND MAY, 1918, AND TOTAL CQST THEREOF-Concluded
MILK
Quantity oonsomed byArticle
Unit
Total
Family Family Family Family Family Family Quantity Cost
No. l No. 2 No.3 No. 4 No. 6 No. 6
--
Milk........... , . -..... Liter••
~2.80
Buttermilk••••••••••••••••• •• do•••• 12.00
Cream (sweet and sour)._ •• •• do••••
.35
68.50
--------
66. 76
23.50
-------· --·-----
66.20
1.00
.10
64.00
7.00
-···~40·
2. 50
.20
21. 00
83. 30
20. 00
32. 80
318. 25
39.00
Mar~
76.27
L06
3.93
L06
78. 00
306. 60
104.20
BEVERAGES
Beer, In barrels............. Liter..
Beer, In bottles ••••••••••••••• do....
17. 00
86. 80
20. 00 •••••••• ••••••••
47. 20 69. 30 46. 20
~~~:::::~::::::::::::::
.?J:.::: ~ ~ :::::::: :::::::: ~~ ~ :::::::: ...~.~. tt ~
Nonalcohollo drinks •• , ••••• -······· •••••••••••••••••••••••••••••••••••••••• ···-··-· ••••••••••
Cider••••••••••••••••••••••• Bottle ••••••.• ••••••.• ••••.••• ••••••••
1. 00 ··-·····
1. 00
Rum •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••
Brandy, gin •••••••••••••••• Glass.........
7.00 1•••••••• •••••••. .•••.••• ••••••••
7.00
8.60
6.35
L46
6. 20
.35
6. 98
.80
HISClllLLANEOUS
~~:...<::·l········l········I········ ········l········I~······· ········l··········l
Meals.................. ...•..•. ..•..•.• .••••... •...••.. ..•..... ..•.•.•. ..•••••. .•.•.•••••
Tips.••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• ······-···
11. 25
2. 50
l.
lO
The great variety in the diet of the average Berlin worker before the
war can be seen from the px:eceding table. It is not necessary to
emphasize the beneficial effect of such food upon the mentality and
efficiency_ of the workers. After 1915 such a diet was, of course,
practically out of the question for the entire city population of
Germany. Conditions were at their worst in 1917 and 1918, and
improvement was very slow thereafter. It may be interesting to
compare conditions in April and May, 1920, with those of April and
May, 1913, as conditions in the spring of 1920 represent average
conditions in the quinquennial period following the war.
In the spiing of 1920, not even 5 per cent of the population of
Greater Berlin could have the variety of food enjoyed by the average
worker seven years before. Part of the foodstuffs formerly consumed
in great quantities could not be had at a.IL In order to compute how
much the pre-war nourishment of these six families would have cost in
April and May, 1920, it is necessary to group certain articles of food.
It would, indeed, be a mere juggling with.fiiures if one were to try to
compute how large the expenses of a famify with a total meat consumption of 175.56 kilograms would have been in April and May, 1920,
if it had insisted on eatmg specified quantities of mutton, of ham, etc.
It will be necessary, therefore, to make the following assumptions:
The 23 persons covered br this investigation ate in April and May,
1913, 175.56 kilograms o meat, for ·which they spent 363 marks.
In April and May, 1920, 23 persons of corresponding ages were
entitled to 46.84 kilograms of rationed meat at 1,038 marks. If
they bought the balance, 128. 72 kilograms, from illicit traders, they
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29
FOOD
had, by always taking the kind of meat most abundant, to pay an
average of 37 marks per kilogram or 4,763 marks for the 128.72
kilograms. Their meat consumption, if reckoned on the basis of
the quantities consumed in April and May, 1913, cost, then, 1,038
marks plus 4,763 marks, or 5,801 marks. The same method was
applied to all other items of food, all legumes being combined in
one group, all flours in another, all pastes, vermicelli and the like,
in another, etc. Table 8 contains the results of the investigation,
showing the consumption of the six families in April and May, 1913,
how much a similar diet would have cost in April and May, 1920,
and the quantity and co~t of those foods which were rationed:
TABLE
8.-FOOD CONSUMPTION OF SIX WORKERS' FAMILIES IN ORE.ATER BERLIN
IN .APRIL AND MAY, 1913, AND COST THEREOF IN 1913 AND 1920
1920
Article
Unit
Quan•
tlty
Cost,
Rationed food
1913
Cost
Marks
Meat, sausages, etc.••••••••••••••••••••. Kilogram.. 175. 560
PoultrY-····---·-···-·-···-···-······-·- Each......
2
Fish, fresh_............................. Kilogram.. 13. 900
Herring •.•••• ·---··----···········-····- Each...... 114
Smoked and dried ftsh •• -••••••••• -•• -._ --·--······· ·--------·
363. 05
4. 45
10. 60
5.10
4. 50
,~h&~~~~~.~~~::::::::::::::::::::::
-Kiiograiii: ·--aii:m- 1J:gg
Margarine, palmine (vegetable fat) •• ··- -·-dO--····· 10. 200
18. 69
Animal fats-··-··-·-·--·-·----·-··-·-··- ___do_...... 22. 500
Cheese---·-·-·-·-··-··-·-··--·-·-·-····-·--·---·····-··-······
Eggs········--··-··-··-·········-·-·--·· Each .••••• 1,060
Potatoes................................ Kilogram • 445
Vegetables, fresh and canned, etc....... ..•••.•••••• ...........
Condiments..•••. ·-·······-·············......................
Sugar................................... Kilogram • 46. 125
Honey, sweets..•.••••••••••••••••••••• -· •.. do.......
. 625
Flour ..•••••••••..•..••.•••...••..•••••.•.. do....... 24. 050
Rice ..••••••••••..•••••..•.•••••••••••••.••. do.......
1.125
Groats, etc ••.•••.•.•••.•••••.•••• ·-····· ••• do.......
6. 275
Noodles, vermicelli, macaroni•.••••• -·· •••.. do•••• _._
3. 900
Yeast •.••••.....•..•..••••• ·-··········· ... do .•••••
.500
Soup cubes, split peas soup bags•••••• _.. Each......
5
Legumes .•• ·-·············-············· Kilogram. 10. 750
Apples, cherries •••••••••••••••••••.••• _•... do....... 12. 750
Subtropical fruits •• ·-··················· Each...... 273
Rhubarb................................ Bunch.... 75
Mixed dried fruit .••••·-·-··············· Kilogram •
2. 500
Sultanas, currants, almonds •••••••••••••.•. do.......
. 780
Marmalade and Jams••••••••••••••••••• _•.• do.......
4. 500
Fruit preserves .••••••••••·-············· ... do.......
1. 500
Raspberry slrup......................... Liter......
3. 500
33. 48
29. 49
65. 42
33. 46
Marks
5,800. 61
Quan•
tity
Cost
46. 839
1,037. ll3
Marks
6fl 00 ••••••·•• •••••••••
117 9,()
111. 80
92. 00
3?. 00
2, 718. 22
303. 32
871. 56
4611 4D
1,696.00
••••••••• •••••••••
••••••••• ···-·····
••••••••• ••·•·••••
•••·••··· ••··•·•••
4. 009
145. 95
10. 200
303. 32
22. 500
871. 56
••••••••••••••••••
•••••·••• ••••••••.
375. 38 400. 857
304. 75
44. 74
53.?. ll3 .•••••••• ·-·······
6. 74
21. 40
. 90
11. 37
. 70
4. 14
44.29
486. 90
11. 25
127. 34
24. 76
9. 81
22. 75
8. 00
3. 00
42. 99
88. 50
501. 80
45. 00
37 !iO
33. 50
37. 15
3. 45
.80
• 55
5. 51
4. 00
13. 20
5. 00
3. 00
1. 10
3. 55
1. 50
5. 00
•••••••.• ·-·······
36. 000
122. 40
••••••••••••••••••
14. 950
36. 34
6. 275
9. 81
2. 875
11. 50
••••••••• ••••·••·•
••.•••••• •••••·•••
10. 750
42. 99
••••••••• •••••••••
••••••••• •••••••••
••••••••• ···-·····
••••••••••••••••••
•••·••••• ·-·-·····
4. 500
37. 15
7 !iO ••••••••• •••••••••
32. 45
29. 20
4. 92
1. 68
8. 75
4. 75
80. 20
1. 05
112. 80
6. 20
7. 13
21. 65
!)ii /JO
500. 21
1, 400. 50
458.00
63!120
104 IJO
18.00
178.25
123. 78
1, 138. 50
25. 20
1,175.50
41100
178. 25
216. 50
•·•·•••·• •••••••••
288. 875
500. 21
60. 129
121. 05
1.875
9.75
······-·- •••••••••
••••••••• ··-······
•••••·•·· ••••....•
.125
1.75
••••.•••••••••••••
106. 25
212. 50
••••••••• •••••••••
••••••••• ·······-·
••••••••••••••••••
······-·· •••••••••
•••••••••••••.••••
Total_•••. - - - - - - · · · · •••••••••••••••••••••• 1;281.37
20. 996. 74
·········I 3,768. oo
f~sd. ············ -·· -···· ·············· .~~ ·
~
~:
Cake, biscuits, etc ··--··-··-············ ··-········· ••.•.•••••
Coffee.••• -· •••• ····-· •.• ·-···........... Kilogram •
9. 400
Coffee substitute••••• _•••••••••••••••••.... do .•••• -.
8. 625
Tea ••••••••••••••••••• ·-················ ...do·-·····
. 300
Cocoa.••••.•• ·-······················· .....do.......
2. 875
Chocolate, chocolate bonbons •••••• ·-··· •.. do.......
2. 063
Milk, buttermilk........................ Liter...... 357. 250
Cream ••••.......•••••••••••••••••••••••.•. do.......
1. 050
Beer •••••••.......••••••••••••••••••••••••• do .••••• 383. 600
Nonalcoholic drinks •••••••·-····-·······......................
Cider, rum,gin.......................... ..•••.•••••. .•••••••••
Restaurant expenses (excluding drinks). ·····-·····- ••••••••••
20168°·-25t-3
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Federal Reserve Bank of St. Louis
~: ~
30
CHAPTER II.-STANDARD AND COST OF LIVING
In reading Table 8, one must always bear in mind that, on account
of the combinations previously mentioned, the cost in 1920 appears
lower than it actually was. One example may serve: The six
families consumed in April and May, 1913, 4 kilograms of peas for
1.94 marks, 2¾ kilograms of beans for 1.45 marks, 4 kilograms of
lentils for 2.12 marks, or a total of 10¾ kilograms of legumes for
5.51 marks. The 4 kilograms of lentils alone would have cost in
April and May, 1920, not less than 60 marks. Nevertheless, the
10¾ kilograms of legumes for April and May, 1920, appear in the
table as costing only 42.99 marks because 10¾ kilograms of legumes
(including, it is true, no lentils) could be bought for this amount
from the municipal food administration.
·
Allowing, then, for a smaller variety of food, the total food expense
of the six families would have increased from 1,281 marks in April
and May, 1913, to 20,997 marks in April and May, 1920. A family
wishing a diet similar, though by no means as manifold and as
savory, to the one of seven years before would have had to spend 16
times as much. It is interesting to note in this connection that the
wages of bricklayers in April and May, 1920, were only 6.2 times as
high as before the war and those of printers 5.4 times as high. The
average weekly food expense of these six families in April and May,
1913, was 24.51 marks, while before the war the weekly union wage
of bricklayers was 41.82 marks and that of printers 34.38 marks.
The average weekly food expense, with a similar diet, in A_pril and
May, 1920, would have been 401.50 marks, while the weekly union
wage of bricklayers was 259 marks, that of married printers 185.50
marks, and that of married bank employees with two children from
243 to 282 marks.
It has just been shown how much a diet similar to the pre-war diet
would have cost seven years later. It is likewise possible to state
what the postwar diet would have cost seven years before. With
this object in view, there has been first ascertained the rationed
quantities which were distributed in April and May, 1920, to six
families of the above age classification, what these quantities actually
cost, and what they would have cost in April and May, 1913. We
find that the same quantities which in April and May, 1920, cost
4,951 marks .wo~ld liave cost 406 marks m April and May, 1.913.
Th~se rationed quantities were, •of course, not sufficient to satisfy the
food requirements of the six families, as their nutritive value-amounted
to only 2,337,000 calories while such families needed 3,294,000
calories,, and in fact consumed in 1913 foodstuffs with a nutritive
value of 3,450,000 calories. In order to cover the balance, 957,000
calories, the same method has been applied as in computing the
minimum cost of subsistence. The results are shown in Table 9.
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31
FOOD
TABLB
9.-FOOD CONSUMPTION OF SIX WORKERS' FAMILIES IN GREATER BERLIN
IN APRIL AND MAY, 1920, AND 008'1' THEREOF IN 1ll13 AND 1920
Cost
Article
Unit
J::ft'erall kinds ___________________________________________ ~~am-
Bationed:
t!;Fille..-::::::::::::::::::::::::::::::::::::::::::::::
::=~~:: ::::
Suet __________________________ · -------------------------- ___ do _____ _
Potatoes •••••••••.•••••••••••••••••••••••••••••••••••••••••• do••••••
~Te!t flour.::::::::::::::::::::::::::::::::::::::::::::::::~~::::::
Potato
flour --········--····-···························· ••. do_ •••••
Semolina. •..•..•••••••••••••••••••••••••••••••• ' •••••••••••• do ••••••
Oats and oat flakes ••••••••••••••••••••••••••••••••••••••••• do .•••••
Barley groatJt .•••.•••••••••••••••••••••••••••••••••••••••••. do .•••••
Barley, prepared grain .••••••••••••••••••••••••••••••••••••.do ••.•••
Sago ••••••••••••••••••.••••••..••.•••• ••••••••••••••••••• ••• do .•••••
Corn meal prepared with fruit Juice••••••••••••••••••••••••• do .•••••
Quantity•i-----11113
1920
46. 8311
4.009
17.464
11.500
17. 250
{00. 857
36. 000
5. 750
Marki
1,037.93
145. 95
519.34
460. 00
653.66
304. 75
122. 40
8. 74
Marb
88.119
10.82
27.114
17.25
24.15
28. 06
17.28
2. (K
3. 78
31.68
2. 07
6. 56
8. 05
13.80
2. 76
11.50
10.40
6.44
.57
2.16
E¾f£:F~nl::::::::::::::::::::::::::::::::::::::: :::ag:: ::::
.375
12. 875
1.~
4. 313
2.300
1.~
.180
2.875
2. 000
27.60
.69
Beans.•••••••••••••••••••••••••••••••••••••••••••••••••. do ••••••
Peas ••.••.•.•••••••••••••••••••••••••••••••••••••••••••. do .•••••
43.850
17. 250
306.36
15. 711
6.90
6.15
1.44
12.82
95.20
2. 25
Legume&-
Bea:~~~illed:::::::::::::::::::::::::::::::::::::::::
:· =~~::::::
lams••••••••••••••••••••••••••••••••••••••••••••••••••••••.. do ••••••
Bread••••••••••••••••••••••••••••••••••••••••••••••••••••••• do ••••••
Rusks••••••••••••••••••••••••••••••••.•••••.•••••••••••••••• do .•••••
Cocoa. •••••••••••••••••••••••••••••••••••••••••••••••••••••• do ••••••
Mixture of oatmeal and cocoa (50 per cent cocoa) •••••••••••• do .•••••
Milk..................................................... Liter ••••
ll.200
11.829
2.875
21.367
380. 814
1.875
.125
. 750
106. 25
Total.................................................. •••••••••••• ••••••••••
ID oroia=ket and by Dlicit trade: •••••••••••••••••••••••••• Kilogram •
Vegetables •••••••••••••••••••••••••••••••••••••••••••••••.•. do ..••••
~:i:r·_::::::·.-.-.-.-:::::::::::::::::::::::::::::::::::: :::a~:=::::
Oat flakes ••••••••••••••••••••••••••••••••••••••••••••••••••. do ••••••
Beans•••.••••••••••••••••••••••••••••••••••••••••••••••••.•. do ••••••
Peas ..•...•..........•................................... ... do ••••••
300. 000
700.000
25. 000
35.000
70.000
.20. 000
20.000
124. 20
47.31
11.50
176. 41
658. 711
II. 75
1. 75
34.80
212. 50
.111
1.38
2.87
.60
2.30
3.00
.40
1.80
23.37
4, 1151. 25
i===I===
480. 00
1, 05o. 00
225. 00
28o. 00
472. 50
lSO. 00
190. 00
21.00
105. 00
7.00
17.50
35.00
7.20
8. 00
Total.···························------··· ............ ..........
2,877.50
200. 70
Grand total............................................ •••••••••••• ••••••••••
7,828. 75
606.M
The supplementary foodstuffs, with a. nutritive value of 957,000
calories, cost 2,878 marks in April and May, 1920; they would have
cost 201 marks in April and Ma;r, 1913. The six families which, with
a similar diet to that in April and May, 1913 would have spent 20,997
marks had, then, to spend 7,829 marks in order to satisfy in the cheapest possible way their minimum food requirements. This same
modest diet would have cost 607 marks in April and May, 1913, i.e.,
one-thirteenth of what it cost in April and May, 1920. But before
the war, when there was an unlimited supply of cheap bread, cheap
lard, chea:p potatoes, and cheap sugar, it would have been possible
for these SIX families to secure a much more manifold and savory diet
for less than 607 marks, in fact for about 520 marks, i. e., for onefifteenth of the :erice of April and May, 1920.
The most striking changes in the diet of the Germ.an workingmen
a.re the smaller variety of food, the poorer quality, and the reduced
consumption of meat, dairy products, and practically all imported
foodstuffs. The lack of variety in food during the war was due to the
blockade, and after the war to the difficulties m the way of increasing
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Federal Reserve Bank of St. Louis
32
CHAPTER Il.-STANDARD AND COST OF LlVING
imports caused by the money depreciation, and to the low level of real
wages. The lowering of the quality was the necessary consequence
of the scarcity of food, which__J>reyented competition among producers
and also among retailers. While there are, of course, no statistics
available as to the quality of the food, a few data can be given as to
the consumption of some articles.
According to calculations made by the Prussian Statistical Office,
the consumption of meat in Prussia dropped from 49.02 kilograms per
ca.pita. in 1913, to 31.85 kilograms in 1921 and to 29.67 kilograms in
1922. As to the inha.bita.nts of the rural districts, who had to a large
extent been pra.ctica.lly vegetaria.ns before the war but who had
acq_uired the lie.bit of eating meat in the army, it is safe to assume that
then- meat consumption was at leai;t as high after the war as before.
The decrease in meat consumption was more conspicuous in the cities,
where the worki.m? class probably at no time after the war until 1924
consumed more tlian 30 or 40 per cent of the quantity it had ea.ten
prior to the war.
The shortage of milk was especially detrimental to the physical
condition of the workers' children. Recently conditions have somewhat improved, but they are still far from satisfactory. The average
daily consumption in Greater Berlin, which had been 1,200,000 liters
before the war, was in 1924 as follows:
· Liters
January... ·------·--------------·-·-------------·-Febru.ary··--·---------·-·-------------------------March. ________ ·--·---·---------------------------~Pril-----------------·---------·------------------
May.·--------------·---------------·--------------
June.·--------·-----·-----------------------------JulY------------------------------------·---------September
_____________________________ l ___________
August------------------·-----·------------------October_____________________________________________
__________________________________________
December
November.·----------------------------------------
398,000
489,000
629, 000
694,000
751,000
904,000
821,000
673,000
740,000
640,000
758,000
672,000
Butter is sijill a 1 ~ which the average workingman ca.n not
afford to buy, as his daily wages genera.lly do not exceed the price of 2
pounds, and ~ have completely disappeared from his taole. The
production of eggs has considerably decreased, and the imports, which
before the war furnished three-eighths of the total consumption and
which in 1913 amounted to 3,300,000,000, totaled 29,000,000 in 1920,
24,000,000 in 1921, and 2,300,000 in 1922.
The per ca.pita consumption of other articles of food was as follows:
TABLB 10.-ANNUAL PER OAPITA OONBUMPTION OF BPEOIFmD ARTICLES OF FOOD,
1913, 1920, AND 1922
Article
Unit
~heirfug..............••••••.................· •Klb!fn8111··•···•···...
Rice .•.......••..•..•.•....•..••....•••.•••••.... ...•• do ••••••••••••••••
Green coffee....................................... ..••. ck> ...............
Tea•.••.•••.•••••••••.••.. · - - - - - · · ..••.do,_ _ _ _ ,
Oocoa. •••••••••••••••••••••••••••••••••••••••••••••••• do ••••••••••••••••
Subtropical frnlts ••••••••••••••••••••••••••••••••••••• do ••••••••••••••••
Impotted spices.•••••••.•.•.•...•.•.••••..••..•••....•do •••••••.•....•..
Beer.............................................
U&,,r •••••••••••••••••
Brandy•••.- •••••••••••••••••••••••••••• ·•••••••••••••do••••••••••••••••
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1913
· 19.2
3.66
2.49
2.44
• 06
.77
4.44
.16
102.1
6.4
1922
13.6
8.81
2.07
.66
.03
L24
1. 30
.09
20. 7
L97
LM
.69
.06
L88
.811
.11
3i~ ······u
HOUSING
33
It must always be borne in mind, however, that the J?Cr capita consumption does not tell the whole truth about the deterioration of the
diet of the working class in the cities, as both the rural population and
the well-to-do in the urban districts have suffered much slighter
changes in their diet than the industrial workers.
HOUSING
STANDARD AND SUPPLY BEFORE THE WAR
Stan<lara of lwusing.-Up to the first part of the nineteenth century1 it was usual in Germany for every family to live in a house by
itself-what we now call a one-family house-and this manner of
living still prevails in the rural districts. In the cities and towns,
however, large houses rented out in flats or single apartments-socalled a:eartment houses-have more and more taken the place of the
one-family house. In 1910 there were 580,114 dwellings in Berlin.
Of these, 410,237, or 71 per cent, were in houses containing more than
20 apartments. In some parts of the city the percentage of families
living in such apartment houses exceeded 90. In Neukolln, a suburb
inhabited mostly by workers, the proportion was 73 per cent. But
Berlin with its suburbs was by no means the only city in which such
conditions prevailed. In Stettin appro.ximately one-half, in Breslau
two-fifths, and in Posen fully one-third of all the families lived in
apartment houses containing more than 20 apartments. In western
Germany on the other hand./ the apartment house had hardly come
into use at all. In Dussel<iorf the percentage of families living in
this kind of house was 0.8, in Cologne 0.4, in Essen 0. 3.
With the growing frequency of the apartment house type, the average number of stones in a house have increased. No doubt apartments in the fourth and fifth stories, at least those in houses recently
built and which are situated in the front part of the house, have·
been rendered easily accessible by elevators, in which case they are
frequently }?referred by tenants because of the greater distance
from the n01se of the street traffic and because they receive more
light. In spite of these exceptional cases-which concern only the
well-to-do, as the houses in the districts inhabited by workers have no
elevators-the apartments in the fourth and higher stories are considered less desirable, which is indicated by the fact that with very
few exceptions the uppe:r stories contain mainly small apartments
designed for the working class and that in ~eneral the rent of an apartment is lower the higher up in the house it 1s situated. Formerly, the
proportion of apartments situated in fourth and fifth stories, was,
even in the largest towns, very small. Sixty years ago the proportion
(including all the attics) in Berlin (1861) was only 3.6 per cent, and in
Konigsberg it was not more than 0.3 per cent. Before there was a
modern water ~stem in the towns, which supplied the houses with
running water, 1t was simply impossible to live so far above the pump
in the street. It is these modern improvements that have allowed
apartments so unfavorably situated to be generally used for living
purJ;>oses. In 1910 the proportion of apartments in fourth and fiftli
stones in Berlin and Breslau amounted to 20 per cent, in Dresden to
13 per cent, in Hamburg, Kiel, and Leipzig to 10 per cent. In Cologne, Dusseldorf, Essen, and Lubeck, on the other hand, it was below
1 per cent.
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34
CHAPTER Il.-STANDARD AND COST OF LIVING
Another type of hygienically undesirable apartments had happily
decreased in importance before the war. Experience showing that
cellars are unfit to serve permanently as human habitations had led
more and more frequently to building regulations forbidding the
establishment of underground apartments in newly constructed
houses. Thus underground apartments have been forbidden in
Berlin since 1887, those still existing there having been built and
:fitted up before that time. The proportion of un<lerground apartments in Berlin decreased from 11 per cent in 1871 to 3 per cent in
1910, in Altona from 9 per cent in 1890 to 4 per cent in 1910, in Kiel
from 8 per cent in 1890 to 2 per cent in 1910, in Breslau from 5 per
cent in 1875 to 2 per cent in 1910. Hamburg had a comparatively
high proportion of und~ound apartments (5 _per cent in 1910).
In the suburbs of Berlin, the greater _part of which was la.id out in
the decades before the war, the proportion of underground apartments
is less than 1 per cent. The same was true of the greater part of the
large German towns before the war.
One of the bad features of the apartment house is that as a rule
it contains only a few larger apartments-those in the front part
of the house facing the street-and that the side wings and rear
contain innumerable comparatively small apartments that receive
air and light, and frequently not too much of either, only from a
narrow court. In consequence of this., the number of rear apartments
that liave no windows on the street .na.s increased with the growing
frequency of the apartment house. For instance, the :proportion
of such apartments in Berlin increased from 28 per cent m 1861 to
48 per cent in 1910. The percentage is probably lower everywhere
else, though in 1910 it amounted to 33 per cent in Ma.gdeburg and
to 21 per cent in Cologne. The proportion is still more unfavorable
in the case of the very small •apartments. Of 100 apartments of
not more than two litjng rooms, in Berlin 70 are rear ~artments,
in the suburb of Schoneberg, 79, in Madgeburg, 61, and in Cologne, 39.
In the case of large apartment3 of seven and more living rooms, the
proportion of rear apartments does not exceed 2 per cent in any
of these cities.
The drawbacks of the apartment house are aggravated immeasurably by the cramped accommodations. If we classify dwell~
acco~ to the number of liv~ rooms-the term "living room"
in this case including the kitchen and habitable closets-we find
that in those cities in which the apartment house is the preva~
type, apartments with not more than three liv4ig rooms are the
most frequent. Whereas the increase in the number of stories and
of rear apartments are drawbacks inseparable from the apartment
house, tlie inadequacy of the accommodation is not unavoidable.
Diminutive houses and apartments are to be found in the rural
districts and there are very larg_e apartments in. the apartment
houses in large towns and cities. In fact, in the course of the twentieth century the proportion of apartments of not more than three
living rooms has decreased in the cities where the apartment house
prevails as well as elsewhere. From 1900 to 1910 tlie percentage of
this type of apartments in Berlin fell from 76 to 74 per cent, in
Breslau from 75 to 63 per cent, in Cologne from 60 to 53 per cen!,
and in Munich from 56 to 52 per cent. The _percentage of smau
apartments exceeded 75 in Lichtenberg and Neukolln, suburbs of
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ROUSING
85
Berlin; it was between 50 to 75 in Berlin, Dortmund, Konigsberg,
Posen, Stettin, Aix la Chapelle, Breslau, Dusseldorf, Essen, Charlottenburg, Cologne, Magdeburg, Munich, and Berlin-Schoneberg; it was
between 25 and 50 in Chemnitz, Halle, Kiel, Dresden, Berlin-Wtlmersdorf, Altona, Lubeck, Hamburg. In Nuremberg it was 25, in Leipzig
19, and in Hanover only 11.
Even a very small apartment can make a comfortable home if
there are not too many occupants. An apartment consisting of
one room and a kitchen 1s after all sufficient for a couple with one or
two children and if a further habitable room (or closet) is added,
accommodation can be found for two more children without much
inconvenience. But a larger number of persons could not be accommodated. in an apartment of that size without overcrowding. In
general an apartment may be considered as overcrowded which
contains more than two persons per habitable room; that is, if in
an apartment of one room and kitchen more than four persons,
or in an apartment of one room, kitchen, and a second small room or
closet more than six persons, have to be accommodated. The
number of apartments that are overcrowded according to this
standard is very large in the German towns and cities. Before the
war considerable progress had, however, been made in this respect,
the percentage of persons living in overcrowded small dwellings
having decreased everywhere, even in the large cities. From 1900
to 1910, for instance, the ~ercentage fell in Essen from 47 to 37 and
in Berlin from 32 to 22. In Posen (a city now belonging to Poland)
it was still very high in 1910, 53 per cent of the occupants of small
dwellings being thus crowded together; in Dortmund the percenta~e
was 41, in Dusseldorf 38, in Aachen and Essen 37, in Breslau 33, m
Munich 29, and in Cologne 27. The proportion was comparatively
low in Lubeck (15 per cent), in Hamburg (14 per cent), in Dresden
(13 per cent), in Leipzig (9 .per cent), ana in Hanover (7 per cent).
There were various reasons for this decrease in the number of
overcrowded small apartments, which was the .most satisfactory
development as regards living conditions of the workers. One of
these was the decrease in the number of children; another was the
decrease in the number of lodgers living with families. These
lodgers were chiefly of three kinds: Men who lived with their
employers, lodgers in furnished rooms, and night lodgers (who
rented a bed and w.ere not entitled to stay in the room in the daytime).
The number of households in German towns that lodged journeymen employed by the head of the family was formerly extraordinarily
high, and even 50 years ago it was not inconsiderable. Since then,
however, the proportion of households with this kind of lodgers has
diminished everywhere, e. g., from 1871 to 1910 in Berlin from 4.2
to 1.4 per cent, m Breslau from 6 to 2 per cent, in Frankfort on the
Main from 9 to 2.7 per cent, and in Leipzig from 8.6 to 2.5 per cent.
The taking in of lodgers in furnished rooms and of night lodgers was
not extensively practiced in former times but became more and more
frequent up to the beginning of the 20th century. It was only in the
last ten years before the war that a certain improvement took place.
Of all the cities in Germany, Munich and Stuttgart had the highest
percentage (26) of households with lodgers. In Berlin the _proportion was 18 per cent, and in Cologne 11 per cent. Crefeld had the
lowest percentage (only 5). The average percentage in the German
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Federal Reserve Bank of St. Louis
36
CHAPTER ll.-STANDARD AND COST OF LIVING
cities was 16 and in the rest of Germany only 6. It is remarkable
that the night lodgers were generally to be found in the most indifferent apartments. But even where conditions in this respect were
most unsatisfactory in 1910, they had been considerably worse some
time before.
•
The same applies to the equipment of the dwellings. The worst
feature in this respect is the sanitary arrangements. Hardly anywhere has the standard, so eminently desirable from a eygienic as well
as a moral point of view, that every household should have its own
water-closet been even approximately realized. In 1910 only 65 :eer
cent of the apartments m Breslau and Kiel were provided with
separate water-closets, in Halle 61 per cent, in Posen and Stettin
59 per cent, in Berlin 47 per cent, in Essen 46 per cent, in Cologne
44 per cent, in Hanover 43 per cent, in Strassburg (Alsace) 38 per
cent, in Lubeck 29 per cent, m Leipzig 28 per cent, m Nuremberg 26
per cent, in Dresden, Konigsberg, and Plauen 23 per cent, in Karlsruhe 21 per cent, and in Altona 15 per cent. Among the small
apartments the J>roportion without a separate water-closet was
especially high. In Breslau the percentage amounted to 85, in
Halle to 83, and in Posen and Stettin to 80. Even in Cologne 67
per cent, and in Berlin 58 per cent of all small apartments liad no
separate water-closet. Yet the sanitary arrangements were better
than in former times. The town of Essen may be pointed out as an
example of improvement in this respect. In 1900 onl;r. 22 per cent of
the small apartments had separate water-closets, while in 1910 the
prQPortion had increased to 38 per cent.
The number of bathrooms in apartments has greatly increased.
From 1890 to 1910 the percentage of dwellings provided with these
hygienically important accommodations increased in Berlin from 6 to
14, in Breslau from 4 to 15, in Halle from 5 to 13, and in Altona
from 3 to 8. In 1910 less than 5 per cent of the dwellings in Dusseldorf had bathrooms, and a bathroom in a small apartment was rare.
In Cologne out of 62,480 small dwellings only 137, that is two per
thousand, had a bathroom. Almost nowhere did the working class
have such accommodations.
The greatest l?rogress has, of course, been made in the more modern
improvements, m the equi_pment of dwellings with gas and electric
lighting. As late as 1910, however, the majority of tlie dwelljngs had
neither gas nor electric lighting. In Essen, the proportion of dwellings
provided with this convenience was 53 per cent, in Berlin and Chemnitz 54 per cent, in Nuremberg 57 per cent, in Hanover 65 per cent,
in Konigsberg 70 per cent, in :Altona and Dusseldorf 71 per cent, in
Breslau 74 per cent, in Kiel 75 per cent, in Cologne 76 J>er cent, in
Posen 83 per cent, and in Stettin 87 per cent. Small dwellings
provided with .gas and electric lighting were still rare exceptions m
many large towns. In Konigsberg in 1910 such apartments formed
7 per cent, in Breslau 6 per cent, and in Cologne 2 per cent of the
total number.
,
Thus the standard of dwellings in lar~ cities had in some respects
declined in the decades before tlie war. The proportion of a:eartments
situated in fourth and fifth stories and in the rear had mcrea ed.
On the. other ·hand, a certain improvement had taken place. The
number of underground apartments,· of .small and overcrowded
~partments, and of apartments with insufficient sanitary equipment;
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HOUSING
87
had decreased. If we balance the favorable and unfavor!l,ble points of
development we find a small but undoubted imll~~;ment.
Housing Bupplu.-The ratio of the vacant dwe ·
to the existing
dwellings is usually taken as the standard for gauging the state of the
market, in the same way that the ratio of the unemployed to the total
number of workmen in employment plus the unemployed is used as a
standard to gauge the state of the labor market. The landlord
considers the state of th;e mark~t to be fayo:able when the percentage
of vacant apartments 1s low; m the oprmon of the tenant, on the
contrary, the state of the market is favorable when the percentage of
vacant a.partments is high. In the public interest it is preferable that
the supply of apartments be neither too abundant nor too small.
This desirable state of things prevailed for the last time in 1910.
At that time people looking for an apartment could not complain of
lack of supply from which to choose and1 on the other hand, the loss to
the landlords through apartments remaming vacant was by no means
excessive. In the following years, however, building activity was on
the whole low,· and it sank to an unusually low level just before the
outbreak of the war.
In the four years from 1910 to 1913 the net increase in the number of
dwe11.i.nj?S-that is, the surplus of newly built apartments over those
pulled clown-amounted in Hamburg to 15,478, 10,670, 10,387, and
7,402, respectively, and in Nuremberg 3,078, 3,105, 3,120, and 1,260,
respectively. In the 47 German towns for which we have comparable
data the number of dwellings in newly erected houses fell from 68,022
in 1912 to 50,169 in 1913. The increase in the number of dwellings
was no longer in relation to that in the number of households, and
consequently the number of vacant dwellings decreased. From the
winter of 1910-11 to the winter of 1913-14 it fell" in Cologne from
5,298 to 3,006, in Breslau from 4,308 to 2,348, in Stettin from 2,502 to
535, in Bremen from 1,636 to 412, in Essen from 1,509 to 674, and in
Lubeck from 941 to 142. In the 49 municipalities for which we have
comparable data, it fell.from 111,177 to 90,785, a result which is the
more remarkable as the total number of available dwellings was
added to in the period in question by the erection of new houses and
by the incorporation of neighboring communities.
It is no wonder, therefore, that the state of the market for dwellings
shortly before the war differed altogether from the guite satisfactory
aspect which it had offered in 1910-11. The statistics for the perioi:l
from October, 1913, to July, 1914, show nothing like the percentages
(6 to 10) which prevailed in Greater Berlin and Hamourg in the
winter 1910-11. In only 8 of the 69 municipalities for which we
have data for the period
the outbreak of the war was the
proportion of vacant dwe ·
higher than 3 per cent, and in only
33 was it higher than 1½ per cent. In only a very few cities was the
supply abundant, in one-half it was decidedly short, and in many
there was an actual dearth of apartments.
The supply of small apartments is of special importance, as touchi~
the greatest number of people and especially the working class. For
while well-to-do persons can, after all, if large apartments are scarce,
make shift with a smaller one or t~ke two adjacent small apartments,
the workers have no way_ out of the difficulty. They can not rent a
large dwelling if a small one is not to be found. It was in small
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~~~;d!ng
88
CHAPTER II.-STANDARD AND COST OF LIVING
apartments that the scarcity was most severe before the outbreak of
the war1 as private buildine: enterprise had failed altogether in this
respect. Tne outbreak of the war relieved the situation;
HOUSIWG CONDITIONS DURING THE WAR
.At the beginning of the war a large number of apartments were
left vacant. Unmarried men and widowers who had had apartments
of their own and were obliged to enter the army gave them up. Many
wives of soldiers did the same, go4:ig to live with their parents or
renting part of the apartments of other tenants, either furnished or
unfurnished, or moving into the country etc. Bridal couples who,
before the outbreak of the war1 had rented apartments to be occupied
in the autumn, gave up setting u_p separate households. From the
last census (taken on different dates between October, 1913, and
June, 1914) before the war to the autumn of 1914 the number of
vacant apartments increased in Berlin from 27 1831 to 39,728, in
Breslau from 2 1348 to 3 1838 1 in Leipzig from 1,634 to 3,2241 in Dresden
from 11432 to 2,817 1 in Essen from 674 to 11278 1 and in Dortmund
from 124 to 747. Only in Kiel, where immigration was from the
first very active, did the number decrease (from 11538 to 1,060). In
the 32 towns for which we possess data for the _period before and after
the outbreak of the war the number of vacant dwellin~ increased from
72 1276 to 100,7431 but even then the proportion of vacant apartments reached 3 per cent in 11 towns only, while in 7 it did not
exceed 1½ per cent.
Thus, though the number of vacant dweµings was far larger than
in the year before the war1 with its painful scarcity of accommoda-·
tion1 yet it did not materially exceed the normal average in time of
peace. In comparin~ the pro_portion of vacant apartments in the
winter of 1910-11 with that m the winter of 1914-15 we find an
increase in 15 cities and a decrease in 11 cities.
While a large number of apartments connected with business
premises and other large and medium-sized apartments became
vacant, the supply of small apartments suitable for workers, though
it was nearly everywhere larger than in the :year preceding the war,
did not in general exceed the normal supply m time of peace.
If the outbreak of the war and its consequences altered the conditions r0j?U}ating the supply of dwellings in an unusual manner, the
longer tli.e war went on the more the state of the market continued to
develop on lines diverging from those of normal times. The number
of existing dwellings continued to increase by the erection of new
houses and t~~lfl!~titioning of large dw~, and to be reduced by
fires, by the p
down of houses, by the a_ppropriation of dwellings
to business purposes, and by the thro~ oftwo or more apartments
into one1 but the erection and the _pulling down of houses became
rarer and rarer occurrences, till at last building ceased almost completely. (.According to statistics of the Federal Statistical Office for
:37 German towns the number of apartments in newly erec.ted houses
.in the period from 1912 to 1917 amounted to 61,335 in 1912, 45,220
in 19131 321330 in 1914, 13,171 in 1915, 4,685 in 1916, and 1,712 in
1917.) The partitioning of dwellings was a comparatively frequent
occurrence and consolidation of apartments was rare, there being
little demand for large apartments. The diverting of apartments to
business purposes ceased almost entirely, owing to the abundant
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HOUSING
89
supply of workshops and business premises on the market. The
only place where it was resorted to, to some extent, was in Berlin
where many apartments were hired by corporations organized to
meet the exigencies of the war. On the other hand, hardly anywhere
were offices converted into living apartments to any appreciable
extent, and the same may be said of the release of a_partments that
had formerly been declared unfit for use. The result was that the
number of available dwellings did not increase much in the course
of the war.
The longer the war continued the more did the establishments set
up exceed those that were broken up, in spite of the continual calls
to the front. Disabled soldiers and other men unfit for active servic_e
set up households of their own. Women who had married during
the war and whose husbands were still at the front took aJ>artments
of their own either before or after the birth of children. The result
was that in the end the proportion of occupied dwellings increased
considerably, and so the proportion of vacant dwelling!:! was again
reduced. In 33 of 41 cities tliere were fewer vacant dwellings in the
winter of 1916-17 than in that of 1915-16, the total number of
vacant apartments having decreased from 97,329 to 86,602. In 1916
the proportion of vacant apartments was higher than at the last
census oefore the war in 57 of 75 cities; in 17 1t had decreased below
the pre-war ~e. In 31 cities the proportion was higher than in
1910-11 and m 25 it was lower. .Although very_ many large and
medium-sized dwellings and dwellings connected with business premises were still vacant, the total supply was about normal. Small
apartments for the working class, not connected with business
premises, were very scarce in many places. In 1917 accommodations
were as scarce as before the war, and at the close of the war there
were scarcely any vacant dwellings fit for use available anywhere in
Germany.
The standard of housing accommodations in the la~e cities became
worse and worse during the war. The old infenor a:eartments
deteriorated more and more and even the apartments built on the
eve of the war became prematurely old and the worse for wear. In
peace time inferior apartments were eliminated, not only by pulling
down the houses, but by their being declared unfit for use by the
authorities. During the war these authorities kept their eyes shut.
Where immigration was lively, and this was the case in many towns,
they_ even permitted underground dwellin~, whose use had been
prohibited, to be reoccupied. Overcrowding was no lo:nger prevented. The demand for lodgings made it necessary ~ lower the
standard as to apartments.
SITUATION SINCE THE WAR
An insufficient supply of dwellings would have been unavoidable
in any case at the close of the war, for then the unmarried men and
widowers who had had apartments of their own before the war, but
had _given them up on entering the army, returned from the front
and looked for new apartments. The same is true of a great number
of soldiers' wives wlio, in the absence of their husbands, had lived
with their parents or with bthers. As might have been expected, a
large numoer of new households were set up. The situation was
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Federal Reserve Bank of St. Louis
40
CHAPTER II,--STANDARD AND COST OF LIVING
still further aggravated by circumstances connected with the issue
of the war. After the conclusion of the armistice, a large number
of fugitives and returning emigrants flowed into the country and increased the numbers of those looking for accommodation. These
peo:ple included Germans from abroad, inhabitants of the ceded
territories, and f!).gitives of foreign nationality from the ne~hbotjng
countries in the East. The increase in the number of houseliolds due
to this immigration was at least 250,000. In the occupied territory
the scarcity of accommodation was intensified by the necessity of
placing a large number of dwellings at the disposition of the occupymg troops.
,
- The ouilding of new houses met with the greatest difficulties. In
the eourse of the war the production of building materials had been
reduced to a minimum. Of about 18,000 brick kilns 8,000 stopped
work immediately on the outbreak of the war. In 1915 another
5,500 and in 1916 another 900 followed their example. At the close
of the war only 700 kilns were at work. In the years 1919 and 1920
the number increased slowly to about 1,200 or 1,300. The prices
of building materials, however rose enormously.
At the same time a serious iack of workers was experienced in the
building trades. Many- had been killed in the war or had returned
with inJuries impairing their work4lg :eower or _preventing them from
carrying on thell' trades. A considerable number had clianged their
occupations during the war and had gone into the mines or into the
war mdustries where they could earn higher wages. Only a few of
these men returned to their old trades after the war. In the building trades it was almost impossible to secure a fresh supply of young
men, because they preferred to enter other trades where prospects were
less uncertain. Tlius the number of workers in the builcling trade fell
from about one and three-fourths millions in 1914 to about one million
in 1920. The individual workman, moreover, did less work than before the war, because inadeg_uate nourishment reduced his physical
ability to work and political excitement interfered with his application to his work.
Under these circumstances the Government to remedy as far as
possible the most serious grievances connected with the scarcity of
accommodation, took measures (1) to regulate the relations between
landlord and tenant; (2) to control the a.isposition of existing housing facilities; and (3) to stimulate building enterprise.
1. The legislative measures for the frotection of the tenant materially restrict the landlord's i;ight o givip.g notice and limit the
amount of the rent. The basis for the calculation of the rent is that
paid on July 1, 1914, and the increases permitted were for a long
time very moderate, e. g., in Berlin, at the end of 1920, 30 per cent
and early in 1922, 70 per cent, whereas the minimum cost of subsistence at the end of 1920 was 11 times as high as before the war,
and in Janu~, 1922, 19 times as high.
2. The legislative measures relat~ to the control of the exis~
housing accommodations authorize tlie communes to forbid the pull=
ing down of buildings and the appropriation to other purposes of
rooms that up to October 1, 1918, had been used as living rooms.
The communes may also allot vacant rooms that are fit to live in
to persons in seareli of apartments, and cause unused offices or busi·ness premises to be fitted up as living rooms. Finally, they are
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Federal Reserve Bank of St. Louis
HOUSING
41
authorized to seize occupied offices or business _premises and part of
occupied apartments. Apartments owned by mdustrial or agricultural concerns, which were built for the accommodation of their salaried employees or workers, and newly erected houses are not subject
to seizure, these exemptions being intended to stimulate building
enterprise. Some communes waived their right of seizing part of
unnecessarily large apartments in case the owner agreed to pay a
sum sufficient to provide an equal number of new rooms.
3. It was evident at the outset, however, that all legislative measures for the appropriation of existing house room for living purposes
could not bring about a material improvement in the supply of apartments, and that the only: way to achieve this would be to encourage
by all possible means the building of new houses. Yet, private
builders could not be expected to engage e..""{tensively in building
operations so long as a satisfactory return on the invested capital
could not be _guaranteed.
The situation in 1918 may be described as follows: The cost of
erecting an apartment had increased on an average about 200 to 300
per cent as compared with pre-war time, but rents had not risen in
proportion. They were in geneyal just sufficient to cover the expense
of keeping existing apartments in repair, but not sufficient to insure
an adequate return on the capital reg_uired to erect new apartments.
But even the raising of rents could liard.ly induce private capital to
engage in building, because of the uncertainty as to the future trend
of the cost of building. In 1917 and 1918 it was supposed that the
rise in the cost of building then experienced would be transitory, and
that when the immediate consequences of the war were over it would
fall again, though not to the level of pre-war prices. If, after rents
had first been raised, a retrograde movement of prices had set in,
the cost of building in the following years would have been reducea
and rents might have been expected to fall also. In that case rents
fixed for newly built houses on the basis of the actual price of building at the time could hardly be maintained. Even if the increased
rents had at first insured a satisfactory return on the capital invested
in new houses they could not continue to do so. It was the uncertainty re(J'arding the trend of prices and not the control of the disposition of the existing accommodations (as has often been asserted) that
prevented private capital from engaging in building to any extent.
If, therefore, private building enterprise was to be revived, the only
way was to secure out of public funds an adequate return on the
capital invested in building operations, public subsidies being paid to
cover that part of the cost of building the interest on which tlie prospective rent of the house would not cover.
Such subsidies have been granted to a large extent for the building
of dwelling houses in general, as well as for miners' houses. The
Commonwealth, the States, and the communes have also granted
subsidies toward the unremunerative part of the cost of ouilding
houses for officials, salaried employees, and workers employed in
Government establishments and in public-service enterprises. A
part of these funds was raised by a building tax on the old houses.
All these and numerous other measures, however, did not stimulate
building enterprise greatly. Whereas during the war 250,000 ap:1rtments were erected, in tlie period from 1919 to 1921 ori.ly about the
same number were built.
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Federal Reserve Bank of St. Louis
42
CHAPTER II.-STANDABD AND COST OF LIVING
Table 11 shows the net increase in dwellings in German cities of
over 100,000 inhabitants for each year from 1913 to 1923.
TABLB 11.-NET INCREASE IN DWELLINGS IN GERMAN CITIES OVER 100,000 IN•
HABITANTS, 1913 TO 1923, BY YEARS
~ ~lid K•
City
Aix la Chapelle___________________
Altona ___________________________
1913
1914
1915
1916
1917
1918
1919
298
938
565
237
587
709
«2
250
170
18
15
54
14
20
28
16
I 13
11
19
138
111
9
13
9
195
635
~~i!~::::::::::::::::::::::::
Bochum__________________________ 3,096
Berlin•---------------------------
311 --in"
Breslau
Bremen___________________________
___ -··-------------------_ 1,053 1,328
Brunswick _______________________
445
188
177
---64,521
445
------ ------ -----·
Chemnltz
________________________ 321 314 377
Cassel __ -------------------------3,745 1,885 412
Cologne _________ .---------------- 2,442 1,813 1,366
Crefeld
___________
---------------73
Dortmund _______________________ 637 259
1,341
Dresden_------------------------- 2,376
1,001
E:=ii:r:ri----------------------Elberfeld _________________________ a,576
--ozr
a,"iii2289
i;5i8- 1,068
305
275
98
Errurt____________________________ 546
298 106
Essen ____________________________ 1,013 11911
869
Frankfort on the Main ___________
Gelsenklrchen ____________________ 2,563 l, 1146 9711
Halle _____________________________ 335 390 217
323
51
Hambom_________________________ 507 448
358
Ham burg ____ ·------ __________ ·-_ 7,402 3,050 1,4511
631 1,311
534
Hanover_--···-·•···------------·
Karlsruhe ________________________ l, 677
510 350
42
Kiel ______ ------·--·--·--------·-- 241 180
-·----
1,726 769
:E:~~~~~~!:::::::::::::::::::::::
Lubeck__________________________ • 2,788 2,467
254 313
Magdeburg_______________________ 1,091
Mainz
_____________________________
···-·----------------- 113 --iioMannheim
1,582 1,084
Mulhelm
_______ ------· __________ 656 420
Munich
__________________________
Munchen-Oladbach______________ 3,445 1,624
118
Nuremberg
Munster.
_________________________
--------------------·- 363 245
1,260 1,084
Plauen_ ·--------·--·----·--- •____ 754 --389Stuttgart
_________________________ 332
Stettin __ .•·---··-·----·---------·
2,104 1,649
1
472
1,147
75
292
26
485
116
577
2
56
262
--i82645
-----1 23
--isii- ---77161
145
75
127
544
3
265
321
1
121
63
1911
874
270
14
100
53
391
64
47
11
177
134
11
95
11211
141
35
63
11
5
79
26
66
409
--iiiii28
304 1,028
1920
1921
1922
1928
71
182
152
341
33
'¥1
200
539
263
3,057
445
480
536
123
«7
«7
3,863
520
626
1,259
85
534
256
232
294
56
------
730 1,205
920
756 1,196 950
882
309
87
217
169
169
787
410
4112
23
272
188
276
393 1178 2,750 2,531
l
60
196
330
235
294 1,158
5114
82
183 807
944 715
r,77
49
392
536
---ii" 6 345 615 869
17• · 3
97
37L 367
----3- 145
578
415
628
251
603 558 196 511 1,404 1,318
146
27
229 1,171
457
864
18
14
47 306 469
196
67
5
80
280 202 341
1
1
IJ
160
270
313
8
65
452 1,416 2,187 2, 6.10
13
15
193
674
2115
445
19
18
202
339 3911 509
66
125
140
181
272 267
88
136
58
288
386
539
33
39
298
565
518 1,174
7 169
439
934
616
485
32
154
78
196
195
284
167 --223- 230
416
266
--,-iii- 15
684
191
679
211
15
31
436
98
388
18 222
607 1,469
748 1,441
244
306
---i6- --i23- --iiiii- --939- --600- 1,061
11
122
102
143
---,-6- ---1T lU,
539
656
275
46
913
852
939
37
378
20
26
65
13
100
4
45
114
5
65
42
9
150
6
96
---ar
------ ------ ------ ------ ------
636
432
2,663
554
845
702
1,356
856
176
170
1,095
1,013
6111
501
741
3,065
311
517
258
483
882
370
284
2114
744
450
958
110
268
821
182
547
687
Decrease.
• 1913 to 1920, Berlin without suburbs; 1922 and 1923, Greater Berlin.
Table 12 shows the cost-of-building index for each month from
January, 1921, to June, 1923, covering the prices of materials and
the cost of building, and showing also index numbers of the dollar
exchange rate of marks. Buildmg materials are divided into three
groups: Raw materials (brick, lime, gypsum, cement), lumber, and miscellaneous (rod iron, shaped iron, winclow glass, linoleum). The cost
of building is for two factory: buildings (one simple factory building
and one factory building with office rooms) and for dwelling houses
(from January, 1921, to October, 1922, one small one-family house,
one tenement house, one fine apartment house; from November,
1922, to June, 1923, one small one-family house and one tenement
house).
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Federal Reserve Bank of St. Louis
48
HOUSING
TABLB lt.-INDEX NUMBERS OF COST OF BUILDING IN GERMANY, JANUARY, 1921,
·
TO JUNE, 1923, BY MONTHS
[July, 1914-1)
Building materials
Building cost per cubic foot
Year and month
Mlscel•
Raw
materlala Lumber laneo118
1921
January••••••••••••••
February•••••••••••••
March •••••••••••••••
14. 71
June •••••••••••••••••
July -·•··············
August•••••••••••••••
September•••••••••••
October.•••••••••••••
November •••••••••••
December••••••••••••
16.41
15.62
15.47
15.52
16.49
22.48
28.92
}t:·
tJ:rll
................. 16.66
15.40
BY •••••••••••••••••
1922
January ...........
February ••••••••••••
March •••••••••••••••
tJ:rll.
................
ay •••••••••••••••••
June •••••••••••••••••
July .................
August•••••••••••••••
September•••••••••••
October••••••••••••••
November •••••••••••
December:···········
1923
January••••••••••••••
February•••••••••••••
March •••••••••••••••
32.43
42.27
52.65
65.42
88. 72
106. 73
126. 51
155. 88
?.86.04
452.-13
944. 50
1694.26
2625.6
6649.l
8570.1
7755
~·················
ay ••••••••••••••••• 8102
June ••••••••••••••••• 14697
Total
Factories Dwelling
.holl8es
Total
Dollar
ex~
marks
(11113-14
~l),
.
20.26
19.58
19. 73
21,:H
24.23
25. 73
32.36
36.93
14.68
14.87
14.94
15.40
15.39
15.57
16.02
16.51
17.15 •
18.30
23.58
29,27
11,78
12.40
13.54
18.54
13.23
15.63
17,09
18. 54
~-42
24.38
26.04
27,09
11.79
18.31
14.14
14.53
14.53
15.40
16.93
18.85
19.89
26.32
26.13
27.17
1L79
18.09
13.99
14.28
14.~
15.46
16.97
18. 78
20.02
25.09
26.11
27,15
111.46
14.60
14.88
15.13
14.M
16.52
18.27
20.08
24.99
36. 78
62.64
46. 72
32.15
39.50
48. 70
64.35
32.19
37.19
45.32
56.63
37.65
44. 85
61.99
82.15
85.39
88.69
83.34
96.36
29. 70
34.~
41.39
54.32
69.33
114.09
146.16
~.89
344. 94
610.9
960.4
2017.5
30.33
34.95
42.37
65. 74
71.62
96.64
142. 86
46.69
49.51
67. 70
69.32
69.11
75.62
117.49
270.26
349.18
767.73
171L08
1807.88
12.07
12.10
12.60
18.:H
13. 73
14.49
15. 45
16. 66
17.49
18.83
22.48
27.30
29.85
33.10
37. 70
73.69
112.13
179.53
405. 63
640. 78
948. 97
2937.53
88114. l
6117.1
6270.4
6278
7660
16256
22.as
23.11
22.01
2i.Oli
117.26
214.69
86L07
S60. 92
135L08
2182.82
8146.5
8902.0
9007.8
8412
10659
26311
98.87
1~.69
170.30
329. 76
627.10
99Ll6
2107.42
2939.6
6722. l
7852. 2
7002
~5
16396
60.00
78.48
104.30
135.94
178.13
321.36
541.2
9114.8
1833.8
2802.1
4416. 7
5182.3
5703
7109
14063
' 2796.5
4190.2
5365. 9
5688
6991
14363
200.45
339.04
693.5
969.
1971. 5
2797.9
4246.8
53~
5692
7021
14288
4281
6650
5048
5826
11355
26202
Table 13 shows the cost-of-building index for each month from
July, 1923, to November, 1924. These figures are not exactly comparable with those of the prece<!ing table as the gx:oup of raw materials
includes iron and roofing board, the base for the lumber-price
indexes has been changed, and "miscellaneous" comprises materials
for the inside of the building such as pipes, window glass, etc. The
cost of buil~ is computed for an apartment of four living rooms,
having a total of 1,200 net square feet, on an upper floor of an apartment house.
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Federal Reserve Bank of St. Louis
44
CHAPTER II.-STANDARD A.ND COST OF LIVING
T.6.BLB 13.-INDEX NUMBERS OF COST OF BUILDING IN GERMANY, 1ULY, 1923, TO
NOVEMBER, 1924, BY MONTHS
(1913-1)
Building materials
Year and month
Raw
mat.erials
Lumber
MiBcellaDeOIJ8
Dollar
exchange
Building rateofmarb
0081,
(1913-1'
Total
-1)
11123
86937
July •••••••••
54369
96625
67385
64813
August ••••••••••••••••• 1235760
110803:.
™30t3
1207506
1268512
28131781
261131814
lM3S8021
September•••••••••••••• 23004822
38348326
I 118115
l9899
19031
19183.
113126
October••••••••• ;. •••••••
1 862.6
1 11.0.s
I 790.8
1891.9
1778.6
November••••••••••••••
I Lli6
IL66
I 2.33
I 1.611
11.49
December ••••••••••••••
1924
January ••••••••••••••••
February •••••••••••••••
March ••••••••••••••••••
tt::.·····
.
y ••••••••••••••••••••
June ••••••••••••••••••••
July ••••••••••••••••••••
August ..•••••••••••••••
September••••••••••••••
October •••••••••••••••••
November ••••••••••••••
11.41
I 1.26
I 1.21
• 1.20
I 1.20
I 1.18
1 1.14
1 1.14
I 1.20
'1.20
I L32
IMllllous.
.
IL66
IL47
IL41
I 1. 51
I 1.65
1 LM
I 1.33
IL28
I 1.49
1 L48
1 L50
• Billlons.
11. 76
11. 411
I 1. 411
1 L51
• 1. 50
I 1.50
I 1.49
I 1.46
I 1.46
I 1.41
I 1.44
11.49
I 1.33
IL29
•1.32
• 1.34
I 1.30
I 1. 23
I 1.22
I 1.30
11.29
•L38
I 1.34
I 1. 27
I 1.2'
I 1.27
I 1.32
I 1.33
I 1.25
I L27
I 1.47
I 1.49
I 1.60
8'186
1100632
123.1
16017
1 622.8
11
•1
•1
•1
•1
11
•1
•1
•1
•1
•1
•1
• Based on rentemnarks.
Table 14 shows the building cost for 101600 cubic feet (net) of·
living room in an apartment house and for a one-family house of
12,400 cubic feet (~oss), containing three living rooms, closets,..cellar,
and garret in specilied months, 1914 to 1923. · ·
14.-BUILDINO COST FOR ONE-FAMILY HOUSES AND APARTMENTS IN GERMANY, 1ULY, 1914, OCTOBER, 1921, AND 1ANUARY, 1922, TO 1UNE, 1923, BY MONTHS
TABLE
ment
Onetamlly
feet)
cubic feet)
.Mara
.Mara
Apart-
Month
1914
July••••••••••••••••••••••••
~~
house
(12,400
6,700
6,125
144,000
168,000
165,000
195,000
240,000
315,000
410,000
636,000
182,000
210,000
262,000
340,000
'°3,000
682,000
1921
October ••••••••••••••••••••
1922
January .....•.•.•••••••.•..
February•••••••••••••••••••
lltr.arch •••••••••••••••••••••
u:·::::::::::::::::::::::
June •••••••••••••••••••••••
ment
Onetamlly
feet)
house
(12,400
eubicfeet)
Apart-
Month
~~
1922
.Marica
July...............•.•••••.. 810,000
August...
• •••••• 1,275,000
~ b e r ••••••••••••••••• 2,065,000
3,675,000
November ..•..•..•.••..•.. 6,000,000
December .........•.•••.••. 11,700,000
1923
24,800,000
t:~·:::::::::::::::::: 31,
600, 000
33, 7SO,OOO
tJ>:·:::::::::::::::::::::: 79,000,000
.Marb
823,000
1,226,000
2,066,000
8,618,000
6,600,000
12,260,000
25,200,000
32,400,000
34,125,000
89,300,000
The continuous increase in the cost of building, which on the whole
exceeded the increase in the cost of living, was an impediment
to building, not only because people could not afford the expense,
but also because it rendered anything like a reliable estimate of cost
impossible. A building whose cost liad been estimated at 3,000,000
marks might, when completed, have cost 60,000,000 marks or more,
and thus meant ruin to its owner. Many buil~ were therefore left
unfinished and in this condition sold to persons wnose means enabled
them to finish the buildings. To prevent the consequences of this
uncertain state of affairs, great efforts were made to provide some
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ROUSING
45
guaranty that the actual cost of erection of a building would not
exceed the estimate. This was possible, at least as regards part of
the items, if the necessary matenals and fittings were bought as soon
as the resolution to build was definitely taken. But so uncertain was
the state of the buil~ industry that even this precaution did not
protect the builder agamst loss.., unless he took actual possession of
the materials and articles J?urchased and warehoused them himself.
When this was not done, 1t often happened that purchased goods
which had been ke_J>t in stock by the dealer were not forthcoming
when called for. This, of course, led to further difficulties and litigation, and in the end the owner had generally to bear the loss. The
w~es always remained a variable item, and such variations involved
a nsk to the builder that could in no way be avoided. As only about
one-half of the estimated cost of a building can be definitely fixedby the purchase of materials, etc.-the other half will always constitute a considerable risk to the builder. It was the varying item
of wages that caused the chief difficulties in agreements between
owners and contractors. A complete system of scientific calculations
was necessary to ascertain, for instance what part of the cost of
erecting a cubic foot of masonry was chargeable to materials, to
transportation, to wages, to superintendence, to workers' insurance,
to general expenses, to the profit of the contractor, etc., and which
of these items were to be considered as fixed and which as varyjng.
The trouble caused the supervising architect by these various calculations was enormous. The arrangement aimed at in most cases was
that only the wages should be considered as variable, and that as
regards his profits, the general expens~.., and various other items the
contractor should agree to a liberal settlement with the owner. The
negotiations on these points were difficult and took a great deal of
time; the results differed, depending greatly on the good will of the
contractor. In any case the risk run by both contractor and owner
was very•great.
Generally speaking, only people who were engaged in business,
and whose income therefore mcreased more or less m proportion to
the depreciation of the money value, could build in the time of
inflation. For this class of people the high prices did not make much .,
difference, tho~h almost every business undertaking in Germany
was on the decline in spite of tlie nominally high figures of sales and
profits. The formerly well-to-do classes who had lived on the returns
of their capital were hopelessly pauperized. As far as building was
concerned, this class of the population was out of the running
altogether. On the whole, therefore, only the business men, the
manufacturers, the landed proprietors, and foreigners from countries
ha'7ing a sound currency could engage in house building. The
buildings erected in Germany were, therefore, chiefly office buildings,
factories, and agricultural establishments, but included also a considerable number of dwelling houses for the above-mentioned classes.
As regards the supply of dwellings for the mass of the people the
erection of residences for a few newly rich persons meant nothing.
The erection of dwelling houses proper in Germany has virtually
ceased. Very few apartment houses have been erected in German
cities since tlie war, as the rents were kept so ridiculously low by the
law restricting house rents that there was no prospect whatever of
20168°-25t-4
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Federal Reserve Bank of St. Louis
46
CHAPTER II.-STANDARD AND' COST OF LIVING
ma~ a profit on a house built under prevailing conditions. Houses
built smce the war are not, it is true, subject to the restrictions on
rents. But this exemption did not help the owners of new houses,
as, if rents of old houses were, say, about 10 times as high as they were
in :pre-war time and the cost of building 1,000 times as high, it would
be rmpossible to expect tenants to pay a rent for new houses 100 times
higher than that for old houses. Under such circumstances it would
have been foolish to build houses for rent. Not only was the poi;isibility of erecting new dwelling houses for rent destroyed by the
restriction on rents, but practically all the houses for rent in German
cities got out of repair, because the rent was insufficient to pay for
the most trifling repairs. The renewal of a single kitchen sink
re~uired a whofe year's rent of a large Berlin apartment house.
This is the reason also that large areas of bare wall from which the
plaster has fallen are to be seen on buildings on all streets and that
all German towns ·and cities are beginning ~o show a neglected
appearance. All this would have been tolerable if the working class
had actually profited by the low rents, but this was not the case.
In ~ wages, the low rent was fully taken into account, and the
main effect of ~he rent restriction law in the long run was that the
German emplot!°ghad the benefit of having his employees lodged for
practically not · .
Conditions in rural districts were on the whole not much better.
In the first year after the war the erection of small dwelling houses
in the country was carried on actively, being encouraged by considerable grants from the Government. But liere, too, the influence of
the depreciation of the currency very soon made itself felt. Even
before projected building operations were completed, the means
granted by the Government proved to be totally inadequate in consequence of the continuous advance of prices. The situation was
further aggravated by the fact that societies formed on cooperative
principles for carrying out such projects had only very limited means
at their disposal. In consequence, most of the housing projects
failed before they were half carried out. Almost all the extensive,
carefully prepared, and architecturally promising projects for settling
the surplus town population in the country thus came to naught.
Only workmen's settlements of the more important industrial works
could be carried on. In the last three years the owners of industrial
works have received stro~_encouragement and material aid from the
Government toward providing houses for their workmen. The owner
of an industrial establishment employing more than 20 workmen may
escape the special tax which may be imposed on such establishments
by 1:iuilding -houses for his workmen, and the law also allows him to
deduct the building cost from his taxable income. Besides settlements built by private industrial establishments, a certain number of
dwelgng houses have been built by a few progressive municipalities.
Dwellirigs for Government employees have also been erected by the
Ministry of Labor. But even when all these are considered there still
remains an almost absurd discrepancy between the urgent demand
for apartments and house room and tlie number of new houses built.
According to the estimates of various experts, one and one-half
million apartments are now needed in Germany.
fie worst feature of this scarcity of available apartments is that
there is no possibility of employing the only effectual means of relief
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Federal Reserve Bank of St. Louis
47
FUEL AND LIGHT
that is, buildine: a sufficient number of new houses. This was not
possible when tiie rent restriction laws kept the rents (calculated in
aollars) down to one-tenth in 1921, to one-fiftieth in 1922, and to one
one-hundredth or less in 1923, but neither is it possible now when the
rents are three-fourths of what they were in pre-war times. Table 15
shows index numbers of rent for two rooms and a kitchen from
January, 1922, to December, 1924, by months:
TABLE 15,-INDEX NUMBERS OF COST OF RENT IN GERMANY, 1922 TO 1924, »Y
MONTHS
[1913-14-1]
On basis of dollar exchange rate
of marks
Month
1922
1,1924
1923
1922
;January__________________________________ _
___________________________________ _
March
February··--·----------------------------
tr:ff-:::::::::::::::::::::::::::::::::::::
July ______________________________________ _
lune_----------·-----------------·-·-·----
August---------------·-·-·····--······----
-····--------------------------_
September.
October __________________________________
November __ ····--··-·----------···----·-December-----···--·----·----·-···-···-·-t
2.36
2. 40
2. 50
2. 87
3.00
3.13
3.43
4. 03
4.17
7.95
11.33
16. 52
:tlased on rentenmarks in this year.
38
.'58
113
181
216
301
714
4932
,3
'54
22
1218
I
0. 29
.34
.38
.53
.55
.57
.68
.70
.70
.73
• 74
.74
2 Mlllion.
0. 05
.05
.04
.04
.04
.04
.03
.015
.012
.010
.007
.009
1923
0.009
.009
.022
.031
.019
.011
.008
.004
.013
.009
.04
.22
11924
0. 29
.34
.38
.53
,55
.57
.68
.70
,'10
,'13
,'14
.74
•Billion.
The reasons why the low rents preclude much building are as
follows: 1. .A13 one-third of the rent has to be paid as a special rent
tax, the proprietor of the house gets not three-fourths, but only onehalf of the pre-war rent; 2. The cost of building is 60 per cent
higher than before the war; 3. The general rate of interest has
increased so much that houses can not be built on a sound business
basis unless the rents are much higher in proportion to the cost of
building than before the war.
FUEL AND LIGHT
From 1916 to 1921 the coal supply in most German cities was
so scarce that, in general, workmen found it impossible to get sufficient fuel adequately to heat their dwellings, ana this condition did
not materially improve when coal became more plentiful, as its
price was then prohibitive. For the same reason tliey were obliged
to be as economical as possible as regards lighting. It became
quite customary for workers' families to go to bed early in winter
in order to escape freezing in their unheated quarters, and in summer
to walk in the streets after dark as they could not afford light in
.
their dwellings.
Table 16 shows all changes in the price of Ruhr coal from April 1,
1914, to December 31, 1924, both in paper marks and in gold marks
(calculated on the basis of the exchange rate of the mark m Amsterdam up to the end of 1919 and of the dollar exchange rate of
marks in Berlin from and after 1920). Up to September, 1923, the
gold-mark prices calculated on the exchange rate of the paper mark
· were sometimes higher and sometimes lower than before the war.
From and after September 17, 1923, gold prices were introduced,
which were at all times considerably higher tlian those before the war.
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48
CHAPTER Il.-STANDARD AND COST OF LIVING
'l'ABLB 16.-PIT PRICE PER TON OF RUHR COAL, APRIL 1, 11114, TO DECEMBER 31, 1112'
Gold marks
1---...-----.----
Paper marks
Period
Lowest
Highest
1L25
1L26
10. 79
11.68
12.29
1L39
11.69
12.56
19,50
18.01
20.98
24.51
Apr. 1 to luly 31, 1914....................................
11. 26
Aug. 1, 1914, to Mar. 31, 19Ui.............................
11. 211
Apr. 1 to Aug. 3!!_ 1916....................................
13. 25
Sept. 11 1915, to uec. 31, 1916 •••••••••••••••••••••••••••••
14. 25
lan. 1 io Apr. 30, 1917 ••••••••••••••••••••••••••••••••••••
16. 25
May 1, to July 31, 1917•••••••••••••••••••••••••••••••••••
18. 211
Aug. 1 to Sept. 30, 1917...................................
2L 90
Oct. 1, 1917, to Aug. 31, 1918.............................
24. 30
Sept. 1 to Dec. 31, 1918. ••••••••••••••••••••••••••••••••••
26. 85
lan. l to Apr. 30, 1919....................................
41.30
May 1 to 111Dl1 15, 1919 •• • ••••••••••••••••••••••••••••••••
61. 30
111D8 16 to Sept. 301 1919..................................
67. 40
Oct.1 to Nov. 30, 1919....................................
77. 90
Dec. 1 to Deo. 81, 1919....................................
86. 90
lan. 1 to lan. 3:i lll'JO.....................................
106. 90
3i,1~:::::::::::::::::::::::::::::::::::
Apr. 1 to Apr. ~J lll'JO,...................................
192. 40
May l lll'JO, to M.llr. 81, 1921. ••••••••••••••••••••••••••••
1118. 40
Apr. 1 to Aµg. 311 11121.... •••••••••••••••••••••••••••••••
227. 40
Sept. 1 to Nov. llU, 1921...................................
268. 90
Dec. 1, 1921, to lan. 31, 1922..............................
405. 10
Feb. 1 to Feb. 28, 1922....................................
468. 10
Mar. 1 to Mar. 81, 1922................. ••••••••••••••••••
601. 70
Apr. 1 to Apr. 19, 1922............................ ••••••••
713. 20
Apr. 20 to 111Dl130i 1922...................................
907. 50
luly 1 to July 31, 922....................................
1,208.00
1, 613. 00
Aug. 1 to Aug. 31, 1922.. •••••••••••••••••••••••••••••••••
Sept. 1 to Sept; 30, 1922......................... ••• •••••••
4, 105. 00
Oct. 1 to Oct. 31_, 1922... ••••••••••••••• ••••••••••••••••••
S, OM. 00
Nov. 1 to Nov. 16, 1922...................................
8,114.00
Nov. 16 to Nov. 30, 1922..................................
14,011.00
Deo. 1, 1922, to lan. 11, 11123..............................
22,763.00
lan. 12 to lan. 31, 11123..... •••••••••••••••••••••••••••••••
38,044.00
Feb. 1 to Feb. 8, 11123.. •••••••••••••••••••••••••••••••••
68,411.00
Fob. 9 to Mar. 31, 11123.. ••••••••••••••• ••••••• •••••••••••
123, 356. 00
Apr. l to May 16, 11123...................................
114,117.00
May 16 to May 31, 11123. •• ••••••••••••••••••••••••• ••••••
143, 510. 00
June 1 to lune 14, 11123....................................
221,200.00
lune 15 to lune 24, 11123..................................
836,200.00
lune 26 to luly 8, 11123....................................
628,000.00
luly 9 to luly 16, 11123....................................
835,000.00
July 17 to luly 26, 11123................................... 1,361,000.00
July 27 to Aug, 1, 11123.................................... 2,083,000.00
Aug. 2 to Aug. 81, 11123... ••••••••••••••••••••••••••••••••• S, 168,000.00
Aug. 9 to Aug. 111, 11123................................... 23,267,000.00
Aug. 20 to Aug, 26, 11123.................................. 37,IIBf,000.00
Aug. 27 to Sept. 2, 11123.................................... 70,707,000.00
Sept. 3 to Sept. 9, 11123.•••• ~............................. 91,913,000.00
Sept. 10 to Sept. 16, 11123.................................. 168, 700, 000. 00
Sept. 17 to Sept. 23, 11123••••••••••••••••••••••••••••••••••••••••••••••••••
9.69
11.25
9.36
10.13
9.89
1L73
12.53
11.96
12.30
16. 76
9.95
7.66
7.41
4.53
6.06
i:::
-If!:.1t ~-
24. 05
14.39
8.83
9.23
6.90
10.22
16.09
7.05
12.06
9.49
25. 05
10.49
3.44
7.21
8.60
7.46
9.18
10.19
7.57
3.22
10.34
4.72
11.25
10.21
1L44
10. 51>
10.92
10.84
12.29
16. 64
14.63
17.12
19. liS
16.44
10.81
8.06
6.92
6.34
8.41
13.M
14.37
13,40
6.17
8.86
9,46
8.97
9.88
12.60
10.28
5.60
11.76
6.67
4.81
8.07
26.98
7.28
7.38
16.41
12.46
10.28
10. 05
10.98
10.66
16.12
12.61
9.86
13.78
11.69
7.49
9.52
15.66
Ui.43
8.57
27.40
22.78
13.28
14.86
13.11
19,40
19.47
26.21
11,61
19.68
86.17
37.97
52.25
39. 78
13.97
28.08
28.08
28.08
38.46
38.46
38.46
24.92
2G.60
24.92
24.92
3.72
6.70
9.15
8.26
6.80
16.66
10.41
8.67
8.60
9.63
12.60
17.88
7.52
7.95
4.46
20.10
28.99
ti'i\il~f§:;i;;;;;;;;;;;;;;;;;;;;;;;;;;;;; ;;;;;;;;;;;;;;;;
Average
20.60
16. liO
16.00
16.50
16.00
12.02
7.01
7.48
23.36
16. 39
10.79
11.34
11.01
14.37
18. 72
15.28
8.61
7.114
28.42
32.17
36.37
14.97
8.95
20.60
16. liO
15,00
Table 17 shows the average price of lignite briquets in Greater
Berlin each month from January, 1920, to December, 1924. The
average price in 1913-14 waa 1.15 marks per 110 pounds.
TABLB 17.-AVERAGE PRICE OF 110 POUNDS OF L'IONITE BRIQUETS IN GREATER
BERLIN, JANUARY, 1920, TO DECEMBER, 1924, BY MONTHS
Month
1920
Jlarb
lanuary •••••••••••••••••••••••••••••••••••••••
~~Y·:::::::::::::::::::::::::::::::::::::
t&r:~·~:::::::::::::.
::::::::, ::::::::::::::::
June••••••••••••••••••••••••••••••••••••••••••.
luiy•••••• •••••••••••••• •••••••••••••••••••••••
$her.::::,:::::::::::::::::::::::::::::::
November. _•••••••.•••••••••••••••••••••••••••
December •.•••••••.••••••••••••••••••.••••••.•
•Millions.
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Federal Reserve Bank of St. Louis
t
7.90
8. 70
13. liO
16.80
16.10
16.10
16.10
14.90
14.90
14.90
11\.20
15. 20
Billions.
1921
Marica
1922
Jlarb -
16. 20
16.10
16.26
16.90
17.60
17.60
17.60
17.60
18.35
19.05
2!.55
27.35
27.80
32.40
40.80
51.10
60.25
64.90
1923
1924
.Marica
Juntenmark8
2,267
11,807
7,225
6,446
6,918
15,087
49,329
106.10 1,169,955
131.4
245.80
•7,3M.2
Mo. 50
t 1,030.8
728.15
a 1.88
1,496.25
82.30
I
RentenmarkR.
1. 76
1.69
1.66
1.65
1.65
1.58
1,53
L49
1.47
1.45
1.53
1.53
49
FUEL AND LIGHT
Table 18 shows the average price of gas in Greater Berlin each
month from January, 1920, to December, 1924. The average price
in 1913-14 was 0.12 mark per cubic meter.
TABLE 18.-AVERAGE PRICE OF 1 CUBIC METER! OF GAS IN GREATER BERLIN,
JANUARY, 1920, TO DECEMBER, 1924, BY MONTHS
Month
1920
1921
1922
1923
1924
January _• ----- _______________________ -- _________ _
Febmary ________________________________________ _
March __________________ • _________________________ _
.--------------------------.
__________________
April___________
-- __ --- ________ -- __________________
May
June_ _____________________________________________ _
July ______________________________________________ _
August. ______________ • ___________________________ _
September________________________________________ _
October ______ ·-._ •. _____ • ________ .·- -- • ·- ________ _
N ovembA• •••• _______ • _. ______ • __ • _. ___________ _
December ___________ ._. ____ • -- -- • -- • -- -- ---·- ____ _
Mark8
Marks
Mark8
Mark8
Rentenmark8
o. 75
1.10
1.10
1.10
1.10
1.25
1. 25
1.25
1. 25
1.35
1.35
1.60
2. 30
• 75
1
1
1
1
1
1
1.10
1.10
1.10
1.10
0. 21
• 21
. 21
.20
.19
.19
.19
.19
.19
.19
.19
.19
200
3.20
310
700
650
3.50
3.80
4.30
5.20
5.20
650
1,200
6,000
100, 96R
8
22.30
31.65
'3
1414
a 103.3
•. 21
58.50
98
•Billions.
•Millions.
1 1 cubic meter=35.3H cubic feet.
2. 50
• Rentenmark.
Table 19 shows index numbers of the cost of fuel and light in
Germany for each month from January, 1922, to December, 1924.
These index numbers were computed from reports of cities to the
Federal Statistical Office on the prices of fuel and light of the kind
most commonly used by its inhabitants; viz, as to fuef, the price either
of 3 centners 3 of coal, of 5 centners of lignite, of 4 centners of lignite
briquets, of 3 centners of ~as coke, of 6 centners of peat, of 6 centners
of firewood, or of 40 cubic meters 4 of cooking gas, and as to light,
the price either of 15 cubic meters of illuminating gas or of 5 kilowatt
hours of electricity.
TABLE 19.-INDEX NUMBERS OF COST OF FUEL J. -.,D LIGHT IN GERMANY,
JANUARY, 1922, TO DECEMBER, 1924, BY MONTHS
[1913-14= 1]
1922
Month
11924
1923
On basis of dollar exchange
rate or marks
1922
.Tanuary ·-· ·-- ----. ----- --- ------- -----
~~~ :::::::::::::::::.:::::::::::
~1-:::::::::::::::::::::::::::::::::
.Tune_. ___ .------- --- -- • -- • - --- -- • •- --- -- --- ----- --- --- --- - • -- --- --_____
.July
________________________________
August
t~~~ber ··--·----------------------December
__ -------------------------November_____________________________
1
Based on rentenmarks In this year.
20. 94
23.85
29.65
34. 97
44.11
48.22
59.39
77.16
161.12
251. 72
508. 30
1038. 91
1612
4071
5529
5514
5785
10378
36904
890539
• 23.34
15715
8 834
• 1. 765
•Millions.
1. 63
1.55
1.51
1.48
1.47
1.46
1.43
1.41
1.40
1.36
1. 35
1. 35
a Billions.
0.46
.48
.44
.50
.64
.64
• 51
.29
.46
.33
.30
.57
1923
0.38
.61
1.09
.95
.51
'~'
.40
.44
.81
.99
.95
1.60
1. 77
1.63
1.55
1. 51
1.48
1.47
1. 46
1.43
1.41
1.40
1.36
1. 35
1.35
• Based on rentenmarks.
The German fuel and light cost index, calculated on the basis of
the dollar exchange rate, was generally below 1 until October, 1923.
After the mark was stabilized in November, 1923, this index rose
to 2 on December 3; it then fell again but still stands at 1.35.
1 1 centner-110.23
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Federal Reserve Bank of St. Louis
pounds.
' 1 cubic meter-35.314 cubic feet.
60
CHAPTER II.-STANDARD AND COST OF LIVING
CLOTHING
Since Germany produces only a small proportion of the raw
materials (wool, cotton, hides) needed for the manufacture of clothing, the blockade during the war and the monetary depreciation
after the war affected the supply of clothes and shoes perliaps more
than that of any other necessity of life. Moreover, the necessity of
spendim? the greatest part of their wages on food and fuel made it
impossible for most workingmen to ~et adequate clothing for themselves and especially for their families. The clothing-cost index is,
therefore, less than any other index a gauge to measure what workingmen actually spent; it merely shows what workingmen would
have spent if they had satisfied their needs.
Table 20 shows index numbers of the cost of clothing for each
month from January, 1922, to December, 1924, based on reforts of
cities to the Federal Statistical Office on the price of 1 man s suit, 1
boy's suit, 1 girl's dress, 2 ladies' skirts, 2 waists, 6 men's shirts, 6
ladies' shirts, 6 pairs of men's socks, 6 pairs of ladies' stoc~, 1
pair of men's slioes, 1 pair of ladies' shoes, 2 pairs of children's
shoes, and 8 pairs of soles and heels for men's shoes.
TABLB
2O.-INDEX NUMBERS OF COST OF CLOTHING IN GERMANY, lANUARY, 1922
TO DECEMBER, 1924, BY MONTHS
·
(1913-14-1)
On basis of dollar exobange
rate of marks
Month
1922
111124
1923
1922
lanuary ·----------------------------February_ - - -------------------------March_-------------------------------
tra:· ::::::::::::::::::::::::::::::::
June_----------------. ---------------luJy _-- -------------------------------
= b e r::::::::::::::::::::::::::::
December____________________________
Novembei
_---------------------------_
l
Based OD rentenmarks in this year.
30. 75
37.21
44.47
48.29
56.88
65.19
80. 16
125. 71
260. 00
386. 64
74L62
1161.13
I
Ul.82
4L64
43.23
4L82
57.24
119. 95
664.88
10895. 71
126. 5
16160. 00
I 816. 00
l L66,
M11lioDB.
L61
L47
L49
LM
1,68
1.55
1.45
1.42
1.44
. 1.46
1.48
1.49
1 Billions.
0.67
.75
.66
.70
.82
.86
.68
.47
.74
.51
.43
,64
1923
11124
0.39
.63
.86
.72
.50
.46
.79
.99
L13
L02
L56
L66
1.51
1.47
L49
LM
1,68
l.M
1.46
1,42
1,44
1.46
1.48
1.49
'Based OD rentenmarks.
The Federal Statistical Office has not published a clothing-cost
index for 1920 and 1921, but gives an inaex for the cost of food,
housing, fuel, and light, and one for the cost of food, housing, fuel~
light, and clothing. The first index is computed by adding the prices
of the food comprised in the food-cost index (see p. 9), tlie monthly
rent of two rooms and kitchen, 3 centners of coal or the corresponding
quantity of other fuel, and 15 cubic meters of illuminating gas or
5 kilowatt hours of electricity. The second index in(lludes also onethirteenth of the total price of the clotb.4tg comprised in the clo~cost index (see above). Table 21 shows·both indexes for each month
from February, 1920, to December, 1924. In each month the second
index was higher than the first. This proves that the price of clothing
was always comparatively higher than the price of tlie other necessities of life taken together.
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Federal Reserve Bank of St. Louis
51
CLOTHING
TABLE
21.-INDEX NUMBERS 011' COST OF LIVING IN GERMANY, FEBRUARY, 1920,
TO DECEMBER, 1924, BY MONTHS
[1913-14-1)
Index numbers
Index numbers
Month
Food,
Food, hous-
houslngt
foe!, ana
light
light, and
1920
February ,. .............
March •••••••••••••••••••
tf:··:::::::::::::::::::
June •••••••••••••••••••••
July ••••••••••••••••••••••
August ....................
September •••••••••••••••
October ••••••••••••••••••
November••••••••••••••••
December ••••••••••••••••
1921
tr~·::::::::::::::::
tra:··:::::::::::::::::::
June •••••••••••••••••••••
July••••••••••••••••••••••
August •••••••••••••••••••
September •••••••••••••••
October ••••••••••••••••••
November••••••••••••••••
December ••••••••••••••••
7.00
8.17
9.16
D. 75
9.53
9.35
8. 87
8.81
9.45
9.99
10.47
10. 70
10.33
10.28
10.22
10.14
10.48
11.24
11.92
12.12
13.08
15.94
17.46
tr:·::::::::::::::::::::
June •••••••••••••••••••••
July•••••••••••••••••••••• j
lMllllons.
1 Billions.
18.25
22.09
26.39
31. 75
34.62
37. 79
49.90
houslngt
Food, hous-
rurfgh'fa
clothing
1922
8.47
9.56
10.42
11.02
10.83
10.65
10.23
10.15
10. 71
11.18
11.58.
lL 79
11.47
11.38
11.27
1L20
1L67
12. 50
13. 33
13. 74
15. 04
17. 75
19.28
1922
January ••••••••••••••••••
February•••••••••••••••••
March •••••••••••••••••••
Food,
Month
Ing, foe!,
20.41
24.49
28.97
34.36
38.03
41.47
53.92
August •••••••••••••••••••
September •••••••••••••••
October ••••••••••••••••••
November••••••••••••••••
December ••••••••••••••••
70.29
113. 76
195.04
400.47
611.56
Ing, foe!,
~:~d
77.65
133.19
220.66
446.10
685.06
1923
January ••••••••••••••••••
February•••••••••••••••••
March •••••••••••••••••••
April •••••••••••••••••••••
May •••••••••••••••••••••
June •••••••••••••••••••••
July.•••••••••••••••••••••
August •••••••••••••••••••
September•••••••••••••••
October ••••••••••••••••••
November••••••••••••••••
December ••••••••••••••••
1034
2408
2627
2764
3521
6979
33300
508631
113. 2
13265
1120
2643
2854
2954
3816
7650
37651
586045
1633
11.18
1 15. 01
13657
1657
I 1.25
1924•
January ••••••••••••••••••
February•••••••••••••••••
March •••••••••••••••••••
.98
tfr.1·::::::::::::::::::::
JUDA ••••••••••••••••••••
July ••••••••••••••••••••••
August •••••••••••••••••
September_•••••••••••••
October ••••••••••••••••••
November-••••••••••••••
December •• ·-···········
• Based on rentenmarks.
LlO
L04
L07
L12
1.15
Ll2
1.16
1.14
Ll6
1.22
1.23
L2S
L04
1.00
1.06
1.08
L05
1.12
1.09
Ll2
1.18
1.19
1.19
• Based on rentenmarks In this year.
Table 22 shows the second cost-of-living index for each month
from Februa,ry, 1920, to December, 1924, computed on the basis of
the dollar exchange rate of marks.
TABLE 22.-INDEX NUMBERS OF COST OF LIVING IN GERMANY, FEBRUARY,.1 192!)1
TO DECEMBER, 1924, ON BASIS OF DOLLAR EXOHANUE RATE OF MARKJ:j, Bx
MONTHS
[1913-14-1)
Month
1920
~~~.::::::::::::::::::::::::::::::::::::::::::: ·- n·36.
March • ••••••••••••••••••••••••••••••••••••••••••••
• 48
M!!: :.:::::::::::::::::::::::::::::::::::::::::::: l:!
i~iust::::::::::::::::::::::::::::::::::::::::::::::
~J:~ber :.::::::::::::::::::::::::::::::::::::::::
November
········----······················
December...........................................
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Federal Reserve Bank of St. Louis
1:
M
::
••61
66
1921
0. 76
• 79
• 76
• 74
• 75
• 71
.68
.66
.55
.42
.28
.42
1922
1923
0.45
.49
0.26
.50
.55
.66
.46
.29
.38
.29
.26
.38
.51
• 43
.40
.55
.34
.29
.45
.53
.64
.61
1.26
1.26
1924
1.lC,
1.04
1.07
1.12
1.15
1.12
1. 16
1. 14
1.16
1.22
1.23
1.23
52
CHAPTER II.-STANDARD AND COST OF LIVING
TRANSPORTATION
The question of transportation of the German worker from his
dwelling to the place where he is employed is in many res.P8cts
different now from what it used to be before the war. In practically
all cities street-car operation has been considerably reduced. There
are even large .towns in which no street cars are now ~ - This
is true, for instance, of Wurzburg, a Bavarian town of about 90,000
inhabitants, in which the operation of street cars has been stop_ped
since April, 1920. Moreover, the street-car fares are so high tliat,
with the exception of a few large cities, the use of the street ear has
become a luxury which worki.!)gmen generally can not afford.
Table 23 shows the price of a single street-ear ride in Berlin, Janua.ry 1, 1901, to December 31, 1924:
TABLB 23.-PRIOE OF A SINGLE STREET-OAR FA.RE IN BERLIN, :JANUARY 1, 1901, TO
DECEMBER 31, 1924
Period beginning-
Fare
1901
:Jan. 1.••••••.....•.•••••••••.••••
Jl11rb
Period beginning0.10
t/:y k::::::::::::: ·::::::::::
1918
May 1 •••••••.••••..•••••••••••••
.15
1919
:Jan. 21 •••••••••••••
Sept. 1. •••••.•.....•. - - - - i
.20
• 20
----1
1920
:Jan. 1 ••••••••••••••••••••••••••••
Vil F·:::::::::::::::::::::::::
11121
Mar.8 ••••••••••••· - - - ·
Dec. 1·-·························
.30
.00
t~e g.:::::::::::::::::::::::::
:July 28.. ••••••••••••••••••••••••••
Aug. 28......................... .
1
1, 00
2
3
4
Ii
8
Dec. 1·-·························
10
20
30
00
1923
,
:Jan. 2 ••••••••••••••••••••••••••••
:Jan.17 •••••••••••••••••••••••••••
:Jan. 30 •••••••••••••••••••••••••••
Feb. 12. ••••••••••••••••••••••••••
70
100
100
200
~Jlt 1r::::::::::::::::::::::::::
Nov, 10 ••••••••••••••••••••••••••
I
:June 25.........................
11 •• ·-····················
:June
:July 2...........................
:July 16..........................
:July 25..........................
Aug. 1..........................
Aug. 10.........................
Aug. 13.........................
Aug. 211.........................
:: Sept.
tg:: H.........................
k::::::::::::::::::::::::
lll'J2
Feb. 4.. •.............•...•........
1923
Mar. !. .......... _ _ _ _,
Sept.18.........................
Sept. 22.........................
Sept. 28.........................
Oct. 10..........................
Oct. 13..........................
Oct. 17••••••••••••••••••••••••••
Oct. 20..........................
Oct. 23..........................
Oct. 25..........................
Oct. 27•••••••••••••••••••••••• ••
Nov. I •••••••••••••••••••••••• !.
Nov. 3..........................
Nov.11 ••••••••••••••••••••••••••
Nov. 8 ••••••••••••••••••••••••••
Nov. 12.........................
Nov. 14.. •••••••••••••••••••••••
Nov. 16.. •••••••••••••••••••••••
Nov.17 •••••••••••••••••••••••••
Nov. 20 •••••••••••••••••••••••••
Nov. 22.........................
Fare
Jlarb
260
:!
ooo
1,000
1,000
3,000
6,000
10,000
20,000
00,000
100,000
~:: :=
000,000
2,000,000
3,000,000
4,000,000
10,000,000
20,000,000
00, 000, 000
100,000,000
200,000,000
800,000,000
1, 000, 000, 000
2,000,000,000
4,000,000,000
10,000,000,000
15,000,000,000
20,000,000,000
30,000,000, 000
00, 000, 000, 000
70,000,000,000
90,000,000,000
! .15
Rentenmark.
The fare is now 50 per cent higher than before the war. Moreover,
on September 10, 1923, commutation tickets, which were 10 times
as high as the price for a single fare but entitled the owner to 12
rides d!,lring a week, were abolished. As a eonseq_uenee, street-ear
riding for workmen from their dwellings to their places of employ- •
ment costs them now 80 per cent more than before the war (1.8
marks a week instead of 1 mark), and they do their utmost to avoid
street-car riding.
On the other hand, many employees who, because of lack of
employment in their places of residence, w01·k at some other place,
but on account of the housing shortage have not been able to secure
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Federal Reserve Bank of St. Louis
58
TRANSPORTATION
dwellings in that place, travel each day long distances to and from
their places of employment. Thus, while street-car travel of workingmen has considerably decreased, railway travel has materially
increased.
In general, ordinary trains in Germany carry second, third, and
fourth class cars and express trains first, second, and third class cars.
Workingmen use the fourth class in ordinary trains and the third
class in express trains. Table 24 shows the price for 1 kilometer 5 in
the fourth class of ordinary trains and in the third class of express
trains, both in paper and in gold (on the basis of the exchange rate
of the mark in Amsterdam l!P to the end of 1919 and of the dollar
exchange rate of marks in Berlin from and after the beginning of
1920). The supplementary fare charged on express trains being the
same for all distances traveled beyond 150 kilometers, it was necessary, in order to compute the price of 1 kilometer, to choose a definite distance, and therefore a tnp of 300 kilometers was taken as. the
basis of the calculation.
TABLE 24.-RAILWAY FARE PER KILOMETER ON ORDINARY TRAINS, FOURTH
CLASR, AND EXPRESS TRAINS, THIRD CLASS, IN GERMANY, MAY 1, 1907, TO DE·
CEMBER 31, 1924,
Period beginning-
Ordinary
trains,
fourth
class
I
Express
trains, third
class
Period beginning-
Ordinary
trains,
fourth
class
Paper currency
1907
May 1. •...•.•••••••
Pfennigs
1918
Apr. 1. .••••••••••••
1919
Apr. 1. .•.••••••••••
Oct. 1. •••••••••••••
Pfennigs
2
3.4
2. 4
6.2
5.81
8. 72
3
4.5
9
17.43
1921
June 1. ..••••••••••.
Dec. !. .............
13
16.9
23.5
30.35
1922
Feb. 1. •••••••••••••
Oct. 1. ••..•••••••••
Nov. 1. •••••••••••••
Dec. 1. •••••••••..••
29.58
45
90
180
52.04
82.5
165
330
Mark8
4
8
16
33
100
330
3,300
13,200
33,000
198,000
440,000
660,000
1,320,000
2,640,000
13,200,000
33,000,000
132, 000, 000
1 Kllometer-0.62137 mile.
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Federal Reserve Bank of St. Louis
Express
trains, third
class
Gold
1920
Mar. 1..•.••••••••••
1923
Jan. 1. •••••••••••••
Feb. 1. •••.•••••.•••
Mar. 1. •••••••••••••
June 1. •••••••••••••
July 1. •••••••••••••
Aug. 1. •••••..•.••••
Aug.20 •.•••.••.•••
Sept. 1. •...•••••.••
Sept. 11. •••••••••••
Sept. 18 ...•••••••••
Sept. 25 .•••••••••••
Oct. 2....••••••••••
Oct. 10•••••••••••••
Oct. 13 •••••••••••••
Oct. 18 •••••••••••••
Oct. 25 •••••••••••••
Oct. 29 •••••••••••••
I
Mark8
7
14
28
60
180
600
6,000
22,800
57,000
342,000
760,000
1.140,000
2,280,000
4,560,000
22,800,000
57,000,000
228, 000, 000
1907
May 1.••••••••••••
1914
Aug. 1. ••••••••••••
1918
Apr. 1. ••..•••••••••
1919
Apr. 1. ...•••••.••.•
Oct. 1••...•••••••••
1920
Mar. 1.•••••••••••••
1921
June 1. ••.•.••••••••
Dec. 1. •••.••••••••.
1922
Feb. I. •.••....••••.
Oct. 1. ••••••••.••••
Nov. 1•••••••••••••
Dec. 1••••••••••••••
1923
Jan. 1••••.•••••••••
Feb. 1. •••••••••••••
Mar. I.
June 1. •••••••••••••
July 1. --···········
Aug. 1. .••••••••••••
Aug. 20•••••••••••••
Sept. 1. •.••••.••••.
Sept. 11. •••••••••••
Sept. 18 ••••••••••••
Sept. 25 ••••••••••••
Oct. 2..••••••••••••
Oct. 10.••••••••••••
Oct. 13 .••••••••••••
Oct. 18.••••••••••••
Oct. 25 .••••••••••••
Oct. 29 •••••••••••••
Nov. 1. •••••••••••••
1924
Mar. L •••••••••••••
Pfennigs
2
Pfennigs
3.4
1-1.9
LS -3.3
.9 -1. 7
2.3 -4.4
.4 -1.2
.2 -.8
.9 -2.3
,4 -1. 6
.4 -1.1
.7 -2.2
.2 -.9
.3 -.4
.3 -1.6
.6 - .8
.06.04.04.09-
.6
.10
.08
.12
.11-1.1
.08- .2
.08- .2
.16- .2
.03- .2
.08- .2
.10- .3
.09- .2
.04- .3
.03- .13
.13- .3
• 10- .6
.10- .2
.5 - .8
.8-1.5
.2 - .9
.11- .19
.2 - .3
.09-. 7
.2
.8 - .9
2.2
.06- .4
.14- .3
.17- .6
.16- .4
.07- .5
.06- .2
,2 .•. 6
.18-1. 0
.18- .4
.8 -1. 3
1.3 -2.6
.4-1.5
.19- .3
.3 - .5
.16-1. 2
.4
1.3-1.5
3.8
3.0
5
:54
CH~EB II.-STANDARD AND COST OF LIVING
Table 25 shows the average railway fare (in gold) for all classes of
cars on both ordinary and express trains.
25.-AVERAGE RAILWAY FARE PER KILOMETER ON ORDINARY TRAINS A.ND
EXPRESS TRAINS, A.LL CLASSES, MAY 1, 1907, TO DECEMBER 31, lllM, IN GOLD
PFENNIGS
TABLE
Express trains
Ordinary trains
Period beginning-
1907
Mayl•••••••••••••••••••••••••••••••••••••
1914
Aug. 1. •••••••••••.•••••••.•••••••••••••••
1918
A.pr. 1••••••••••••••••••••••••••••••••••••
1919
t:· f·.:::::::::::::::::::::::::::::::::::
1920
Mar. l ••••••••••••••.••
·------1
1921
.Tune 1••••••••••••...•••••••.......•.•...•
Dec. 1-•••••••••••••••••••••••••••••••••••
1922
Feb. 1••••••••••••••••••••••••••••••••••••
Oct. 1..............................•......
Nov. 1••••••••••••••••••••••••••••••••••••
Dec. 1••••••••••••••••.•••••••••••••••••••
1923
Jan. 1. ••••..•••••.•.•.....••••••••.•••••••
Feb. 1••••••••••••••••••••••••••••••••••••
Mar. 1••••••••••••••••••••••••••••••••••••
June 1•••••••...•.•........•...•.•••••••••
July 1•••••••••.•••••••••••••••••••••••••••
Aug. 1••••••••••.•••.•••••••••••••••••••••
Aug 9() •••••••••••••••••••••••••••••••••••
Sept. 1. •••••••• ••••••••••• ••••••••••••••••
Sept. 11 •••••••••••••••••••••••••••••••••••
Sept. 18 •••.•.•••••••••••••••••••••••••••••
t~t
Oct. 225:::::::::::::::::::::::::::::::::::
10••••••••••••••••••••••••••••••••••••
Oct.
13••••••••••••••••••••••••••••••••••••
Oct.
18••••••••••••••••••••••••••••••••••••
Oct.
25
....................................
Oct.
29••••••••••••••••••••••••••••••••••••
Nov. 1•••••••••••••••••••••••••••••••••••
Dec. I ••••••••••••••••••••••••••••••••••••
Second
class
4. 77
Third
class
Fonrth
cla8s
First
class
Second
class
Third
cla8s
2.0
8.47
5.43
3.4
2.29
L60
6.33
4.06
2.~
2.03
L32
8.62
5.49
3.41
L33
.56
.83
.36
5. 55
2.32
2. 77
L16
L61
.67
L66
LOO
.62
4.17
2.08
L21
LOO
.92
.66
.66
.44
.37
2.24
LSS
L36
Ll4
.79
.66
.55
.16
.13
.33
.22
.06
• Oil
.10
Lll
.31
.29
.66
.67
.19
.17
.32
.28
.36
.66
.38
.48
.22
L03
.83
.66
2.43
l!.25
1.89
, .14
.18
.32
.19
.18
.07
.32
.28
.22
.81
L76
.63
.21
.37
.23
.32
1.23
3.3
.09
.12
.22
• 13
.12
.Oil
.21
.19
.16
.64
L17
.42
.14
.25
• 16
.21
.33
.42
• 76
.46
.67
.27
L23
a.a
.82
2.2
2. 2
.66
.84
Llil
.92
L14
• 63
2.43
L92
L50
5. 69
12. 09
36
L43
2. liS
L60
2. 21
8. 61
22.8
4.6
3. 0
lLl
8.116
3.13
2. 21
.92
.25
.62
1.12
.70
.97
3. 69
9.9
6. 6
3.07
• 09
.08
.16
4.
ll!.2
,96
• 76
2. 79
6.06
2.18
.72
L29
.80
LIO
4.25
1L4
7.6
.89
.11 .
.10
.18
.16
.21
.38
.23
.21
.08
.38
.32
• 211
.93
2.02
.73
.24
.43
.27
.87
L42
3.8
3.8
1924
Mar. 1••••••••••••••••••••••••••••••••••••
6. 6
7.6.
5.0
The passenger rates established on May 1, 1907, remained
unchanged until the end of' March, 1918. It was only when the
transport tax went into effect on April 1, 1918, that the passenger
rates (inl,aper marks) were raised. A second change of rates took
place on p:ril 1, 1919, and other changes followed on October 1, 1919,
March 1, 1920, June 1, and December 1, 1921, February 1 and
October 1~ 1922, each month November 1, 1922, to March 1, 1923,
June 1, JUly 1, August 1 and 20, September 1, 11, 18, and 25, October
2, 10, 13, 18, 25, and 29, November 1, and December 1, 1923, and
March 1, 1924.
Between November, 1918, and November, 1923, the rates, calculated in gold, for the third and fourth classes were lower than before
the war, while the rates for the second class were higher only in the
last week of September, 1923, and for the :first class only in the last
week of September./ 1923, and on October 2, 29, and 30l 1923. From·
and after Nove.moer 1, 1923-the date when gold prices were
introduced-rates in all classes were higher than liefore the war.
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TAXES
55
In former times third-class tickets on ordinary trains were about 50
per cent higher than fourth-dass tickets and second-class tickets
11.bout 50 per cent higher than third-class tickets; the ratio was about
the same between first, second, and third class tickets on express
trains. The differentiation between the classes was considerably
intensified after the war and especially during 1923. In the fall of
1923 third-class tickets in ordinary trains still cost 50 per cent more
than fourth-class tickets, but second-class tickets cost three times as
much as third-class tickets; in express trains second-class tickets cost
three times as much as third-class tick~ts and first-class tickets twice
as much as second-class tickets. While in November, 1923, third and
fourth class rates were 10 per cent hig~er than before the war, second-class rates were more than twice as .tugh and first-class rates almost
three times as high. But on December 1 first and second class rates
were reduced by one-third, and on March 1 first-class rates were again
reduced by more than one-fourth, while on March 1 third and fourth
class rates were raised by about one-third. As a consequence thereof,
the ratio between the third and fourth classes is still about the same as
before the war, while that between the second and third and especially the first and second classes is lower. Third and fourth class
rates at present are about 50 per cent higher than before the war,
second-class rates about 40 per cent higher, and fi.'"'Bt-class rates about
30 per cent higher. The recent passenger-rate policy- of the railway
constitutes, then, a discrimination ag~t the working class.
TAXES
Until 1920 direct taxes, in general, were levied only by the States
and the municipalities, but not by the Federal Government. Income
tax rates were very low for small incomes and the large majority of
workers was exempt from the income tax. After the war, when it
became apparent that the obligations of the Fe,lcral Government
could not be met by indirect taxation alone, a complete change took
J>lace. The National Assembly which was elected early in 1919 for
the 1>_urpose of drafting a constitution for the Republic conferred on
the Federal Government unrestricted control over all forms of taxation and enacted among other fiscal laws the States tax law (Landessteuergesetz) of March 30, 1920, which forbade the States and municipalities to levy taxes similar to those levied by the Federal Government. As a Federal income tax law had been enacted on March 29,
1920, the States and municipalities were thus prevented from imposing
income taxes.
Under the new law the followix_ig exemptions were allowed: 1,500
marks for the taxpayer; 500 marks for each person belonging to the
household of the taxpayer (wife and minor cliildren), this exemption
being raised to 700 marks for the second and each additional person
under 16 years of age, unless the net income of the taxpayer exceeded
10,000 marks.
In computing net income, deductions were allowed for expenses
incurred in acquiring and maintaining the income (Werbu:ngslcosten).
The total exemption for a married taxpayer with two children who
had an income of 9,000 marks and who spent 500 marks in acquiring
this income thus amounted to 1,500+500+700+700+500=3,900
marks, and his taxable net income was 5,100 marks.
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Federal Reserve Bank of St. Louis
56
CHAPTER II.-STANDARD AND COST OF LIVING
The tax rate was 10 per cent of the amount of the net taxable income up to 1,000 marks; 11 per cent of the amount over 1,000 marks
and not exceeding 2,000 marks; 12 per cent of the amount over 2,000
marks and not exceeding 3,000 marks; the rate rising progressively
to 60 per cent of the amount of the net taxable income exceeding
500,000 marks.
The above taxpayer with a total income of 9,000 marks and a net
taxable income of 5,100 marks had, then, to pay an income tax of'
100+110+120+130+140+15=615 marks, or 6.83 per cent of his
total income.
The income tax was, in general, assessed at the beginning of each
year on the income of the })receding year. An important exception,
however, was made as to salaries and wages, which were taxed at the
source. The employer was requir.ed to deduct 10 per cent from all
payments of salaries and wages, buying tax stamps equal in value to
the amount deducted and pasting such stamps on the tax card of the·
employee. The assessment of the employee by the. fiscal authorities.
took place later on. In case the value of the stamps on the employee's
tax card exceeded the tax finally assessed according to the normal
income tax rates, the tax office refunded him the sur_plus.
If t~ taxpayer noted above with a total wage mcome of 9,000
marks had had 900 marks deducted from his wages on pay days for
the income tax, he should, as he had to pay only 615 marks, have
gotten back 285 marks after his final assessment. But if the cur-rency had depreciated in the meantime (and this was often the case)
the 285 marks which were returned to him would not be worth aSmucb at the time of the return as at the time they were deducted
from his'wages.
The provision as to the deduction of the income tax from salarieSand wages went into effect on June 25, 1920. It meant a great hardship for the workers as compared with other taxpayers and involved
greater disadvantages for those with the smaller incomes than for th&
higher-salaried employees. A new law, intended to remedy theseabuses, was therefore enacted July 21, 1920, and went into effect
August 1. It introduced the allowance of the following exemptions
in computing the amount to be deducted from salaries and wages:
(a) Five marks per day in case of daily wages; (b) 30 marks per week
in case of weekly wages; (c) 125 marks per month in case of monthly
wages.
This exemption was raised 1.5 marks in the case of daily wages,
10 marks in the case of weekly wages, and 40 marks in the case of
monthly wages, for each person belonging to the household of the·
employee.
On the other hand, the deduction was to be increased beyond 10
per cent in case the taxable wages (total wages minus the exemptions
3ust mentioned) exceeded 15,000 marks per year. The amount to be
deducted on pay days was: Fifteen per cent of the amount of the
taxable wages over 15,000 marks and not exceeding 30,000 marks;
20 per cent of the amount over 30,000 marks and not exceeding 50,000
marks; the rate rising progressively to 55 per cent of the amount over
1,0001000 marks.
This progression was to insure greater returns to the treasury from
the higlier employees before their final assessments, while the exemptions mentioned were to relieve the situation of the workingmen. A
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Federal Reserve Bank of St. Louis
TAXES
57
great drawback of the new law was that it invohred considerable work
for the employer. While under the former law a simple deduction of
10 per cent·was made from each and every salary, under the new law
the deduction had to be computed for each employee individually.
For the workers, however, the new law provided great relief.
The total yearly exemption for a married employee with two children amounted to 1,500+480+480+480=2,940 marks. The taxpayer with an income of 9,000 marks had his yearly income reduced
by deductions on pay days amounting to 10 per cent of 6,060 marks,
or 606 marks. As his final assessment amounted to 615 marks, he
had to pay an additional 9 marks after his final assessment, while under
the original law he advanced to the treasury 285 marks which he got
'back after his final assessment, possibly in much depreciated money.
The law of July 21, 1920, also introduced differential deductions
for married and for single employees and allowed special exemptions
for children. But the exemptions for wife and children were so small
that the married employees and especially those with children
riractjcally had to pay on pay days the whole tax or had even to
'advance" something to the treasury, while the single employees
might pay part of their tax after the final assessment m depreciated
money. A single worker who earned 9,000 marks paid 750 marks
through deductions of the tax from his wages on pay days while (if he
spent 500 marks in acquiring his income) he was finally assessed
100+110+120+130+140+150+160=910 marks. This defect of
the law of July 21, 1920, was remedied by the law of March 24h1921,
which went into effect April 1, 1921. Under the latter law t e following exemptions were allowed in computing the amount to be deducted from salaries and wages: (a) Four marks for the taxpayer,
4 marks for his wife, and 6 marks for each minor child, in case of
wages paid daily; (b) 24 marks for the taxpayer, 24 marks for his wife,
and 36 marks for each minor child, in case of wages paid weekly;
(c) 100 marks for the taxpayer, 100 marks for his wife, and 150 marks
for each minor child, in case of wages paid monthly.
The exemption for the taxpayer was thus reduced by 20 per cent,
while that for his wife and especially those for his children were considerably raised. At the same time the progression introduced by
the law of July 21, 1920, was abolished, tlie rate of deduction being
again uniformly 10 per cent.
The rates of the general income tax (which were still to be applied
in the final assessment of the employees) were: Ten per cent of the
amount of the net taxable income up to 24,000 marks; 20 per cent of the
amount over 24,000 marks and not exceeding 30,000 marks; the rate
risi!ig progressively to 60 per cent of the amount over 400,000 marks.
Tlie exemptions from the general income tax, which theretofore
had been tne same for all incomes, were now restricted to small
incomes. The tax was to be reduced (a) in case the taxable income
did not exceed 24..,000 marks, by 120 marks for the taxpayer, by
180 marks for eacn. minor child, and by 120 marks for each other
person belonging to the household of tlie taxpayer; (b) in case the
taxable income was over 24,000 marks but did not exceed 60,000
marks, by 120 marks for the taxpayer and each person belonging
to his household; (c) in case the taxable income was over 60,000
marks but did not exceed 100,000 marks, by 60 marks for the taxpayer and each person belonging to his household.
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Federal Reserve Bank of St. Louis
68
CHAPTER II,-STANDARD AND COST OF LIVING
A married taxpayer with two children, who had an income of
9,000 marks and who had spent 500 marks in acquiring this income,
had thus to pay 850-120-120-180-180 =250 marks. The
total yearly exemption for a married employee with two children
amounted to 1,200+ 1,200+ 1,800+ 1,800 =6,000 marks. The taxpayer with an income of 9,000 marks had his yearly income reduced
by deductions on pay days by 10 per cent of 3,000 marks, or 300
marks. .As he was finally assessed 250 marks, he got back 50. marks.
The fact that the income tax from salaries and wages had to be
assessed twice-provisionally b_y the employer and finally by the
fiscal authorities-became in the long run so cumbersome that a
simplification was necessary. A new law was therefore enacted on
July 11, 1921, which provided that in case the taxable yearly income
did not exceed 24,000 marks and was exclusively a wage income or
did not include another income of over 600 marks, the tax should be
definitely settled through deductions from the wages by the employer.
The exemptions were -to be deducted from the amount of the tax and
not from the amount pf the taxable income, but since the exemptions
were reduced to one-tenth of what they had theretofore been, this
meant only a formal change. It became, however, necessary to
introduce an exemption for expenses in acquiring the income, since
these expenses had- theretofore been ta.ken mto account only at the
final assessment. This exemP.tion was to be the same as for each
minor child, viz., in case of daily wages, 0.6 mark per day; in case of
weekly wages, 3.6 I)'.lar~~r week; and in case of monthly wages
15 marks per month. While the other provisions of the law went
into effect on January 1, 1922, the provisions referring to the exemption for " acquiring expenses" were retroactive to April 1, 1921.
The income tax of a married employee with two children, who had
a yearly income of 9,000 marks, was thus 900-120-120-180-180180 =120 marks.
The law of July 11, 1921.., remained practically in force until the
beginning of 1924. The oruy changes which took place d ~ that
time referred to the amount of the exemptions, the limit below which
no final assessment was to be made, and the ~oups of income to
which the general tax rates applied. These changes occurred the
more frequently as the depreciation of the money became greater.
The most important provisions of the various laws, so far as they
refer to the wage tax, can best be seen from Table 26.
TABLE 26.-EXEMPTIONS UNDER WAGE-TAX LAWS ENACTED FROM AND AFTER
DECEMBER 20, 11121
Exemption forDate of
enaotment of
law
Dec.
July
Dec.
Feb.
May
lune
July
Aug.
Sept
1
20,11121
20, 1922
23, 1922
15, 11123 1
12, 11123
21, 11123
24, 11123
23, 11123
18, 11123
Date law
went Into
force
Jan.
Aug.
Jan.
Mar.
June
July
Aug.
Sept.
Sept
1, 1922
1, 1922
1, 11123
1, 1928
1, 11123
1, 11123
1, 11123
1, 11123
16, 11123
Taxpayer and wife,
each
Weekly
Monthly
Mara
Mara·
4.80
11.60
48
1112
288
1,440
6,760
86,400
172,800
Weekly
20
Marki
7.20
200
800
1,200
6,000
24,000
360,000
720,000
111.20
240
ll60
1, ll20
11,600
38,400
6'16,000
1,162,000
40
ExpeIIS!lS In acquiring
Child
mcome
Monthly
Weekly
Monthly
Mara
Mara
Mara
30
80
1,000
4,000
8,000
40,000
160,000
2,400,000
. 4,800,000
10.80
21.60
240
ll60
2,400
12,000
48,000
720,000
l,«o,000
415
IIO
1,000
4,000
10,000
60,000
200,000
8,000,000
6,000,000
According to the law of February 15. 11123, no deduction was to be made from the wages for the last
six working days of February, 11123.
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Federal Reserve Bank of St. Louis
TAXES
59
The table reads like this: According to the law enacted December
20, 1921, which went into force on January 1, 1922, a married employee ·with two children, who earned 500 marks per week, had his
wages reduced on pay days through the wage tax (10 per cent) by
50-4.80-4.80-7.20-7.20-10.80 =15.20 marks.
The necessity of rapid changes to adapt the exemptions to the
depreciation of the currency induced the Government and the
Reichstag to insert a clause in the law of December 23, 1922, authorizing the Minister of Finance, with the consent of the Federal
Council (Reichsrat) and a committee of the Reichstag, to change
the exemptions without consulting the Reichstag itself. But finally
it was impossible to follow even this informal method and it became
necessary to find some way of automatically adapting the exemptions
to the depreciation of the currency. The act of September 17, 1923,
therefore provided that the exemptions should change each week in
proportion to the change in the mdex of the cost of living as determined by the Federal Statistical Office the preceding week. This
law was modified by the laws of October 17 and 24, which, however,
kept the principle of cha~ the exem1>tions in the same ratio as
the index of the cost of livmg changed. It is not necessary to state
the details of these laws; it will suffice to state that the exemptions
fixed by the law of September 17, 1923, which were in force from
September 16 to September 30, 1923, were to be multiplied for the
week October 1 to 6, by 6; October 7 to 13, by 8; October 14 to 20,
by 32; October 21 to 27, by 210; October 28 to November 3, by
6,000; November 4 to 10, by 20,000; November 11 to 17, by 300,000;
November 18 to 24, by 300,000; November 25 to December 1, by
700,000; December 2 to 8, by 850,000; December 9 to 15, by 850,000;
December 16 to 22, by 650,000; December 23 to 31, by 600,000.
In the last week of 1923, the following exemptions were allowed in
computing the amount to be deducted from salaries and wages:
103,680,000,000 marks for both the taxpayer and his wife; 691,200,000,000 marks for each child, and 864,000,000,000 marks for "acqu1ring expenses." A married worker with two children, who earned
27,000,000,000,000 marks (27 gold marks) a week, therefore had his
earnings reduced on pay day by 2, 700,000,000,000-103,680,000,000
-103,680,000,000 - 691,200,000,000 - 691;200,000,000 - 864,000,000,000 = 246,240,000,000 marks (0.246 gold. marks).
With the stabilization of the mark at the end of 1923, the method
of computing the wage tax was put on an entirely new basis. The
"second emergency tax act" (Zweite Steuernotverordnung) of December 19, 1923, provided that from and after January 1, 1924, the
following exemptions were to be allowed in computing the amount
to be deducted from salaries and wages: (a) For the taxpayer, in case
of weekly wages, 12 gold marks; in case of monthly wages, 50 gold
marks; (b) for each person belonging to the household of the taxpayer,
1 per cent of his taxable wages. No exemption was allowed for
'' acquiring expenses.''
A single worker who earned 27 gold marks a week thus had these
earnings reduced on pay days by 10 per cent of 15 marks or 1.50
marks. A married worker with two children, who earned the same
wages, lost 7 per cent of 15 marks or 1.05 marks.
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Federal Reserve Bank of St. Louis
60
CHAPTER Il.-STANDARD AND OOST OF LIVING
From and after December, 1924, the exemptions are as follows:
(a) For the taxpayer, in-case of weekly wages, 15 gold marks; in
case of monthly wages; 60 gold marks; (b) for each person belonging
to the household of the taxpayer 1 per cent of his taxable wages.
Table 27 shows for a married Berlm printer with two children, who
earned the wages fixed by collective agreement, his weekly wages
.and deductions from wages for income tax from the introduction of
the tax up to December, 1924:
TA.Bu 27.-WEEKLY WAGES AND DEDUCTIONS FROM WAGES FOR INCOME TAX
OF.MARRIED PRINTER WITH TWO CHILDREN, IN BERLIN, AT SPECIFIED TIMES,
J'ULY, 1920, TO DECEMBER, 1924
Deduction from wages
for inoome tax
Weeklywagest-----...---
Period
Amount
·-·········----············----1
August to October, 1920 ••••••••·---·················
.July, 1920•••
November, 1920, to J'anuary, 1921••••••••••••••••••••••••••••
February to March, 1921 ••••••••••••••••••••••••••••••••••••
ii€~1~
921
:::::::::::::::::::::::::::::::::::::::::::
November, 1921 •••••••••••••••••••••••••••••••••••••••••••••
Deoember, 1921••••••••••••••••••••••••••••••••••••••••••••••
.January, Ul22••••••••••••••••••••••••••••••••••••••••••••••••
1~l~~l~~I~f~ll~f:~f:[t~
J'anuary, 1928•••••••••••••••••••••••••••••••••••••••• · •••••••
--~----··-·······-············-··-·
August 16 to 81, 1928•••••••••••••••••••••••••••••••••••••••••
September 1 to 16, 1928 ••••••••••••••••••••••••••••••••••••••
September 16 to 30, 19211••• ; •••••••••••••••••••••••••••••••
October 1 to 6, 1928 ••••••••••••••••••••••••••••••••••••••••••
October 7 to 13, 1928 •••••••••••••••••••••••••••••••••••••••••
October 14 to 20, 1928••••••••••••••••••••••••••••••••••••••••
October'21to~,11928 ••••••••••••••••••••••••••••••••••••••••.
October 28 to .l'IOVember 8, 1928 •••••••••••••••••••••••••••••
November• to l0r.1928 ••••••••••••••••••••••••••••••••••••••
November 11 to 11, 1928 •••••••••••••••••••••••••••••••••••••
November 18 to :M, 1928 •••••••••••••••••••••••••••••••••••••
November 211 to December lll, 1928•••••••••••••••••••••••••••
December 18 to 22, 1928••••••••••••••••••••••••••••••••••••••
December 23 to 31, 1928••••••••••••••••••••••••••••••••••••••
.January and February, 192f. ••••••••••••••••••••••••••••••••
March, 1924 •••••••••••••••••••••••••••••••••••••••••••••••••
tl!.1: 11::-:::::::::::::::::::::::::::::::::::::·············
.June to October, 1924••• - - - - - - - - · · · · · · · · · · · · · ·
November, 1m.•••••• - - - - - - · · · · · · · · · · · · · · · · · ·
Deoember,1924.---------
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
•BWIOD.
Maria
248. 88
250. 50
270. 50
Marta
2U8
19.06
21. OS
28ll. 50
286. 50
296.88
22.llll
12. INI
13.99
18.63
23. 79
28.20
87.78
821.28
893.88
f18
633.M
668
613
M2.68
20. r,o
778
1138
1,093
1,3113
1,838.19
2,822.23
f,Mll.31
7,337.:M
12,773
20,789
f8, 1211
89,806
72,1ft
86,350
199,890
ffl,000
9211, 71f
6,63f,816
311, 7M.M3
- i100.2
1676
11, l!OO
1 .. l!OO
130
126()
28.50
211. f8
f2.50
68.50
74.150
104. r,o
M.62
188.02
8M.33
llM.112
1,198.10
1,260.90
2,822.fO
8,698.60
8,950.10
6,371
18,163
10,020
ll8,flll
617, 1ft
8,M2,0M
7,976,200
113,fl0,400
126, f82, 400
f17, 283, 200
12,8611
1211,lfl
l f6,f82
1288,208
Percent
of wages
10
7.6
7.8
7.9
f.ll
.. 7
6.1
8
8.1
7.1
8. 7
...
f.6
6.ll
8.3
8.8
7.6
6.2
7
8.2
8.9
9,4
8.1
8.1
6.B
6. ll
8.2
8.6
2.3
8.3
7.9
9.7
8.0
9.4
8.4
9.3
ll.6
ll.7
8.ll
1700
13, l!OO
7.7
18,333
•• I 1, Ofl, 120
•••• • f. 6
122,680
127
127
l,Of
,2
127
I, 211
•9
127
•LOS
8.9
27.23
L07
3.9
30
L28
f.2
3Lf7
L36
f.3
33.80
Llll
f.6
fO
L96
f.9
L75
f.4
fO
IGoldmarlm.
TAXES
61
The final assessment of the same printer (if he ha~ spent 500 marks
a year for "acquiring expenses") would have amounted for July, 1920,
to ·1,260 marks a year or 9.7 per cent of his income; for August to
October, 1920, to 1,279 marks a year, or 9.8 per cent; for November,
1920, to January, 1921, to 1,490 marks a year, or 10.6 per cent; for
February to March, 1921, to 1,630 marks, or 10.9 per cent. For
April to November, 1921, the final assessment was equal to the
deduction from the wages (if in both cases the " acquiring expenses"
are placed at the rates fixed by the law of July 11, 1921). For December, 1921, the final assessment would again have been greater than
the provisional deduction, since the yearly income exceeded 24,000
marks-it would have been 2,120 marks a year, or 7.6 _per cent.
From and after January 1922 the income tax of the prmter was
practically always settled by the deduction by the emplo_yer. For
some months a :final assessment, it is true, ouglit to have taken place,
but such assessments were generally dispensed with in view of the
dep:reciation of the currency.
The wage tax was thus pretty heavy most all the time. This did
not in itself constitute an injustice, but it proved to be unjust because
all other taxpayers were benefited by: the depreciation of the money.
In so far as the income tax was levied upon salaries and wages before
they were paid to the employees, it followed the trend of salaries and
wages; but in so far as it was levied on other sources than salaries and
wages it was levied in proportion, not to the present income, but to
the income of one or two years before. In such cases the taxpayer
got the benefit of the depreciation of the mark. Take, for instance,
the case of a bank clerk m Berlin earning (on the basis of his income
early in 1923), say, $20 a month or $240 a year. The income tax
deducted immediately from his sal8.l"y and paid at once into the
treasucy totaled, say, $20 a year. Suppose in 1921 his employer
earned 50 times as much, and that he so reported to the fiscal authorities. His income, then, in 1921 was $12,000, or 1,000,000 marks.
His annual income tax amounted to 380,000 marks, and one-fourth
of this amount, or 95,000 marks, was still to be p·aid in the first
quarter of 1923. This 95,000 marks in the first quarter of 1923 was
equal to $4, as against $5 which his clerk had to pay in this same first
quarter of 1923 when he earned one-fiftieth of what his employer had
earned. The law which made the employer pay 38 per cent of his
income of $12,000 and the em1?loyee 8 per cent of his mcome of $240
was all right, but it worked m an entirely unexpected and unjust
way when the mark -J.ost value. The consequences for the treasury,
of course, were disastrous. Under the assessments of 1921, not more
than 18.6 per cent of the total income tax was expected fr.om deductions from salaries and wages, and 81.4 per cent from all other sources.
Instead of 81 per cent, the "other sources"_yielded in September,
1922, 42 per cent; in October!.- 28 per cent; in November, 24 per cent;
in December, 16 per cent; in January, 1923, 12 per cent; in February,
6.4 per cent; and in March, 5.1 per cent. The mcome tax on salaries
and wages yielded all that could be expected-for instance, in tht:1
first quarter of 1923 almost $17,000,000-but the income tax from
other sources, which ought to have yielded more than $70,000,000,
brought only $1,300,000.
20168°-25t-6
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Federal Reserve Bank of St. Louis
62
CHAPTER II,--STANDARD AND COST 01!' LIVING
Official returns for the wage tax and for the other income tax from
and after February, 1923, published by the treasury, are as follows:
T.A.BLB 28,-AMOUNT RECEIVED FROM THE WAGE AND OTHER INCOME TAXES,
FEBRUARY, 1923, TO DECEMBER, 1924
Wage tax
Year and month
other income tax
Per cent
wage tu
was of total
income
tu
.
1923
f:~ ::::::::::::::::::::::::::::::::::::::
tfa1·::::::::::::::::::::::::::::::::::::::::::
June •••••••••••••••••••••••••••••••••••••••••••
July •••••••••••••••••••••••••••••••••••••••••••
August•••••••••••••••••••••••••••••••••••••••••
~':£=ber.:::::::::::::::::::::::::::::::::::::
November .••••••••••••••••••••••••••••••••••••
Deoember •••••••••••••••••.••••••••••••••••••••
1924
~i:-i::u~y ::::::::::::::::::::::::::::::::::::::
tt:-·:::::::::::::::::::::::::::::·
:::::::::::
June••••••••••••••••••••••••••••••••••••••••••••
March ••••••••••.•.•••••.•••••••••••.••••••••••
July••••••••••••••••••••••••••••••••••••••••••••
August •••••••••••••••••••••••••••••••••••••••••
September .•••••••••••••••••••••••••••••••••••
October ••••••••••••••••••••••••••••••••••••••.•
November .••.••..••••••••••••••.•.••••••••••.
Deoember ••••••••••••••••••••••••••.•••••••••••
.llarb
'¥1, 218, 980, 406
179, 079, 338, 667
219, 199, 00!, 073
257, 185, 168, 99&
421,683,817, 61K
1, 186, 384, 283, 923
14,619, fNT, OM, 946
2«, 231, 813, 384, 000
I 16,112', 404,670
I 5, 422, 660, 621, 266
l 37, 351, 769, 340, 959
Rffitfflmarka
7f, 716,895
63,869,282
71,230,524
79,494,327
87,889,821
96, 081, 429
108, 468, 6114
107,IK9,658
113,465,799
llf, 873, 063
119, 751, 490
126, 319, 607
.llarb
6, 606, 961, 488
9, 643, 700, 771
a8, 67f, 820, 4118
223, 799, 648, 278
89, '¥17, 682,316
99, U8f, 320, 640
11, 8liO, llf, 40G, 476
28, 483, 787, 132, 000
l
l 3, 215, 687, 524
l 609,136,146,919
3, 129, 263, 688, 019
Rentmmarb
90,079,724
66,491,363
88,471,746
70,639,738
73,482,462
Sf, 995,273
83,3«,878
66,808,828
55,481,060
91,849,698
7f,467, 146
59,316,204
114
96
79
M
82
92
55
90
86
92
92
45
49
45
63
M
M
67
62
67
54
62
68
1 Mllllon.
During the period shown in the table the wage earners contributed
between 45 and 95 per cent of the income tax. As a result of the
depreciation of the mark, the income tax was not really progressiveas one might conclude from the progressive tax rates-but degressive;
the workers paid more in proportion to their income than the wealthy
people. Since this anomaly was not compensated by any heavy tax
on property, and since the workers had to bear their share of almost
all the indITect taxes, it is safe to say that-in contrast to pre-war
times-the German wage earners were more heavily taxed after the
war than the propertied classes.
MINIMUM COST OF SUBSISTENCE
The cost-of-living index calculated by the Federal Statistical
Office includes only food, rent, fuel, light1 and clothing (see pp. 50
and 51). These expenses, accord.4ig to an mvestigation made by that
· office in 1907-08, constituted at that time 73.4 per cent of the total
expenses of an average worker's family. It would, therefore, have
or 36.4 per cent to the total of the item&
been necessary to add
mentioned in order to find the total cost of li~. But some items
not included in the cost-of-living index of the Federal Statistical
Office are not such imperative needs as some that are, for example,
food and housing. T.he minim.um cost of subsistence for Greater
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
;::1
•
MINIMUM COST OF SUBSISTENCE
63
Berlin, has therefore been computed, by adding to the price of the
minimum requirements of food, housing, fuel, light, and Qlothing
20 _per cent and also the income tax deducted from wages.
Table 29 shows for Greater Berlin the minimum weekly cost of
subsistence of a single man, a married couple, and a married couple
with two children from 6 to 10 years of age for each month from
January, 1920, to December, 1924.
The food requirements considered as absolutely necessary have
been described before (see p. 11); the amount for rent refers to one
room and kitchen; for fuel and light 110 pounds of briquets and 6
cubic m«;iters of gas have been considered as the weekly minimum;
the minimum weekly expense for clothing (including mending) for
a man was considered as equivalent to the price of one-thirtieth of
a man's suit plus one-thirtieth of a pair of men's shoes, while for a
woman two-thirds of this price and for each child one-third of this
price was considered as the minimum expense. In computing the
mcome tax the wages were assumed to be equal to the minimum
cost of subsistence.
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Federal Reserve Bank of St. Louis
64
•
CHAPTER II.-STANDARD AND COST OF LIVING
TABLE 29.-MINIMUM WEEKLY COST OF SUBSISTENCE IN GREATER BERLIN,
JANUARY, 1920, TO DECEMBER, 1924, BY MONTHS
SINGLE HA.N
Period
Food
Housing
August, 1913, to July,
Marks
Marks
3. 6
1914••••••••••••••••
1920
January••••••••••••••
February ••••••••••••
March •••••••••••••••
April .••••••••••••••••
May •••••••••••••••••
June •••••••••••••••••
July••••••••••••••••••
August ..•••••••••••.•
September •••••••••••
October••••••••••••••
November .••••••••••
December•.••••.•••••
41
47
59
70
68
51
51
48
48
56
54
56
5. 5
Fuel and
light
Mark,
L9
8
8
8
9
9
11
9
9
9
9
9
9
1921
January.•.•••••.•••••
February ••••••••.•••
March .••••••••••••••
April ••.••••.•••••••••
May •••••••••••••••••
June .••••••••••••••••
July••••••.•••••••••••
August..•••.•••••••••
September .••••••••••
October ••••.•••••••••
November •.•••••••••
December•••.••••••••
63
50
47
46
47
55
58
62
65
70
91
103
9
9
9
9
9
9
10
10
10
10
10
10
Clothing
Mfscel•
Mark,
Jlarka
.MCll'u
23
114
2. 6
12
13
20
22
22
22
22
21
22
22
22
22
30
35
45
22
23
23
23
25
25
25
25
26
27
31
30
30
27
27
27
27
27
30
30
36
55
65
,u
48
42
36
33
30
30
30
30
30
Total
Ianeous
a.,
26
33
37
36
29
39
36
36
39
18.8
.
38
39
38
37
35
32
32
36
36
38
40
44
67
62
129
165
188
177
147
154
144
145
156
163
lli6
152
149
141
137
140
152
156
165
171
187
244
271
1922
January.•••.•••••••••
February ••••••••••••
March •••••••••••••••
104
121
138
166
177
189
283
467
742
1,242
2. 647
3,533
tfa':·::::::::::::::::
June._ ••••••••• -·- •••
July_··-··-·-·-····--August ...•..•••••••••
September •••••••••••
October···--······--·
November •••••••••••
December.•••••••••••
43
62
62
74
86
96
11
11
11
14
14
14
114
14
16
16
32
72
193
65
60
85
go
100
150
154
222
435
1,079
2,084
633
988
2,207
8,683
380
530
63
61
80
96
106
130
196
321
548
894
1,982
3,100
266
306
376
440
483
579
829
1,393
2,311)
8,686
7,987
12,493
1923
January.•••••••••••••
5,799
8,467
4,377
300
5,025
18,968
February ••••.•••••••
9,633
14,653
7,667
9,354
300
41,607
13,988
11,425
8,788
6,475
660
41,336
March.·····-··--·-··
April •••••••••••••••••
13,807
10,346
660
6,717
8,512
40,042
20,251
10,818
May •••••••••••••••••
1,010
16,017
13,948
62,044
1,045
31,667
43,697
22,287
127,318
28,622
June.··········-·--··
July..•••••••••••••••• 162,866
111,750
85,329
101,457.
2,400
463,802
August •.••••••••••••• 2,848,204
1,775,761
9,800
2,138,805
2,050,000
S.82;570
147_4
I 73.9
149.2
155. 5
September.••••••••••
36o, 000
226.4
I 9,838.4
I 24.6
I 15,031.9
October...••••••••••• I 21,126. 7
119,116.7
l 65,138.3
2 4,198.7
1 2,150.0
I 38. 3
I 1,650.9
12,009.5
110,047.4
November.····-····3 3.14
1 3.20
I 1.10
December.•••••••••••
I 15. 99
• 5. 95
• 2.00
Renten-
1924
January...•••••••••••
February_ •••••••••••
March •••••••••••••••
April •••••••••••••••••
May •••••••••••••.•••
June •••••••••••••••••
July._···············
August•••••••••••••••
September •••••••••••
October···-··-·- •••••
November_ ••••••••••
December••••••••••••
I Millions.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
marks
4.88
4.22
4.27
4. 35
4.48
4. 43
4. 49
4. 46
4. 66
4.98
4. 96
4. 95
Rentenmarks
1.10
1. 60
1. 70
2. 70
2.85
2.85
3. 50
3. 50
3. 50
3. 70
3. 70
3. 70
I
Renten-
marks
Billlons.
3.02
2. 95
2. 91
2.85
2. 79
2. 72
2. 67
2.63
2. 61
2. 59
2. 67
2.67
Rentenmarks
2.40
2.45
2. 50
2.50
2. 50
2. 35
2. 20
2.20
2.40
2.40
2.40
2.40
Rentenmarks
2.85
2. 81
2.85
3.10
3.15
3. 09
3.22
3. 20
3.29
3. 55
3.57
3.57
• Rentenmarb.
Rentenmarks
14.25
14.03
14.23
15.50
15. 77
15. 44
16.08
15.9G
16.46
17.22
17.30
17.29
.
65
MINIMUM COST OF SUBSISTENCE
TABLE 29,-MINIMUM WEEKLY COST OF SUBSISTENCE IN GREATER BERLIN,
JANUARY, 1920, TO DECEMBER, 1924, BY MONTHS-Continued
MARRIED COUPLE
-
Periqd
Food
Housing
Fuel and
light
Clothing
Miscellaneous
Total
August,
1913, to July,
1914 ________________
Mark8
Mark8
Mark8
Mark8
Marks
Mark8
6.3
1920
January _____________
64
73
00
112
112
83
86
82
81
93
February_
-- --------March
_______________
April
_________________
May_________________
June _________________
July _________________
August _______________
September_._ ••••••• _
October •..•••••••• ___
November.- •••••••• December•• _•••••• ___
1.9
5.6
8
8
8
9
9
9
9
9
9
9
90
96
9
92
87
83
79
82
9
9
9
9
9
9
10
9
4.2
12
13
20
22
22
22
22
21
22
22
22
22
60
58
75
80
70
60
. 55
60
60
50
50
22
23
23
23
25
25
25
25
26
27
31
41
50
50
45
45
45
45
45
50
43
62
62
92
100
142
150
167
50
4.5
22.3
33
38
48
56
54
43
58
54
54
58
57
59
167
190
241
279
267
21;
230
216
216
232
228
236
58
56
53
48
48
54
55
58
61
66
87
231
225
218
204
1921
January••.••• -•• -••••
Febmary ••••••••••••
March •.•••••••••••••
April. ••••••••••••••••
May·-········-·-····
June.·-·········-····
July ..•••••••••••••• _
August.•••••• ·-······
September •••••.•••••
October ••••••••••.•••
November •••••••••••
December••••••••••••
98
102
108
118
128
158
177
1922
January••••••••••••••
Febmary ••••••••.•••
March •••• ·-·····-···
April. ••••••••••.•••••
May •••••••••••••••••
June.-··········-····
July·················
August •••••••••••••••
September•••••••••••
October ••.••••••••••.
November •••••••••••
December••••••••••••
181
212
241
200
308
328
493
799
1,261
2,106
4,450
6,962
1923
9,730
January···-·-········
February ••••••••••••
24,459
23,668
March_··-···········
23,487
April_···-···········May ••••••••.•.••••..
34,327
June •••••••••••••••••
73,795
July ••••••••••••••••• 282, 133
August ..••••••••••• -. 4,806,409
September.••••••••••
1123.8
October •••••••••••••• 136,353. l
1 7,069.4
November •• _••••••••
a 10.13
December••••••••••••
Renten-
1924
January-•••••••••••••
Febmary ••• _••••••••
March •••••.•••• -•••.
April.................
May ••••••••· .•.•••••
June ••••••••• ·-····-·
July •••••••••••••••••
August_ ••••••••••••••
September •••••••••••
October ••••••••••••••
November •••••••••••
December.-----······
l
marks
Millions.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
8.49
7.35
7.47
7.67
7.96
7.87
8.02
7.91
8. 18
8. 75
8. 69
8. 66
10
IO
10
10
10
11
11
11
14
14
74
86
14
96
114
154
14
16
16
32
50
60
92
92
250
530
1,079
2,084
370
725
1,055
1,647
3,678
6,972
1,010
1,045
2,400
9,800
360,000
124,6
t 38.3
I 1.10
3,467
7,667
11,425
10,846
10,818
22,287
85,329
I, 775,761
149.2
19,838.4
1 1,650.9
•3.H
8,375
16,056
10,792
11,194
26,694
52,778
186,250
3,416,667
I 79.1
I 31,861.1
1 3,583.3
a 4. 30
Renten-
Renten-
Renten-
380
72
193
300
300
660
660
mark8
marks
1.10
1.60
1. 70
2. ?O
2.85
2.85
3.50
3.50
3. 50
3. 70
3. 70
3.70
I
Billions.
3.02
2. 95
2. 91
2. 85
2. 79
2. 72
2. 67
2. 63
2.61
2. 59
2.67
2.trl
marks
4.00
4.10
4.15
4.15
4.15
3.90
3. 65
3.65
4.00
4.00
4.00
4.00
97
81
93
123
148
161
199
307
509
840
1,381
3,062
4,600
209
281
237
251
260
286
378
417
408
468
579
676
736
887
1,298
2,203
3,552
5,696
12,841
18,901
6,562
28,434
14,060
62,542
12,567
59,112
12,336
58,023
21,127
93,976
43,472
193,377
155,711
711,823
3,202,764
13,211,401
182.0
1334.5
123,423.2
I JQ#, 500.4
1 3,085.5
• 15,427.4
3 23.34
14. 67
Rentenmark8
4.15
4.00
4. 06
4.34
4. 44
4. 34
4.46
4.42
4.57
4.~5
4.96
4. 95
a Rentenmarks,
Renlenmarks
20. 76
20.00
20.29
21. 71
22.19
21.68
22. 30
22.11
22.86
23.99
24.02
23.98
66
CHAPTER II.-STANDARD AND COST OF LIVING
TABLE 29.-MINIMUM WEEKLY COST OF SUBSISTENCE IN GREATER BERLIN,
JANUARY, 1920, TO DECEMBER, 1924, BY MONTHS-Concluded
MARRIED COUPLE WITH TWO CIIILDBEN
Total
Period
August, 1913, to July,
1914- ___ --- _------1920
January _____________
February____________
March __________ ---April ________________
Food
Marki
9.8
May ______
---------June
________________
July _________________
August_------------September
___________
October _____________
November __________
December ___________
86
100
125
157
16.1
128
135
131
123
138
136
144
1921
January _____________
February____________
March ____ ---------APril-- ·------------May-----------••••
June
________________
July
_________________
August_ _____________
September __________
October _____________
November __________
December ___________
139
133
129
121
122
142
151
156
162
176
222
249
1922
January _____________
February____________
March ______________
tfariL _______________
June
________________
ay --------------July _________________
August ______________
September___________
October _____________
November___________
December ___________
1923
January, _____________
February____________
March ______________
~rn ________________
257
299
351
417
444
466
700
1,091
1,726
2,820
5,934
8,164
13,098
32,376
31,957
32,198
ay --------------- 45,312
June
________________
98,579
July _________________
391,458
August ______________ 6,307,538
September ________ --:
October _____________
November___________
December ___________
1924
January _____________
February____ ••••••••
March. _____________
~rn_ ------------- -June
ay_________________
- - - - -----------July _________________
August ______________
September___________
October _____________
November___________
December ___________
I
Millions.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Housing
Marki
5. 5
8
8
8
9
9
9
9
9
9
9
9
9
Fuel and
light
Mark,
12
13
20
22
22
22
22
21
22
22
22
22
22
9
9
9
9
9
10
10
10
10
10
10
23
23
23
11
11
11
43
52
14
74
86
96
114
164
380
530
1,079
2,084
300
300
Marki
1. 9
9
14
14
M
16
16
32
72
193
Clothing
25
25
25
25
26
27
31
41
62
5.9
Mlscellaneous
Marki
5.8
70
82
44
61
106
112
64
98
75
73
84
77
70
70
70
70
70
61
81
82
77
75
79
79
70
80
63
63
63
63
63
70
70
84
128
128
78
74
65
66
72
75
78
81
89
118
129
128
140
198
210
109
125
167
70
233
350
518
1,015
1,477
2,306
5,149
8,361
200
218
269
417
682
1,115
1,820
4,037
6,202
Index
numbers
Amount
(191314-1)
Marki
1
28.8
7.7
220
254
822
8.8
11.2
13.0
12. 7
10.6
11.3
10. 7
10.4
11.0
11.0
11.8
3711
3611
304
324
308
299
318
316
827
320
313
11.1
10.9
10.3
298
281
285
311
324
339
349
9.8
-
9.9
10.8
11.2
11.8
12.1
13.4
17.7
19.3
386
509
557
548
627
789
915
995
1,195
1,763
2,958
4,714
7,508
16,271
24,994
19.0
21.8
27.4
31.8
.
34.5
41.6
61.2
102. 7
163. 7
260. 7
565.0
867.9
3,467
7,667
11,725
8,577
37,167
1,29o. 5
22,478
18,218
81,039
2,813.8
15,108
15,971
75,121
2,608.4
10,346
15,672
15,896
74,772
2,596.3
10. 818
37,372
27,409
121,921
4,233.4
22,287
73,889
56,782
252,582
8,770.2
85,329
260,750
207,182
947,119
32,886.1
1,775,761
4,783,333
4,120,458
16,996,890
690,170
1 162. 2 360,000
149.2
I 110. 7
I 104. 8
1427,3
114.8
151,561.3
I 24. 6
19,838.4 149,606.6 133,309.0 1144,338. 9 111,011.8
I 9,354.3
I 38,3
I 1,650.9
15,016.7
14,015.0
120,075,2
I 697, 1
1 14. 39
I 1,10
16,05
13.14
I 30,85
• 6.17
'1.07
660
660
1,010
1,045
2,400
9,800
11,425
Rente11,mark,
luntenmark,
Rentenmark,
12. 47
10.89
11.07
11.39
11.94
11. 67
12.10
1. 10
1.60
1. 70
2.70
2. 85
2. 85
3.50
3. 50
11.77
12.10
12. 95
12. 81
12. 74
• Billions.
3.50
3. 70
3. 70
3. 70
Ren/enmarka
3.02
2. 95
2. 91
2.85
2. 79
2. 72
2. 67
2.63
2.61
2.59
2.67
2. 67
• Rentenmarks.
5,60
5.80
5.85
5.85
5.85
5.50
5.15
6.15
5.60
5.60
6. 60
6.60
Rentenmarka
5. 55
6. 31
5.38
5. 70
6. 86
6. 69
5.86
6. 76
5,95
6.46
6.44
6.42
lunte11,marka
27. 74
26. 55
26.91
28.49
29.29
28.43
29.28
28.81
29. 76
31.30
31.22
31.13
, Based on rentenmarks.
'.96
'· 92
'.93
'.99
'L02
'.99
'1.02
'I. 00
'1.03
'1.09
'1.08
'LOS
67
MINIMUM COST OF SUBSISTENCE
In Table 30 the minimum cost of subsistence of a married couple
with two children from 6 to 10 years of age in Greater Berlin is shown
in dollars (calculated on the exchange rate of marks in Berlin) and
index numbers thereof, with the price in 1913-14 ($6.86) taken as the
base. According to this standard the fluctuations were enormous.
In January, 1920, the minimum cost of subsistence was one-half of
what it was before the war; it dropped to three-eighths in February
and increased to one and one-fifth m July. From August, 1920, to
October, 1923, it was always below the pre-war cQst. The minimum
was reached in November, 1921, when it was only two-sevenths of
what it was before the war. In November, 1923, it was one-third
higher than 10 years before, but when the mark was stabilized the
mmimum cost of subsistence in Greater Berlin dropped again, and
since the second half of December, 1923, it has been about the same
as before the war.
30.-MINIMUM WEEKLY OOST OF SUBSISTENOE IN DOLLARS, FOR A MAR•
RIED OOUPLE WITH TWO OHILDREN IN GREATER BERLIN, AND INDEX NUMBERS
THEREOF, JANUARY, 1920, TO DEOEMBER, 1924
TABLB
Month
January ••••.••••••••••••••••••••••.•.•••••
February ...•.•...........•...•...........
March. ••••••••••••••••••••••••••••••••••••
tf:
·:::::::::::::::::::::::::::::::::::::
June•••••••••••••••••••••••••••••••••••••••
July
•••••.••••••••••••.•••••••••••••••••••••
---·······················
August
~11:,bRr ::::::::::::::::::::::::::::::::
Novemw ••••••••••••••••••••••••••••••
December·-----·············
1920
1921
$3.40
2. 66
$4.93
6. 29
4.42
4.58
4.48
4. 23
4.02
3.33
2.57
L94
3.01
3. 84
7.85
7.77
8. 21
6.45
II. 16
4.66
4.09
4.48
11.11
4. 77
1922
$2.86
3. 02
2. 78
3.14
3.43
3. 76
3. 57
2.61
3.22
2. 36
2.27
3. 29
1923
$2.07
2.90
3. 55
3. 06
2.66
2.30
2. 68
3. 68
4. 32
II. 71
9.15
7.35
$6. 61
6. 32
6.41
6. 79
6.97
6.77
6.97
6.86
7.09
7.45
7.43
7.41
Index numbers (1013-14=1)
January···································
February••••••••••••••••••••••••••••••••••
March. ••••••••••••••••••••••.•••••••••••••
tFar:·:::::::::::::::::::::::::::::::::::::
June.••••••••••••••••••••••••••••••••••••••
July •••••••••••••••••••••••••••••••••••••••
~=ber . : : : : : : : : : : : : : : :
August ••••••••••••••••••••••••••••••••••••
NovembRr -••••••••••••••••••••••••••••••
December .....••••••...•..........•.......
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
0. 50
,37
.66
,91
L15
1.14
L20
.94
.75
.68
.60
.65
0. 72
.75
,69
.65
.67
,65
.61
.59
.48
.37
.28
.42
0.42
.44
.41
.46
.50
.55
.52
.38
.47
.34
.33
.48
0.30
.42
.52
.45
.37
.33
.39
.54
.63
.83
L33
1.07
0. 96
.92
.93
.99
1.02
.99
1.02
1.00
1,03
1.00
1.08
1.08
Chapter m.-COLLECTIVE AGREEMENTS
LEGISLATION
Before the World War collective agreements concluded between
-employers or organizations of employers on the one hand, and o~•
izations of workers or of salaried employees on the other hand, with
the object of regulating working conditions and wages, had become
of great importance in German economic life. Accoriling to statistics
of the Federal Statistical Office there were on Decemlier 31, 1913,
10,885 collective agreements, coveriJ:ig 143,088 establishments and
1,398,597 employees (workers and salaried employees). Yet there
was no special law regulating such agreements., the relations between
the two parties being r02Ulated by the general principles of the civil
law as to contracts. Political parties· in Parliament had repeatedly
demanded legal re~ation of collective agreements, but the Government had never yielded to such requests, as it was afraid that legal
regulation would hamper the natural and sound development of
collective agreements, and employers and employees did not insist.
During the war, when the preservation of economic peace was vital,
some military authorities tried to guarantee, by military decrees,
the strict observance of collective agreements. A comprehensive
regulation of collective agreements by law took place, however, only
after the war.
A few days after the revolution, on November 15, 1918, the large
employers' associations stipulated in an ~eement with the tradeunions 1 that "the working conditions of all male and female workers
are to be determined, in accordance with conditions in the trade in
question, througli collective agreements with the workers' trade
organizations. Negotiations relating thereto shall be initiated
immediately and concluded as soon as possible:" On December 23,
1918, the Council of People's Commissioners issued a "decree regulating collective agreements, workers' and salaried employees'
committees, and arbitration of labor disputes." 3 The main object
of the decree was to insure stability of economic life by creating
equality in working conditions a.s far as possible. The provisions
relating to collective agreements (articles 1 to 6 of the decree) have
not since been materiall;y changed or enlarged. While they do not
involve a complete regulation of collective agreements, these provisions (1) establish the principle of the obligation of the parties to
live up to the agreement (principle of nondeviation) ; (2) determine
the parties who are entitled to conclude a collective agreement;
and (3) authorize the Minister of Labor, under certain conditions,
to declare a collective agreement generally binding beyond the
domain of the contracting parties.
I See Monthly Lnbor Review, April, 1919, pp. 158-160.
• Idem, pp. 160-167.
68
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Federal Reserve Bank of St. Louis
.
69
CHAPTER m.-COLI.ECTIVE AGREEMENTS
.ACTUAL DEVELOPMENT
AB a consequence of the agreement of November 15, 1918, and the
decree of December 23, 1918, as well as the enormous increase in
the membership of employers' associations and trade-unions, collective agreements became almost universal. Their number, it is
true, did not increase-being 10,885 on December 31, 1913, and
10,768 nine years later-but the number of firms and the number of
employees covered by them were much greater. The number of
collective agreements, with the number of establishments and
employees covered, on December 31 of each year from 1912 to 1922
is shown in Table 31.
TABLE
31.-NUMBER OF COLLECTIVE AGREEMENTS AND NUMBER OF ESTABLISH•
MENTS AND EMPLOYEES COVERED, 1912 TO 1922
...
~.!••
Date
Col• Establectlve llsh•
agree ments
ments covered
December 311912•••••••••••••• 10,739
1913-------·-----)914
____ • _________ 10,885
10,840
1915-----·-------1916 ______________ 10,171
9,435
1911-----·-------- 8,854
159,930
143,088
143,650
121,697
104,179
91,313
Employ•
ees
covered
1,574,285
1,398,r/¥7
1,39,5, 723
943,442
740,074
905,670
Date
December 311918
--------1919 _____
______________
1920______________
192]. _____________
1922 -------------
Col• Estab- Employ•
lecth·e
lish·
ees
agree- ments covered
ments covered
7,819
11,000
11,624
107,503
272,251
434,004
697,476
10,768 800,237
11,488
1,127,690
5,986,475
9,561,323
12,882,874
14,261,106
The number of establishments bound by collective agreements,
which had decreased from 143,088 at the end of 1913 to 91,313 at
the end of 1917, increased to 890,237 at the end of 1922, while the
number of employees affected by the agreements, which had dropped
from 1,398,597 in 1913 to 905,670 in 1917, increased to 14,261,106
in 1922. AB a consequence thereof, the average number of establishments covered by a collective agreement increased from 13 in
1913 to 83 in 1922, and the average number of employees affected
by a collective agreement from 128 to 1,324.
The working conditions of salaried employees are not generally
regulated by the same collective agreements as those of the workers,
only 52 agreements in 1921 having been found covering both groups
of employees. The total number of agreements covering salaried
employees (included, of course, in the figures of Table 31) was 1,272
at the end of 1920, 1,481 at the end of 1921, and 1,464 at the end of
1922; the number of establishments was 70,958, 145,487, and 172,280,
respectively; the number of salaried employees bound by such agree-'ments, 931,357hl,811,300, and 1,970,754, respectively. It must be
borne in mind, owever, that all the figures mentioned in this chapter
refer only to such agreements as were reported to the Federal Statistical Office or to the Ministry of Labor. In the course of time
the reJ>orting of collective agreements, particularly those covering
salariea employees, became more complete, which accounts, to a
certain extent, for the apparently large increase in collective agreements for salaried employees in 1921.8
• On the other band, the apparent decrease or establishments and employees covered by collective agreements In 1913 and 1914 as compared with 1912 ls due to the fact that In those two years many local collective
Blll"eements were concluded In the building trades which were not recognized by the central unions -and
therefore were not reported to tne Federal l!tatlstlcal O:tllce.
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Federal Reserve Bank of St. Louis
70
OH.APTER ID.-OOLLEOTIVE AGREEMENTS
The increase in female em{>loyees covered by these agreement.a
was especially conspicuous, bemg from 1,665,115 at the end of 1920
to 2,729,788 at the end of 1921, and to 3,161,268 at the end of 1922;
th~per cent increasedJrom 17 to 21 and then to 22.
The industries in which collective agreements existed at the end
of 1922 and the number and_per cent of establishments and employees covered are shown in Table 32:
32.-NUMBER AND PER OENT OF OOLLEOTIVE AGREEMENTS AND ESTAB•
LISHMENTS AND EMPLOYEES OOVERED, DEOEMBER 31, 192'l, BY INDUSTRIES
TABLII
Percent
Number
IDdustq
Estab- Employees covered
Agree. llshAgreements meuts
ments
COV•
Total
Female
ered
~cul=~enlng, and forestry ••••
4411 307,178 1,996,917
Ines, sm
works, and salt works. 177 3,688 1,589,992
ilO,SM
Sto:t clay, an glass products ••••••••• 695 10,369
Me working and miehlnery ••••••••• 1,326 60,819 2,924,979
Ohemloals •••••••••••••••••••••••••••••
92 11,188
396, 7117
Forest by•prodaots, soap and fats •••••• 111
614
29,918
Textiles..........
• ••••••••• 530 19,868 1,038,330
f
115
9,204
6,749
221,586
122,717
413,504
462,855
488,570
32,076
809, li92
186,862
2,923
616,475
r=er :::::::::::::::::::::::::::::::: 229
Lumber•••••••••••••••••••••••••••••••• 406 28,677
Food, liquors, and tobacco ••••••••••••• 1,556 711,731
843 64,017
223
Lii=::============================
16,282
986
46 211,891
68,780
Art lndastrles••••••••••••••••••••••••••
8
656
Oommeroe ••••••••••••••••••••••••••••• 1,000 68,417
IDsaranoe ••••••••••••••••••••••••••••••
7o,2Ui
6
302
Transportation••••••••••••••••••••••••• 625 22,462 1,095,115
Hotela and restaurants ••••••••••••••••• 115 16,682
102,777
Musical, theatrical, etc., shows••••••••• 168 2,925
46,209
Mlsoellaneoas•••••••••••••••••••••••••• 968 79,758 1,202,384
72,571
346,3311
67,670
7,614
633,784
95,848
29,049
50,869
193,466
289,962
17,002
2,654
48,879
72
4.2
1.6
6.4
12.3
.9
LO
4.9
1.1
2.1
3. 8
14.4
7.8
2.1
9.2
.4
2211, 716
15,068
36,326
48,459
16,171
288,702
.1
10.1
.1
6. 8
1.1
1.6
9.0
Total •••••••••••••••••••••••••••• 10,768 890,237 14,261,106 3,161.268
100.0
'
1
GlU,146
40,906
Employees
covered
Establlsh·
meuts
COV•
Feered Total Dlllle
34.11
••
L2
6. 7
1.3
.1
2.2
1.0
.8
3.2
8. 5
7.2
LS
7. 7
2. 9
.1
7.7
14.0
11.2
2. 9
20.11
2.8
20.1
1.3
2.3
lLO
2.1
7.8
L6
20.1
3. 0
,2
.9
2.9
3.2
3. 4
.2
6. 7
.2
.9
1.6
6.1
9.2
.II
7.7
.7
.3
8.4
.1
L6
(1)
7.1
.II
L2
·Lil
.II
9.1
100. 0 ,100. 0
100. 0
L3
~8
.o
.II
2. 5
1.9
.3
9.0
I
Less than one-tenth of 1 per cent.
The largest number of employees bound by collective agreements
in any industry on December 31, 1922, was 2,924,979, in the metal
working and machinery industry, followed by agriculture etc., with
1,996,917, mines, etc., with 1,589,992, transportation with 1,095,115
(among which were 593t698 employed by the State railways), textiles
with 1,038,330, and bui1di.J!g with 809,592. The building industry,
which before the war employed more persons covered by collective
agreements than any otlier mdustry, thus occupied only sixth rank
in 1922. The largest number of women covered by collective
agreements was to be found in agriculture, etc., and the next largest
number in the textile industry.
Before the war only a small proportion of the collective agreements
were enter~d into by emY,loy:ers' associations or by guilds, the large
majority being by mdiVIaua.I :firms. After the war, the proportion
of a~eements concluded by :firms decreased from year to year,
until from 1920 on the majority of the collective agreements were
entered into by emplo_yers' associations or guilds. Table 33 shows
the per cent of collective agreements concluded by :firms and
by organizations from 1912 to 1922.
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ACTUAL DEVELOPMENT
TOLi:
33,-PER OENT OF OOLLEOTIVE AGREEMENTS OONOLUDED BY FIRMS AND
BY ORGANIZATIONS,• 1912 TO 1922
Organizations
Date
Ffnm
Guilds
Only on
employees' side
On both sides
Estab- PerEstab• Per•
Esteb- PerEstab- Per•
lish• sons Agre&- llsh• sons
lish• sons Agre&- llsh· sons
Agre&- ments
Agre&- ments
ments COV•
ments COV• COV• ments ment.s
COV• ment.s
COV• ment.s
COV•
COV·
COV•
ered ered
ered ered
ered ered
ered ered
December 311912••••••••
1913••••••••
191'-. •••••••
19111•••••-.. ••
1916••••••••
1917••••••••
1918••••••••
1919••••••••
1920.•••••••
1921 ••••••••
1922••••••••
22.6
18. 11
20. 9
22.3
24.0
26. 5
29.1
39.9
44.0
48.7
49.5
63. 2
118.8
60.5
60.0
60.6
60.4
61.3
73.8
79.2
82. 7
86.1
65. 4
60.8
63. 7
62.3
56.0
62. 11
64. 3
81.0
75. 3
82. 2
83.9
72. 8
33.8
38.4
37.1
37.6
37.0
37.2
36.9
25.9
20.6
17.3
13.9
77.2
75. 2
74.0
72.6
70. 6
68.4
59.8
57. 7
51.1
5o. 0
31.6
35. 9
33.9
35. 3
41.3
35. 5
34.6
19.0
24. 7
17. 7
16.0
s.7
5. 7
5. 5
5. 6
6.1
6.3
6. 7
8. 7
8.9
9.2
9.2
22.0
24. 9
23.5
21.5
24.1
24. 0
25.9
22. 0
16. 9
13.4
11.0
6.8
9.0
8.4
5. 6
6. 8
5. 7
5. 7
3.1
1.7
LIi
1.1
73.6
78. 2
76.1
74.8
72.8
72. 2
69.4
54.0
48. 7
43. 7
42.4
211.8
29.6
28.6
30.8
28.9
34.0
28. 5
12.3
8.4
6.1
4. 9
33.4
37.6
34. 6
38.4
45.2
41.2
36.4
18. 6
~4
17.3
15. 7
• In some cases agreements were concluded on the employers' side both by an employers' organlzatlon
and by firms not belonging to the organization.
The increasing number of collective agreements concluded by
employers' organizations accounts in part for the increasing "J)oncentration" of agreements, which resulted, as has been shown above,
in an ever-increasing average number of establishments covered by
one agreement. Thls increase in the. average number of establisliments and in the average number of employees per agreement was
further promoted by an increase in the collective agreements concluded for the entire country, for a district, or for a locality, instead
offor an individual firm, as shown in Table 34.
T.&BLB
34.-PER OENT OF OOLLEOTIVE AGREEMENTS COVERING
TERRITORY, 1912 TO 1922
Locality
District
EstebIEstab• Em•
A
llsh• ploy• Agree- llsh•
m : ments ees ment.s ments
COV•
COV•
COV•
ered ered
ered
Em•
Estebploy• Agree- llsh·
ees ment.s ments
COV•
COV•
ered
ered
Em•
Estab• Em•
ploy• Agree- llsh· plo7•
ees ments ments ees
COV•
COV•
COV•
ered
ered ered
18.0
17.9
17.3
14.3
19.5
18.0
20.6
12. 0
9. 7
7.5
7.8
60. 2
46.1
49.2
46. 9
34.9
39.0
26.8
63.7
56. 5
66.8
71.9
Individual firm"
Date
S~EOIFIED
December 311912.•••••••••••
1913••••••••••••
1914 .•••••••••••
1915••••••••••••
1916.•••••••••••
1917.•.•••••••.•
1918••.•••••••••
1919••••••••••••
1920••••••••••••
1921. •••••••••••
1922••••••••••••
72. 7
77.0
74.8
73.4
7L3
68.8
65.8
62.6
47. 7
42. 7
41.6
18.8
21.8
2L0
21.8
22.3
22.3
14. 9
7.9
4.8
4.1
1.4
12.9
26.6
11.9
30.4
28.0
12.2
28.0 . 12. 7
14.1
36. 5
31.8
15.7
27.2
17.1
16.5
23.3
12. 2
26. 7
29.0
9.4
26. 9·
5. 9
29.1
27.1
26.0
25.2
28. 6
30.0
29. 7
26.1
211. 6
18.1
16.3
14. 3
11.0
12. 9
13.8
14.6
15.3
16. 9
23. 7
24. 9
27.6
30. 7
46.3
44.6
46.6
44.8
43.5
40-1
37.8
56.6
51.5
64. 8
75. 0
Entire country
0. 1
.1
.1
.1
.1
.2
.2
.7
.7
.7
.8
5.8
6.11
6.4
8. 2
5.6
7.6
17.6
9.5
18. l
13.0
7.3
5.2
5.6
5. 5
10.8
9.1
11. 2
25.4
7.8
2L6
16.3
14.4
Before the war collective agreements were generall;y made for
comparatively long periods. Iii 1912 and 1913, more than half of
the workers covered by collective agreements had their working conditions regulated by agreements running for more than twoJ,ears,
while the proportion of such workers at the end of 1922 was o y 0.9
per cent. Tlie main reason for this change was the monetary depreciation, which necessitated a constant change in wages and siuaries.
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CHAPTER ID,--OOLLEOTIVE AGREEMENTS
When, however, the fall of the mark became more and more rapid.
the terms of collective agreements were adapted to such unusual
conditions and it again became customary_ to make collective agreements for longer periods but to provide for changes of wages and
salaries within the period covered liy the agreement.
Of the total agreements concluded in 1920, 1921, and 1922, the
following proportions were for fixed periods: In 1920, 58.4 per cent,
covering 72 _per cent of the establislii:nents and 75.5 per cent of the
employees; m 1921, 57.8 per cent, covering 79.7 per cent of the
establishments and 78.1 per cent of the employees; and in 1922,
53.2 per cent, covering 80.3&er cent of the estaolishments and 78. 7
these agreements for fixed periods, the
per cent of" the employees.
proportion concluaed for certain fixed periods and the p:roportion
of tn.e establishments and emplo_yees working under the agreements
for such periods, are shown in Table 35.
TABLE 36.-PER OENT OF OOLLEOTIVE AGREEMENTS OONOLUDED FOR SPEOIFIED
PERIODS AND OF ESTABLISHMENTS AND EMPLOYEES WORKING UNDER OOLLECTIVE AGREEMENTS CONCLUDED FOR SUCH PERIODS, 1920 TO 1922
Dec. 31, 1920
JEstabAgree- lishments ments
covered
Period covered by agreement
Fb:ed period__________________________
3 months or less___________________
Over 3 to 6 months _______________
Over 6 months to 1 year __________
Over 1 year to 2 years_____________
Over 2 years. _____________________
Dec. 31, 1921
EmEstabploy- Agree- lish•
ees ments ments
covcovered
ered
Dec. 31, 1922
EmEstabploy- Agree- Iishees ments ments
COV•
COV•
ered
ered
Em•
ploy-
ees
COV•
ered
58.4
72.0
75.5
67.8
79.7
78.1
53.2
80.3
78. 7
22. 9
12.8
13.5
41.6
21.5
10.6
17.0
25.2
22.5
18.6
10.0
8.4
63.1
24. l
12.5
12. li
23.1
16.8
6.4
28.2
1.1
14.9
LO
9.1
7.8
64.9
24. 6
33. 7
16. 2
2.6
41.3
14. l
2.4
37.8
111.9
1.2
4.4
li0.7
44. 7
4.6
66. 7
20.8
LIi
27.3
.9
The ·proportion of employees affected by agreements concluded
for more than six montlis thus increased .during 1921 from 57.8 to
75 per cent, and during 1922 to 83.1 per cent. At the same time, the
proportion of employees bound by collective agreements providing
for changes of wages or salaries within the period covered by the agreement increased from 38.6 to 51.5 per cent in the course of 1921 and
to 53.2 per cent in 1922.
Before the war collective agreements regulated mainly hours of
work, wages, terms of notice to quit, conditions of apprenticeship,
and means of conciliation and arbitration. Provisions as to vacations of employees were to be found in .only a few collective agreements. Nowadays collective aP."eements which do not regulate vacations are an exception. ProV1Sions relating to the use of s_pecified
employment agencies are somewhat more frequent than before the
.
war but still are not usual.
The number of collective agreements which are generally binding
was 1,297 on December 31, 1924.
LEGAL REGULATION
The legislation on collective ~_eements has defined the term II collective agreement," the meaning of which had theretofore been
strongly contested. It has declared the :princi.P.le of nondeviation
from tlie collective agreement, under which mdiviaual labor contracts
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LEGAL REGULATION
73
between the interested parties shall be ineffective in so far as they do
not conform to such agreement. It has also strengthened the idea
that in case no other arrangement is made the collective agreement is
to be considered as recognized, by expressly stating that collective
agreements that have become of predominant importance in the development of working conditions in an occupation within the territory
covered by the agreement may be declared generally binding. The
procedure for declaring an agreement generally bmding has been
regulated in detail, and during the period of inflation simplified
Finally, copies of all collective ~eements, including those not de·
clared generally binding, are to be filed with the Ministry of LaborDEFINITION
A collective agreement, according to article 1 of the decree of
December 23, 1918, is an agreement in writing which regulates the
conditions under which labor contracts between organizations of
employees and individual employers or organizations of employers
may be concluded.
1. It must be an agreement, i. e., a voluntary arrangement between
several contracting :earties. The collective-agreement legislation
thus recogrrizes the prmciple of freedom of contract, and therefore it
is not possible to compel an employer or an employee to enter into a
collective agreement. The agreement must be made in writing.
Verbal agreements or agreements signed by one party only are not
considered collective agreements within the meaning of the decree.
A collective agreement can be made verbally, but such agreement
does not enjoy the legal protection granted to written agreements,
is not impressed with the principle of nondeviation, and can not be
declared generally binding.
Awards made by official arbitration boards or arbitrators in general
disputes, i. e., disputes between one or several employers on the one
hand and the employees or a part of the employees of an establishment or a trade on tne other hand, are also considered collective agreements, in so far as these awards regulate conditions for making labor
contracts. They are so considered, however, only where both parties, i. e., employers and employees, have accepted them or where
they have been declared generally binding by an arbitrator under
article 6 of the decree of October 30, 1923, relating to the adjustment
of labor disputes. In the latter case, the declaration making them
generally binding takes the place of the acceptance of the award by
the parties.
2. The parties to the collective Rg!"eement must be entitled to enter
into such an agreement if it is to be legally effective within the meaning of the decree. On the employers' side the agreement may be
made by individual employers or by one or several organizations of
employers; on the employees' side it must always be made by one
or several ol"§anizations of employees.
The term 'organization of employers or employees," as used in the
decree regulating collective agreements and also in practically all
labor laws, has never been legally defined. In consequence thereof
many disputes have sprung up with reference to the definition of
"o~anization of employees." Theory and practice, however have
at last developed a definite conception of organizations of empioyees
entitled to conclude collective agreements. The organization must
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74
OHA.PTER ID,-COLLECTIVE AGREEMENTS
be founded as a permanent one. If, then, the employees of an establi.8hment create an organization for the purpose of concluding a collective agreement, such organization is not one entitled to sign a col. lective agreement within the meaning of the decree.' Nor can a
works council make a legally effective collective agreement with its
employer, since its task 1s not to make ~eements bu.t to carry out
existing agreements. Moreoveri the obJects of the organization,
which must be shown in its bv- aws, must be along economic lines.
Finally, the membership of the organization must be composed entirely either of employers or of employees. Organizations of emJ?loyees, in particular, must receive their financial support exclusively
from contributions of their members and not wholly or in part from
employers or their representatives.
So far as trade-unions are concerned, the free (Social Democratic),
the Christian, and the Hirsch-Duncker (liberal) unions have been
recognized as organiz'ations entitled to make collective agreements.
Only such organizations of employees, indeed, as are willing and able
independently to safeguard their mterests can make collective ~ements. This could not be true of organizations includi~ both employers and employe~ as the employers would naturally consider
their own interests. The same is true of organizations such as "yellow unions," which in general are influenced by employers and subsidized by them in one way or another.
3. The collective agreement regulates the conditions under which
labor contracts may be concluded'. It is not itself a labor contract,
but states only the main provisions of future labor contracts. It does
not necessarily r~ate all provisions of future labor contractsJ but
may confine itself to some of them. As a matter of principle, however, the parties can regulate through a collective agreement anything that can lawfully be included in the individual labor contract.
Provisions which would conflict with any law, or which are immoral,
are of course ineffective.
Generally, collective agreements also contain provisions outside the
domain of mdividual labor contracts, such as provisions relating to the
restriction of apprenticeship, the use of specified employment agencies,
the means of conciliation and arbitration, etc.
4. Collective agreements also contain provisions as to the occupations, t~rritory, and period covered. Such provisions must be particularly accurate because of the principle of nondeviation involved.
In respect to territory, the agreement may cover either the whole of
Germany, or a district, a locality, or an establishment. A!?reements
covering the whole of Germany or a district, i. e.t a State, a1.>rovince,
etc., contain as a rule only general provisions; they are basic agreements and are supplemented by local collective ~eements. Such
local agreements are, however, frequently concluded indeJ>endently.
The agreements for individual establishments are as a rule not restricted to one occupation but cover all the employees of the concern.
It may happen, therefore, that an employer is bound by several collective ~reements which are contradictory. In such cases the agreement which is the most favorable to the employees is to govern the
working conditions.
As tlie decree makes no provision as to the period for which a collective agreement is to run, the parties are free to determine the dura• The same Is tme of all organizations whose membership is con11ned to employees of an Individual
eatabllahment.
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LEGAL REGULATION
75
tion of the ~ement; in doubtful cases the civil law rules. As the
fa.te of indindua.l labor contracts in case a collective ~eement is
eha.nged or terminated is not specified in the decree, the civil law again
prevails, and when a collective agreement terminates, individual labor
contracts remain in force until explicitly changed.
POLICY OF NONDEVIATION
The provisions of a oollective agreement can not be deviated from,
i. e., tlie_y are binding on the contract~ parties. Article 1 of the
decree of December 23hl918, provides that "labor contracts between
the interested parties s all be meffective in so far as they_ do not comform '' to the regt]Jations of the collective agreement. The favorable
conditions of a collective agreement can not therefore be waived by the
employees.
The principle of nondeviation applies, however, only to those _provisions of a collective agreement wliich may be contamed in an mdividual labor contractz such as provisions referring to wages, hours of
work, vacations, and torm and terms of notice to g_uit, while provisions
binding only the contracting parties, such as tliose referrmg to the
duration of the agreement, the use of certain employment agencies,
and the prohibition as to employing persons not covered by the agreement atlower wages than tliose fixed in the agreement are not subject to this principle. In case an employer or an employee violates
such a provision, the contracting parties are entitled to protest to the
organization of which that employer or employee is a member, but no
direct pressure can be brought upon tlie mdividual employer or
em_ployee.
The decree allows two exceptions from the principle of nondeviation:
(a) Nonconforming contracts shall be effective in so far as the
collective agreement permits their conclusion. Collective agreements regulate, for example, the w~es of efficient workers., but a.t
the same time may specify that spemal arrangements may t>e m.a.de
as to wages of those physically disabled.
(b) Nonconforming contracts shall be effective in so far as they
provide for working conditions more favorable to the worker and
not explicitly excluded by the collective agreement. The working
conditions fixed by collective agreements are thus, in general, only
minimum conditions for individual labor contracts.
The principle of nondeviation, however, a,Pplies only to a. labor
contract between the "interested parties.' Interested pa.rties,
within the meaning of the decree, are "employers and employees
who are parties to the collective agreement or members of the
signatory organizations, or who on the conclusion of the labor
contract are members of those organizations, or who have concluded
a labor contract which refers to the collective agreement." Individual labor contracts between a party not bound by a collective
~eement and a party bound by such agreement are, therefore, not
subject to t~e principle of nondeviation unless the parties in the
contract have explicitly referred to the collective agreement.
AGREEMENTS DECLARED GENERALLY BINDING
While the principle of nondeviation applies only to those individual labor contracts which are concluded by the "interested
parties," a collective agreement can be extended to include outsid•rs
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76
CHAPTER m,-COLLECTIVE AGREEMENTS
by declaring such agreement generally binding. The object of such
a declaration is to equalize wor~ conditions in a certain occupation
in a certain district. The declaration can be made only upon request
and only in the case of a collective agreement whicli has "become
of predominant importance in the development of working conditions in an occupation within the territory covered by the agreement" (article 2). In practice, the condition as to predominant
importance is considered to have been met if the working conditions
of the majority of the persons in the occupation covered by the agreement correspond to tlie provisions of the agreement, whether or not
this majority actually belongs to the signatory organizations.
.
Under the decree of December 23, 1918, the Department of Labor
(Reichsarbeitsami,) was authorized to declare collective agreements
binding. When this department, in 1919, was made a ministry
(Reichsarbeitsministerium), this ministry made such declarations.
In June, 1922, the authority to make such declarations was transferred to the Federal Labor Office (Reichsarbeitsverwa1tu'Tlfl).; which is
under the supervision of the Ministry of Labor. The Laoor Office
is not obliged to declare an agreement generally binding, even if
all the conditions are fulfilled but is free to decide as it sees fit.
It can reject the request for such a declaration; it can comply with
it in full; it can reduce the territory for which it has been asked to
issue the declaration; or it can exclude certain provisions of the
agree:qient from the declaration. The decision of the Labor Office
is final and can not be appealed from. ·
On such a declaration the collective agreement in question, within
the territory in which it is binding, becomes aJso binding on employers or employees or both who are not interested parties to the
agreement; they are also bound by the principle of nondeviation as
applied to working conditions fixed b_y the agreement. In so far as
exISting labor contracts are in conflict with the provisions of a
collective agreement which has been declared generally binding,
such labor contracts become ineffective and are automatically replaced by the provisions of the collective agreement.
Just as the principle of nondeviation applies only to those provisions of collective agreements which may be contained in an
individual labor contract, so only such provisions can be affected
by the declaration that the agreement is generally binding. Likewise,
only those provisions can be affected which do not violate a law or
which are not immoral. In practice, the latter provisions are always
explicitly excluded from the declaration.
The declaration affects only such individual labor contracts as
. have been concluded within the territory for which the collective
agreement is declared generally binding. In case there exist within
the territory several generally binding collective agreements and a
labor contract comes under such several agreements, that agreement
shall be considered as governing whose provisions cover the largest
number of labor contracts in force in the establishment or the subdivision of the establishment-without prejudice, however, to a
cont!'My decision by the Labor Office.
The beginning of the period for which the agreement is generally
binding is fixed by the Labor Office in its declaration, and the perioa
. lasts until the Labor Office cancels the declaration. The right of
cancellation is not specified in the decree, but since the Labor Office
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LEGAL REGULATION
77
is authorized to declare an agreement generally binding, it is also
entitled to cancel such declaration either because conditions which
led to the declaration have materially changed or because the agreement declared generally binding has expired.
The signatory parties to a collective agreement may change a
collective agreement which has been declared generally binding, but
only to the advantage of the employees. Such change, however,
a:ffects only the labor contracts of the "interested parties. " Before
the change can affect labor contracts of those not parties to the
agreement it must first be declared generally binding.
Under the law on employment offices, tlie public and the private
noncommercial employment offices, in case there is a collective
agreement, are to fill vacancies in establishments covered by such
agreement only in accordance with conditions corres.1:onding to the
agreement. 5 They therefore need to be acquainted with such agreements. Factory mspectors, who take part in the ing_uiry as to the
predominant importance of an agreement, and otlier authorities
are in a similar position. The "interested" employers and organizations of employers and employees are therefore required, within
two weeks of the conclusion of the agreement, to supply free of
charge to the following authorities copies or reprints of the agreement, as well as all changes and supplements agreed upon:
1. The Federal Labor Office (Reichsarbeitsverwal:tung), which files
the agreements.
2. The district employment offices (Landesamter fur Arbeitsvermitftung) in the territory in which the agreement is valid. On payment of costs, they can demand further copies of the agreements for
the use of the public employment offices of their distnct.
·
3. The central authority of the district (LandeszentralbihiJrde).
4. The factory inspectors in whose districts establishments covered
by the agreement are situated.
The Federal Labor Office and the district employment offices are
likewise to be informed of the expiration of a collective agreement.
fo case of noncompliance with these requirements penalties may
be imposed.
The Federal Labor Office not only files the collective agreements
but also is charged with the publication of information relative
thereto. The matter collected and disseminated furnishes the basis
for future legislation and for the work of conciliators and arbitrators,
and enables the public and especially the representatives of employers and employees engaged in collective bargaining to keep
constantly in touch with the development of collective liargaining
both in general and :particular trades. Such publication consists of
articles on the proVIsions of collective agreements, of reports on
collective bargamil!g, and of statistics of collective agreements,
printed in the Reiclisarbeitsblatt and its supplements.
The great influence of collective agreements upon the development of labor legislation can best be seen from the fact that the law
on works councils is based to a great extent on the promions of
collective agreements, some of the provisions of the law having been
taken literally from collective agreements.
L. I Bee Chapter vn, "Unemployment" (pp. 146 to 189),
20168°-25t--6
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Chapter IV.-TRADE-UNIONS
The first German trade-unions were founded in 1848, but in the
early fifties they were prohibited. A new union movement arose in
the sixties but 1t was confined to a few trades and closely connected
~th some of th.e political _parties. I!)- 1878 most of these organi~at1ons were prohibited by the law agamst the "dangerous tendencies
of socialism," the only trade-unions surviving this period being the
liberal trade-unions, which were rather weaK. New unions organized in the middle of the eighties suffered considerably under the
law of 1878.
When, in 1890, the interdiction of 1878 was withdrawn, the
economic crisis then prevailing hindered quick development of the
trade-union movement. From 1891 to 1895 the unions comprised
in the General Commission of Trade-Unions (Genera.lkommission der
Gewerkschaften), now the General Federation of German TradeUnions (Allgemeiner Deutscher Gewerkschaftsbund), had about 250,000
members. In 1896, its membership began to increase rapidly and
steadily so that there were almost 700,000 members at the close of
the nineteenth century. The membership exceeded one million in
1904, two millions in 1910, and was two and one-half millions at the
outbreak of the war.
While the members of these unions belonged largely to the SocialDemocratic Party, there was an_other equally old group of unions
called · the Hirsch-Duncker Federation of German Trade-Unions
(Verband der Deutschen Hirsch-Dunckerschen Gewerkvereine), which
had been founded in 1868 b;r. some liberal politicians, and whose leaders
always belonged to the Liberal Party. As this party did not gain
much sympathy from the working class, the Hirsch-Duncker tradeunion movement remained weak. These unions had 110,000 members in 1903, which was also their membership at the outbreak of
the war.
A third group of unions, the Christian trade-unions, composed
mainly of Catholic workers belonging to the Center Party, showed
much stronger vitality than the liberal unions. The first unions of
this kind were founded in the nineties, and their first general congress
was held in 1899. At the beginning of this century/2 they formed the
General Federation of Christian Trade-Unions (&esamtverband der
Ohristlichen Gewerkscha/ten). At the beguiill}lg of the war their
membership exceeded 340,000 members. This figure may appear
small when compared with the membership of the Social-Democratic
unions, but the Christian unions can develo_p only in Catholic districts.
Only in one district, Rhineland-Westphalia, have they developed to
any extent.
Apart from these three federations there was a number of independent trade-unions, having altogether 300,000 members. The
only important ones were the Pqlish Trade Association (PoZnische
78
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INTRODUCTION
Beru(8'Vert1,nt,g'U,ng_), which comprised about 75,000 workers in Silesia
and ·Rhineland-Westphalia, and the unions of hotel and restaurant
em_ployees. More tlian one-third ·of the 300,000 members belonging
to mdependent unions were railway men and telegraphers in Government service, but it is doubtful whether their umons before the war
could be considered genuine trade-unions.
The same is true of the salaried employees' unions, which to a very
small extent only were imbued with the trade-union spirit. The
unions of commercial employees comprised more than half a million
em._plo:yees and the unions of. technical employees 140 000.
Dunng _the war most trade-unions experienced heavy losses of
membership as many of their members enrolled in the army. But as
their expenses decreased at the same time, their :financial status was
not much weakened, and quite unexpectedly their political strength
imJ?roved. On the outbreak of the war the Government did its best
to mcorJ.>Orate the unions into the economic war machinery. The
trade-umons and the employers' associations at once stopped all
labor disputes. On the part of the trade-unions this was necessary
as there was a tremendous amount of unemployment during the
first three months of the war. But as more and more men entered
the army and the war industries employed greater and greater numbers of men, the labor market developed in favor of the trade-unions,
and with the increasing cost of living the trade-unions saw again the
possibility and even the necessity of starting movements for wage
mcreases. Wage disputes were at this time largely settled before
the State conciliation boards, which was a great help for the weak
unions and especially the salaried employees' unions, which were now
able to make collective agreements before such boards.
This strengthening of the position of the trade-unions during the
war took place in spite of the heavy reduction in the number of
officials, especially in those unions having a considerable number of
young members, such as unions of building laborers, or barbers, etc.
According to the annual statistics of the unions comprised in the
General Commission of Trade-Unions, the number of local officials
decreased in the sameJroportion as the number of members, while
the number of nation officials was much less reduced. In Table
36 the membership and number of officials of Social-Democratic
(free) trade-unions for each year from 1913 to 1918 are given:
TABLE
36.-MEMBERSHIP AND NUMBER OF OFFICIALS OF THE SOCIAL-DEMOCRATIC
(FREE) TRADE-UNIONS, DECEMBER 31, 1913 TO 1918
National officials
Year
Local
unions
Membership
Pres!-
dents,
etc.
1913. _ ------------ -··-·····- -um;_ _________________________
1914- -----------------------1916- - -----------------------1917- - -----------------------1918-- ------------------------
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11, 7rtl
10,980
9,869
9,308
9,309
10,044
2,498,959
1,485,428
982,863
934,784
1,264,714
2,858,053
•
417
366
297
245
262
368
Editors
75
69
57
M
51
63
District
offlcinls
Local
offlolals
428
370
1,956
1,482
200
860
269
303
369
694
750
1,532
Total
officials
2,876
2,287
1,504
1,262
1,366
2,332
80
CHAPTER IV.-TRADE-UNIONS
Everywhere work had to be restricted or _postponed, this being
most conspicuous~. perhap_s, in regard to tlie trade-union press.
The number of ectitors fell from 75 to 51; the number of weekl:y
papers decreased from 35 to 30 and their size was generally reducea
one-third or even one-half.
MEMBERSHIP
The German trade-union movement after the war was characterized by the influx of great masses of UJ1organized workers into the
unions. The membership of the Social-Democratic (free) unions,
which had decreased from two and one-half millions at the outbreak
of the war to one million at the end of 1915, and which in October,
1918, was not more than one and one-half millions1 was almost three
millions at the end of 1918, exceeded four millions m April, 1919, five
millions in June, six millions in August, and seven riiillions at the
end of 1919. It rose to eight millions in the second quarter of 1920
and maintained this height until the end of 1922, but as a consequence
of the unrest caused by inflation dropped with increasing rapidity
in the course of 1923, at the end of which year it was not more than
five and three-fourths millions. Table 37 shows the average membership of all Social-Democratic unions from 1891 to 1923. ·
TABLB37.-AVERAGE MEMBERSHIP OF 8OO1.A.L-DEMOORATIO TRADE•UNIONB, 1891
TO 1923
Year
Members
1891.........
1892.........
1893.........
277, 6119
237, OM
223,530
1894•••••••••
2(6,49'
1895.........
1896.........
259, 175
329, 230
1897......... 412,359
11198......... 493, 742
680,473
18119.........
Year
Members
Year
Memberi
1900. •••••••••• 680, 427 1909••••••••••• 1, 832, 667
1901........... 677, 510 1910••••••••••• 2,017,298
1902........... 733, 206 1911••••••••••• 2, 339, 785
1903........... 887, 698 1912••••••••••• 2, 553, 162
1904••••••••••• 1, 052, 108 1913••••••••••• 2, 573, 718
1905••••••••••• 1, 344, 803 11914••••••••••• 2, 075, 769
1906••••••••••: 1, 689, 709 1915. •••••••••• 1, 159, 497
1907. •••••••••• 1, 865, 506 1916........... 966, 705
1908••••••••••• 1, 831, 731 11917••••••••••• l, 106,657
Year
Members
1918........... 1,664.991
1919........... 5,479,073
1920........... 7,890, 102
1921 •••••••••• 7,667,978
1922.... ••••••• 7, 895, 065
1923........... 7, 063, 158
1 The decrease from 1920 to 1921 ls due to the secession of the union of salaried employees from the General
Federation of German Trade-Unions.
Table -38 shows the total and female membership of the various
unions belonging to the General Federation of German Trade-Unions in 19131 19201 and 1923:
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81
MEMBERSHIP
TABLE
38.-MEMBERSHIP OF SOCIAL-DEMOCRATIC (FREE) TRADE•UNIONS, DECEM•
BER 31, 1913, 1920, AND 1923, BY KIND OF TRADE•UNION
Total membership
Female members
Kind of trade-union
1913
Salaried employees............................. 24, 809
Salaried employees, offices..................... 8,414
Asphalt pevers..... •• ••• •••••••••• ••••• •••••••• 1, 275
Babrs and confectioners....................... 28, 754
Building trades workers........................ 310,444
Clothing workers.............................. 48, 712
Miners......................................... 101, 986
Coopers........................................ 8,632
Brewery and flour•mlll workers................ 51,317
Bookbinders.·············--·----···--········· 33,377
1920
363, 521
2, U9
65, 077
465, 744
129,621
467, 339
12,938
73,428
79,549
1923
•
710
55, 121
43o, 904
10!, 807
299, 811
1913
1920
1923
13, 5liO 167, 219
416 ••••••••••••••••••
4, 656
24, 808
8,867
76, 713
2, 524
10,155 ••••••••
69,459 1,436
57,500 16,596
555
5,336
55,241
25, 141
1. llK
61,447
972
157
4,717
39,500
Jffi ~f:f i -·-·-· · :: ~:~:
~i:=ers.:::::::::::::::::::::::::::::: :::::.
Factory workers ••• ········-···-···-·-·····-··· 208,314
644, 910 522, 294 26, 680 175,496 128,331
Film and moving.picture Industry employees.. •••••••••
7,400
3,400
Butchers....................................... 6, 567
24, 473
15, 720
397
1, 583
1,007
Barbers and hairdressers....................... 2,491 · 10,076
4,444
3
1,497
774
Gardeners...................................... 7,224
23, 147
13, 2li8
30
4,249
2,848
Hotel, restaurant, andcBfhmployees ••••••••• 16,025
63,379
37,175 1,046 26,911
16,210
Municipal and Government workers........... 53, 925 299,891 211,465 1,547 62,821
38,383
Glass workers.................................. 18, 261
55, 656
30, 116
945 11, 514
3,209
Glaziers••••••••••••••••••••••••• ·-............. 4, 280
4, 186
40
Printing Industry auxiliary workers............ 15,934
39, 993
32, 744 8, 572 26, 557
21,816
Domestlc servants ••• ·············-··-········· 5,816
19, 214 •••••.•••• 5, 792 18,880 •••
Woodworkers •••••••••••••••••••••••••••••••••• 193,076 370,840 377,025 7,470 37,400
88,655
Sculptors...................................... 3, 716
Hatters........................................ 11,927
23,206
24,630 6,016 15,395
17,516
Coppersmiths.................................. 5, 337
ti, 971
7,446
Furriers........................................ 3, 962
9, 977
6, 460 1,316
5,953
3,490
Agricultural workers........................... 20,267 68o, 174 101,503
884 170,043
26,723
Leather workers............................... 16,481
35,441
46,634 2,086
6,217
10,194
Lithographers.................................. 16, 533
18, 962
19,520
465
124
MllSic engravers...............................
441 ••••••••••••••••••••••••••••••••••••••••••••••
Wood engravers................................
422
Painters_...................................... 44,842
54, 181
47,413
20
372
414
Engineers...................................... 26,267
88,818
64,996 ••••••••
116
175
Metal workers................................. 544, 934 1,608,932 1,291, 761 27,373 202, 791 136,326
MllSiclans...................................... 2,086
46, 199
18,004 ••••••••
1, 246
690
Construction work, foremen.................... ••••••••• 10,200
Porcelain workers•••••.•••••••••••••• _......... 16, 972
66, 201
72, 464
3, 679 25, 424
33, 321
Saddlers, upholsterers, leather•bag makers..... 14,865
38, 153
37,500 1,029
6,115
7,592
,~~~:::::::::::::::::::::::::::::: :=: ~m··;~=··;~· ==:~= ===~~
Stoneworkers................................... 30, 516
45,476
47, 123 ····200·
778
515
Stone pavers................................... 11,164
11,194
9,519 ••••••••••••••••••••
Tobacco workers............................... 31, 713 113,267
81, 934 15,449 88, 918
64,639
Textile workers................................ 138,079 537, 909 608, 168 M, 113 36o, 443 405,961
Potters......................................... 10,166
11,368 •••••••••• ••••••••
604 •••••••••
Transport workers............................. 229,427
678,367 408,240 9,201 77,631
43,838
Carpenters..................................... 59,831
87,024
93,336 ••••••••••••••••••••••••••
Firemen....................................... ••••••••• ••••••••••
2, 136 ••••••••••••••••••••••••••
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CHAPTER IV.-TRADE-UNIONS
The Christian unions likewise experienced an enormous increase in
their membership immediately after the armistice. While their
nu:r:µber had drop~d from 340,000 at the outbreak of the war to
160,000 at the end of 1915, it exceeded 500,000 in December, 1918, and
amounted to 1,000,000 at the end of 1919 and to ~,100,000 at the end
of 1920, but also was considerably reduced with the rapid fall of the
mark.
The Hirsch-Duncker (liberal) unions did not make as great headway as the free and the Christian unions. During the war they,
like the other unions, lost about one-half of their membership, but
while the membershi_p of the free and the Christian unions was-l~er
at the end of 1918 than before the war, the Hirsch-Duncker unions
had at that time only regained their old position (about 110,000
members) and two y.ears later, when other unions had more than
three times as many members as before the war, the Hirsch-Duncker
unions had only doubled their membershiJ?.
While the Hirsch-Duncker group, wliich has never been very
important and which was pushed altogether into the bac~ound by
the expansion of the free unions in the two decades preceding the war,
has not succeeded in ga~ any real ground since the war, the communist and the syndicalist unions have of late had increasing success.
The Communist Party, it is true, was not in favor of special communist unions but wanted the communists to stay in the SocialDemocratic (free) unions and conquer them. But when communist
members were excluded from the Social-Democratic unions those
members created a few unions of their own, and these new o~anizations founded the Federation of Manual and Nonmanual German
Workers ( Union der Hand- und ~ f'larbeiter Dru"8chland8), numbering about 160,000 members. U
e the Communist Party, the
Communist Labor Party is in favor of ~pecial communist unions and
backs the· General Federation of German workers (.A.llgemeine
.A.rbeiter-llnion Deu"8chland8), which so far, however, has not many
adherents. The syndicalist unions, which existed before the war and
which in 1919 created the Federation of Free German Workers (Freu
Arbeiter-Union Dru"8chland8), have now about 100,000 members.
The indElpendent unions (Polish Trade Association, General Railwaymen's Union, etc.) have never exceeded the membership they had
before the war (300,000).
There are still other organizations which call themselves tradeunions alt~?::"fl~ they are not based on trade-union principles-the
yellow (no
"tant) unions. They were founded and subsidized by
employers and had almost 300,000 members before the war. Mter
the revolution the employers' associations pledged themselves not to
support or subsidize the yellow unions and m conseq_uence their membersn.ip at the end of 1918 was only about 45,000. These unions were
no longer considered by the leading manufacturers' associations as
representatives of the workers and were not allowed representation in
the National Economie Council and similar bodies. Nevertheless
they survived and now have about 250,000 members.
While the unions of salaried employees, as has been mentioned,
were not very strong before the war, they did have a rather large
membership. They natl about one million members then, lost half
-their members during the war and now have about one and twotliirds millions. While before the war, unlike the organizations of
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1
:MEMBERSHIP
83
workers, the unions of salaried employees were not combined into
federations, after the war these employees and also the civil-service
employees (who before the war liad no trade-union whatsoever)
organized such federations. The Social-Democratic unions of
·salaried employees formed the General Federation of Free Employees
(AUvemeiner Freier .Angestelltenbu,nil), which has now two-thirds of a
million members and on April 12, 1921, concluded a working agreement with the General Federation of German Trade-Unions. lriimediately after the revolution the civil-service employees founded the
German Federation of Civil-Service Employees (D(!/11,tscher Beamte11r
bu,nil), which split in May, 1921, the old federation retaining one
million members, while the unions of the left wing, led by the National
Trade-Union of German Railway Employees, founded the General
German Federation of Civil-Service Employees (.Allgemeiner D(!/11,tscher Beamtenbu,nil), which has about 350,000 members. In March,
1923, this federation concluded a working agreement with the General
Federation of German Trade-Unions.
While the Social-Democratic trade-unions of workers are rather
loosely affiliated with the Social-Democratic .unions of salaried
employees and civil-service employees, the Christian and liberal
labor unions are much more closely associated with the unions of
salaried employees and civil-service emJ>loyees sharing their J>olitical
views. The Christian unions organized the Federation of German
Trade-Unions (D(!/11,tscher Gewerkschaftsbu,nil), composed of the
General Federation of Christian Traae-Unions (Gesamwerbanil der
Ohrisaichen Gewerkscha.ften), the General Federation of German
Unions of Salaried Emp1oyees (Gesamtverbanil D(!/11,tscher .Angestellte11r
g_ewerkscha.ften), with 460,000 members, and the General Federation of
German Unions of Civil-Service Employees (Gesamtverbanil Deutscher
Beamte11r unil St,aa,tsangestelltengewerkschaften), with 400,000 members.
The liberal unions formed the Federation of German Unions of
Workers, Salaried Employees, and Civil-Service Employees (Gewerkschaftsring Deutscher ..drbeiter-, .Angestellte11r unil Beamtenverbanile)
which consists of the Federation of German Trade-Unions ( Verba;J
der D(!/11,tschen Gewerkvereine), the Federation of Unions of Salaried
Employees (Gewerkschaftsbu,nil der AftQestellten), having 300,000 membe~ and two federations of civil-service emplo;yees-the Association
of \ierman Unions of Civil-Service Employees (Ring Deutscher Beamtenverbande), with 65,000 members, and the General Federation of
Railwaymen, with 82,000 members.
There are also some yellow unions of salaried employees, with 56,000
members, which with a yellow union of civil-service employees having
6,000 members and the yellow labor unions have founded the National
Federation of German Professional Unions (Nationalverbanil Deutscher Berufsverbanile).
A most conspicuous feature in the postwar development of the
membership of the German trade-unions is the great increase of
female members. In the Social-Democratic labor unions, for
example, while not more than 9 per cent of the members in 1913 were
women, since 1919 the proportion has exceeded 20 per cent. Women
constitute the majority of the members in the unions of clothing
workers, of bookbinders, of chorus singers, of auxiliary workers in the
printing industry, of domestic servants, of hatters, of furriers, of
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84
CHAPTER IV.-TRADE-UNIONS
tobacco workers, and of textile workers. The percentage of women
in the Christian labor unions is 25, in the liberal labor unions 10, in
the unions of salaried employees 21, and in the unions of civil-service
employees 5.
FINANCES
The sudden influx of new members in 1919 unavoidably weakened
the financial strength of the trade-unions, since the reserves had to
serve a much larger number of members. Moreover, it was not until
the begll!Iling of 1923 that the unions learned to protect their funds
against the depreciation in currency. At the end of 1918 their funds
(in paper marks) were about the same as at the outbreak of the war,
but tlieir real value had, of course, declined. They- increased about
one-half in 1919, while the membership and cost of liv4ig doubled or
trebled: and they doubled in 1920 and again in 1921, but their real
value dwindled from year to year. While before the war the per
capita funds of most Social-Democratic unions varied between the
equivalent of 50 and 80 hours' wages and in the case of some unions
(for example, printers and carpenters) even exceeded 100 hours'
wages, at the end of 1922 no union possessed more than the equivalent
of 4 hours' wages per capita and many did not own the equivalent of
even 2 hours' wages per member. At the end of 1923 the total funds
of the Social-Democratic unions were not more than 2,738,712 rentenmarks ($651,813) as compared with 88,110,855 marks($20,970,383)
at the end of 1913.
At the same time the revenues of the unions did not rise in proportion to their needs. In 1919 they were (in paper marks) only
about three times as high as before the war and consequently only
about 50 per cent higher J?er member than in 1913. In 1920 they
were about three times as ~has in 1919, or about three times as !ugh
per member as in 1913. Iri 1921 they were about five times as high
as in 1919, or about :five times as high per member as in 1913. There
were several reasons for this state of affairs: 1. Real wages were so.
low that it was impossible to demand high dues; 2. For technical
reasons it was not possible to increase the dues as quickly as wages
increased; 3. The loyalty of the membership, which to a large extent was composed of recent additions, was not very strong, many
members not paying their dues at all or postponing payment a.nu
paying them later m depreciated money; 4. The collectors and
cashiers of the local unions frequently postponed the delivery of
the dues. The time elapsing from the payment of the dues by the
individual member to the receipt thereof by the federation treasury
was very long. When the shop steward or collector collected the
dues in the shop or in the home of the worker on Saturday, he did
not, as a rule, settle accounts with the cashier of the local union
before the following Friday. (He may have immediately spent the
dues, which were, say, three times as high as his weekly- salary
and six days later, when his weekly- sal9!r equaled that, delivered
the amount of the dues to the local cashier, thus profiting by the.
transaction.) The local cashier himself may not have been anxious
to forward dues to the treasurer of the union federation, but waited
perha:es one or two weeks and in the meantime speculated with the
unions mone_y. The collector and the cashier frequently did not
realize that they cheated the unions through such delays, and they
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INTERNAL ORGANIZATION
85
often had the excuse that the union would suffer a loss anyway by
the deterioration of the currency since its funds often lay idle for
weeks without protection against inflation. With regard to dues
the unions were in a position similar to that of the State which received taxes in depreciated currency; for example, one union which
before the war had monthly revenues of 150,000 marks received in
September, 1923, only 11,000 gold marks and in October, 1923, only
2,000 gold marks.
Dunng 1923 the decline in the real value of their funds and of
their current revenues became so rapid that all unions had to discharge a large proportion of their employees because of insufficient
means. All otlier expenses had also to be curtailed greatly. More
and more the unions had to give up paying strike benefits; other
benefits, such as sick and death and unemployment benefits, had to
be reduced. Many unions were no longer able to continue publication of their trade papers. These journals, which, almost without
exception, were distributed free to members and which in some cases
had a larger circulation than any daily paper (the journal of the
metal workers reaching a circulation of one and three-fourths million
copies) had been reduced in size during the war, and after the war,
because of the prohibitive paper prices, were not enlarged to their
old size. With increasing inflation their size was still further reduced, in the suinmer of 1923 being only one-fourth or one-sixth of
what it had been in pre-war times, and they were not distributed to
every member, one copy being assigI_1.ed to two, three, or even more
members. Since January, 1924 (with the stabilization of the mark)
conditions have somewhat improved, but the union journals, which
in former times were a most important means of educating the
union members, are still far from what they used to be.
INTERNAL ORGANIZATION
The first trade-unions in Germany included men of a single occUJ)ation. This trade-union type, which still _predominates in AngloSaxon countries, has almost completely disappeared in Germany,
there being in the General Federation of German Trade-Unions only one union comprising a single occupation-the carpenters'
union. All other unions include either several skilled occupations,
or several unskilled occupations (e. g., the factory laborers' union),
or both skilled and unslnlled workers (e. g., the building workers'
union), or all the workers of specified concerns (such as the union of
State and municipal workers and the railwaymen's union). This
consolidation had made great progress before the war but since then
the movement has been accentuated. At the Leipzig Trade-Union
Congress of June, 1922, where there was much discussion of the question, 12 of the 49 trade-unions there represented comprised five-sixths
of the combined membership, and these stronger unions are very
anxious to absorb the smaller ones. While in pre-war times it was
mainly simplification and economy in administration and in propaganda which induced separate unions to combine, after the war it
was, above all, the difficulty in q_uickly adapting wage conditions to
changes in cost of living and the high development of collective
bargaining which made it desirable to reduce the number of unions.
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CHAPTER IV.---TRADE-UNIONS
At present the organization of practically all German trade-unions
is as follows: The elementary umt of the union is always the workshop, or, in case of a large establishment, the section. The male
and female workers of this unit who belong to the trade-union elect a
shop steward, who guards their interests against both the employer
and the gove~ board of the union. The shop stewarrui, in
general1 are memliers of the works council and as such enjoy the
protection gi-anted by the works council law. In former times this
shop steward also collected the union dues in the shop, in case they
were not collected at the home of the member, but nowadays the
shop steward has so many other duties that the collection of dues is
often intrusted to special employees. The next unit is generally the
local union, thougli in some large cities between the shop and the
local union are committees for boroughs (cover4ig all occupations in
the union) or for special occupations (covering the entire territory of
the local union). The local union, almost without exce£::n, covers
the city and its suburbs, i. e., the entire territory depen · economically upon the city. The local union enjoys considerable indepen<lence, especially in :financial matters, and not only can use for its
own pUJ.1>oses (within the limits of the by-laws) a certain percentage
of the dues but also can collect special dues for local needs.
The whole management, it is true, is closely supervised by the
national federation, and in case of strikes it must act in accord with
the national board. The administrative bodies of the local union
are the presiding board and the general assembly. In case the local
union has more than 1 000 members, the management is generally
intrusted to members who are relieved from their work for that purpose. The next unit above the local union is that of the district.
With a few exceptions it has practically no importance as a selfgoverning body. The management of these districts lies in the hands
of salaried district presidents, who safeguard the interests of the
union as a whole against the special interests of the local unions and
at the same time represent the interests of their respective districts
before the national federation. They were originally established
mainly for propaganda work and before the war had ample time to
devote themselves to educating the unionists and to enro!}ing new
members. After the war their work soon became restricted to 1.vage
movements. They always had and still have to report to the national
board on impendhu? wage movements, and to see that the instructions
of this board are :followed. If necessary, they conduct negotiations
with the employers' organizations. They are not generally charged
with examination of the accounts or funds but are bound to be constantly informed on the management of the local unions within their
respective districts. At the head of each union is the national board,
the majority of whose memb8l"S actually work at their trades. The
main work, however, is done by salaried members, who, like all other
trade-tmion officials, are members of the union in question. The
national board is charged with the management of the entire union.
It has to secure the necess~ revenues-if necessary, by levying
special assessments-to con.fuie expenditures within fair limits, to
audit the accounts of local unions, and above all to direct the wag_~
policy of the union. Just as wage controversies have superseded all
other activities in the districts, the wage policy, in consequence of
the money depreciation, has become the paramount task of the
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INTERNAL DIFFICULTIES
87
national boards. While before the war, when collective agreements
were generally concluded for several years, the national boards had
only to direct w~e movements and str11g~les for new ~eements or
for the inclusion ID agreements of localities and establishments not
theretofore covered by an agreement, in such a manner that no one
region should be mucli behind in its wages nor the funds of the unions
be too much depleted, after the war they had continuously to conduct
wa~e movements and to adapt their strike policy to their more
limited funds. At the time of the final collapse of the mark, in the fall
of 1923, the unions' finances were so impaired that strikes became
impossible. This, of course, considerably weakened the position of
the national boards of the unions. With the stabilization of the mark,
however, they have regained their former decisive influence.
INTERNAL DIFFICULTIES
The ieneral attitude of the German trade-unions in the period
succeeding the revolution is characterized by three changes in their
position produced by that event: First, a considerable enhancement
of their moral influence; second, as a consequence of their larger
membership, an increase in their actual power, which, however,
diminished again when the currency depreciat~d; and third, the
necessit_y of assimilating large numbers of new members who were
politically untrained and ignorant of trade-union principles and at the
same time of combating communistic tendencies among them. The
loss of power and the impossibility of keeping wages at pre-war levels
rendered it esJ>ecially difficult for the unions to combat radical tendencies amon9 their members.
The "free ' trade-unions, with the exception of a few organizations,
such as that of the printers, have always been intimately connected
with the Socialist Party. After the split in the party in the spring of
1917 because of the diverging attitudes of its members with reference
to the war, the greater part of the trade-union leaders remained in
the old party (so-called majority socialists). On the outbreak of the
revolution, the "independent socialists" (the left wing of the old
party), being no longer restricted in their political activity, immediately endeavored to gain control of the trade-unions by tlie help of
the radical working classes. In all places where they were numerous
enough they proceeded to attack those in power and wherever they
succeeded in obtaining. a majority they ousted the adherents of the
right wing of the Socialist Party not only from the leading positions
but even from the lower clerical places, thou~h up to that time officers
of trade-unions could not be removed except ID cases of flagrant neglect
of duty. This struggle was naturally restricted to the free tradeunions but at the same time another conflict was going on which
involved the entire workers' an<l salaried employees' movement. At
the outbreak of the revolution, workers' comrmttees patterned after
the Russian model~o-called "workers' councils "-were elected.
There being no doubt about the moderate political attitude of the
trade-unions, the radical elements endeavored to push aside the tradeunions by the help of the workers' councils. They were aided by
two circumstances. In the first place the members of workers'
councils, a number of whom in the large establishments were exempted
from their usual work at the expense of the employer, showed a strong
tendency to independence, especially when they had had little voice
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CHAPTER IV,--TRADE-UNIONS
in the trade-unions before the revolutionary wave carried them to the
top. On the other hand, the solidarity among all classes of workmen
was so great that the tjgid organization of tlie trade-unions was not
always necessa.ry for tlie· successful prosecution of movements for
~her wages, loose associations formed by a few workers' councils
be!!}g as a rule quite sufficient for that purpose.
Because of th:eir great experience the trade-unions soon mastered
both these diffie11lties. After the enactment of the works councils act
they gave the works councils a place within their own organization,
assigning to them special functions. The Independent Socia.list
Party-although the leaders of the shoemakers' and textile workers'
trade-unions were among its members-with the exception of local
successes in Berlin, Leipzig, Bremen1 and a few smaller places,
gained only one really important VIctory-the conquest of the
meta.I workers' union.
The communist propaganda was a far more serious danger to the
trade-unions. The low level of real wages paid in the period of the
great depreciation of the currencY:, when the rate of wages agreed
to by th:e trade-unions never reached the level of the index representm~ the actual cost of living, made many workmen discontented
and dissatisfied with the management of the unions and led to unauthorized strikes. · This unauthorized striking and disregard of the
authority of the union leaders were encouraged both by the easilywon success of indifferently organized and wild or unauthorized
strikes and by· the fact that one-half or two-thirds of the members
of many of the unions were recent additions and therefore not trained
in loyalty to the union. The communists took advant~e of this
state of affairs. While immediately after the revolution their
idea had been simply to break up th:e trade-unions, they had later
become convinced th.at the German trade-unions were too strong to
allow of this and therefore restricted their plans to warfare within
the trade-unions. While the form and the nature of the weapons
used have changed considerably, in essentials this warfare has
remained the same. The masses were incited to wild strikes not
upheld by the leaders and mass movements were inaugurated whenever a local conflict showed the weakness of the trade-unions.
The success of the communists was, however, coma:~~ively
trifling. While in a few places they captured the local a · ·stration, they have not been able to gain control of the genera.I management of any union. On the other hand, it can not be denied tliat
their attacks have considerably weakened the free trade-unions.
The unauthorized strikes of workmen in public services (gas, water,
and electric works) in several cases led to such strikes being prohibited by the President of the Republic. Frequent strikes in the
Berlin municipal services caused the Government, even before the creation of the Reichswehr, to organize an engineering service in the
army to give assistance in such cases. This service was afterwards
ta.ken over 1:>y the Minister of the Interior as an emergency engineering corps ( Techn-ische NotMlfe) and further developed. The tradeunions, being in the nature of things obliged to resist scabbing to
the utmost, could not possibly agree to the organization by the
Government of a corps of professiona.l strike breakers. On the other
hand, as they were not able to provide the necessary workers to keep
the public services going they could not o_ppose the emergency
service and later saw it c~ed into action by Socia.list ministers.
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INTERNAL DIFFICULTIES
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The communists within the trade-unions soon united in separate
organizations with the object of furthering their political views.
Tlie trade-unions did not treat this organized opposition in an altogether uniform manner. The view generally taken was that it
would not be advisable to exclude members on the score of their
political ideas and also that it was extremely improbable that the
communists would be able to extend their influence within the
union to
extent. For these reasons the unions refrained from
rigorous measures and excluded only those members who violated
the rules and regulations of the unions. Moreover, the importance
of the communist movement depends on the amount of employment
and the relations of wages to the cost of living. The worse the condition of the workmen the stronger will be the response to communist
propaganda. While some unions were especially liberal in their
treatment of the communists, and endeavored as far as possible to
avoid conflicts between members of closely associated parties, others
acted more harshly. Considerable numbers of communist railway
men and building workers were excluded from the unions or resignea
of their own accord. At first the unions conducted their campaign
~a.inst the C?~unists rather energetically in the~ journals but
smce the begmnmg ·of 1924 they seem to have decided on a camp~n by means of ~ements. It had become usual for the
national boards to reqmre officials who were known as communists
or members who were leaders of the opposition to sign agreements
binding them to regulate their conduct exclusively by the decisions
of the union and to take no directions concerning their activity
within the union from any outside person. Agreements of this tenor
are now ~uite generally demanded, not only by the national boards,
but also oy local boards. Thus the Berlin local board has refused to
act in cooperation with delegates who are also members of the Red
Trade-Umons' Association (the local board of the communist tradeunions) and has bound local administrations to require their delegates to sign written agreements that they will be governed by the
principles and conform to the by-laws of the General Federation of
German Trade-Unions and the International Federation of TradeUnions and that they do not intend to join the Red Trade-Unions'
Association. Delegates refusing to sign such agreements are not
admitted to the meetings of the boara. The national board is to
proceed against local boards which decline to demand agreements of
this tenor from their delegates. It is _probable that, in one form or
another, such agreements are in use m all unions. Although they
are mentioned only occasionally in reports of meej;ings in the papers,
they are evidently demanded much more frequently than is publicly
known. In the case of appointed officials a clause is frequently
added to the effect that they may_ be dismissed without notice in
case of violation. The object of this procedure seems to be to keep
the organized opposition out of the boards or committees of the
union and to limit its activity to the general meetings. In case opposition members interrupt the meetings they are to be excluded.
These measures do not appear to have been dictated by any fear of an
increase of communist opposition. The consideration influencing
the leaders seems rather to· have been that of preventing the opposition from embarrassing the management of future strikes by the
national board and of obliging it to form separate organizations.
any
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CHAPTER IV,-TRADE-UNIONS
As rival organizations formed by secessions of this kind have never
had much vitality, this would probably be the shortest way of
paralyzing the opposition.
In contrast to the Christian trade-unions, which also had to
assimilate large numbers of new members and which, moreover,
were to a large extent under the influence of the free trade-unions
because of their members being in close contact in the workshops
and factories, the Hirsch-Duncker trade-unions have been comparatively little affected by the agitation produced by the revolution. Originally the three groups of trade-unions were exceedinidy
hostile and tried to ignore eacb other in the struggle for higlier
wages. The disadvantages accruing to all parties from this attitude
had even before the war induced these gt'OUps to combine in movements for higher wages and to conclude collective agreements jointly.
Notwithstanding the very close cooperation often arising therefrom,
this did not lead to an understanding definitely limiting the sphere of each group. Each organization had to be continually prepared
for sharp struggles with its rivals. In later years the three national
organizations have often proceeded jointly in negotiations with the
Government on economic and social matters, but on other occasions
the three organizations have not been able to come to an understanding or at the outset have _given up joint action as impossible.
The only lasting result of this limited joint action of the three associations is an agreement binding each of them not to b ~ economic
pressure to bear on members of the rival organizations m order to
enlist them on its own side. In the extraordinarily violent struggles
of 1923 remarkably little stress was laid on the common cause of
the trade-unions against the employers' organizations. This may
be due to a resolution passed by a bishops' conference in Fulda in
1923 limiting rather strictly the conditions under which Catholics
might belong to the free trade-unions and in consequence thereof
the influence of the clergy on Catholic workmen to resigl! from the
free trade-unions. The relations of the Christian to the free tradeunions have evidently suffered. in these last years because of the
knowledge by the free trade-unions that in a crisis the Christian
trade-umons count on being able to attract many of the members
who have entered the free trade-unions since the war.
With the exception of the engineers' association, none of the
organizations of salaried employees and-... civil service employees
acquired any great importance or power before the war, and while
they have smce changed greatly in numbers as well as in character,
they still feel the lack of training and union tradition on the part of
theu- members and are therefore more or less in the development
stage.
ECONOMIC POLICY
At the outset, German trade-unions ~onflned themselves to the
amelioration of wage and working conditions through negotiations
with employers and strikes. The courts prevented them fro;rn
extending their activity to political or sociopolitical questions.
Those unions which could improve the conditions of their members
only by working for protective labor laws did so cautiously through
public meetings or congresses. In so far as measures covering the
working class as a whole were involved, discussion by unions was
also hampered by the fact that such questions were considered to
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ECONOMIC POLICY
91
be within the domain of the political parties and that many union
leaders did not consider it fair for the unions to compete with Parliament. Later, however, the unions became convinced that as they
had a better knowledge of the actual needs of the workers than the
politicians did, it was their duty to fight for an extension of labor
legislation./ but they still refrained from taking any deeper interest
in genera.I. econormc questions. Their economic policy consisted
mainly of studying the condition of the labor marlret. Before the
war the textile workers' union was the only German trade-union
which had an economic department, its. duty being to study the
economic situation of the textile industry.
During the war conditions changed because of two reasons:
1. Trade-union leaders, as representatives of the consumers, were
called into the offices and committees charged with the food distribution. This protection of the interests of consumers was quite
along the lines of the pre-war work, but at the same time it gave
union leaders a close insight into price calculation of which they had
known very little. 2. The distribution of raw materials and industrial
production were controlled by the State. While the unions did not
participate in this supervision, they did take part in the State regulation of economic life during the period of demobilization. Wlien
in November, 1918, the Imperial Government collapsed, and the
newly elected soldiers' and workers' councils proved unable to
create a new order, the trade-unions represented the stable portion
of the working class and the hope of those who were anxious to kee_p
out bolshevism. They thus suddenly gained not only considerable
political importance, but also an important place in the reconstruction of the economic life of the nation. Even those employers who
had formerly declined all negotiations with the workers and had
never recognized the trade-unions as legitimate representatives of
labor now associated themselves with tlie union leaders to replace
the .planned bureaucratic demobilization by self-government of
those engaged in industry, employees and employers being granted
equal ri~hts. Twenty-one of the largest employers' associations
and all nnportant federations of trade-unions entered into a joint
declaration of principles to govern future industrial relations. This
declaration provided for the immediate reinstatement of workmen
returning from military service in the situations occupied by th!:Pll
before the war, for a Joint regulation and equipartisan administration of employment offices, for the conclusion of collective agreements, for the appointment of workers' committees in estaolishments employing at least 50 workers, for the establishment of conciliation and arbitration boards composed of an equal number of
employers' and workers' representatives, for the mtroduction of
the e~ht-hour day,. and for the establishment of a joint central
committee on an equipartisan basis and representing the various
trades. This committee was to determine upon further measures
necess~ during demobilization to maintain economic life. It was
also origmally planned to have a similar committee for each district,
and if tbis plan had been carried out, the trade-unions would have
had a chance to influence greatly the economic policy of the country.
But as the old chambers of commerce and craftsmen's chambers m
which the employees were not represented were maintained the
employers did not care to establish new equipartisan district organ-
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CHAPTER IV.-TRADE-UNIONS
izations. The joint central committee therefore became more and
more a. debating body. The main product of the joint declaration
of the employers' associations and the trade-unions was the conclusion of collective agreements, which soon covered almost the
entire country. This by no means diminished the wage controversies, but the percentf!,ge of controversies resulting in strikes or
lockouts was considerably reduced. The number of members ·of
the Social-Democratic umons affected by wage, etc., controversies
was 1,200,000 in 1913, 7,400,000 in 1919, 13,000,000 in 1920, 17,700,000 in 1921 60,100,000 in 1922, and 11,700,000 in 1923; 1 the number of members participating in strikes or lockouts was, in the same
years, ~49i000, 764,000, 940,000, 1,159,000, 1,159,000, and 1,093,000,
respective y.
The actual number of controversies, strikes, and lockouts affecting
the Social-Democratic trade-unions in each year from 1913 to 1923
are shown in Table 39.
TABLB 39.-CONTROVERSIEB.i. BTRIKEBt.AND LOCKOUTS AFFECTING 8OO1.A.L-DEMO•
CRA.·J:IO TRAD.1!.•UNIONS, 11113 TO 1112S
Controversies terminating
without stoppage of work •
Year
Controversies resulting In
strikes or lockouts
Total
controversies
particl- Controversies Workers partlclControversies Workers
patiilg
patmg
NumNumber
1913.________________
11114_________________
7,372
3,467
3,683
6,849
10,336
10,696
22,769
33,001
49,498
126,025
1923••••••••••••••••• 163,147
11115•••••••••••••••••
11116•••••••••••••••••
11117•••••••••••••••••
11118••••••••••••••••.
1919•••••••••••••••••
1920•••••••••••••••••
1921. ••••••••••••••••
111')2 ••••••••••••••••
Per Number Per
cent
Per
cent Number
Per
cent
Num•
ber
cent
73.9
71.0
118.2
118.0
118.2
118.5
86.1
85.6
811. 7
116.2
118.2
79.5
73.4
911. 7
911.0
97.6
911.1
811. 7
112.8
93.0
97.8
IIO. 7
2,600
1,409
66
142
26.1
248, 1186
29.0
116,681
1.8
2,221
2.0
14, 6311
1.8
66,634
1.5
21,733
13.9
764,480
14.4
1140, 081
10. 3 1,159,191
3.8 1,158,906
LS 1,093,174
965,1537
266,359
816,246
1, 400, 1114
2,732,841
2,417,1124
6,671,249
12,103,847
16,446,167
58,806,711
10,801,117
1113
163
3,664
5,546
6,707
4,930
2,766
211.5
26.6
.3
LO
2.4
.II
10.3
7.2
6.6
L9
9.3
ber
9,972
4,886
3, 7411
6, 9111
10,529
10, 8511
26,433
38,547
55, 7n5
130,965
1611,1113
Workers
particl-
patlng
1,214,523
363,040
818,467
1,464,833
2, 7118,9711
2,439, 6117
7, 4311, 709
13, 043, 1128
17,687,229
80, 1411,466
11, 6114, 2111
• In addition 811881 persons in 1921 and 184,849 persons In 1922 participated In controversies resulting In
stoppage of work out their demands were granted before quitting work themselves.
There were two other organizations besides the joint central
committee which :might have enhanced the influence of the tradeunions on the economic policy of the country-the National Economic
Council and the export control boards. The National Economic
Council was to be tlie head of a body of district economic councils,
but the .employers took no interest in fostering this development.
The district councils were never created and the National Economic
Council became more and more a debating club. The export control
boards gave the trade-union leaders a somewhat better chance.
They were founded early in 1920 for the p~ose of preventing the
export of German goods in too great.quantities and at too low prices;
they served also to secure to the Reichsbank J>art of the foreign
currency realized through exports. The union feaders had here an
opportunity: to get a certain lilSight into the conditions of industry,
although all establishments did their utmost to disclose as little as
1 These figures Include, of course, duplications, the 118Dle trade-union members sometimes being parties
to more than one wage controversy.
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ECONOMIC POLICY
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possible of their so-called business secrets. These boards, however,
were suspended in the fall of 1923.
The economic importance of the trade-unions, which immediately
after the revolution seemed to become very great, was therefore,
really very slight. The unions were not prepared to exercise a strong
influence along economic lines, being too much absorbed in their
struggles for higher wages. It is necessary to emphasize this point
because the r6le which the trade-unions played-for example, at the
time of the Kapp revolt-gave the illusion that 'they really had a
strong economic influence. After overthrowing the Kapp government by a general strike they made a number of definite economic
demands wliich were granted by the government they had restored.
Although these pronnses were never fulfilled they led to the catch
phrase "the cogovernment of the trade-unions." Similar demands
were made at other times by the d,i.fferent federations of tradeunions, which also repeatedly protested against the economic and
financial policy of the various governments. But these demands and
protests never had any practical result, and the power of the unions
m matters of economic policy became negligible when the deprecia- ·
tion of the mark deprived them of their financial means.
The trade-unions are organizations of the sellers of labor. They can
exercise power only in so far as they are able to keep labor from the
market until the ouyers of labor are compelled to accept their conditions. This requires great financial reserves and strong organizations.
Before the war such reserves existed, but strong organizations were
to be found onlr in a few occupations and in SO!l).e parts of the
country. After the war the influx of large unorganized masses into
the unions strengthened the organizations in spite of certain deficiencies of the new members (lack of dis.cipline, etc.), but the monetary depreciation demoralized the financial status of the unions and
paralyzed their activity. The practical loss of the eight-hour day at
the end of 1923 is the clearest proof of the collapse of the unions.
Their organizations, however, still exist, and their membership is
still two and a half times as large as before the war. The stabilization of the mark enabled them to recover financially, and the day
may not be far distant when they will possess the two things necessary for permanent success-a strong organization and adequate
financial reserves.
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Chapter V.-HOURS OF LABOR
SITUATION BEFORE DECEMBER, 1923
LEGISLATION
Efforts to introduce a. general maximum workday in Germany
da.te far back. ·.As early as 1869, when the Industrial Code was
under discussion, motions were made for a legal general limitation of
the daily hours of labor, but in the Industrial Code aa passed a
limitation of the hours of labor was fixed only for children, for young
persons, and for female workers, the hours of children being limited
to 6 per da.y and those of women and young persons to 10, with
certain limits which insured continuous rest periods of at least 10 or
11 hours. Up to 1918 there were no legal general restrictions for
adult males, provision being made only for the so-called "h_ygienic 11
maximum working-day in specified industries in which the health of
the workers was particularly endangered by excessive working
hours.
The revolution of 1918 led to a complete change in the law as to
hours of labor. Three da.ys after the breakdown of the Imperial
Government, the Council of People's Commissioners in a manifesto
to the population declared: "The maximum eight-hour workday
will go into effect not later than on Janufl.rY 1, 1919." Three days
later, on November 15, 1918, the joint declaration of the associations
of employers and the trade-unions as to principles to govern future
industrial relations stipulated: "The maximum regular daily hours
of labor shall be fixed for all establishments at eight hours. Reductions of earnings shall not take place bees.use of th~ shortening of
the hours of labor." .As early as November 23, 1918, the National
Office for Economic Demobilization issued an order regulatii!g the
hours of labor of industrial workers. This order was amended in
some minor details by an order of December 17. .As it is generally,
tho~h wrongly, believed that these orders established a schematic
and melastic eight-hour day, the main provisions of the order of
November 23, as amended by the order of December 17, are here
reproduced:
·
ARTICLE 1. This regulation applies to industrial workers in all industrial
establishments, inclusive of mining, in Federal, State, communal and communal
union establishments, even if they are not operated with a view to profit, and in
agricultural subsidiary establishments of an industrial nature.
ART. 2. The regular daily hours of labor, exclusive of rest periods, must not
exceed eight. If by agreement the working hours are curtailed on the afternoons
preceding Sundays and holidays, the time thus lost may be made up on other
working-days.
ART. 3. In the case of general exceptions to the foregoing regulations made
necessary in industries connected with transportation and communication,
including the railways and post and telegraph service, and called for by existing
conditions, agreements must be arrived at between those in charge of the
establishments and the workers' organizations. Should such agreements not be
concluded· within two weeks, the right to issue further orders is reserved.
ART. 4. In order to in'flroduce a regular weekly change of shifts in establishments whose nature does not admit of any interruption of operation or in which
at the present time continuous Sunday labor is necessary in the public interest,
male workers over 16 years of age may once within three weeks work a maximum
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SITUATION BEFORE DECEMBER, 1923
95
of 16 hours, inclusive of rest periods, provided that during these three weeks
they are twice granted an uninterrupted rest of 24 hours at a time.
ART. 5. Notwithstanding the general regulations of the Industrial Code,
female workers over 16 years of age in establishments with two or more shifts
may be employed up to 10 p. m., provided that, after quitting work, they are
given a rest lasting at least 16 hours. In such cases, in place of a noon rest of
one hour, there may be a rest period of half an hour or two rest periods of a
quarter of an hour which are to be counted as working time. * * *
ART. 6. The foregoing regulations shall not be applicable to temporary
emergency work, which has to proceed without delat.
ART. 7. If, in establishments whose nature does not admit of any interruption, or in which unrestricted operation is necessary in the public interest, the
required number of suitable workers is not available, a regulation deviating from
the foregoing may be approved provisionally by the competent factory inspection official,· or, in the case of mines, by the district mining inspector. This
must be preceded by a request on the part of the employer, and should no agreement have been concluded between the employers' and workers' organizations,
a declaration of consent on the part of the workers' committee, or, should no
such committee exist, on the part of the workers in the establishment. Should
more comprehensive agreements between employers' and workers' organizations
with respect to exceptions to the limitations of employment of industrial workers
be arrived at in establishments designated in this article, the officials of the
factory or mine inspection service are authorized to permit further provisional
exceptions from the protective labor regulations. Immediately after giving
their approval the said officials shall call the attention of the proper employment offices to the shortage of labor in the establishments in question. The
competent commissioner of demobilization must also be informed of the permits
granted and he is authorized to call upon the officials to revoke such permits.
The commissioners of demobilization are authorized, after having heard the
opinion of the factory or mining inspectors, to grant more comprehensive provisional exceptions to the limitations of employment of industrial workers, if
such exceptions become urgently necessary in the public interest, particularly
for the sake of an orderly demobilization, to avoid unemployment or to insure
sufficient food for the population. Copies of the permits granted shall be submitted within two days to the Demobilization Office.
ART. 8. The commencement and termination of the daily hours of labor and
rest periods are, so far as they have not been regulated by collective agreement,
to be fixed in accordance with the foregoing regulations by the employer in
agreement with the workers' committee, or should no such committee exist,
with the workers in the establishment, and to be published by posting in the
establishment.
ART. 9. The officials of the factory and mine inspection service are charged
with the enforcement of the foregoing regulations. For this purpose they are
authorized to negotiate with the workers' committees in the presence of the
employer, or with either party alone and to summon the workers' committee.
This regulation provided for a general improvement of working
conditions, but in one respect it resulted in lowering the standard as
to the employment of women. Under the Industrial Code female
workers were not to be employed between 8 p. m. and 6 a. m., and
on Saturdays and days preceding holidays not after 5 p. m. Under
the new regulation they could be employed up to 10 p. m. in establishments liaving two or more shifts.
On March 18, 1919, this order relating to industrial workers was
supplemented by an order regulating in a similar manner the hours
of labor of salaried employees. This new legislation on the hours
of labor thus established as a matter of principle the maximum
eight-hour workday for all employees without regard to sex or age
and fixed fines and imprisonment for violations of this limitation.
In cases of violation the employer was punished even if the employee
worked more than the eight hours of his own free will, while the
employee always went scot-free. In order to avoid economic friction, however, which would have been unavoidable in case of a
sudden and rigid enforcement of the eight-hour day, factory and
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Federal Reserve Bank of St. Louis
96
OHAPTEB V.-HOUBS OF LABOR
mine inspectors, as well as the demobilization commissioner, were
authorized to permit exceptions in the case of industrial workers
and salaried employees when the public interest demanded it.
Aside from the two general orders relati!ig to industrial workers
and salaried employees, special orders and laws regulated the hours
of labor of certain trades; e. g., (1) bakeries, (2) agriculture, and
(3) mines.
1. On November 23, 1918, the day on which the order reirulating
the hours of labor of industrial workers was made, the National
Office for Economic Demobilization issued an order regulating hours
of labor in bakeries and confectioneries. Up to that tune, the hours
of labor in these establishments were re~ated by the provisions of
the Industrial Code as to trades injurious to the health of the workers,
but by the new order, which is still in force, these provisions were
nullified as to workers employed in bakeries and confectioneries.
The order applies to male and female workers Gourneym.en, helpera,
apprentices) in bakeries and confectioneries proper, as well as to
workers employed in the manufacture of bakery or confectionery
goods in all other establishments (hotels, restaurants, caf~s, boarding
houses, hospitals, department stores, flour mills, etc.), but it does
not apply to the salaried employees.
·
The regular workday of such workers shall not exceed eight hours,
but the following exemptions are provided for:
(a) Workers may be employed more than eight hc,urs a day if
such employment is necessary to prevent the decay of raw matenals,
or the spoiling of products, m so far as this work can not be done
or comJ!.Ieted within the regular working time.
(b) Upon request. the factory inspectors may permit, subject to
revocation, exceptions from the foregoing regulation in two cases.
They may allow an extension of the maximum workday for not more
than 20 days a year if urgent necessity has been proved, and they
may perm.it the employment of workers more than eight.hours during
fairs and public festivals, in both of which cases, before the granting
of the request., the workers' committee, or if no such committee
exists the wor.k:ers of the establishment, must be given an opportunity to present their views. A copy of the decision, which must
be made in writing, is to be posted m the establishment at a place
easily accessible to the workers.
·
The commencement and termination of the daily hours of labor
and rest _periods are regulated in a more comprehensive manner for
workers m bakeries and confectioneries and establishments manufacturing biscuits, crackers, gingerbread, waffles, and matzoth· than
for industrial workers in general. In such establishments all work
between 10 p. m. and 6 a. m. is forbidden (as was the case during
the war). This applies also to other establishments (hotels, etc.)
having work connected with the manufacture of bakery and confectionery_ goods. There are, however, two exceptions to this
rule: 1. Upon request the competent authority may allow, subject
to revocation, in its district or parts thereof the eight-hour mght
rest to begin at 9 or 11 p. m. instead of at 10 p. m. 2. Workers may
be employed during the night rest period if on emergency work or
if the public interest is involved, and also for keeping watch of the
establishment and for repair work which can not be done during
regular wor~ hours without considerable inconvenience to the
operation of the establishment.
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Federal Reserve Bank of St. Louis
SITUATION BEFORE DECEMBER, 1923
97
The rest periods within the regular working hours are regulated
onll:_ for apprentices and female workers.
Work on Sundays and holidays is forbidden in bakeries, confectioneries, and in all bakery and confectionery work of other estab· lishments, such as hotels, etc., the only exemptions granted being
of a most limited scope.
2. When the Council of People's Commissioners in their manifesto
of November 12, 1918, declared that all laws (mainly restrictive)
governing the rights of agricultural laborers were suspended, the
mea~er provisions which had protected agricultural laborers automat1caJ11 disappeared. At that time farmers' and agricultural
laborers councils were created in the individual communes, and
these local councils combined in a national farmers' and agricultural
laborers' council, representatives of which and of the Federal Department of Labor and the Prussian Ministey of .Agriculture drew up a
bill which on January 24, 1919, received legal force through a provisional order regulating aw.icultural labor. This order, which is
still in force, contains proV1Sions as to labor contracts and hours of
labor in agriculture.
This provisional r021J].ation covers workers and salaried employees
in agricultural and lorestral establishments, including suosidiary
establishments. Because of the peculiar needs of agriculture, no
uniform maximum workday is fixea for the year. The order merely
provides that for four months the maximum workday shall average
8 hours, for four months 10 hours, and for four months 11 hours.
'l'he four months with equal working time need not be continuous;
e. g., the four months with an average of 10 hours may be spread
over the year.
In computing hours of labor, the time from the farmhouse to the
place of work and back is to be included, but not the rest periods
nor the time occupied in feeding draft animals. During the six
summer months rest periods of at least two hours :per day must be
granted. Female workers with households of then- own must be
released from work early enough to arrive at their homes one hour
before the main meal. They are to be excused from work on the
day preceding Christmas, Easter, and Whitsuntide.
Overtime work is allowed, but in order to restrict overtime work,
the employer must pay the employee for each hour of overtime at
least one-tenth of the customary local daily wages plus 50 per cent.
Some States have stipulated that the worker who works overtime
is entitled to a corresponding reduction of his hours of labor in the
dull season of the/ear.
On Sundays an holidays only such work as is by its nature necessary-as for example, feeding and at ten~ the animals-shall be
performed. If other work is done, and oruy urgent work is permitted, at least double the customary local wages shall be paid.
3. In the years immediately following the revolution the working
time of miners was regulated by the general order of November 23,
1918, regulating the hours of labor of industrial workers. A special
law relating to the hours of labor in underground mines, enacted
July 17, 1922, brought about no essential change. It stipulated
that the length of the shifts as fixed in the collective agreements in
force on October 1, 1921, was to constitute the regular daily hours of
labor, the shift, within the meaning of this law, beginning for under-
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Federal Reserve Bank of St. Louis
98
CHAPTER V.-HOURS OF LA.BOB.
ground miners with the time of their descent into the mine and ending
with their completed ascent from the mine. In establishments in
which the hours of labor were not regulated by a collective agreement
on October 1, 1921, the daily hours of labor were to be those usual
on that day in these establishments. Overtime work could be agreed ·
upon by means of a generally· binding collective agreement. For
mines in which the temperature is in excess of 82° F. collective agreements should provide for shorter hours than the regular hours of
labor, and. if a collective agreement failed to make such provision,
shorter hours were to be fixed by the competent mining authorities
after a hearing of the employers' and workers' organizations interested.
This law was suspended when the decree of December 21, 1923,
provisionally regulating the hours of labor of industrial workers,
went into effect.
ACTUAL DEVELOPMENT
Pre-war time.-Statistics on collective ~reements for December
31, 1913, compiled by the Imperial Statistical Office, give the percentage of workers working specified hours in summer time as follows:
TABLE 4O.-PER OENT OF INDUSTRIAL WORKERS COVERED BY OOLLEOTIVE AGREE·
MENTS WORKING EACH CLASSIFIED NUMBER OF HOURS IN SUMMER, DEOMBER
31, 1913.
Daily hours of labor
Under 8••••••••••••••••••••••••••••••••••
8 •••••••••••••••••••••••••••••••••••••••••
8!: :~t~.............................
8!:
:~mo............................
Over 10 to 10½•••••••••••••••••••••••••••
Over 10½ to 11. ••••••••••••••••••••••••••
Over ;u••••••••••••••••••••••••••••••••••
-
Per cent
of
workers
0.3
2.5
3.2
35.4
20-4
34. 5
Ll
L2
L4
Weekly hours of labor
Under 48••••••••••••••••••••••••••••••••
48tolill .................................
Over 50 to 52••••••••••••••••••••••••••••
Over 62 to 54•••••••••••••••••••••••••
8ver M to 56••••••••••••••••••••••••••
Over 1511 to 58 ••••••••••••••••••••••••••••
Over 58 to 60 ••••••••••••••••••••••••••••
Over 60 to 62••••••••••••••••••••••••••••
Over 62 to M -·-····················-Over 64••••••• · - · · · · · · · · · · - - - - ,
Per cent
of
workers
0. II
3.2
6.6
33.3
1L7
12.2
28.8
.4
.8
2. 5
Three-sevenths (43.6 per cent) of the workers covered by collective
agreements had re~lar hours of labor not exceeding 54 a week.
In studying these ngures, however, one must bear in mind that in
pre-war times only a small fraction of the workers-those who were
strongly organized and had comparatively favorable working
conditions-were covered by collective agJ:eements. The agricuftural laborers and the other employees working 10 hours or more a
day were, in general, not in a position to conclude collective agreements. The same is true of the miners, who on the whole had shorter
hours of labor than the average workers. In the Ruhr they worked
8½ hours "bank to. bank," and as generally 1½ hours were consumed
in descent and ascent, their actual working time was about 7 hours.
In other mining districts hours of labor were much longer; e. g., in
Upper Silesia, where the miners worked 10 hours "bank to bank,"
with an actual wor~ time of about 8½ hours. In the heavy industries (metal works, etc.), where collective agreements were also
unknown, the hours of labor, almost without exception, were very
long-from 10 to 12 hours a day. The shortest hours were those of
the woodworkers, who were strongly organized while their employers
were comparatively weak, and who laid special stress upon a short
workday. The cabinet makers, for example, had the following
weekly hours of labor:
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Federal Reserve Bank of St. Louis
99
SITUATION BEFORE DECEMBER, 1923
TABLI: 41.-PER OENT OF CABINET MAKERS WORKING EACII OLASSIFIED NUMBER
OF HOURS PER WEEK, 1885, 1893, 1902, and 1911.
Weekly hours of labor
1885
Ill and under····---············································ ••••••••
Over 51 to 54........................................................... ........
Over 54 to 57...........................................................
06
Over 57 to 60........................................................... ~Ji 7
Over 60 to 63...........................................................
22. 8
Over 63 to 66...........................................................
~11 8
Over 66 to 69...........................................................
6.1
Over 1111 .............................................................
5. 0
Total............................................................
100. 0
1893
0. 5
8. 8
12. 0
47. 6
12.<l
20. 6
1902
2. 6
28. 0
14.4
44. O
4.3
1. 6
1. 5
6.1
.3
.3
100. 0
100. 0
1911
16. 6
Sl. l
26. 4
22. 6
.9
2. 3
•0
.1
100. 0
In 1911 almost one-half of the cabinet makers worked no longer
than 9 hours a day. In contrast may be mentioned the hours of
labor of bricklayers and hod carriers, of whom in 1910 72 per cent
worked 10 hours or more:
Percent
8hours--··-···························-·····----··· 0. 64
• 63
8½hours....................... ·-··--·-----·····-·8¾ hours .......................................... .
.02
9hours·-···················---··-··-········--····- 17. 10
g~~~~~=====:=======================:=========:=:==
l0hours ............................... ---·······-··
8. 87
• 63
65.25
1. 85
10½ hours_··-····················-·················
4. 96
11 hours ............................... ·-··········• 02
11½ hours·-······-·-·······--··--·····-·-··-·······
• 03
12hour&----·----·····-·-·-···-··-·······-··-------Total.----------··-··---·-----·-------·· 100.00
War time.-Efforts of the workers to reduce their hours of labor,
which had been rather successful in the 15 years _preceding the war,
ended when the munition industry absorbed all the unemployed
and overtime became customary in all establishments. According
to data of investigations of the Federal Statistical Office covering
the last two weeks of March and of September, 1914 to 1918, and
including about 200,000 workers, a workday of 10 hours or more was
in effect during the entire period in flour mills (in which even more
than 11 hours were worked from 1915 to 1917) and in the paper
industry (with the exception of September, 1914), in stone quarries
in September, 1916, 1917, and 1918, and in the iron and metal industnes in March, 1916. On the other hand, the industries which
suffered from a shortage of raw materials had very short hours of
labor. A workday of less than 7 hours was in force in the lingerie and
clothing industry in Se_ptember, 1916; in cotton mills in September,
1916; in hosiery mills m September, 1916; and in the passementerie
industry in September 1914. A workday of over 7 and under 8
hours was in effect in September, 1914, in iron and metal works, in
the precious metals industry, in the lingerie and clothing industry,
in shoe factories.., in the manufacture of artificial flowers, and m
printing establisnments; in March, 1915, in the precious metals
mdustry; in September, 1915, in cotton mills; in March1 1916, in
cotton mills and hosiery mills; in September, 1916, in hnen mills
and shoe factories; and from March, 1917, on, in chocolate and
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Federal Reserve Bank of St. Louis
100
CHAPTER V.-HOURS OF LABOR
candy factories and in the lingerie and clothing industry (with the
exception of September, 1917). It will hardly be necessary to
show in detail how the industries with reduced hours of labor also
reduced their personnel, who flocked into the industr,ies with long
hours of labor. The establishments in the metal industry covered
by the investigation, for instance, increased their J>ersonnel 74 per
cent between March, 1914, and September, 1918, while in the same
period those of the clothing industry reduced their personnel 54 per
cent.
Perhaps the worst feature of the extension of hours of labor in
war time was the reckless exploitation of children. The war emergency
law of August 4, 1914, authorized factory inspectors to suspend
during the war, in individual cases, the legal restrictions on child
labor, etc. and this was done in numerous cases.
Children under
14, for whom the law prescribed a 6-hour day, were frequently
allowed to work up to 10 hours daily. The working-day of children
between 14 and 16, normally 10 hours, was often extended to 11 and
12 hours. Employment of children under 16 on SUJ!cJ,ay, J;>rohibited
by law, was permitted in a number of districts. While m normal
times children under 16 could not be employed between 8 p. m. and
6 a. m., during the war many of them were permitted to work until
late in the evening or in the early morning, and a very large number
were employed on the regular nig_]it_ shifts, which often lasted
12 hours including rest periods. While all these exemptions were
explicitly permitteaf there were many more cases in which emplo_yers
simply ignored the egal restrictions on the employment of cliildren,
not even attem:r>ting to secure permission for such employment.
Two examI?les taken from the factory inspectors' reports may serve
as illustrations: In the district of Dusseldorf 15-year-old boys were
emplo:yed around blast furnaces in loading iron and in other transportat10n processes not only on Sunday and at night, but also on
24-hour sliifts. In two brickyards in Konigsberg, children under
14 years, who under the law could not be employed for more than
three hours on school days and four hours on other days, were
working up to 11 hours daily. Throughout Germany cliildren 8
and 9 years old were employed in peddling in the early morning
and late evening hours.
Postwar time.-With the introduction of the maximum 8-hour
day in November, 1918, the regular weekly hours of labor became 48
for the majority of the workers and salaried employ:ees. AccordinJ?
to statistics on collective agreements compiled by the Federal
Statistical Office, more than four-fifths of the a~eements in force
on December 31 of the years 1919 to 1922 provided for a week of
48 hours, as will be 1:1een in Table 42. They covered from two-thirds
to five-sixths of the establishments and almost two-thirds of the
persons whose working conditions were regulated by such agreements.
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Federal Reserve Bank of St. Louis
101
SITUATION BEFORE DEOEMBER, 1923
TABLB 42~WEEKLY HOURS OF LABOR UNDER COLLECTIVE AGREEMENTS IN
FORCE DECEMBER 31, 1919 TO 1922·
Weekly hours of labor
I
1919
1920
I
1921
I
1Q22
Colleclbe agreements
Up to 42 ..•••••••••••••••••••••••••••••••••••••••••••••••••••••
Over 42 to 45 •.•••••••••••••••.•••.•••..... · ..•...••••••••••••••
Over 45 to 46 ..••..•...•.•.•...••..•.••...•..••..••.••••••••••••
Over 46 to 47.........••...••.•••••.•••••••.•••••••••••••.•••••.
Over 47 and under 48 .•......••..•••••••••••••••.••••••••..•..••
48 ••...•...•..•.......••.•••.•••..•••••••••••••••.•••••••..••...
Over 48 ••••••••••••••••••.•••••••••••••.•••••••••••••••••••••••
Per cent Per cent Per cent
0.5
4.4
7.0
3.6
0.8
3. 5
9.0
3.4
0.5
3.5
8.1
3.2
81.3
80.8
2.0
82.1
2. 3
.7
2. 5
.5
Per cent
.3
0.6
3. 0
9.3
3.0
.3
80.6
3.2
Establishments covered
Up to 42 .•••••••••••••••••.•••••••••••••••••••••••• · ••••••••••
Over 42 to 45 ••••••••••••••••••••••••••••.•••.••.•••••••••••••.•
Over 45 to 46 .•••••••••••••••••••••••••••.••..•..•••••••••••••••
Over 46 to 41 •...•••••••••••••••••••••••••••.••••.••••••••••••••
Over 47 and under 48•••••••••••••••••••••••..••••••••••••••••••
48 ..••.•••••••••..••••••••••.••••••••••••••••••.••••••••••••••••
Over 48 ••••••••••••••••••••••••••••••••••••••••••••••••••••••••
0.5
6. 7
11. 9
4.6
.7
73.3
2. 3
0. 7
0.2
5.5
15.3
3.1
4.1
8.9
75.2
.4
82.3
.4
.3
2. 7
.9
0. 2
2. 2
7.2
2. 7
.1
66.1
21.5
Employees covered
Up to 42 •••••••••••••••••••••••••••••••••••••••••••••••••••••••
Over 42 to 45 .••••••.••••••••••••••••••••••••••••••.••••••••••••
Over 45 to 46 .••••••..••••••••••••••••••.•••••••.•••••••.•••••••
Over 46 to 47 •••. ·••..••••••••••••••••••.•••••••••••••••.•••••••
Over 47 and under 48•••••••••••••••••••••••••••••••••••••••••••
0.1
8.0
21.2
48 ......... ..................•......•.••••. •·•·•···•••·•• ...••..
62. l
Over 48 ••••••••••••••••••••••••••••••••••••••••••••••••••••••••
6. 8
.7
1.1
8.4
6.2
15.8
3.2
.3
65.8
.3
6. 9
7.5
15.6
4. 7
.3
64. 7
.3
5.1
6. 4
13.5
3.0
.1
65. 7
6.2
Female employees covered
Up to 42 .••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••
Over 42 to 45 •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••
Over 45 to 46.••••••••••••••••••••..••••••••••.•••••••••••.•••••••.•••••••
Over 46 to 47•••..•••••••••••••••••••••••••••••••••••••.••••••••.••..•••••
Over 47 and under 48•....••.•••.•••••.....•..............•..... .•........
48 •.... ··•·•••·••••·••· ..•..••..••..•••..•••.•.•••.•••.•••.•••.....•••••..
Over 48 •••••••••••••.••.•••••••••••••..••..•........••••••••••• .•••••••••
0.3
5.1
35.1
4.9
0.2
5.8
31.9
54.1
.1
54. 9
.4
.0
.5
6. 7
0.2
3.9
29.9
3.8
.0
53.2
9.0
Longer hours of labor than 48 were agreed upon mainly in agriculture, where it is customary to limit the hours per year and not
per week. This limitation in general is uniform for Provinces and
even States. In 1923 the yearly hours agreed upon were: 2,900
in Bavaria, Wurttemberg, Baden, and parts of Pomerania; 2,840
in Eastern Prussia and Silesia; 2,800 in Mecklenburg, Thuringia,
Hesse-Nassau, Rhineland, and Waldeck; 2,750 in Hesse, Hanover,
and parts of Anhalt; 2,725 in Schleswig-Holstein; 2,700 in Brandenburg; 2,675 in parts of Anhalt; and 2,625 in Brunswick.
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Federal Reserve Bank of St. Louis
102
CHAPTER V.-HOURS OF LABOR
The workday is generally fixed at 10 to 11 hours per day in the
summer and harvest months, and at 7, 8, and 9 hours in the other
months. Some collective agreements (e. g., in Brandenburg,
Eastern Prussia, and Mecklenburg) pr_ovide that in the busiest
months there shall be a certain number of "emergency" or "obligatory" overtime hours.
Agreements for nonagricultural workers and salaried employees
which provide for more tnan 48 hours of labor are rare. An analysis
made of the collective agreements in force in Saxony at the end of
October, 1921, shows the following:
Aside from agriculture, where the workday has been fixed at 8
hours for 3½ to 4 months, at 9 hours for 2 to 4½ months, and at
10 hours for 4 to 6 months, more than 48 hours per week have been
fixed for the following occupations: Gardening, only three out of
nine collective agreements providing for an 8-hour day. the year
round and one for a 9-hour day for four months and five for eight
months; engineers and firemen in the textile industry of eastern Saxony
who had to work up to 54 hours; barbers and hair dressers, only two
collective agreements providing for 48 hours, while one provided for
50, one for 52, and two for 54; cab drivers in Dresden, with a maximum
workday of 10 hours; hotels, restaurants, and cafes. two agreements
providing for 8 hours, one for 9, one for 10 per day, and one for 60
hours per week; domestic service, where the employees under the
agreement of Plauen had a workday of 10 hours and thpse under the
agreement of Dresden, "on call" time (presence on duty) of 12
hours; and service in institutions, the municipal hospital of Riesa
having agreed upon 10 hours per day and the school for invalid
children in Kleinmensdorf upon 60 hours per week for the teachers.
In most cases more than 48 hours per week have been agreed upon
for work which is not continuous, so that the hours of labor did
not actually refer to wor~ t~e but to ~ime of prese~ce on duty.
The 46-hour week prevailed m Saxony m the ·metal mdustry and
the textile industry. Practically_ all over Germany the textile industry had the 46-hour week, which explains the fact that the percentage of women covered by collective agreements providing for
less than 48 hours is larger than that for men. In the metal industry the em:r>loyers in many cases succeeded in 1922 in extending the
hours of labor to 48. The percentage of German metal workers
covered by collective agreements providing for less than 48 hours
decreased from 40 on December 31, 1921, to 25 on December 31,
1922.
Shorter hours than 46 were found only in certain trades. The
only cases in Saxony in October, 1921, were in the following occupations and industries:
Industrial workera
Coal mining, underground__________________________________
Potash industry, underground______________________________
Building and construction work:
November 15 to December 15__________________________
December 16 to January 15____________________________
January 16 to February 8______________________________
Stove setting (Nov. 1 to Feb. 28)___________________________
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Hours
per day
7
7½
7½
7
7½
7
103
SITUATION BEFORE DECEMBER, 1923
Hours
perweek
Sheet-glass manufacture-glass makers Gourneymen)__________
Bottle manufacture:
Bottle makers ___ ------------------------------------Wicker-bottle
plaiters__________________________________
Ball
makers __________________________________________
Asbestos works (Dresden-Leuben)___________________________
Tallow and grease products (Leipzig)________________________
Slaughtering at home______________________________________
Cigarette industry_________________________________________
Paving (Leipzig) _________________ -------------------------
42
45
39
33
45
36
36
45
45
Commercial and technical employees and foremen
Metal industry (district of Chemnitz, Leipzig)________________
Breweries (Dresden)_______________________________________
Building industry ___________ --'-----------_________________
45
45
45
!g
Architects------------------------------------------------{1
Construction
work________________________________________ 45
45
Insurance
________________________________________________
Private schools (Dresden)-teachers_________________________ 32
There are two trades which call for special discussion-(!) mines
and (2) railways.
I. Immediately after the revolution, the hours of labor for miners
all over the country were reduced to 8 per day "bank to bank."
This meant for the Ruhr Basin a reduction of only half an hour as
compai'ed with pre-war times, and the miners of this district, who
were accustomed to work shorter hours than other workingmen,
were not satisfied. They demanded a six-hour shift1 went on strike,
and succeeded in obtaining (April, 1919) a shift ot 7 hours "bank
to bank" (5½ hours of actual work). They insisted, however, on a
further reduction of the hours and the Munster of Labor, under the
decree of June 18, 1919, appointed a commission to study means of
introducing on February 1, 1920, the 6-hour shift "bank to bank."
The comnussion1 composed of representatives of the organizations of
mine owners 1 mmers, and salaried employees, while unanimous that
a shorter shift would be advantageous from the point of view of
health, came to the conclusion that the introduction of the 6-hour
shift was feasible only through an international convention.
It was probably not so much the dislike of long working hours
that induced the Ruhr miners to cling to the principle of the 6-hour
shift as the desire to have their claim to shorter working hours
recognized by the mine owners. In any case, whenever they became convinced that an increase of production was necessary in the
public interest, they were willing to do overtime work. Thus on
March 8, 1920, they concluded a collective agreement with the mine
owners under which, b e ~ with March 15, 1920, all miners, in
addition to their regular shifts of 7 hours C;lach, were to work an
extra half shift twice a week at double the regular w11ges. They
were thus to work 49 hours for 56 hours' pay. The Kapp revolt,
which broke out on March 13, 1920, and the ensuing conflicts in the
Ruhr District somewhat delayed the actual introduction of the extra
half shifts, but they were finally put into effect and were worked for
about a year. But when the hopes of the miners for socialiKtion of
l J'aclusive of midday rest.
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the mines failed, the extra shifts were suspended. They were again
ina~ated under an agreement effective September 1, 1922, and
~inng the middle of December. Because of the dissatisfaction of
the miners, who felt the strain of the extra shifts considerably,
extra shifts were suspended for four weeks. In the meantime, the
French entered the Ruhr Basin, and when passive resistance was
decided upon; extra shifts were, of course, out of question.
In Lower Silesia the situation was similar to that in the Ruhr
Basin. In Upper Silesia, where the length of the shift had been reduced by the collective agreement of January 31, .1920, from 8 to
7½ hours, extra shifts were the exce_ption. The same is true of
Saxony where the opposition of the nuners doomed from the outset
any attempt to introduce extra shifts.
2. The mtroduction of the eight-hour day caused probably- more
inconvenience in railway operation than in any other industry,
since men employed on trains can not, of course, quit their "place
of work" at a cartain minute, and since working hours, hours of
presence on duty, and hours of rest are here particularly difficult to
separate. Indeed, the States, after introducing the eight-hour workdaf immediately after the revolution, soon recognized that to adhere
stnctly to the maximum workday would hamper efficient operation
of the railways. .An agreement was therefore reached under which
weekly working hours (48) and monthly working hours (208) were
fixed. The daily hours might exceed 8 hours in a particular case,
provided the weekly or monthly maximum was not exceeded. • When
on April 1, 1920, the State railways were taken over by the Federal
Government, the latter wished to introduce a law providip.g special
working hours for the railways, but owing to the o_IPOSition of the
railway employees such a law was not enacted. The railwa_y administration then entered into negotiations with the employees
which resulted in an understandini? that only part of the hours on
duty should be considered hours ol work. This understanding was
emoodied in the decree of August 5, 1922, which ·also fixed the days
of rest at 52, consisting of not less than 32 consecutive hours each,
or, as an alternative, 26 days of not less than 32 hours each and 3
days of at least 24 hours each in place of each 2 of the remafoing 26.
OPPOSITION TO 8-llOUR DAY
The first year after the introduction of the 8-hour day it met
with practically no opposition at all. The first noteworthy signs of
antagonism to this reduction of hours appeared in the summer of
1920, when the dollar exchange rate dropped from 100 marks in
February to 33 marks in June. Some groups of employers, seeing
their exports ham£:~ed, became anxious to reduce the cost of prothe wor!mig hours. But the matter became
duction· by exten
serious only when tlie· first bill for a law regulating hours of labor
was published in A1.lg!1St 1921. Up to that time the 8-hour day
had been r8'?1]].ated only by the provisional orders heretofore mentioned, which were extended from time to time. The employers
who at first wanted only the opportunity of extending the liours of
labor for certain periods by collective agreement, were now eager to
abolish the 8-hour day thro:ugh 1!~w:~tion restoring their pre-war
liberty of action as to pa.id but
· · ted overtime work, but the
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power of the trade-unions was still too strong, and the employers
contented themselves for the time being by fighting a reduction of
hours on Saturday. In the spring of 1922 two sharp controversies
took place. Botli in the metal industry and in the textile industry
the employers attempted to replace the 46-hour week by a 48-hour
week, '6e4tg rather successful in the metal industry, but not in the
textile industry.
When inflation increased and in consequence thereof trade-unions
became absorbed in wage disputes, at the saane time being financially
weakened, the :fight against the 8-hour day became more intense.
When finally the unions broke down financially, the "conviction"
that the 8-hour day was unbearable became universal among employers and the public in general.
Arguments of adversaries.-The strongest attack against the
8-hour day was niade by Hug_o Stinnes, who, in a speech in the
National Economic Council, November 9, 1922, declared it absolutely necessary to have for 10 or 15 years two hours additional work
a day without compensation if Germany was to recover economically.
Others advocated the suspension of the 8-hour day for five years.
In general, however1 up to the fall of 1923, the employers did not
go so far. They derued merely the legal fixation of many exceptions
to the 8-hour day, arguing as follows: The introduction of the 8-hour
day was necessary for political reasons and for the physical recovery
of the workers from their overexertion during the war. It should
also be legally maintained as a matter of principle. But it must be
adapted to the needs of the industry, it must not reduce the productivity of Germany, and it should be enforced only after industry
has been put on a sound basis and production intensified to such a
degree that the ma.xi.mum outJ)ut can be secured within 8 hours.
Tliey further demanded the exclusion of hours of presence on duty
in computing working time, the extension of hours of labor for light
work, and liberty to require overtime work. Mr. von Siemens,
president of the Siemens concern, and member of the Reichstag and
of the National Economic Council, particularly em:phasized that the
decrease in German production was even more collSlderable than the
reduction of working hours warranted, since a strict application of
the 8-hour working-aay made it impossible, he said, to make good
the fluctuations and disturbances of every-day occurrence in manufacturing. If even the smallest loss of trme could not be made up,
it resulted in a loss in output. The arguments most generally
advanced were that the extension of the hours of labor was the
quickest means of increasing production and that, with the burdens
resulting from the war, it was impossible to expect shorter instead of
lo~er hours of labor. Special argllillents advanced by one or the
other groups of employers were as follows:
1. Intensification of production is a matter of education of workers
and employers and calls for a material change in the operation of
the busmess. It is therefore not possible suddenly to reduce hours
without hampering _production. Such a reduction can take place
only as production 'becomes more intense. Moreover, such education of the workers takes a. long time, and there are numerous workers
who are not able or not willing to work intensively and who prefer
an unhurried 10-hour workday to an intensive 8-hour workday.
Besides, putting industry on a sound business basis can be done only
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CHAPTER V.-HOUBS OF LABOR
through increased production, since additional capital can not
easily be obtained. • This is the more necessa.ry as the equipment
of the factories deteriorated during the wa1 and has not been renewed.
2. The output per man and per hour has dropped, or at lea.st has
not increased sufficiently to make up for the reduced wor:kim? time.
3. In the many cases where the mtensity of production aepends
upon the machine and not upon the worker, the output per day has,
of course, decreased in proportion to the reduction of the workinE?
time. A good deal of so-called work consists merely_ of hours ol
presence on duty. It is unjust to value light work as bighlY. as hard
work, and differentiation of the hours of labor between tight and
hard work is urgent.
4. Economically, Germany lives upon her substance, consuming
more than she produces. She has an adverse balance of trade, and
an increase of exports, which is necessary in order to stabilize the
currency, can be obtained only by an extension of the hours of labor.
5. The 8-hour day was introduced under the assumption that the
other countries would follow the example of Germany, but this has'
not resulted.
6. The 8-hour day has always been advocated as a means for the
better intellectual development of the working class. But the number
of those who are thus benefited is small and the sudden reduction of
hours of labor is a detriment to those who do not seek to improve
themselves intellectually, but loaf, or work for other employers in
their spare time, or do agricultural work in addition to tlieir main
occupation, and in consequence are tired when they go to work in
the factory.
An extension of the hours of labor was especially demanded for the
coal mines, the metal works, the buil~ industry, and the small
shops in rural districts. The three-shift system of 8 hours each was
denounced as harmful, and, because of the necessary repair work
and the time lost in changing shifts, it was declared preferable to
return to the pre-war two-shift system of 10 hours.
On the wh:ole, the movement ~ainst the eight-hour day, which
originated within the heavy industnes, found there the strongest and
most united support. More than all other employers, these industrial
magnates hoped to be able to crush the trade-umons by an extension
of the hours of labor. The manufacturers of finished products were
not quite so unanimous. Where the workers were employed on
automatic machinery, their employers were in favor of abolisliing the
8-hour day, but where the output de1;>ended on the efficiency of the
worker, a good many manufacturers with modern equipment were not
anxious to extend hours of labor. But they too found it inconvenient
always to negotiate with their employees if they wished overtime
work: done and they suffered from the enforcement of the 8-hour day
particularly in repair work, cleaning, transport work1 etc. It was,
then, more the desire for greater elasticity in the working time which
made such employers join the ranks of th:e :fighters against the 8-hour
day and not the conviction that they would materially increase their
out;put or lower their cost of production by extending hours of labor.
The advocates of the 8-hour day declared that overexertion of the
workers was detrimental to the general welfare, and argued in favor
of the 8-hour day from the standpoint of the worker. Specific arguments advanced by them were as follows:
·
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1. When work becomes slack, turnover of capital becomes slower
and the equipment of the plant is utilized as fully as with intense
J>roduction. Overhead expenses are comparatively smaller with a
three-shift system of 8 hours than with a two-shift system of 10 hours.
2. The 8-hour day means in the long run increased output. The
8-hour day was not granted in 1918 as a J>Olitical concession but for
economic reasons. The employers then aemanded only that other
countries follow the example of Germany; this has resulted.
3. Before the war hours had already been reduced, and 10 years
ago the 9-hour and even a shorter workday prevailed in many German
establishments.
4. The necessity of adapting the maximum workday to the needs
of agriculture and of distinguishing between hours of work and hours
of presence on duty- in railway service were recognized by the workers
immediately after the introduction of the 8-hour day and all justifiable
claims of the employers in this respect have been met.
5. The German workers are morally bound to maintain the 8-hour
day, since the German trade-unions for decenniums have led the
international trade-union movement.
6. For psychological reasons, an extension of the hours of labor,
which would be unavoidably accompanied by strong sociopolitical
friction, would not result in an increase, but perhaps even in a reduction of out_put.
Th.e workers demanded a legal 8-hour day, exceptions to be admissible only if arranged by collective agreement. The employers, on
the other hand, demanded a fixing of the exem_ptions in the law itself.
This struggle as to the impending 8-hour law was. thus, perhaps
without a full knowledge of this fact by the interested parties, a
struggle as to the basis of future labor contracts-should they be
be.sea on the law, as they had 30 years before, or should the employers,
in order to deviate from the 8-hour day, be compelled to conclude
collective agreements~ ·
SITUATION SINCE DECEMBER, 1923
DECREE OF DECEMBER 21, 1928
The orders establishin_g the 8-hour day were extended from time to
time, the last occasion being on October 29, 1923, when they were
extended to November 17. No further extension being made, the
legal 8-hour day for German workers (except miners) and salaried
employees ceased to be operative. At first this was of no practical
consequence because of tlie fact that working conditions were generally regulated by collective agreement. The Government, however,
seeing no possibilitv of the enactment of a law regulating working
hours and realizing~ the necessity of some regulation, resorted to the
emergency law of December 8, 1923, authorizing it to take such
measures as it might consider necessary and urgent, and on December
21, 1923, issued a decree relating to working time, which went into
force January 1, 1924.
This new decree explicitly reestablishes the legal force of the orders
of November 23 and December 17, 1918, regulating the hours of
labor of industrial workers, and of March 18, 1919, regulating the
hours of labor of salaried employees, in so far as those orders are not
amended by the new decree; e. g., since the new decree does not
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CHAPTER V.-HOURS OF LABOR
regulate the commencement and the end of the working time and the
periods of rest and Sunday work, the provisions of the orders of 1918
and 1919 relating thereto are still in force. The purpose of the new
decree, as announced by the Government, was to mcrease production
by abolishing impediments to the free exercise of the will to work.
It permitted exceptions from the rigid 8-hour day (1) by collective
agreements and (2) by permit of the authorities. At the same time
tlie decree "maintained the/rinciple of the 8-hour day and refused
to abolish all limitations an to deliver the workers to the free play
of economic forces. This could not be justified in a period of general
distress when the economic organizations of employees were _perhaps
not always stron!f eno~h successfully to resist unreasonable demands
on the employers side.'
The decree re!?Ulated its own scope, the hours of labor, and the
means for its enforcement.
SCOPB OP DBCRBB
The decree of December 21, 1923, applies to persons who are
economically dependent u_pon the,ir work for an em_ployer, and does
not, therefore, cover_ public officials, nor such workers as prisoners
and inmates of workhouses, nor __persons whose occupation is not
their principal means of living, such as convalescents who work as an
aid to their recovery. The order applies to industrial workers and to
salaried employees.
·
The decree applies, first, to industrial workers in all industrial
establishments, mcluding mining, in Federal, State, communal, and
conununal union establishments, even if not operated for profit, and
in agricultural subsidiary establishments of an industnal nature.
The definition of "industrial worker" thus takes into consideration
(1) the kind of work and (2) the nature of the establishment in which
employed.
1. Industrial workers are all persons who through a labor contract
are elnployed as journeymen, helpers, apprentices, supervisory
officials, foremen, engineers, or factory hands, or in similar positions.
2. In order to be an industrial worker within the meaning of the
decree, the worker must be employed either in an industrial establishment or a public-service ente~rise. Mines are considered to be
industrial establishments, and tlie law of July 17, 1922, relating to the
hours of labor in mines has, therefore, been explicitly abrogated by the
new decree. The following are not to be considered industrial
establishments: Fisheries, drug stores, schools, lawyers' offices,
insurance companies and the like, railways, and ocean ships.
Domestic service is not included, and therefore the hours of labor of
domestic servants are not regulated by the decree. It does not apply · ·
fo bakeries and confectioneries, the hours of labor of which are still
regulated by the special order of November 23, 1918. Federal,
State, and communal enterprises are covered by the new decree
even if not operated for profit, e. g., State mines, municipal gas works,
etc., but not the national railways.
The regulation applies also to salaried employees engaged in com:m.ercial work, and to those engaged in technical work whose hours of
labor differ from those of the industrial workers. Supervisory
officials, foremen, and engineers whose work time, for practical reasons, must coincide with that of the industrial workers are not con~
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sidered salaried employees within the meaning of this decree. On
the other hand, office employees and apprentices learning the work
of a salaried employee are regarded as salaried employees.
The regulation does not apply to higher emplo:yees such as managers
with general or limited power of attorney (Prolcuristen) who are
enterea in the commercial register, nor to supervisory employees who
direct at lea.st 20 salaried employees or 50 workers, or workers and
salaried employees whose yearly income exceeds 4,000 gold marks
($952). Salaried employees in agriculture and forestry, inclucling
subsidiary establislurients, and journeymen and a_pprentices in drug
stores are also excluded, but not those in the other establishments
excepted in the case of industrial workers. The scope of the regulation IS thus much broader as to salaried employees than as to industrial
workers.
LENGTH: OF WORKIHG-DAY
As a matter of principle, the normal workday, i. e., the regular
daily wor~ time, consists of 8 hours for tlie above-mentioned
persons. The decree, however, allows many exceptions to this rule
and, moreover the regular daily working time can be extended beyond
8 hours by collective agreement or by order of the competent authorities. H no regulation of the working time has been made by collective agreement or by official order, the regular daily working time is
that fixed in the law. As a. :matter of _principle, regulation by collective agree:ment ranks above the official order, except as otherwise
provided in the decree. Overtime work by order of the employer
alone is permitted under certain conditions but in other cases an
official permit is needed for such work. Because of the numerous
deviat!ons from the 8-hour day permitte~, a maximum workday of 10
hours 1s •fixed, but there are also exceptions, as employment beyond
10 hours is permitted if urgently required in the interests of the
public weliare or in case of temporary emergency.
Aside from this general regulation of the hours of labor, several
special regulations are still in force, e.g., the regulations applying to
establishments involving special dan~er to health and to underground mining. These special regulations are akin to the provisions
m the Industrial Code as to the hygienic maximum workday.
Special regulations as to hours of labor also appear in many articles
of the decree of December 21, 1923.
Normal, worlcday.-The regular daily working time, including the
hours of presence on duty, but excluding rest periods, are not to
exceed 8 hours. The decree provides not only Ior the 8-hour day
but also for the 48-hour weelt and the 96-hour fortnight. In case
less than 8 hours has been worked in an establishment or in a subdivision thereof on individual days, this loss of time may be made up,
after a hearing of the legal representatives of the e:mployees, by overtime work on other days of the same or the subsequent week. In
this manner greater freedom is granted with regard to the distribution
of the hours of labor over the individual workdays. The employer
may thus reduce the regular working time in his establishment or in
a part thereof (but not for individual workers), for example, by two
hours on Saturday, and these lost hours may be made up in the course
of the next week. No :maximum workday within the 48-hour week
or the 96-hour fortnight is fixed for male workers over 16 years nor
20168°-25t--8
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CHAPTER V,-HOURS OF LABOR
for salaried employees in general, but for juvenile workers between
14 and 16 years of age and for female workers in establishments
emplo:png as a rule at least 10 workers, the maxim.um workday of 10
hours :fixe<l by the Industrial Code still obtains, as does also the .maximum workday of 8 hours ·for females on days preceding Sundays and
holidays.
Since in transportation and communication the regular 8-hour day
causes special mconvenience, the decree provides that for both
workers and salaried employees in transportation and communication, including railways and :post and telegra:eh service, general excel>:'
tions from the legal regulation of the worlong time may be agreed
upon between the management and the employees' organizations.
The hours of presence on duty may be re_gu!ated by special arrangement. The 8-liour day may be exceeded m branches of industry (or
for groups of employees) wliich regularly and to a considerable extent
require mere presence on duty on the part of the employees. In
such cases the hours of labor per day, per week, or per fortnight may
be. regulated by collective agreement, or, in the absence of such
agreement, by the Federal Minister of Labor after a hear:i!).g of the
interested organizations of emJ>loyers and employees. This provision applies to such groups as doorkeepers, drivers, office boys, etc.
_ The trme by which the 8-hour day may be exceeded in such cases
is not limited in the decree, but for juvenile and female employees
the limitations of the Industrial Code hold good. In case a collective agreement :provides for an unreasonable extension of the work~ time (including presence on duty) the competent authorities may
interpose and themselves reg1ll.ate the hours of labor.
Excep_tiom to normal workday.-The normal workday may be
deviated from in two waY.8: 1. :r!ie regulai: hours of _labol' ~a:y: be
extended; 2. Under certa.m conditions overtrme work 1B permIBsible.
1. The regular workday may be extended by collective &.g!eement,
in which case the provisions of the agreement shall be binding upon
workers covered by the agreement. ·n sueh an agI"eement contains
provisions as to hours of Iabor which are considered harmful by the
competent authorities, such authorities may object, and if the objectionable provisions a.re not ultered within the trme limit fixed by the
authorities, they may themselves fL"t the hours of labor. On the
other hand, on the going into effect of the decree collective agreements which fix shorter holl1'8 of labor than those provided in the
decree may be abrogated on 30 days' notice.
Collective agreements must not provide for a regular workday in
excess of 10 hours, nor, of course, for one not in accordance with the
Industrial Code. But in those cases where an employer is for certain
reasons allowed to l1mgthen temporarily the regular workday, he
shall not be restricted to the hours of labor proviaed for in a collective agreement.
The reg1ll.ar workday may- also be extended by order of the competent authorities. In establishments in which the hours of labor
are not regulated by collective agreement, a. deviation from the normal 8-hour day may, on application of the employer, be permitted,
after a hearing of the legal representatives of the emplorees and subject to revocation by the factory or mine inspector, if considered
necessary for technical re21sons, beca.use of interruption of operation
due to force majeure, accident, or other unavoidable cause, or for
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g~neral economic reasons. An appeal from such decision tq the
higher authority may be taken at any time, but such appeal does
not postpone the enforcement of the decision. In granting an extension of the regular workday, the authorities must observe the maximum 10-hour workday.
The extension of the regular workday by the authorities shall take
place only if no collective agreement exists. If after a decision of
the authorities the hours of labor are regulated by collective agreement, such regulation shall at once supersede tlie decision of the
authorities.
2. A temporary extension of the regular workday through overtime work by order of the employer alone is, under certain conditions,
permissible; in other cases overtime work requires the approval of
the authorities.
Overtime work by order of the emplo_yer alone is permissible (a) on
30 days during one year, (b) for the sake of a regular and full operation of the entire _plant, (c) for emergency work, or (d) in case of
· establishments with continuous operation.
(a) Employers may, after a hearing of the representatives of their
employees, have the employees of tlieir establishment or of a subdiVISion thereof work overtime not to exceed two hours per day on
30 days, to be chosen by the employers, during one year. This provision gives the employer a certain freedom of action in cases where
a sudden temporary need for longer hours of labor arises, but he is
not allowed to have individual employees work overtime, nor can he
have all his employees work one hour of overtime on 60 days.
(b) After a hearing of the works council, female and juvenile
employees may be required to work one hour overtime daily and
male employees over 16 years of age two hours overtime daily if
employed: 1. In guarding the establishment or in cleaning or in
mamtenance work necessary for the regu_lar operation of the employer's
or another establishment; 2. In work necessary for the resumption of full operation; 3. In the loading or unloading of vessels m
port or of railroad cars, and in the switching of such cars, provided
that sueh overtime work is necessary to prevent traffic jams or to
observe loading-time limits; 4. In supervising the work mentioned
under 1, 2, and 3. This provision, then, refers mainly to work performed outside of the regular working time to mak:e possible the
full use of the regular worlring time of the entire plant.
(c) The employer may require overtime work in emergencies or to
prevent detenoration of raw materials or ~polling of products. In
such cases the hours of labor fixed by collective agreement or by
official instruction do not apply. There is no limit to the amount
of such work other than the restrictions for juvenile and female
employees and as to the hygienic maximum workday provided for
in the Industrial Code.
(d) In establishments whose nature necessitates continuous operation, like blast furnaces and gas works, or in which continuous Sunday
labor is necessary in the public interest, e. g., certain food industries,
male workers over 16 years of age, if -:-equested by the employer, may
each three weeks on the weekly change of shifts work a maximum of
16 hours inclusive of rest penods, provided that during the three
weeks they are twice granted an uninterrupted rest of 24 hours. This
exception shall, however, apply only to employees necessary for the
maintenance of continuous operation.
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Federal Reserve Bank of St. Louis
112
CHAPTER V.-HOUBS OF LABOR
Overtime work may also be authorized by the competent authorities, 'if urgently necessary in the public interest-in particular to
prevent unemployn:i.ent or to insure a supply of food to the population.
Maximum workday_.-To prevent unreasonable overtime, a maximum workday of 10 hours is established. The employer may, however, without special :permission, demand work beyond the maximum
workday in emergencies, provided he does not violate the provisions
of the Industrial Code as to the hours of labor of juvenile or female
employees and as to the hygienic maximum workday. He may also
exceed the maximum workday if urgently necessary for the public
welfare. Such reasons must actually prevail, however, or the
employer will be liable to punishment.
Special reg'Ulations.-Further limitations on the hours of labor are
provided by the decree (a) for establishments involving special
dangers, (b) for various unhealthful trades, and (c) for juvenile and
femiile employees in conformity to the Industrial Code.
(a) The order of December 21, 1923, limits the hours of labor in
branches of industry or in occupations involving special danger to
life or health of the workers, such as underground coal mining, or in
which the workers are more than extraordinarily exposed to the effects
of heat, poisonous substances, dust, and the like, or to the danger of
explosives. The Minister of Labor is to decide to what brandies of
industry and to what occupations these limitations (which appJy to
workers only and not to salaried employees) are to apply. Under
these limitations an extension of the 8-hour day or 48-hour week or
96-hour fortnight by collective agreement or official order shall be
permitted only if urgently required in the J>Ublic interest or if shown
by long expenence tliat it is not harmful and if it does not exceed half
an hour per day. In no case is an extension of the maximum 10-hour
day permitted in such branches of industry or occupations.
In underground mines, in shafts with a temperature of over 82° F.,
shorter hours of iabor are to be fixed by collective agreement or by
the mine inspection service, after a heanng of the interested economic
organizations of employers and of employees, if no agreement is
reached.
In coal mines the shift, beginning with the time of descent into the
mine and ending with the completed ascent from the mine, shall be
considered the reguJ.ar workday. The law of July 17, 1922, is explic_
itly suspended by the new decree.
(b) A hygienic maximum workday, differing for different industries,
had been mtroduced for certain industries, e. g., flour mills (April 26,
1899); hotels and restaurants (January 23, 1902); lead works (June
16, 1905); stone quarries and stone cutting (May 31, 1909, and
November 20, 1911); compressed-air work (June 28, 1920); paint
work on vessels (February 2, 1921). These 1imitations a.re not
affected by the new decree and can not be altered by collective agreement nor by official order.
(c) The limitations on the hours of labor of iuvenile and female
workers provided by the Industrial Code are explicitly adopted by
the new decree. Tn addition it provides that female workers who
a.re pregnant or who nurse children shall, if possible, upon request,
be exempt from working more than 8 hours a day.
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SITUATION SINCE DECEMBER, 1923
113
ENFORCEMENT OF DECREE
,The enforcement of the provisions of the decree referring to hours
of labor of workers and salaried employees is intrusted to the factory
and mine inspectors, who are authorized to discuss the hours of labor
with committees of the workers and of the salaried employees in the
presence of the employer or with either party alone. In case of violation of the new decree, the old orders of 1918 and 1919 (again in
force), or the Industrial Code, it is not the employee but the employer
exclusively who is punished.
Under the new decree the employer who violates its provisions is
to be punished by a fine. For a second offense, if the violation is
premeditated, the _penalty shall be imprisonment for a term not
exceeding six months, or a fine, or both. Under the old orders the
employer was punished regardless of whether or not the employee
had worked the unlawful overtime voluntarily; but under tlie new
decree the employer is not to be punished for allowin~ male workers
to work excessive overtime if they work voluntarily, if the overtime
is required because of special circumstances and is temJ?orary, if the
employer does not exploit the necessity or inexpenence of the
employee, and if such overtime does not manifestly injure the
employee.
HOURS OF LABOR IN HOSPITALS
An investigation in 1910 as to the daily hours of labor, periods of
rest, vacations, and old-age provision for employees in hospitals disclosed great abuses in working conditions. Before the war unsuccessful attempts were made to regulate such conditions, especially
the hours of labor, by law, and during the war of course no progress
was made along these lines. When, after the revolution, the working
time of industrial workers was regulated, opinions di:ffered as to
whether nurses in hospitals were covered by such J>rovisions. The
employees themselves were in favor of an 8-bour day, but both private
and :rmblic employers, physicians, and the majority of the experts
consulted declared that the enforcement of the 8-hour day and the
introduction of a three-shift system would be detrimental to the
interests of the sick and so the matter was left in abeyance. In
Octoberz 1920, however, a national collective agreement was concluded tor female nurses, which established the 8-hour day, to be
extended only in emergencies. A day of rest was to be granted each
week, twice a month on a Sunday if possible. In general a sufficient
rest period was to intervene when night service followed day service
or vice versa. The nurses did not enjoy these satisfactory conditions
very long, however, as the decree of February 13, 1924, deprived
them of the advantages they had gained.
Under the new decree the weekly hours of labor, including Sundays
and holidays, are 60, exclusive of rest periods. No maximum workday is provided, but the daily hours of labor shall not as a rule
exceed 10. The distribution of the hours of work over the week
shall be fixed by the management of the hospital, after a hearing
of the supervising physicians and representatives of the employees.
Overtime work bevond the 60 hours per week shall be done only in
emergencies and as a temporary measure.
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Federal Reserve Bank of St. Louis
114
OHAPTER V.-HOURS OF LABOR
ACTUAL DEVELOPJDNT
It is not yet possible to judge the ultimate effect of the decree of
December, 1923, upon the hours of labor. The tendency of the
trade-unions in negotiations with employers' associations was, of
course, to maintain the 8-hour dav, while the latter aimed at an
extension of the hours of labor. The attitude of the employers was
not, however, uniform. The employers in the·india rubber industcy,
for example, declared in favor of the 8-hour day, statiilg that before the
war the 8-hour day and the IO-hour day had existed simultaneously,
and that the unbroken 8-hour day had yielded a better econormc
result than the 10-hour day broken by a midda;r rest; that after the
revolution the men had done quite as much, and in some cases even
more, work in 8 hours with good management than in the 10-hour
day of pre-war time; that for uninterrupted operation, which, however,
could not be considered in the rubber industry except in periods 01
especially brisk business or in seasonal work, the 8-hour day alone
allowed of making the best possible use of the plant and its equipment. It was taken for gi:anted that, in spite of the shorter hours,
the present output in the rubber industry exceeds that of pre-wartime.
In other cases, the employers attempted to obtain an extension of
workin? hours but afterward agreed to the 8-hour day. The employers association in the cigarette industry abrogated their basic
agreement stipulating for a 48-hour week, and called on their workmen to enter into negotiations for a new agreement. The application
of the employers' association to the Minister of Labor to establish a
56-hour week from and after February 1, 1924, did not, however,
meet with approval, and an agreement was coil.eluded between the
parties under which the national collective ·agreement and the district
collective agreements were to remain in force provisionally.
- The employers in the printi!ig trade, in spite of great numbers of
unemployed workers, did not show as conciliatory a spirit. Negotiations for a new basic agi:eement to supersede the agreement which
was to e;pire on December 23 be~an on December 121 and were
conducted with rather vehement d1sI?utes, produced mainly by the
following proposals of the German printers' association (employers):
The workin~ time is 57 hours per week exclusive of rest periods. Whether
the working trme be continuous or interrupted by rest periods, the_ workman
must begin and leave his work punctually. The employer has the right of
checking the coming and going of the workmen, e. g., by time clocks. The
daily working hours may be between 6 a. m. and 10 p. m., according to tbe
requirements of the business if there is but one shift. They may vary, that is,
be reduced or extended, on individual days in each establishment or department.
Notice of changes of this kind will be given to the workmen within a specified
time before their going into effect. Notice of the introduction or abolition of
shifts need not be given beforehand. The workmen will be assigned to the
shifts by the management of the establishment.
·
These proposals were rejected. On January 10, negotiations were
renewed at the instance of the Minister of Labor, and an agreement
arrived at establishing the 48-hour week as the normal working time,
while 5 hours of overtime-3 hours in the case of linotype, etc.,
operators-are to be worked at the regular rate. With the altera~1ons agreed upon, the basic agreement of January 1, 1922, was
extended to May 31, 1924. Litho~aphers and music engravers have
concluded a siinilar agreement, while photo-engravers, copper engravers, and wood engravers, under an agreement effective until
December 31, 1924, are to receive 25 per cent additional for overtime
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Federal Reserve Bank of St. Louis
115
SITUATION SINCE DECEMBER, 1923
previously announced, 33 ½ per cent additional for overtime notice
of which is not given in advance, and 100 per cent additional for
Sunday work.
In some trades the demands of the employers have been even
more excessive. In the chemical industries, they have given notice
that they will no longer be bound by the national ha.sic agreement,
demanding the 10-hour day o.nd in establisnments with continuous
operation a week of 70 hours and for presence on duty a week of 84
hours.
In many ca.ses collective agreements could not be concluded, and
official arbitrators stepped in, who in their awards generally extended
the work4ig time. In case such awards were declared generally
binding, the trade-unions had to yield, but many times difficulties
a.rose in the practical enforcement of such awards which led to strikes
and lockouts.
In examining the collective agreements and awards made under
the new decree, it is noticeable how greatly the working time varies
from one agreement to another. The effect the new decree has
already had on collective agreements can be seen in the provisions
of such collective agreements on the following points: Maximum
working week of over 48 hours; maximum wor~-day of 8 hours,
or over; week of 46 or 48 hours, or 48 hours with provisions for
maximum; hours of presence on duty of employees whose regular
work consists to a considerable extent in readiness to work; pay
for extended hours of labor or overtime work; regulation of hours
of labor in trades injurious to health; assent of representatives of
employees required in extending hours of labor; shorter working
time on Saturday; dismissal of employ-ees in consequence of extension
of hours of labor. Table 43 shows the agreements containing such
provisions:
TABLE 43.-PROVISIONS
OF COLLECTIVE AGREEMENTS AND ARBITRATION AWARDS
MADE UNDER DECREE OF DECEMBER 21, 1923, AS TO SPECIFIED POINTS
Mazimum working week of over 48 hours
Collective agreement or Hours
per week
arbitration award
Industry or occupation
Award, Dec. 29, 1923 ____
Banking
·------------···············
Clotblng-Blelefeld.-···-____ ·----- __ Agreement, Feb. 7, 1924_
Agreement ______________
Commercial
clerks-Eeatern
Prussia_
Hats and mllllnecy (wholesale) _______ Agreement, Jan, 11, 1924_
Iron and steel-Ruhr district:
Blast furnaces_
··- ---
--
Otber departments •••••••••••••• _ .............................................
Metals:
Lower Silesia _____________________ Award_----··--- ______ ••
Wurttemberg and Hohenzollern._ General agreement, Jan.
28, 1924.
64
64
64
Beginning Jan. 2, 1921.
59
6-day week: Exclusive of
rest perlod&-day sblft, 68
hours; night shift, 60 hours.
164
I
Remarks
67½
Do.
FromJan.14to Mar, 14.
64
54
Mining, Ruhr dJstrlct, work above
Cl'9Ulld:
Mines with 1 hoisting shaft••••••• Acreement_ •••••••••••••
May be extended to 60.
For whole or part of establlshment, at order of
employer.
69
Mines with 2 hoisting shafts ___ ••• ···--do .....•••••••••.• -.
68
Textllell-Lall88tla: MachiDlsts and --·--do ••••••••••••••••••
firemen.
66
6-day week: Exclusive of
rest periods-night shift, 68
hours; Saturday morning
shift every other week, 8
hours.
6-day week: N~ht sblft, 58
hours; Satur ay mormng
shift, 8 hours.
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Federal Reserve Bank of St. Louis
I
Net time,
116
CHAPTER V.-HOURS OF LABOR
TABLE 48.-PROVISIONS OF COLLECTIVE AGREEMENTS AND ARBITRATION AWA.RDS
MADE UNDER DECREE OF DECEMBER 21, 1923, AS TO SPECIFIED POINTS-Contd.
Maximum working day of 8 hours or over
Industry or occupation
Collective agreement or Hours
per week
arbitration award
Coal mining-Underground miners:
District of Ibbenbiiren ___________ Agreement, Dec. 11, 1923 _
Agreement ______________
All other__________________________
districts except Bavaria__ _____
Bavaria
do. _________________
Lignite minesCentral Germany-Under- Award, Dec. zi, 1923 ____
ground workers.
Central Germany-Workers _____do---------·-------above ground.
Rhineland
__________________
----SaxonySalaried employees. ______
-- ---------------- --- ----------------------- -
O111.ce employees__________
Iron and steelIron works of Upper Silesia _______
----------------- -- ----- -------------------------- -
Leather industry _____________________ Award __________________
Metals:
Agreement ______________
District of Dresden-Metal Manufacturers
Association
plants.
District
of Bautzen
_______________
......................................................
:Potash
salts mining:
workers ____________
Underground
-
Workers above ground ___________
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Federal Reserve Bank of St. Louis
------------------ -------
-..................................................
Remarks
Length of shift, from beginni~ of descent into mine to
beginning of ascent therefrom.
Do.
8
Do.
8½
8
8
10
Closed working; open working, 8½ hours, exclusive of
time of descent and ascent
and rest periods.
Exclusive of rest periods.
10
9
9
10
10
Technical employees same
hours as miners under their
orders, with same rest
c:iods.
.
7 urs OD Saturday.
No chan~ where ~ants
worked ess than 10 ours
before or during war. Exelusive of rest iSeriods,
beginning Jan. 1, 1 /M,
After notice to workmen.
8½
l
8
10
From ~ ~ c e n t
into
e to
· of
ascent therefrom.
Workers on hoisting work
same hours as underground
workers.
117
SITUATION SINCE DECEMBER, 1923
43.-PROVISIONS OF COLLECTIVE AGREEMENTS AND ARBITRATION AW ARDS
MADE UNDER DECREE OF DECEMBER 21, 1923, AS TO SPECIFIED POINTS-Contd.
TABLE
Week of 46 or 48 hour8, or 48 hour8 with provision for maximum
Hours per
week
Industry or occupation
Collective agreement or
arbitration award
l-----l
Agreement ••••.•••.•....
Agreement Jan. 15, 1924.
Agreement Jan. 21, 1924.
Agreement ••..•••••••••.
48
48
46
46
Engraving and chasing and related National agreement Dec.
occupations.
12, 1923.
Jute-Welda and Triebes •••••••••••••• Agreement ..••••.•••••••
Metals-Dresden and Bautzen .•••••••••••••••..•.••.•••••..••••
Porcelain and related industries........ Award Jan. 26, 1924•.....
Printing and bookbinding ••••••••••••• Agreement Jan. 10, 1924.
48
Breweries.............................
Corrugated cardboard.................
Corset maklng-Wurttemberg.••••••••
Electric works-Saxony...............
Sawmills..............................
Salaried employees:
Commercial and technical em•
ployeesHlrschberg (Silesia) •••••••••••••
Magdeburg •••••••••••••••••••••
Osnabruck................. ••.••
Commercial clerks-Halberstadt,
Oschersleben, Seehausen, Nien•
hagen and Crottorf.
Commercial employees-Wurt•
temberg.
Commercial establishments and
transport trade-Halle and vi•
clnity.
Steel works-Rhineland and West•
phalla.
Textiles:
Dresden and Plauen ••••••••••••••
Bielefeld••••••••••••••••••••••••••
Remarks
Regn• Maxi•
Jar mum
46
48
48
48
Agreement ••••••••••••••
48
AgreementJan. l, 1924...
Agreement Feb. 7, 1924.•
48
48
48
Agreement Jan. 1, 1924••
48
54
54
48
------52
------54
53
Maximum hours for
type-sett'lng•machlne
operators, 51.
54
54
-------------
-------
Award Jan. 28, 1924•••••
48
Agreement Jan. 4, 1924 ..
48
Agreement Dec.1923••••
48
54
AwardJan.18, 1924•••.••
Agreement Jan. 23, 1924.
48
48
54
Tobacco (chewing) manufacture- Agreement Jan. 10, 1924.
Thurlngia.
Wine trade and allied Industries- AwardJan.21, 1924••••••
Treves..
48
54
48
100 hours overtime per
year obligatory.
54
54
------54
-------
Same In other agreements
for textile industry.
While hours may be ex•
tended if necessary for
increased production
or better use of equip•
ment. etc., award de•
nied such necessity
tilen existed.
Hours of presence on duty of employees whose regular work consists to a considerable
extent in readiness for work
Industry or occupation
Collective
agreement or
arbitration
award
Hotels:
Berlin ...•••••..•.•••..•.••••••••••••••••••••••.•••••.
Dresden ..•..••.•.•••..••••••••..••.. __ ...••......•...
Hanover••••••••••••••.•••••..•................•..•...
Munich .••••.•.•.•••••.•••••••.•..••.•...•.•... __ . _-·Stettin and vicinity••••••••••••••..•.• Agreement .•.•
Metals:
Lower Silesia-Guards, doorkeepers,
Hours
per day
3
57
13
10
11
• 60
Award .•••••• _
12
Wurttemherg and Hohenzollern- Agreement. .••
Doorkeepers, servants, errand boys,
etc.
.
Mining-Saxony: Salaried employees •••••••.•••••••••••••
160
etc.
• Per week.
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Federal Reserve Bank of St. Louis
12
Remarks
Hours of work proper, 10.
Hours of work proper, 9.
Uninterrupted weekly rest of 36
hours; employees not to take
W'ork In 2 establishments at same
time.
Considered as equivalent of 10
hours' work.
118
OHAPTER V.-HOURS OF LA.BOB
TABLE 43.-PROVIBIONB OF COLLECTIVE AGREEMENTS AND ARBITRATION A.WA.RDS
MADE UNDER DECREE OF DECEMBER 21, 1923, AB TO SPECIFIED POINTS-Contd.
Pay for eztended hours of labor or overtime work
1Dd118try or occupation
Collective
agreement or
arbitration
award
ID-
Time for
which paid
crease
over
regular
rate
Remarks
P. ct.
Of gold value of stipulated
District of Ibbenbllren-Un- ---------------- 8th hour______ (')
dergronnd work.
Lower and Upper Silesia, ---------------- Extended time------ N=pay.
Saxony, and Upper Saxony.
-----do______________ _ Regular pay (lnoludlng ooat-o1Lignite :mines-Central Germany.
11v1ng bonus) Increased In
proportion to extena1on of
time.
Oorrngated cardboard-Hanover_------- 11th hour _____ ----- Overtime rate; 9th and loth
hours regular rate.
10
9th hour_____
Flour mllla-Breslau ______ , Agreement____ { loth hour_____
20 Over 9 hours to ba worked onl7
If workers agree.
After lothhour 2li
Government hospitals____________ Agreement, Extended time
No extra pay.
1an. 1, 1924.
Do.
Hats and millinery-Berlin----do
Hotels-Stettin-_________________ Agreement____ After 60 hours l
Overtime rate.
· Iron works-Upper Silesia--_____
Extended time
Regularrate.
Marble works and stone mason's Agreement, ---- -do_______ _
1st
after rap1ar hours DO&
trade-North Germany.
J"an. 1, lffl.
overtime.
Metals:
District of Berg ______________ Agreement, A.fter48hours •------ Regular rate.
J"an. 28, 19'J4.
Berlin.._______________________ Agreement___ _ After limit _____ _ Overtime rate.
ftxed In decree.
Dresden______________________ ---------------- Extended time _____ _ No extra pay.
Mining-Ruhr district:
Underground work.__________
_____do ··------ -----Do.
Work above ground._________ Agreement____ Extra work____ (I)
Do.
Porcelain-Berlin---------------- ---------------- Extended time
Potash salts :mining ______________ ---------------- -----do ·------ ------ Regular pay (Including J.ost.oflfvlng bonus) Increased In
~ o n to extension of
Coal mining:
i------
nonr
Salaried employees:
Halle and vlclnlty-Oommerclal eetabllshments and
transport trade.
Hlrschberg-Gommerclal
and technical employees.
Magdeburg __________________
Textiles:
Esst Saxony _________________
---------------. ----.do--------______ No extra pay.
Agreement_____ Mith hour•---·------ Overtime rate; one two-hundredth of monthly salary for
@th to Mth hours.
---------------- Extended time ______ No extra pay.
Award,Feb. 1. ---------------- ------ Monday to Friday, 1 extra
hour obligatory, wagee In11124.
creased 6 per cent; 3 addlUonal hours, with workers'
consent, wagee lncreaaed 16
_ per cent.
Saxony______________________ Award-------- Extended time _____ _ wee1r1,- wagee Increased In pro.
port.on to extension of time.
Wurttembarg and Bielefeld__ ---------------------do_________ ------ No extra pay.
Tobacco:
Cigars
_______ Agreement____ After M hours• 211 6 extra hours per week worked
for normal wagee.
Ohewlng-Thurlnlia-------- ---------------- Extended tfme ______ No extra pay.
Tr~elm-Ooal transport Agreement,
and Industrial eetabllsh1an. 28, 19:M
ments.
Sondershausen and vlcln- ________
lty (German Transport
Assn.)
Treves---------------------- Agreement---Woolen-Nuremberg_____________________________
I
Per week.
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Federal Reserve Bank of St. Louis
• One-seventh.
11th hour___________ Overtime rate; 9th and 10th
hours regular rate.
After60hours•
Bundayandnf&htworkllOper
cent extra
9th and 10th ______ No extra pay.
hours.
After48honrs
•
3
I One-sixth.
2li
1
I
Additional pay for each hour.
119
SITUATION SINCE DECEMBER, 1923
TA.BLF: 43.-PROVIBIONS OF COLLECTIVE AGREEMENTS AND ARBITRATION AW ARDS
MADE UNDER DECREE OF DECEMBER 21, 1923, AS TO SPECIFIED POINTS-Contd.
Regulation of hours of labor in trades injurious to health
Collective
agreement or
arbitration
award
Industry or occupation
Provision
Iron and steel:
Ruhr district........................ Agreement•••• Workmen not to work regularly more than 54
hours in 6 days (exclusive of rest periods and
time of presence on duty), classes of workers
affected to be determined without delay.
Do.
Mlnlng ••• ·-··--···------·····-········- Agreement__ ._ Conforms exactly to provisions of decree.
Iron works-Upper Silesia.•••••••••• ··-·--·------·-·
Assent of representatives of employees required in extending hours of labor
Collective
agreement or
arbitration
award
Industry or occupation
Extra
hoursrr
wee
Body whose
BSSent ls
necessary
Remarks
Metals:
Dlstriot of Berg _____ ·-······- Agreement, After48th Workers' rep- 8 hours per week.
resentatl ves.
Jan. 28, 1924.
Lower Silesia_ ••••••• -··-···· Award----··-- 54thto60th. Works counoll _
After 9th•. - •••• do--······
88J'.ODY-···-···-·-·-··--·--··
Arter54th. ···--do ••••••••
Wurttemberg and Hobenzollern.
Salaried employees:
.Association of German Na- Agreement •••• After48th_ Employees' 1 hour dally except Sat•
representsurday.
tional Commerclal Clerks.
tlves .
• ____do __ • _____ ___do •••••• •••••
••••••••
do
Do.
Magdeburg. __ .... -·-·······
• •••. do •••••••• In redistribution of hours
Osnabruck and vioinity •••••• Agreement,
over week.
Jan. 7, 1924.
emRhineland, West~la,
............... ~8thto54th Salaried
p 1 o ye es'
Lower Silesia and · chcouncils.
berg-Iron and steel works.
Employees'
Do.
SBJ'.ony-Electrio works. ••••• Agreement,
May24,192::
represents•
tlves.
----·-------··--
----·-----------
----------
-------------
.
------------
Textiles:
Do•
Bielefeld ••••••••••••••••••••• Agreement, ....................... Workers' repJan. 23, 1924.
resentatives.
Eastern SBXony ___ •••••••••• Award •••••••• After 54th. • ••••do •••••••• For 3 hours.
Shorter working time on Saturday
Industry or occupation
Collective
Time
agreement or
Saturarbitration daywork
award
to end
Remarks
p.m.
Banking .•••••••••••••••••••••••••••••••••••••. Award ••••• ___ ····--·-·· Not more than 7 hours on
Saturday,
3
Bats and millinery-Berlin. ____________ • ___ ····---·····----·-·Iron and steel works-Northwest Germany____ • Agreement •••.•••••••••• Saturday half holiday
recommenae<i.
For Saturday day shlft in
Lignite coal mines-Central Germany.......... Award._ ••••••
4
continuous-operation con•
cerns with 2 shifts.
Metals-Wurttemberg and Hohenzollern ••••••. Agreement •••.•••••••••• Saturday half holiday.
Textiles:
Bielefeld.-•.•••••••••••••••••••••••••••••••• Agreement •••• ·····-···· 6 hours• work on Saturday.
1
Wurttemberg --·····-······················ ••••• do........
2
Tobacco (chewing)-Thuringia •••••••••••••••.. --··--·-·······-
lln day.
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Federal Reserve Bank of St. Louis
120
CHAPTER V.-HOUBS OF LABOB
TABL1143.-PBOVIBIONBOFOOLLEOTIVEAGBEEMENTBANDABBITRATIONAWABD8
MADE UNDER DEOREE OF DECEMBER 21, 1923, AB TO BPEOIFIED POINTB-Oonold.
Dismissal of employees in consequence of ~tension of hours <>I labor
Collective
Industry
agreement or
arbitration
Provision
award
Leather----------·····-·---·--·---·--Award.·-···-- Such discharges forbiddeD.
Llgmte mining-···•···•···-·······---- ._ ...do........ Only unavoidable discharges, In case of 8110h
discharge age, me of_family, and fixed residence
to be CODS!dered and early notice given to em•
pl0)'88; discharges to be dfstribuied between
Jan. 2 and 1st of February and notice given
to l>Ubllo employment exobaugea.
Ore mlnlng-Mausfeld Joint Stock Co. • ••••do........
Do.
Potash salts m!Dlng •••• -····-·-·-····· •••• _do_ ••••••• Bame provision 88 for lignite mlnee; also, dlscbarged workmen to be i:eengaged 88 soon 88
possible,
SPARE-TIME WORK
Spare-time work became vecy widespread in Germany after the
introduction of the 8-hour day, but, o{ course, it played an important rOle only when overtime work was not abundant. Before
the war German workers in general were not opposed to overtime
work and even many trade-umon members were ready at any time
to increase their e8.l'llings by overtime work. Opposition to overtime work emanated mainly from the most educated workers. In
normal times German employers were not anxious for overtime work,
because of the extra pay and the inferior quality of the work performed, but in very busy seasons these drawbacks did not count.
Mter the war, when the demand for goods was vecy great while
the hours of labor and efficiency of the workers were considerably
reduced, the desire of employers for overtime work was vsyy keen.
Real wages were so low tliat the extra pay for overtime did not cut
any figure, and extension of the plants was difficult because of the
scarcity of building materials and of machinecy. The workers had
become accustomed to lo:ng hours of labor during the war and as
they had obtained the 8-hour day suddenly, and more by political
ac01dent than through an earnest struggle, those workers who had
not previously been organized often did not mind wor~ overtime.
Single workers living near their place of work often yieldecfbeca.use at
first they did not know what to do with their spare time and married
men often yielded because they were anxious to increase their low
e ~ . The union leaders were, of course, opposed to overtime
work and gradually the opposition to overtime work gained ground.
Employers found it more and more difficult to induce their emJ>loyees to work overtime, and this was the main reason, at lea.st in
the manufacture of finished products, why employers were anxious
to obtain an alteration of the regulation of the hours of labor.
Statistics of overtime work are not to be had. A most conspicuous
example of the decrease of overtime work, which; however, can not
be considered as tYJ)!cal, is furnished by a big electrical machinecy
concern in Berlin. The management claims tliat the overtime hours
worked in addition to each 100 regular hours were as follows:
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Federal Reserve Bank of St. Louis
121
SPARE-TIME WORK
Plant A
Plant B
10.0
1914
______________________________________________ 11.0
1913---------------------------------------------llO
9.0
20.2
1916
______________________________________________ lfl3
lfl 7
1915---------------------------------------------1917______________________________________________ 15.2
18. 0
17.0
1918---------------------------------------------- ~• 11
1919______________________________________________
1920---------------------------------------------.1
1921______________________________________________ .3
13. 8
.1
.2
.4
1922______________________________________________ .4
.7
Wherever there was no overtime work many workers did sparetime work, either in their own trade or in some other, partly for themselves and partly for some other employer. While spare-time work
was done before the war, it was then confined mainly to occupations
in which work was done· immediately for the consumer and with
sim_ple tools. Mter the war, when hours of labor were reduced and
real wages dropped, and the consumer, impoverished by inflation,
was amnous to save every cent, spare-time work increased greatly.
The craft guilds did their utmost to fight it, systematically persecuting spare-time workers and mercilessly denouncing them to the
income tax officials, but with little effect. The union of building
workers, for example, repeatedly and bitterly complained about the
competition of railway men, who not only helped their friends to
build cottages but also worked systematically four or :five hours a
day for small contractors.
Another form of spare-time work was that pe],"formed in order to
obtain directly better and more ample food. Millions of workers in
the cities rented small bits of land and-raised v~etables,, potatoes,
etc., in their spare time. In the small towns, agnculturru work was
carried on by industrial workers on a much larger scale, the em~loyers often directly favoring this spare-time work in order that
the efficiency of their employees might be improved through better
food.
VACATIONS
Before the revolution1 vacations (annual leave) were not usual for
workers and few collective agreements contained a clause regulating
this matter. But from 1919 on vacations became quite customary.
The progress made since 1913 may perhaps best be gathered from
the results of an inves_ti_gation covering_ the German metal industry,
made by the German Metal Workers' Union. The number of agreements regulating vacations and the number of establishments and
employees affected was as follows:
TABLB 44.-NUMBER OF OOLLEOTIVE AGREEMENTS IN THE GERMAN METAL
INDUSTRY REGULATING VAOATIONS, 1913 TO 1922
Year
1913 ••• ••••••••••••••••••••••••••••••• •••••••••• • ••••• • ••• ·- • •••••••
lllH •••••••••••••••••••••••••••••••••••••••• --- -· --•••• -- -- •••••••••
1916.
•••••••••••••••••• ·-·--- -··--····-··---· --- -- -•• -·---•••• • •••••
1916••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••
1919•••••••• ·•••••• ··-····· ···--·· ··- ••••••• ··-- -·-·- ••••••• -·. ··- - •
1920••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••.•
1921.-••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••
1922·-········-·-···-······························-················
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Federal Reserve Bank of St. Louis
Agree-
ments
77
81
'19
73
673
968
1,065
1,079
Establish• Employees
=::i
covered
306
8,319
328
2411
111,372
10,959
357
24,985
28,474
46,272
7,727
7,725
1,251,200
1,602,976
1,856,337
2,768,814
122
CHAPTER V.-HOURS OF LABOR
The Federal Statistical Office, in its analysis of collective agreements in force on December 31, 1920, found that about two-thirds
of the agreements regulated vacations. By December 31, 1922, the
proportion had increased to four-fifths, and as regulation of vacations
was more frequent in agreements covering a large territory than
in those concluded for a single establishment, the proportion of
employees entitled to vacations through collective agreements. was.
even larger than the proportion of agreements containing such provisions. By December 31, 1922, 92.7 per cent of the workers and
93.3 per cent of the salaried employees covered by collective agreements were entitled to vacations. The minimum duration of the
.vacations agreed upon was generally less than 3 workdays for
workers and between 3 and 6 workdays for salaried employees;
the maximum was generally less than 12 workdays for workers
and more than 12 workdays for salaried employees. Vacations, as
a rule, were somewhat longer for women than for the employees as
a wh?le. Table 45 shows the -pe! cent of_ ~reements re~ating
vacations and the per cent proVIdmg for mm1mum and maximum
vacations of a specified number of days, both for workers and salaried employees, Decembe~ 31, 1922:
TABLE 46.-PER CENT OF COLLECTIVE AGREEMENTS REGULATING VACATIONS
AND PER CENT GRANTING MINIMUM AND MAXIMUM VACATIONS OF SPECI·
FIED LENGTH AND OF ESTABLISBMENTSANDEMPLOYEESCOVEREDTHEREBY,
DECEMBER 31, 1922
Workers' agreements
Length or minimum and maximum
vacations
Agreements regulating vacations •••••
Minimum vacation:
3 days and under .•••••••••••••••
Over 3 to 6 days •••••••••••••••••
Over 6 days •..••••••.••••••••••••
Maximum vacation:
6days and under •••••••••••••••••
Over 6 to 12 days.••...•••••••••••
Over 12 to 18 days••••.••.••••••••
Over 18 days •••••••••••••••••••••
Salarled employees' agreements
Workers
Employees
Estab•·
Estabcovered.
covered
Agree- lish•
Agree• Jfsh•
ments ments
ments ments
covered Total Female
covered Total
Femal,e
80.1
90.4
92. 7
93.4
89.9
97.5
93.3
9S. 5
54. 5
38. 0
7.5
54. 3
37. 7
8.0
63.8
38. 6
7.6
49.5
40.1
to.4
1.7
76. 2
22.1
82. 6
0.9
0. 7
72. 9
0.6
74.3
25.1
3L9
42.0
20.1
6.0
4L3
31.1
20. 9
6. 7
29.1
40. 7
35. 3
13. 9
10.1
2.1
11.8
64.1
22.0
3.1
65.4
Ll
.1
2.4
48.4
49.1
44. 2
13. 3
13.4
16. 5
4.6
26.9
26.4
3. 5
53. 0
42.4
The granting of vacations is conditioned as a rule on a minimum
length of service in the establishment and the vacation is often
graded according to the length of this service. In some cases the
employee m~t also have reached a definite age (mostly 17 years).
Agreements often contain the provision that, in order to avoid inconvenience to the employer, no vacations shall be taken in certain
periods of the year. Sometimes, as for example in the collective
agreements for the coal mines of Upper Silesia, it is stipulated that
not more than 5 per cent of those entitled to vacations shall take
them at the same time.
A special regulation of vacations is found in the building trades
(including stone paving). The requirement of a minimum length
of service in the shop, prevailing in the other branches of industry,
would in these trades mean too great a hardship for the employee,
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Federal Reserve Bank of St. Louis
123
VA.CATIONS
who because of the nature of the industry must often change employers through no fault of his own. On the other hand, it constitutes a burden on the employer to grant _paid vacations to employees
whom he has perhaps employed for onfy a short while. To overcome these difficulties, "vacation funds" have been created for
separate district.s, into which each employer of the trade in question
pays a contribution. These funds then provide the money for the
vacations granted to the workers of that trade, and also sometimes
assist the workers in case of unemployment in winter, of sickness,
and of leave of absence from an unusual cause. As examples of these
vacation funds may be quoted the benefits granted by the following
funds of the stone-paving trade:
D7!8aeldorf-Bochum agreement of March 7, 1921
1. Six days' vacation.
2. Indemnity equivalent to one day's earnings for working time lost through
births and deaths within the family (parents, consort, children, and parentsin-law who belong to the household of the employee).
3. Indemnity in case of sickness of the employee exceeding one week.
Hamburg agreement of February
10, 19ee
1. Assistance in winter time.
2. Payment for vacation.
The employee can choose either of these two forms of assistance, but can not
receive both the same year.
Brunswick-Goslar agreement of January 28,
wee
1. Six days' vacation.
2. H the worker is unable to work for personal reasons, without his fault, or
because of a birth, death, or sickness within his family, he receives indemnity not
exceeding one day's wages for the lost working time.
Leipzig agreement of June 1,
wet
1. In case of sickness, the worker getsanindemnityforthedays (waitingperiod)
for which he is not indemnified by the national sick insurance fund.
2. In case of a birt)l or a death within his immediate family, the worker receives
an indemnity not exceeding one day's wages.
3. In case of unemployment in winter the worker receives a supplement to his
unemployment allowanca for eight weeks.
4. Six days' vacation, which, however, is granted only in case the worker does
not claim assistance under clause 1, 2, or 3.
Special provision is made in the case of an employee who leaves the
district covered by a vacation fund without having enjoyed it.s
benefits. The by-laws of the vacation funds of the stone-J>aving
trade of Bielefeld~ Dusseldorf-Bochum, Hamburg, Lubeck, Bonn,
Coblenz, Brunswic.ir-Goslar, and Leipzig stipulate that if an employee
leaves the district without having taken his vacation, the unexpended
sum shall be transferred to the fund of the district where he finds
employment. The by-laws of some funds, moreover, provide that
if an employee quits his trade (e. g., on account of complete disabilit:y) without having drawn on the fund, he may receive an indemmty equal to a specified per cent of the benefits to which he
was entitlea.
Statistics as to the effect of the granting of vacations upon the
yearly working time of employees are not available. Two statements,
both from employers, may be mentioned for what they are worth.
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Federal Reserve Bank of St. Louis
124
CHAPTER V.-HOURS OF LABOR
At the end of 1920 the German Railway Ministry estimated that
on account of the extension of vacations as compared with pre-war
times, it had to employ an additional force of 26,517 (with a total
force of about 1,000,000). The average yearly days of work per
employee in the railway repair shops are stated to have been reduced
from 300 to 280 on account of the extension of vacations. The
ministry also complained of the increase in sick leave due to the
fact that at that time employees, if absent for more than three days,
were obliged only to present a physician's certificate.
A large electrical machinery concern in 1907 granted a vacation
of six days a year to male workers over 30 years old who had been
emf)loyed more than eight years in the establishment, and to female
workers over 25 years who had over five years' service. The average
number of vacat10n days per worker was then 0.86 f9r male workers,
0.14 for female workers, and 0.63 for all workers. The progressive
extension of vacations by collective agreement after the war resulted
in average vacation days per worker in 1920 of 3.9 and in 1922 of 5.2.
The days of sick leave per male emJ>loyee rose from 8.97 in 1913 to
11.57 in 1921 and such days per female employee from 16.64 to 31.31.
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Federal Reserve Bank of St. Louis
Chapter VI.-WAGES AND EFFICIENCY OF LABOR
GENERAL TREND OF REAL WAGES
Before the war there was no country in continental Europe that
had higher nominal or real wages than Germany, only British,
American, and Australian workers enjoying a better living than
German workers. Immediately after the outbreak of the war
nominal wages of many workers, and especially female workers, in
Germany decreased, although.cost of living increased-a consequence
of the great unemployment which then prevailed. This was the
case for workers employed in mines, stone quarries, and the electric,
chemical, textile, leather, clothing, and printing industries, while
workers employed in metal working, woodworkin~, and the machinery-,
paper, and food industries at once received higher wages than m
peace times. In the course of the war nominal wages increased in all
mdustries, but real wages probably increased only in the war industries
proper. There doubtless occurred a decrease of real wages for miners,
stonecutters, textile workers, leather workers, printers, and in the
food industries, this decrease being on the whole larger for men than
for women. It was especially large for Government and municipal
employees, whose nommal wages were not raised before 1918 and very
little then. It is impossible to give statistics on real wages, as
statistics on the cost of living before 1919 are not available.
Table 46 shows for Greater Berlin the nominal weekly wages of bricklayers and of printers as fix~d by collective agreement, and the weekly
mmimum cost of subsistence for a married couple with two children
from 6 to 10 years of age, for 1913-14, and for each month from
January, 1920, to December, 1924. From July to December, 1923,
when, on account of the depreciation of the currency, wages changed
very of ten, fig11res are shown for each fortnight. The bricklayers
receive no family allowance, but the printers receive an allowance if
they are married.
TABLE 46.-WEEKLY WAGES OF BRICKLAYERS AND OF PRINTERS IN BERLIN AND
MINIMUM COST OF SUBSISTENCE, AND INDEX NUMBERS THEREOF, JANUARY,
1920, TO DECEMBER, 1924
(1913-14-1)
Wages of bricklayers
Wages of printers
Month
Amount
Index
numbers
Mark8
1913-14..........•....
41.82
157. 96
185. 09
204. 70
253. 35
265. 03
299
312. 80
312. 80
312. 80
312. 80
312. 80
312. 80
20168"-25t-9
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Federal Reserve Bank of St. Louis
Index
numbers
Mark8
1
1920
January.•.•••••••••••
February ••••••••••••
March ••••••••••••••.
April •••••••••••••••••
May •••••••••••••••••
June •••••••••••••••••
July.•••••••••••••••••
August•••••••••••••••
September •••••••••••
October..••••••.••.••
November •••••••••••
Decemher ••.••••.•••.
Amount
3.8
4. 4
4. 9
6.1
6.3
7. 1
7.5
7.5
7.5
7.5
7.5
7.11
34.38
160. 50
160.50
160.50
160. 50
210.50
235.50
248. 83
250.50
250. 50
250. 50
270.50
270. 50
Minimum cost of subsist•
ence of married couple
with two children
--Amount
Index
numbers
Marks
1
4. 7
4. 7
4. 7
4. 7
6. 1
6. 8
7.2
7.3
7.3
7.3
7.9
7.9
1
28.80
220
7. 7
8
11. 2
13.0
12. 7
10.6
ll3
10. 7
10.4
ll0
11.0
11.3
s.
254
322
375
365
304
324
308
299
318
316
327
125
126
CHAPTER VI.-WAGES AND EFFICIENCY OF LABOR
TABLE 46.-WEEKLY WAGES OF BRICKLAYERS AND OF PRINTERS IN BERLIN AND
MINIMUM COST OF SUBSISTENCE, AND INDEX NUMBERS THEREOF, JANUARY,
1920, TO DECEMBER, 1924-Concluded
Wages of bricklayers
Wages of printers
Minimum cost of subsistence of married couple
with two children
Month
Amount
1921
January ______________
February_ •• _________
March. ______________
April _________________
May _________________
June_--------------July __________________August _______________
September ___________
October ______________
November •• _________
December____________
1922
January ______________
February. ___________
March. _____________ •
April ••••• ____________
May. ________________
June.·------------·-July
__________________
August _______________
September ___________
October··-----------November.------·--December•••••.•.•.. _
Marka
312. 80
322. 86
324. 30
324. 30
324.30
324. 30
332. 79
356. 24
377. 38
427. 80
458. 14
547.31
7.5
7. 7
7. 7
7. 7
7. 7
7. 7
8. 0
8. 5
9.0
10. 2
11.0
13.1
586.06
621
715. 56
966
1,196
1,472
1,692
2,008.67
3,552.62
5,052.92
7,985.60
14,950
14. 0
14.8
17.1
23.1
28. 6
35. 2
40. 5
48.0
85.0
ll'JJ.8
191.0
357. 5
1923
January ______________
February_____________
March.·-·------·---April ___________ • _____
May _________________
22,572
48,300
69,283
78,660
89,634
185,344
June_---------------·
July 1-15_____________
536,443
July 16-31..
•••••••• __ 1,077,852
Aug.
1-15____________
6,203,813
Aug. 16-31.. _________ !2, 569,207
Sept. 1-15. ___________
1131. 8
Sept. 16-30___________
1 998. 2
Oct. 1-15_____________
18,040.4
Oct. 16-31.. __________ 1 334,213. 7
Nov. 1-15 ____________
2 5,789.6
Nov. 16-30••• ________
1 28,116
Dec. 1-15 •.•• ________
• 32. 44
Dec. 16-31.. _________
a 32. 44
Rentenmarka
1924
January______________
29.20
29.20
29.64
April_ ___ •••••• __ •• ___
37.19
39.39
May--······--------June
_________________
39.39
July __________________
39.39
August _______________
39.39
September ___________
39. 39
October ______________
44.49
November ••••.••••..
44.49
December••••••••••••
44.49
r:t~":~-_-:::::::::::
1
Millions.
Index
numbers
•Billions.
Amount
Marka
270.50
285. 50
285. 50
285. 50
285.,'iO
285. 50
285.50
295.88
321. 26
393. 88
418
533. 56
553
613
642. 63
773
933
1,093
1,393
1,638.19
2,622.23
4,345.31
7,337.24
12, 773
537. 7
20,769
1154. 9
43,125
1656. 7
69,606
lSSO. 9
72,141
2143. 3
86,350
4431. 9
199,690
12829. 8
441,000
25773.6
925,714
148346
6,534,615
1017915
39,784,143
1 100. 2
3151129
1 23. 9
1 675
1192.2
17,269.2
17991. 7
13,~m_4
1 138. 4
1 672.3
1 24,200
127
. 78
127
•. 78
•
•.70
••.• 7170
.89
••.94
••.94
. 94
•.94
•
• 94
• 1.06
• 1. 06
• 1.06
Index
numbers
7.9
8. 3
8. 3
8. 3
8. 3
8. 3
8. 3
8. 6
9.3
11. 5
12. 2
15. 5
16.1
17.8
18. 7
22. 5
27.1
31.8
40.5
47. 6
76. 3
126.4
213. 4
371.5
• Rentenmarks.
•.79
•. 79
•.79
1 .87
•.92
•.98
.98
•.98
.98
•• 98
'1.16
• 1.16
•
•
Index
numbers
Marks
320
313
298
281
285
311
324
339
349
386
.
11.1
10. 9
10. 3
9.8
9.9
557
lo.8
11.2
11.8
12.1
13.4
17. 7
19.3
548
627
789
915
995
1,195
1,.763
2,958
4,714
7,508
16,271
24,994
19.0
21.8
27.4
31.8
34. 5
41. 5
61.2
102. 7
163. 7
260. 7
565.0
867.9
509
604.1
37,167
1254. 4
81,039
71,121
2024.6
74,772
2098. 3
2511. 6
121,921
5808. 3
252,582
12827. 2
688,589
26926
1,201,751
9,245, ()89
190070
1157189
24,622,120
1170.6
2913143
1 683. 3
119.6
1 7,104.9
1211.4
19307.8
1 266,556
• 4,498.8
' 128. 4
1 703.9
I 35,651.6
•33.04
•. 79
•.79
• 28. 73
Rentenmaru
27
27
27.23
30.00
31.47
33.60
33.60
33.60
33. 60
33.60
40.00
40.00
Amount
129Q. 5
2813. 8
2608.4
2596. 3
4233. 4
8770.2
23909.4
41727. 5
321031
854935
5924323
1 23. 7
1 246. 7
1 9255. 4
I 156. 2
• 1237. 9
'1.15
Rentenmarka
27. 74
26. 55
26. 91
28.49
29.29
28.43
29.28
28. 81
29. 76
31. 30
31. 22
31.13
'1.00
•••• 9692
•.93
•.99
'1.02
•.99
• 1. 02
'1.00
•1.03
• 1.00
•1.os
'1.08
• Based on rentenmarks.
The weekly wages of the Berlin bricklayers-which have been
calculated by taking into account the working time fixed by agreement for the various periods of the year and by multiplying the
hourly wages of pre-war time by 51 and those paid after the war by
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Federal Reserve Bank of St. Louis
GENERAL TREND OF REAL WAGES
127
46-amounted before the war to $9.96 (41.82 marks). In January,
1920, at the exchange rate they were but $2.44 (157.96 marks), and
in February not more than $1.87 (185.09 marks). They then rose
to $7.92 in July, but dropped again to $4.05 in November and
amounted to $4.29 in December. In 1921 they varied between
$1.74 in November and $5.27 in February, in 1922 between $1.11 in
November and $4.63 in June, and in the first seven months of 1923
between $1.26 in January and $3.22 in April. From August to
November wages and dollar quotations changed so often that no
comP.arison seems possible. From November 21, 1923 (after the
stabilization of the mark), to January 1, 1924, wages amounted to
$7.73; from ,January 2 to March 25, 1924, to $6.95; from March 26
to April 8 to $7.50; from April 9 to September 30 to $9.38; and since
October 1, to $10.59. Calculated in dollars, wages in 1920 were from
19 to 80 per cent of what they had been in pre-war times; in 1921
from 18 to 53 })er cent; in 1922 from 11 to 47 per cent; in the first
seven months of 1923, from 13 to 32 per cent; in December, 1923, 78
per cent; in January and February, 1924, 70 per cent; in March,
1924, 71 per cent; in April, 1924, 89 per cent; from May to September, 1924, 94 per cent; and since October, 1924, 106 per cent.
Before the war the weekly wages of bricklayers were 45 per cent
higher than the minimum cost of subsistence of a family of 4 persons.
In the year 1920 they were 13 per cent lower than the minimum; in
1921, 4 per cent higher; in the first half of 1922, 10 per cent higher;
in the third quarter, 23 per cent lower; in the fourtli quarter, 43 per
cent lower; in the first quarter of 1923, 26 per cent lower; and in the
second quarter, 21 per cent lower. In the following months fluctuations were so phantastic that a computation of averages would be
misleading. In the first half of August, for example, wages were 33
per cent lower and in the second half of August, 73 per cent higher
than the minimum cost of subsistence; in the first half of September
they were 23 per cent lower and in the second half 46 per cent higher.
A clear relation between wages and the minimum cost of subsistence
prevailed only toward the end of the year, after the stabilization of
the mark. In December, 1923, and in January, 1924, wages were 5
per cent higher than the minimum cost of subsistence, in February
and March they were 10 per cent higher, in the second and third
quarters 35 per cent higlier, and in the fourth quarter 43 per cent
hig!:ler.
The weekly wages of married printers over 24 years old-since
1919 the printers receive an allowance for the wife, but no children's
allowance-at the exchange rate amounted before the war (with a
working time of 53 hours) to $8.19 (34.38 marks), and in January,
1920 (with a working time of 48 hours) to only $2.48 (160.5 marks).
Their wages decreased further to $1.62 in February, increased to
$6.30 in July, dropped to $3.50 in November, and amounted to $3.71
in December. In 1921 they varied between $1.59 in November and
$4.66 in February; in 1922, between $1.02 in November and $3.44
in June; in the first seven months of 1923, between $1.16 in January
and $3.28 in March. From August to November a computation of
wages in dollars is impossible. From November 21, 1923, to March
28, 1924, the weekly wages amounted to $6.43; from March 29 to May
2, to $7.14; from May 3 to 30, to $7.50; from May 31 to October 31,
to $8, and from November 1 on to $9.52. Calculated in dollars, wages
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Federal Reserve Bank of St. Louis
128
OHA.PTER VI.-WAGES AND EFFICIENCY OF LABOR
in 1920 were from 20 to 77 per cent of what they had been in pre-war
times; in 1921 from 19 to 57 per cent; in 1922 from 12 to 42 per cent;
in the :first seven months of 1923 from 14 to 40 per cent; from December, 1923, to March, 1924, 79 per cent; in April, 1924, 87 per. cent;
in May, 1924, 92 !!._er cent; from June to October, 1924, 98 per cent;
in November and December, 1924, 116 per cent. ·
Before -the war the weekly wages of printers were 19 per cent
higher than the minimum cost of subsistence. In the year 1920
they were 30 per cent lower than that minimum; in the year 1921, 8
per cent lower; in the :first half of 1922, 9 per cent lower; in the. third
quarter, 40 per cent lower; in the fourth quarter, 50 per cent lower;
in the :first quarter of 1923, 31_per cent lower; in the second quarter,
20 per cent lower. In the following months the same tops:r-tµrvy
con<litions prevailed as with the bricklayers. In the :first half of
August, for example, wages were 29 per cent lower than the minimum
cost of subsistence, while in the second half therwere 62 per cent
higher. In December, 1923, wages were 12 per cent lower than the
mmimum cost of subsistence; in the :first quarter of 1924, they were
just as high as the minimum cost of subsistence; in the second
quarter, 10 per cent higher; in the third quarter, 15 per cent higher;
and in the fourth q_uarter, 21 per cent higher.
The wages of bncklayers, which before the war had been 45 per
cent ~her than the minimum cost of subsistence, were lower tlian
that minimum in 28 of the 60 months under considerti,tion (January,
1920, to December, 1924). The wages of printers, which before the
war exceeded the minimum cost of subsistence by 19 per cent, did
not reach it in 43 months; they exceeded it only in April, Ma.Y, and
October, 1921, January, 1922, August and October, 1923, and February to December, 1924. The real wages of bricklayers were not even
half as bkh as before the war in January, Marcli, AJ>ril, and May,
1920, in August, 1922, and from October, 1922, to February,1923.;
they were more than.three-fourths as !ugh only in ~pril, May, ana
October, 1921, in May and June, 1922, m -August, September, and
October 1923, and from February to December, l924. The real
wages of printers, which 10 yea.rs ag~ were much lower than those of
bricklayers, were not even lialf as high as before the war in March,
April, and May, 1920, and from A~t, 1922, to Febru&.rY,, 1923;
tliey were more than tbree-fourths as high from February to June, in
September, October, and December, 1921, in January, February,
ana May, 1922, in April, August, and October, 1923, and since
January, 1924. In no month from January, 1920, to October, 1924,
were real w~es of bricklayers or printers higher than in pre-war
times.
·
AB a matter of comparison may be quoted the real weekly wages
for Germany computed by the Federal Statistical Office, weighted
averages of the wages of miners, building workers, woodworkers
metal workers, textile workers, and factory workers in the chemicd
and paper industries, ·printers, and Government workers being
divided by the cost-of-living index. It must, of course, be home in
mind that such weighted averages a.re only approximately coITeet,
and that the official cost-of-living index includes only cost of food,
housing, fuel, light, and· clothing.
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Federal Reserve Bank of St. Louis
129
GENERAL TREND OF REAL WAGES
TAllLB 4.7.-BEAL WEEKLY WAGES OF SKILLED AND UNSKILLED WORKERS IN THE
trimt~IflL GERMAN INDUSTRIES, APRIL, 1922, TO SEPTEMBER, 1924, BY
[1913-100)
Skilled workers
Year and month
Amount
1913_______________________________________ _
l92'J-tu~-::::::::::::::::::::::::::::::::::::::::::::
October _________________________________________ _
1923-J'anuary ----------------------------------------
.Marki
35.02
25.17
25.03
19. 20
17.05
f:~ ::::::::::. :::::::::::::::::::::::::::::
tfa1-::::::::::::::::::::::::::::::::::::::::::::
;rune
____________________________________________ _
luly
·-----------------------------------------Augulll: ----------------------------------------
22.23
October _________________________________________ _
September_-------------------------------------
21.42
18.22
November __ ------------------------------------192i-1auuary
December.• ______________________________________
.--------------------------------------_
18.66
24.53
25.34
:::r~::::::::::::::::::::::::::::::::::::::::
tfat-:::::::::::::::::::::::::::::::::::::::::::
August.
_________________________________________ _
luly
-------------------------------------------·September
_____________________________ _
lune ____________________________________________ _
27.57
25.96
22.80
22. 79
16. 80
Zl.52
26.811
27.17
27.93
29.52
31.26
30.86
3L29
30.52
Index
numbers
UDllkllled workers
Amount
Index
numbers
.Marki
100. 0
71.9
7L5
M.8
48. 7
63.6
78. 7
74. 1
65.1
65.1
48.0
67.2
61.2
52.0
53.3
70. 1
73.8
78.3
79.1
8L3
85.9
91.0
89.8
91.1
88.9
24.31
22. 71
22. 79
17.19
16.45
19.98
24. 79
23.34
20.46
20.42
16. 06
2LOO
19.02
16. 74
16.04
20. 66
21.22
22.07
2L65
2L64
22.88
23.90
23.59
23.93
23.32
100.0
93.4
93.8
70. 7
63.6
82.2
102.0
96.0
84.2
84.0
62.0
86.4
78. 2
64.8
66.0
85.0
88.4
92.0
90.2
90.2
116.3
119.6
118.3
99. 7
117. 2
Table 48 shows for Greater Berlin the nominal yearly salaries of
bank helpers (Group 1), bank clerks doing simple work (Group 2),
and banJr clerks domg responsible work (Group 3), as fixed by collective agi:eement, and the minimum cost of suosistence for a married
couple with two children from 6 to 10 years, for 1913-14, and for each
month from Febru~, 1920, to December, 1924. AB no collective
agreement was in force before August 1, 1920, the figures for 1913
represent aver~e actual e ~ , and those from February to JulyL
1920, the salanes uniformly fixed b~he banks. The salaries 01
the bank employees are graaed accor · to years of service. They
receive allowances for wife and each chil , and a bonus at Christmas.
The table gives the salaries (including bonuses) in each group for
married bank employees in their tenth year of service, with two
children of 6 to 10 years.
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Federal Reserve Bank of St. Louis
CHAPTER VI_.-W AGES AND :SFFICIENCY OF LABOR
130
48-YEARLY SALARIES OF MARRIED BANK EMPLOYEES IN BERLIN, WITlJ
TWO CHILDREN, AND MINIMUM COST OF SUBSISTENCE, AND INDEX NUMBERS
THEREOF, JANUARY, 1920, TO DECEMBER, 1924
TABLE
[1913-14= lj
Minimum cost of
subsistence
Group 3
Group 2
Group 1
Month
Amount
Index
numbers
Index
numbers
Amount
Amount
Index
numbers
Amount
Index
numbers
--1913-14 _______
Marks
2,165
1920
January ______
February ____
March _______
April _________
May--------June
_________
July __________
August _______
September ___
October ______
November ___
December ____
Marks
Marks
1
3,525
1
3,210
Marks
1
----------4. 1
1,502
1
7. 7
5. 8
5. 9
5. 9
5.9
5.9
7.5
7. 5
7. 5
7. 5
7. 5
14,000
14,000
14,200
14,200
14,200
14,200
18,120
18,120
18,120
18,120
18,120
4. 4
4. 4
4.4
4. 4
4.4
4.4
5. 6
5. 6
5. 6
5.6
5. 6
14,500
14, 700
14,700
14,700
14, 700
18,620
18,620
18,620
18,620
18,620
4.1
4.2
4.2
4. 2
4.2
5. 3
5. 3
5.3
5.3
5,3
11,500
13,250
16, 750
19,550
19,000
15,850
16,900
16,050
15,550
16,550
16,450
17,050
8. 8
11.2
13.0
12. 7
10.6
11. 3
10. 7
10.4
11.0
11.0
11.3
19,944
19,944
19,944
19,944
19,944
19,944
27, 704
27, 704
27,704
27, 704
27,704
27, 704
9.2
9. 2
9.2
9. 2
9.2
9.2
12. 8
12. 8
12. 8
12.8
12. 8
12. 8
22,248
22,248
22,248
22,248
22,248
22,248
30,008
30,008
30,008
30,008
30,008
30,008
6. 9
6.9
6.9
6. 9
6.9
6. 9
9.3
9.3
9.3
9. 3
9,3
9.3
22,848
22,848
22,848
22,848
22,848
22,848
30,608
30,608
30,608
30, e-os
30,608
30,608
6. 5
6. 5
6.5
6. 5
6. 5
6. 5
8. 7
8. 7
8. 7
8. 7
8. 7
8. 7
16, 700
16,350
15, 550
14,650
14,850
16,250
16,900
17, 700
18,200
20,150
26,550
29,050
11.1
10.9
10. 3
9.8
9.9
10.8
11.2
11.8
12.1
13. 4
17. 7
19.3
January ______
39,184
February ____
43,384
March _______
46,984
April__ _______
58,804
May _________
58,804
June _________
64,358
July __________
90,577
August__ _____
176,373
September ___
217,236
October ______
370,993
November ___
612,528
December ____ 1,039,081
18.1
20.0
21. 7
27. 2
27. 2
29. 7
41.8
81. 5
100. 3
171.4
282. 9
479. 9
41,488
45,688
49,288
61, 757
61,757
67,691
94,997
185, 121
230,312
394,295
649,296
1,093,474
12. 9
14. 2
15. 4
19. 2
19. 2
21.1
29.6
57. 7
71.1
122.8
202. 3
340.6
42,088
46,288
49,888
62,522
62,522
68,554
96,137
187,389
233,695
400,321
658,822
1,107,549
11. 9
13.1
14. 2
17. 7
17. 7
19. 4
27.3
53. 2
66.3
113. 6
186. 9
314. 2
28,600
32, 700
41,200
47,700
51,900
62,350
91,950
154,350
245,850
391,650
848,800
1,303,900
12,500
12,500
12, 700
12, 700
12, 700
12, 700
16,200
16,200
16,200
16,200
16,200
1921
January ______
February ____
March _______
u,rn _________
ay _________
June _________
July __________
August_ ______
September ___
October ______
November ___
December ____
1922
1923
January ______
February _____
March ________
April__ _______
May--------June
_________
July __________
August _______
September ___
October ______
November ___
December ____
1924
January ______
February_____
March _______
April__ _______
May _________
1une _________
1,653,060
3,833, 721
4,607,444
4,745,919
7,808, 718
18,346, 114
1115.4
1930.4
I 38,391.6
2 4,930.5
I 996, 777
'1,969
----------5.8
763, 5
1,750,992
4,064,820
1770. 8
4,874,062
2128. 1
5,019,856
2192. 1
8,362,052
3606. 8
8474. 0 19,689,920
1 124. 4
53284. 5
1 1,003.0
429740
I 46,552.3
I 17. 8
I 6,058.4
I 2272. 8
2 460.4
'1,224,823
'2,484
.82
'
Rentenmarks
July __________
August _______
September ___
October ______
November_ __
December____
2,011
2,011
2,362
2,449
2,449
2,426
2,592
2,592
2,592
2,592
2,592
2,703
I Millions.
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Federal Reserve Bank of St. Louis
- -----------
• .93
• .93
• 1.09
• 1.13
• 1.13
• L 12
• I. 20
'1.20
• 1.20
'l. 20
• 1.20
'1.25
•Billions.
1,874,640
545. 5
4,358,424
1266. 3
5,212,770
1518. 4
5,370,434
1563. 8
9,048,184
2605. 0
6133. 9 21,356, 271
1135. 5
38745. 3
11,093. l
312468
I 54,935.8
I 14. 5
I 1887. 3
'7,190.3
1 1,453,666
2 381.6
3 2,600
• 71
'
1,938,900
531. 8
4,227,600
1236. 4
3,918,850
1478. 8
1523. 5
3,900,600
6,360,200
2566. 9
6058. 5 13,176,350
38450. 4 49,408,050
1 886. 7
310097
122,291.4
IJ5.6
I 2039, 8
'7,529. 7
21,047,256
I 412. 4
3 1,609
•, 74
Renten-
Rentenmarks
2,448
2,448
2,799
2,900
2,900
2,873
3,084
3,084
3,084
3,084
3,084
3,224
14,500
'
''•
••
•
• Rentenmurks.
2,906
2,906
3,257
3,409
3,409
3,377
3,639
3,639
3,639
3,639
3,639
3,812
31. 8
34. 5
41.5
61. 2
102. 7
163. 7
260. 7
565.0
867.9
1290. 5
2813. 8
2608. 4
2596. 3
-4233. 4
8770.2
32886. l
590170
Rentenmarks
marks
•. 76
'. 76
.87
•• 90
•.90
.89
• 96
. 96
. 96
. 96
. 96
'1.00
19.0
21.8
27.4
•.82
•.82
'.92
•. 97
•. 97
.96
'1.03
'1. 03
'1.03
• 1.03
'1.03
• 1. 08
'
1,447
1,385
1,404
1,486
1,528
1,483
1,527
1,503
1,552
1,633
1,629
1,624
• Based on rentenmarks.
1
14.8
15011.8
2 697.1
• 1.07
• 96
. 92
••.93
'•. 99
'1.02
' .99
'l.
02
• 1.00
'1.03
'1.09
'1.08
'1.08
GENERAL TREND OF REAL WAGES
181
The averaie yearly salary- of Berlin bank helpers (in their tenth
year of service) amounted, before the war, to $516 (2,165 marks) .
.According to the rates fixed by the banks from February, 1920, on,
the yearly salary of such helpers (including allowances for wife and
two children) at the dollar exchange rate was only $126 in Februa.ry
($10.50 per month). It rose to $325 in June and was $322 in July.
At that time the employees succeeded in obtaining a collective
agreement by which their yea!'lY nominal wages, wliich had been
12,500 marks in February and March, and 12 700 marks from April
to July, were increosed to 16,200 marks for the last five months of
the year. But as the dollar exchange had already risen considerably
in August and rose still more in the following months, the yearly
salary of bank helpers, calculated in dollars, was not more than $339
in August, droppmg in November to $210. In 1921, the yearly
salary varied between $105 in November and $361 in July; in 1922
between $85 in November and $209 in February; in 1923 between
$92 in January and $469 in December. It was $479 in January and
February, 1924, $562 in March, $583 in April and May, $578 in
June, $617 from July to November, and $644 in December. Salaries,
calculated in dollars1 were thus in 1920 from 24 to 66 per cent of
what they had been m pre-war times; in 1921 from 20 to 70 per cent;
in 1922 from 16 to 41 per cent; in 1923 from 18 to 91 per cent; in
January and February, 1924, 93 per cent; in March, 109 per cent;
in April and May, 113 per cent; in June, 112 per cent; from July to
November 120 per cent; and in December, 125 per cent.
Before the war the average yearly salary of bank helpers was 44
per cent higher than the minimum cost of subsistence of a family of
four persons (i. e., their salary was equal to the wages of bricklayers,
but they had the advantage of being, as a rule, employed all the year
round). In the year 1920 (February to December), their sala:rr was
19 per cent lower than that minimum; in 1921, 28 per cent higher;
in the first half of 1922, 18 per cent higher; in the third quarter, 2
per cent lower; in the fourth quarter, 21 per cent lower; in the first
quarter of 1923, as high as the minimum cost of subsistence; in the
second quarter, 32 per cent higher; in July, 1923, 133 per cent higher;
in August, 1923, 5 per cent higher; in September, 1923, 72 per cent
higher; in October, 1923, 35 per cent lower; in November, 1923, 5
per cent lower. From December, 1923, on, it always exceeded that
minimum-in December, by- 22 per cent, in January, 1924, by 39,
in February by 45, in March by 68, in the second quarter of 1924
by 63 per cent, in the third quarter by 70 per cent, and in the fourth
quarter by 61 per cent.
The average yearly salary of the Berlin bank clerks (in their tenth
year of service) doing responsible work (those doing simple work, of
course, have a smaller income) amounted before the war to $839
(3,525 marks). According to the rates fixed by the banks from
February, 1920, on, the yearly salary of such clerks (including allowances for wife and two children) at the exchange rate was only $146
in Februfl.ry ($12.20 per month). It rose to $376 in June and was
$372 in July. The collective agreetnent which went into force on
.August 1 did not help these clerks much, as the dollar exchange rate
rose at the same time; in November their salary dr~ped to $241.
In 1921 their yearly salary varied between $116 in November and
$399 in July; in 1922, between $92 in November and $223 in Febru-
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Federal Reserve Bank of St. Louis
132
CHAPTER VI.-WAGES AND EFFICIENCY OF LABOR
ary; in 1923, between $104 in January and $663 in November. It
amounted to $619 in December, 1923, $692 in January and February,
1924, $776 in March, $812 in April and May, $807 in June, $886
from July to November, and $908 in December. Salaries calculated
in dollars were thus in 1920 from 17 to 45 per cent of what they had
been 'in pre-war times; in 1921 from 14 to 48 per cent; in 1922 from
11 to 27 per cent; in 1923 from 12 to 79 per cent; in January and
Febru!',ry, 1924, 82 per cent; in March, 92 per cent; and in A_pril
and May, 97 per centb·in June, 96 per cent, from J-qly to November,
103 per cent; and in ecember, 108 _per cent.
Before the war the average yearly salary of bank clerks doing
responsible work was 135 per cent higher than the minimum cost of
suosistence for a family of four persons. In 1920, which was one
of the most prosperous years German banks ever had, the sal~ of
bank clerks doing responsible work did not quite reach the minimum
cost of subsistence for a. family of four persons, but lagged a.bout
1 per cent behind. In 1921 theu- salary was 44 per cent liigher than
that minimum; in the first half of 1922 it was 25 per cent higher; in
the third quarter 5 per cent higher; in the fourth quarter, in spite of
a great boom in banking business, it was 15 per cent lower. In the
first quarter of 1923 it was 13 per cent higher; in the second _qua.rter
53 per cent higher; in July, 1924, 174 per cent higherj in .August,
24 per cent higher; in September, 146 per cent higher; m October, 5
per cent lower; in November, 39 per cent higher; in December,. 62
per cent higher. In the twelve months of 1924, salaries exceeded
the minimum cost of subsistence by 101, 110, 132.z. 129, 123, 128,
138, 142, 134, 123, 123, and 134 per cent, successively.
The salary of bank helpers, which before the war had been 44
J>er cent higher than the minimum cost of subsistence, was lower
than that minimum in 18 of the 59 months under consideration
(Febru&.!"Y, 1920 to December, 1924). The salary of bank clerks doing
responsible work, which before the war exceeded the minimum cost
of subsistence by 135 per cent, did not even reach this minimum in
10 months (March to July, 1920, September, November,· and De-·
cember 1922, January and October, 1923). The real salary of bank
helpers was less than half as ~has before the war in April and May,
1920, and in October, 1923; 1t was higher than before the war m
July, August, and September, 1921, in July and September, 1923,
and from and after February, 1924. The real salary of bank clerks
doing responsible work was less than half as }mzh as before the war
from February to August, 1920 (in A_pril and 'Ma;y: less than onethird as high): from October to December, 1920, in December, 1921,
in June and July, 1922, from September, 1922, to February, 1923
(in November, 1922 less than one-third as high), and in October,
1923; it was higher than before the war in July and September, 1923,
and from July, 1924 on.
.
In conside~ these figures it must always be borne in mind that a
computation of real wages in times of rapid inflation can never lead to
exact results. When a concern for some reason had no cash on hand
on a certain day with which to pay wages-and this happened very
often since the Reichsbank was unable to print the necessary notes
(whose nominal value always rose) quickly enollf:h-the workers who
got their wages a day later than their colleagues m a neighboring concern received real wages perhaps 20 per cent less. Moreonr,
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GENERAL TREND OF REAL WAGES
monthly, fortnightly, and even weekly indexes of cost of livi~ cover
far too long_ periods when cost of livmg doubles or trebles within a
week. Real wages therefore changed much more than mi~ht be concluded from Tables 46 and 48. Some light on actual conditions will be
thrown by Table 49, which shows the nominal wages and the trend·of
real wages of skilled and unskilled workers in tne Berlin chemical
industry: from October 1 to November 15, 1923, each pa1, day (that
observed by most of the large establishments) being considered separately and the cost-of-living index, ascertained by the Federal Statistical Office on Mondays, being assumed to increase each day within
the week by the same percentage. It will be seen that the skilled
worker, who before the war received 38.88 marks per week, got on
October 1, 1923, 500,000,000 marks and on October 5i 861,000,000
marks. He then had to live on those 500,000,000 marks four days.
As the cost-of-living index for those four days was 49228909, the real
value of those 500,000,000 marks was then 10.16 marks. As in prewar times he earned 38.88 marks per week and thus had 22.22 marks
to spend in four days, his real wages from October 1 to October 4, 1924,
were 45. 7 per cent of what they were in pre-war times. In the following three days, from October 5 to October 7, he made 861,000,000
marks, which constituted 61 per cent of his real wages before the war.
At other times his real wages were much lower. The billion marks
which he received on October 13 and which had to last him three days
were worth only 9.2 per cent of his real wages in pre-war times. It is
interesting to note that unskilled workers who before the war received
27 marks per week received on pay days when a lump sum was disbursed to the skilled workers (500,000,000, 1,000,000,000, 1001qQO,OOO,OOO, and 500,000,000,000 marks) just as much as those skilled
workers, while on other pay days they, of course, got less. This also
shows the arbitrary state of wage conditions and the difficulty of reducing them to statistical form.
TABLB 49.-NOMINAL WAGES AND INDEX NUMBERS OF REAL WAGES OF CHEMI•
CAL WORKERS IN BERLIN, OCTOBER 1 TO NOVEMBER 15, 1923
Index numbers of
real wages (1914-
Nominal wages
Payday
11123
Oct. 1. ••••••••••••••••••••••••••••••••••
Oct. 5 ••••••••••••••••••••••••••••.••••••
Oct. 8•••••••••••••••••••••.•••••••••••••
Oct. 10••••••••••••••••••••••..•••.••••••
Oct 13•••••••••••••••••••••••.••••••••••
Oct. 16•••••••••••••••••••••••••••.••••••
Oct. 19••••••••••••••••••••••••••••••••••
Oct. 23 •••••••••••••••••••••••••••••••.••
Oct. 26 ••••••••••.••••••••••••••••••••.••
Oct llO ••••••••••••••.•••••••••••••..••.•
Nov. 2. ••••••••••••••••••••••••••••••••••
Nov. Ii •••••••••••••••••••••••••••••••••
Nov. 8. ••••••••••••••••••••••••••••••••••
Nov. 13••••••••••••••••.•••••••••.•••••••
Nov
lJI
············-·-······-········-
100)
Cost-of•llvlng
Skilled
workers
.Million
maru
500
861
500
1,662
1,000
5,178
7,236
23,000
112,620
100,000
219,800
5()(),000
1,744,640
50D, 000
3,426,800
Unskilled lndex(l 9l3-l4-1) Skilled UDSkllled
workers workers
workers
.Million
marka
500
49228009
500
1,470
1,000
4,630
7,126
23,000
109,500
100,000
191,800
5()(),000
1,582,400
5()(),000
3,038,000
142658303
739
84703840
290167223
654973940
1237091762
2905184024
6139164472
12028502200
31790818300
79196610100
136568449000
193598867000
320064868000
587171153000
45. 7
61.0
3L6
34.4
9.2
25.1
11.2
22. 5
42.1
18.9
16. 7
22.0
32.4
14.1
26.3
65.8
76.4
46.5
43.8
13.2
32. 4
16.9
32.4
59.0
27.2
20.9
31.6
42. 4
20.3
33.5
Since the stabilization of the mark real wages have, of course, also
become more stable, and as the cost of living in 1924 has been
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134
CHAPl'ER VI.-WAGES AND EFFICIENCY OF LABOR
about as lili?h as in pre-war times, even- nominal wages give quite a
good idea ol the trend of wages. Table 50 shows for a number of
trades which have not been considered in Tables 46 and 48 the nominal weekly wages for a married worker with one child. It will be seen
that in these trades there wa.s, in general, an increase of nominal (and
real) wages from January to April, 1924, and that wages in most trades
are lower, in some very much lower, than in pre-war times, while in a
few others workers enjoy higher wages.than they did 10 yea.rs _ago.
TnuSO.-WEEKLY WAGES IN SPECIFIED INDUSTRIES AND OCCUPATIONS IN
BERLIN, JANUARY TO APRIL, 1924
Industry and occupation
Spring, Jan.,
1914
1924
Feb., Mar., Apr.,
1924
1921
1924
Per cent of spring, 1914,
wagee
Jan., Feb., Mar., Apr.,
1924 1924 1921 1924
.Marta Marta Marta Marki Marki
Chemical factories:
Skilled workers _______________________ 3&.88 24.56 24.115 27.00 31.26 63.2 M.2 611. 4
Unskilled workers ____________________ 27.00 22.40 22.40 22.40 23.97 83.0 83.0 83.0
Painting:
Painters ______________________________ 3&. 611
Wbltewashers
________________________
36.M
80.4
88.8
3L88
29.28
30. 72
28.32
30. 72
28.32
33. 73
31.33
8L9
8L2
711.4
78. 6
711.4
78. 6
42.00
35.35
37.35
29. 76
40. 78
46. 80
29. 76
29. 76
36. 72
70. 9
70.9
70.9
87.4
48.13
48.13
48.13 126. 3 115. 5 115. 6
115. ll
38.00
36.50
34.00
33.00
3L21
30.21
3L81
30.81
34.00
33.00
8fl.5
00. 4
82.2
82.8
83. 7
84.4
00.4
42.00
37.80
33.00
26.40
26.40
26.40
27.07
27.07
26. 611
32.·97
32.97
30.68
38.40
88.40
35.M
62. 9
60.8
80.0
M.4
71.6
80.9
78. 6
87.2
92.9
91.4
101.6
106.1
48.00
41.00
Pressers_ - --------------- --------- 38.00
35.00
37.13
31.97
29. 66
38.09
39.42
30.14
27.96
34.00
42.50
30.14
27.96
34.00
42.50 77.3
30.14 78.0
27.96 78. 0
36.22 108.8
82.1
73. 6
73. 7
97.1
88.li
73.5
73. 7
97.1
88.li
73. ll
73. 7
103.5
21.30
32.40
27.40
26.00
19.20
27.40
26.00
19.20
29.80
26.92
21.60
31.00 89.8 89.8 97. 7
27.88 102.9 102.9 110.8
21.60 59. 3 59.3 66. 7
101.6
114. 7
66. 7
42.12
39.96
30. 78
29. 71
24.96
21.84
29. 71
24.96
/dl.84
29.71
24.96
21.84
31.44
Meats:
Sausage factories-Journeymen ________
Small abattoirs-Journeymen _________
Butcher shops-Journeymen__________
Bakeries:
~ eltabllsbments-lourneymen •••
establlsbments-Journeymen. __
Men's tailoring:
· Custom-made clotblngBusbelers
_________________________
Tailors
•• ------------------------Repair workers ___________________
Readcfu=e clothing- ______________
Tailors •• ------------- -- -- -------£:.!Wi:~~-Journeymen _________
Skilled workers _______________________
Unskilled laborers. ___________________
Shoe factories-skilled workers ____________
Machine
and
electrical
Industry:
Skilled
workers..
______________________
Bemlskilled workers •• ________________
Unskilled laborers·---~---------------
30. 51
87.2
86.9
40.30 40.30 40.30 115.4 114.0 114.0 114.0
26.06
21.84
70. 5
62. ll
7LO
70. 5
70.li
62. 5
62. ll
7LO
71.0
1111.11
74.6
65.2
71.0
PIECEWORK
After the revolution workmen frequently refused to continue to
do piecework. Much notice has been given to this refusal, which
is hardly merited by its intrinsic importance. The following survey,
comprismg all the trades in which piecework is done to any considerable extent except mining, where the pay system is different
from that of the general piecework system, shows that piecework
has been only temporarily abandoned and that with a sliort break
in 1919 the trend is essentially the same as before the war, even
be~ accelerated. The aversion of the German workmen to piece.:.
worlt, first expressed in a resolution passed by the Socialist congress
at Brussels in 1891, appears perfectly intelligible when one considers the practical consequences of the piecework system at that timethe sweating to which it gave rise, the unfairness, and the precariousness of the workmen's income therefrom, especially if we remember that it was only in the second half of the nineties that
trade-unions began to exercise a serious influence on wage rates and
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PIECEWORK
185
conditions of labor md to mitigate the abuses of the piecework
system. The increase of power of the trade-unions brouglit about a
total ~hange. The workman was no longer a defenseless individual,
powerless m the grasp of the employer, but could apply to his organization concerning even the daily differences of opinion on the
calculations of piecework Wtlge rates. Of still greater importance
was the development of collective bargaining, which was inaugurated by the traae-unions about 1900. The establishment by mutual
agreement of principles for the calculation of piecework and frequently also of the wage rates for piecework totally changed the
character of the piecework system and at the same time the attitude of the wormen toward it, which had never been uniformly
antagonistic.
Piecework was regulated in three ways: 1. The rates for piecework which had theretofore been fixed by the employer a.lone were
established by agreement and were not to be clianged except by
mutual consent; 2. Such changes were to be based on a more or
less definitely limited standard hourly wage; 3. For new kinds of
piecework, especially in industries in which the types of the work
cha~e often, minimum earnings were frequently guaranteed. In
addition rules were made for the distribution of wages for gang
work. I ; was these gang-work contracts that had, far more than
the contracts of single workmen, caused the aversion of the workmen to J>i_ecework generally, because in a gang the strongest and
most skillful workman was encouraged for his own interest to set
the pace for the rest of the gang. Overtime, Sunday work, and
payment for lost time were also regulated.
During the war piecework in the war industries was on the whole
highly paid and tlie discussion of the question of piecework versus
time work ceased altogether.
On the outbreak of the revolution large numbers of workmen untrained in trade-union principles joined the trade-unions and under
their influence, aided by the general decline in working capacity due
to inadequate nourishment during the war, aversion to piecework
again became pronounced. But even at that time it was not possible to abolish piecework altogether, such abolition being prevented
not only by the employers but by the workmen themselves, b~cause
such an attempt would have ended in dissolution of the trade-unions.
When stability was restored the workmen soon resumed the attitude toward the piecework system which had been prevalent in the
ten_years preceding the war. Let us now consider single trades.
The shoemaking trade has two branches-custom slioemaking and
the manufacture of shoes on a large scale. In both branches of the
trade piecework has always prevailed, and until the union succeeded
in concluding collective agreements in the custom branch it was
opposed to piecework and desired its abolition. These agreements
provided only for negotiating and fixing piece rates, being silent as
to abolition of piecework. Before the war collective a~eements
had seldom been concluded for shoe factories, but during the war a
national collective agreement covering all shoe factories which supplied shoes for the army was concluded through the intervention of
the military authorities, and this collective agreement became the
pattern for another national collective agreement covering all other
boot and shoe factories. In both these agreements piecework was
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CHAPTER VI.-WAGES AND EFFICIENCY OF LABOR
regulated, and by fixing minimum wages the employers were prevented from taking advantage of the piecework system to the prejudice of the workm.en. After the war the workers endeavored to
conclude a national collective agi-eement cont~ a stipulation
that repairs. should be paid for by the hour and that minimum wages
should be fixed for a normal output in piecework. While there was
no general opposition to piecework in 1919, 17 towns abolished piecework and in others the workmen succeeded in getting repairs paid
for by the hour. At the 1920 meeting of the muon a resolution "to
refuse piecework under any circumstances as long as the capitalistic
system _prevails" was passed. At the same trme however, the
prohibition of pieceworlc which had been in the by-iaws since 1894
was revoked. The opposition to piecework soon subsided, and
though the union still demands payment by the hour on principle,
the work of its members has never been permanently influenced
thereby.
The clothing trades include a number of trades ha".'ing little or
nothing in common-the making of custom clothes, the manufacture of ready-made clothing, of soldiers' uniforms, and of women's
ready-made dresses, dressmakil!g, the makinJ? of white goods and
~rie, etc. One peculiarity of all these trad'es, with the exception
of clressmaking, is that home work prevails and therefore payment
by the J?iece. As the result of tlie extreme distress a.mo~ the
workers m a large part of these trades for decades, the workers in
with home and piece work and to
these trades wislied to do
replace it every'1Vhere by wor op or factory work and payment by
the hour, but when the trade-unions became strong enough to force
the conclusion of collective agreements the practice was different.
The establishment of worksho~ was of course promoted, but the
fixing of fair terms for piecework was always regarded as the most
urgent task. With the exception of dressmaking, collective agreements in all these trades were concluded on the basis of payment by
the piece. .It is significant that at the meeting of the union in 1912
a motion to declare in the by-laws "the prohibition of piecework" as
an aim of the trade-union was rejected. In spite of the practice of
piecework, payment by the hour was not altogether abandoned.
After the revolution this system gained in im:{>ortance in connection
with the 8-hour day. Wlien, in the ne~otiat1ons for the conclusion
of a collective agreement in, the men s custom-cloth.!ng trade in
December, 1918z payment by the hour was demanded, the employers
refused positive1y, but :finally a national collective a~eement was
concluded in which· a standard working time was stipulated for the
m ~ of each article of clothes and for each quality, which was to
be paia: for at the local rate of wages per hour. Before the war a
national collective agreement was concluded for the workers in the
manufacture of soldiers' uniforms. Workers who worked on custom
uniforms were included under the national collective agreement of
the men's custom-clothing trade. For contract tailoring a corresponding agreement was not concluded until 1920. In the read_y-mo.declothing trades collective agreements were made at an early date, but,
they were not obset"Ved. Strikes started about 1900 with the object
of abolishing piecework had to be given up without result. In the last
ten years before the war, therefore the trade-unions concentrated on
the regulation of piecework by collective agreement, and as far back
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.abh
PIECEWORK
137
as 1912 admitted that the question of piecework must be decided in
each case according to local and business requirements. The regulation of piecework 'by agreement was somewhat slower in the women's
ready-made-dress trade than in the men's ready-made-clothing trade,
because the workers in that trade were not so well organized. In a
meeting of the white goods and lingerie trade in November, 1919 it
was stated that not only did piecework _Rrevail in the trade but that
the workers applied eagerly for it. The skilled workers in this
trade have proceeded along the same line as the workers in other
trades, by regulation of piecework rather than P.rohibition thereof.
For a lo~ time the unskilled workers desired prohibition of piecework,
but as tlieir organization was not strong they were unable to effect
such a change and had to be content with regulation of piecework by
mutual agreement.
In the potters' trade, the stoneware industry, the stove-ma~
trade, and in stove :fitting piecework has always prevailed, and to
such a degree that the workers' organizations were unable to collect
statistics of hourly rates of wages, because nowhere were they regarded as important. In the nineties, the question of piecework or
timework was indeed discussed, but in practice only the regulation of
piecework by collective agreement was attempted. At :first efforts
were made to fix maximum weekly wages for smgle workmen, but as
such stipulations could not be carried out this rough method was
abandoned. In the 15 years before the war there was no sign of any
movement against piecework, but the war brought about a complete
change. Owing to the almost complete cessation of building activity, almost all the available work for stove fitters and makers consisted of repairs, which had always been paid for by the hour. Thus
payment by the hour came to be aclopted more and more and the
idea of introducin~ it generally cropped up_ again and spread more
and more in the time of the revolution. The subject was discussed
vehemently in the trade journal and in meetings and formed the principal topic of the debates in the :first general assembly after the war, in
July, 1919. The fact that the trade-union had succeeded in introducing pa~ent by the hour in 1918 in Hamburg, and in 1919 in Lubeck
and Schleswig was a further inducement to continue the strugile
against the piecework system. At a meeting of the union a motion
that the union declare itself for the prohibition of piecework and the
introduction of payment by the hour was carried unanimously, and a
resolution-that a two-thirds vote of the members should decide the
system of payment to be adopted was passed. In January, 1920,
the required majority voted for payment by the hour in the case
of the stove makers, stove fitters, and stoneware potters, but in the
case of the crockery makers the required majority was not secured.
As in former years, however, it proved to be impossible in practice
to abolish/iecework, because of the resistance of the employers,
who woul :r;i.ot even grant the minimum wage which had been
demanded for a long_ time, and also because of the lack of unanimity
among the potters themselves. The result was that the piecework
system remained in force with the stove makers and wheel potters
or throwers, while part of the stove :fitters were paid by the liour.
In the pa.inters' trade we must distinguish between house painters
proper or decorators, who belong to the building trade, and the
varnishers and other painters employed in the wood and metal
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CHAPTER VI.-WAGES AND EFFICIENCY OF LABOR
industries. With the house painters the piecework system has
never played an important part. In some large towns it was introduced for work on large tenement houses, in the form of gang
contracts for special work, such as windows, doors, floors, and ceil:..
ings, but beyond this it has not been used to any extent. Curiously
enough there were in this trade signs of a tendency, not only among
the employers but also among the workers, to extend the use of the
piecework system after the revolution. On the whole, however,
the pos~war period has not brought any changes of importance in
this r~pect. With the painters in factories, furniture making,
coach building, railway-car works, and machine factories the situation is quite different. In these industries piecework had always
prevailed to such an extent (more than half of the total number of
workmen working by the piece) that the abolition of the system was
out of the question. In regulating piecework in these trades, however, the painters met with some difficulties, because they were
generally in the minority in the factories and therefore not strong
enough to carry through radical changes. With the revolution,
collective agreements were concluded in these trades and piecework
was regulated in this manner.
The piecework system has caused a good deal of conflict in the
bricklayers' trade, which, however, has not been of any great importance in itself. The workers have always declined to do piecework
on account of the increase of danger to accident, especially in the
jerry work frequently connected with it, and while the employers
have tried repeatedly to have the principle of the piecework system
~knowle~ed in the ~o~ective agree~ents t1:1-eY. have not put. it
mto practice even within the established lirmts. Some special
trades, such as plasterers, stuccoers, and flag or tile layers, have
always done piecework to a large extent.
In the printers' trade piecework has never played any considerable
part except with compositors, but even in their case 1t has been in
a great measure abandoned. After the revolution the journeyinen
demanded the abandonment of the piecework system without
success, but the employers did not succeed in introducing the piecework system generally, and the postwar period has not brought
any change of importance. In tlie bookbmding trades piecework
has increased in the degree that the craftsman has been replaced
by the manufacturing concern. The bookbinders' union soon
perceived that the abuses of the piecework system, which were
extending, could be combated only by collective agreements. Whereas in the earlier periods only traces of aversion against piecework
are to be found, a typical reaction set in after the revolution. In
the towns in which collective agreements were in force resolutions
prohibiting piecework were passed by general vote of the members
. of the union, but attempts to put them into effect were for the most
part without success. At the meeting of the union in 1919, it was
decided after much debate, to continue the previous policy of
regulation by collective agreement, and the principle of the piecework system was thus accepted.
In the textile industries the piecework system has always prevailed
and has been extended continuously since the introduction of the
collective-agreement system. Owing to the weakness of their tradeunion the workers were on principle averse to piecework, but the
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PIECEWORK
139
number of those favoring the piecework system was growing even
before its regulation by collective agreement. While collective
agreements were not concluded to any considerable extent before the
war, it had become evident even in 1914 that the piecework system
could not be abolished very soon, and that the real question was
as to how far it could be regulated by collective agreement. After
the war this opinion persisted and the demand for prohibition of
the piecework system was struck out of the by-laws in 1919, probably because conditions of work and rates of wages in this industry
were, as a result of the revolution, regulated to a great extent by
collective agreements and a stable rate of wages as well as a minimum
wage thus secured.
In the woodworking industry piecework has played an important
part and has increased continually up to the war. The workers
demanded the abandonment of the piecework system as long as
they had no voice in the management of the concerns. A.s soon,
however, as they were given the opportunity of concluding agreements regulation of piecework began. A. minimum rate of wages
and, above all, impartial investigation of new rates for piecework
were the characteristic stipulations of such agreements. The war
brought an increase of piecework in some branches of the woodworking industry and a decrease in others. In work for the army,
supplying it with certain uniform articles on an enormous scale,
piecework played an important part. In regular factory work,
however, piecework had frequently to be abandoned, as the indifferent quality of the materials (wood, glue, French polish) hampered
the workmen too much and caused interruptions and loss of time.
The opposition to piecework which set in after the revolution was,
in the woodworking industry, felt only here and there, being strongest among the woodworkers employed in the metal industries, but
even here it soon declined. In 1920 a national collective agreement
for the woodworking industry was concluded, which was renewed
in 1921. Like many previous local agreements, this agreement
provided that 115 per cent of the wages agreed upon for work by
the hour was to be paid as the minimum wage for piecework. By
this agreement the piecework system was formally recognized.
The metal industries comprise a large number of different trades,
and the employers also belong to widely different classes, ranging
from the small handicraftsman, locksmith, or fitter to the general
works manager of a large concern in the Rhineland or Westphalia
industrial district. It can hardly be said, therefore, that in this
industry the piecework system has developed uniformly, although
there is no doubt that on the whole it has gained ground. Regulation by collective agreements was effective only in the small concerns
and with individual tradesmen, as the large works positively declined
to enter into collective agreements.
During the war the most powerful agent in extending the piecework system was the extensive use of the industry for army supplies.
A.s all articles for the army are required to be produced on a large
scale, no other branch of industry could be more suitable for piecework, even though the indifferent quality of the materials was to a
certain degree an obstacle.
Before the war the employers in the metal industry who were
opposed to the trade-unions had tried to prevent the training and
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140
CHAPTER VI.-WAGES AND EFFICIENCY OF LABOR
education of the workers in trade-union policies and management,
first by prohibiting their employees from joining the unions and,
second, oy promoting the so-celled "yellow" organizations. The
consequences of this folicy became perceptible a.fter the revolution,
when the members o the "yellows' joined the struggle against the
piecework system. The struggle, however, did not last long. At
the meeting of the union in 1919 motions for the abolition of piecework were rejected. According to statistics of the union for 1920,
piecework was prohibited in onl_y six agreements, covering 1:28
establishments and 283 persons. In only .one agreement was piecework excluded altogether, and that was an agreement concluded by_
a. corporation of smiths, where piecework was never customary.
In the other five agreements piecework was prohibited for only a.
pa.rt of the workers enga..ged or for certain kinds of work.
With the change of political conditions collective agreements could
be concluded on a. different basis than theretofore. As trade-unions
had been universally recognized, the large manufacturing concerns
were obliged to acknowledge the right of their workers to participate
on a footing of equality in negotiations as to conditions of labor and
ra.ies of wages. As a consequence of this not only did the movement
for collective agreements spread enormously, but the proportion of
afeements concluded between single firms and their workers and
o joint collective agreements was reversed. Whereas in 1917
two-thirds of all agreements were concluded by single firms, in 1920
this proportion had decreased to less than one-third. The negotiations between organiz'a.tions carried on since the revolution have
gi,ven a different basis to the system of collective bargaining. By
1918 extensive ioint collective agreements and basic agreements for
whole districts had been concluded, in which uniform standards in
ell matters of principle, including the matter of piecework, were
established. Local agreements for single towns and for related
trades provided for local and trade requirements. This movement
has extended, while national agreements on wages have been concluded only in a few oases.
In the standard regulations for piecework issued by the German
Meta.I Workers' Union in 1904 the aims of these regulations a.re _defined
as follows: Fixing of terms for piecework in cooperation with the
workers before the work is entered upon; establishment of a. minimum wage according to the average working ca.pa.city; guaranty of
an hourly wage and a. list of rates for piecework protected by agreement. These stipulations have been amplified to suit the requirements of single trades, e. g.1 by regulations for molders in case of
failures in casting, additional pay for pipe layers working outside of
the city, gang work of smiths, fitters, and smelters, prohibition of
overtime, and the middleman or sweater system. They were
:finally completed by protective measures against reduction of
rates-piecework rates to be altered only in case working methods
a.re improved or the types of wholesale articles a.re ~hanged, and the
fundamental requirement that a. fair rate of hourly wages shell be
~a.ranteed. To this day the standard stipulations of 1904 contain
all that the metal worker considers essential to fair conditions for
piecework. These standards a.re still a. matter of discussion, for the
ultimate aim is to regulate conditions of labor and rates of wages of
meta.I workers satisfactorily ell over Germany.
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EFFICIENCY OF LABOR
141
The German trade-unions are not unanimous in their position
with regard to _piecework. On the whole, they have allowed their
attitude to be mfluenced by the circumstances in each case. The
above survey shows however, that the tide of opinion which set
against the piecework system after the revolution has left no lasting
impression, and that although a large part of the workers are not
particularly enthusiastic as to piecework the system has probably
gained ground since the war and prevails in all places and establisnments where there are no serious objections due to the peculiarities
of .the trade in question. . ·
EFFICIENCY OF LABOR
. Complaints as to inefficiency of workers in Germany were rather
frequent even in pre-war times and many examples were shown to
prove that the output per hour of the average worker was lower in
Germany than in other countries, especially in the United States.
Part of this was due to bad management, old-fashioned machinery,
long working hours, or 1,>iecework systems with maximum wage per
week, which: indirectly mduced the worker to restrict his output.
Complaints were much more frequent in small shops than in large
establishments with efficient management, up-to-date machinery,
short working time, and modern wage systems. Yet there is no
doubt that, m general, even in establishments with equally good
management and machinery, with equal working time, and equal
wage systems with modern American establishments, the average
hourly output per worker was smaller than that in the United States.
The i:lifference, however, was practically always smaller, and often
much smaller, than the difference in real wages, and the cost of production per unit in such plants was generii.lly lower than that in
America.
After the war complaints as to decrease of efficiency of labor were
universal in Germany, both in small shops and in the best managed
and best equi_pped establishments. Thls,nowever, in no way crip:pled
the competitive power of German goods in the world's market, smce
for the same reasons cost of production increased likewise in other
countries, although the political unrest and the low standard of living
reduced output in Germany after the war probably more than in any
other country. Moreover, complaints of a too low hourly outimt per
worker have been raised less and less of late. As early as October 27,
1921, the Minister of Railways declared with regard to the railway
workshops (and the railway workers were accused even more than
others of being inefficient): "The output per man is in general on prewar level"; and the railway official in charge of the workshop department wrote only a few months later: "According to the standard of
output in the main and the subsidiary workshops, the output of the
individual man in most of the repair shops has reached the pre-war
level and in some shops exceeds it."
A representative of a big electric concern, in an article entitled
"Dearer production-lower production," bitterly complained of the
reduction of the yearlJ- output per employee through the increase of
unproductive work, the shortening of the regular workin.2: time, the
refusal of overtime work, the increase of sickness and of vacations
and the frequency of strikes, but explicitly said: "It must be admitted
that the pieceworker engaged in productive work is in general, as to
20168°-25t-10
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CHAPTER VI,-WAGES AND EFFICIENCY OF LABOR
the output per hour, no longer behind the pre-war output and even
partly exceeds it." The decrease of efficiency of labor 1s, then, now
only of historical interest, but in itself this should be no reason for
eliminating it from a study of postwar labor conditions in Germany,
for it shows that even those who were most outspoken in former years
now generally admit that severe reduction of output took place only
in the first two years after the revolution. An ascertainment of the
actual facts is difficult, as no unbiased investigation of efficiency of
labor has been made in postwar times. Such an investigation would
have shown that even in cases of very low efficiency of labor the wages
per unit were ridiculously low in comparison with the selling price of
the product.
·
Aside from political unrest, the main reason mentioned for the
reduction of labor efficiency (hourly output) in the first years after
the war was that the employers were prevented from paying their
employees according to their efficiency, because of: 1. The abolition
of piecework; 2. The leveling of wages-almost the same wages being
fixed for skilled workers as for unskilled workers; 3. The introductio~
of family allowances.
1. The attitude of the workers of different trades toward piecework is discussed on pages 134 to 141. It may suffice to supplement
that discussion at this place by a description of the experience of the
German railways.
Before the war piecework was quite the rule in the repair shops of
the German railways; during the war it became less important, and
in the last months before the revolution at least as much timework.
was performed as piecework. With the outbreak of the revolution
piecework was completely abolished. The number of days worked
on timework and on piecework in the Prussian-Hessian railway
shops is shown in Table 51:
TABLE
ol~NUMBER OF DAYS OF TIMEWORK AND PIECEWORK WORKED IN THE
PRUSSIAN•HESSIAN ··RAILWAY SHOPS, 1913 TO 1919
Fiscal year beginning-
April 1, 1913•••••••••••••
April 1, 1914.. •••••••••••
April 1, 1915.••••...••••
April 1, 1916.••••••••••••
Tlmework
Piecework
Da!IS
6,499,603
6,763,697
7,053, 735
9,473,747
15,999,383
14,290,204
13,347,510
13,639,908
Daya
Fiscal year beginning-
Tlmework
April 1, 1917••••••••.••••
April 1, 1918•••••••••••.•
April 1, 1919•••••••••••••
Da!IS
14,183,025
28,575,790
51,025,654
Piecework
Days
15,958,273
8,553,441
338,239
The hatred of piecework by the workers in the railway shops
which induced them immediately to suspend piecework after the
outbreak of the revolution was aue to a large extent to mistakes
committed by the old administration. The former piecework
system in the workshops made it possible for the foremen to handle
things as they pleased and to pay the workers not according to their
efficiency anct mdustry but according to political or similar consideration. The sudden abolition of piecework resulted in a great reduction
in the amount of work done. To quote only one example: In September, 1918, with a staff of 107,000 workers, 870 locomotives were
repaired weekly; in September, 1919, only 747 locomotives were
repaired within a week, while 164,000 men were employed, and this
in spite of the fact that in 1918 many women and war prisoners had
been employed, who by 1919 had been replaced by skilled workmen.
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EFFICIENCY OF LABOR
148
All attempts to reintroduce piecework by mutual agreement proved
unsuccessful. At last, in February, 1920, certain shops were closed
for some days, the unnecessary workers were disnussed, and the
work taken up with a reduced personnel on the basis of a reasonable
piecework wage system. By December, 1920, 70 per cent of the
workshops were operated on a piecework system. The output per
man increased and in the course of 1921 regained the pre-war level.
2. Before the war there had been in Germany quite a difference
between the wages of skilled and of unskilled workers, a skilled
worker receiving, in general, from 20 to 50 _per cent more than an
unskilled worker. With the outbreak of the revolution the selfconsciousness of the unskilled laborers was, of course, considerably
intensified and the tendency to level wages became very strong.
Before the war the trade-unions bad to a great extent included
within the same union both skilled and unskilled workers in their
trade, resulting in a tendency to reduce the difference between their
wages, and with the influx of great numbers of laborers into the
union after the revolution-the uruon leaders often had to yield to the
ambition of the unskilled workers to get the same wages as the
skilled workers. On the other hand, real wages of skilled workers
remained so low that it was hardly possible to pay the unskilled
workers much less than the skilled workers. But whatever may
have been the decisive factor in an individual trade the leveling of
wages had the effect of reducing the industry of the skilled workers
and temporarily of reducing the number of apprentices. But this
condition did not last very long. When political unrest subsided,
and in consequence thereof the general level of efficiency of labor
rose, the scarcity of unskilled labor, which had been augmented by
the reduction of the movement from the rural districts to the cities
and by the disappearance of alien laborers, was no longer felt so
strongly, and the importance and greater worth of skilled workers
was once more recognized, the differentiation of salaries and wages
increased, and in some cases became what it had been in pre-war
times.
A few examples will serve to illustrate this development:
The wages of German building laborers in 1913 were about 78 per
cent of those of the bricklayers; in 1922 the percentage was about
95-or 96; in the first three quarters of 1923, 94 or 95; it then dropped
to about 90 in November, 1923, and to 84 in December, 1924.
The wages of metal workers' helpers in 1913 were about 68 per
cent of those of skilled metal workers; in 1922 the percentage was
about 94; in the first three quarters of 1923 it was about 93 or 92;
it then dropped to about 85 by the end of the year and to 70 in
December, 1924.
The wages of woodworkers' helpers in 1913 were about 72 per
cent of those of skilled woodworkers. The leveling here was not so
great as in most other trades. In 1922 helpers earned about 10 or 11
per cent less than sltllled workers, and in December, 1924, 17 per
cent less.
In individual cases the relation between the wages of skilled and
of unskilled workers changed because the difference in wages in
marks remained unchanged. Thus the weekly wages of laborers in
chemical factories in Berlin were less by 21.6 marks than those of
skilled workers from the beginning of 1920 to October, 1921. But
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144
CHAPTER VI.-W.AGES AND EFFICIENCY OF LA.BOB.
as the wages of skilled workers rose from 148.8 marks in January,
1920, to 391.2 marks in October, 1921, laborers who before the war
had ea.med 69 per cent of the wages of skilled workers, received in
Janua.ey1 1920, 85 per cent, and in October, 1921, 94 per cent.
A similar situation existed for several years with bank clerks. As
will be seen from Table 48, bank clerks doing responsible work who in
1913 had earned 315 gold marks ($75) more per year than the bank
clerks doing simple work, had their yearly salary fixed in February,
1920, at only 500 marks ($5) more than that of clerks doing simple
work. This difference of 500 marks prevailed all the year 1920,
being raised to 600 marks in January, 1921 and to 765 marks in
April, 1922. In the meantime the wages of clerks do~ simple work
had increased from 14,000 to 61,757 marks. The difference between
the wages of these two classes of employees, which in 1913 amounted
to 10 per cent, was then in February, 1920, 3.6 per cent and only 1.2
~r cent in April, 1922. The difference became much greater during
the course of 1923, amounting to a.bout 18 per cent m September,
1923, and has remained a.bout as great up to the present time. In
this exceptional case, the difference between the earnings of trained
and of untrained employees, which for some time had practically
disappeared, is now much greater than in pre-war times (588 marks,
or $140).
Government employees also for several years after the war experienced a considerable leveling of th:eir income. A comparison of -four
typical grades of employees (excluding the highest and the lowest)
shows tlie following:
TABLE
31.-INDE:X: NUMBERS OF MONTHLY WAGES OF SPECIFIED GRADES OJI'
GOVERNMENT EMPLOYEES ON SPECIFIED DATES
(Waps of Grade m-100)
Gradel
Grade ITT .••••••••••••••••••••••••••••••••••••••••
Grade vnr ....•.•..••••.••...••.•.•..•••••••.••.•..
Grade XI.•••••••••••••••••••••••••••••••• _ _ _ ,
Grade XIIL.••••••••••••••••••••••••••••, •••••••••••
October,
1913
100
2M
387
63)
1921
100
138
179
289
100
130
174
230
100
14/l
214
847·
100
183
270
3112
1 Grade m mcludes, for emmple, railway conductors; Grade vm, post and telegraph clerks; Grade la,
directors of large post and telegraph ol!lces; Grade XIII, chiefs of divlslons In Government departments.
The leveling of the salaries of these grades was greatest in August,
1921, when the bkhest grade under consideration drew only 2.3
times as much as the lowest grade (as compared with 6.2 times in
1913). Two months later a new scale went into force which raised
the proportion to 3.5. In the following years there was a noticeable
increase of the salaries of the employees m middle grades, while those
in the bkher grade continued to draw a.bout 3.5 times as much as
those in tlie low~r grade. But in the.last week of May, 1924, a. radical
change took placeiiJ!1e pre-war relation of the various grades was
completely reestab · ed, all single emplo_yees dra:vving from and after
June 1, 1924, 80 per cent of the 1913 salaries. Since the revolution
empl~ees with families also receive allowances for wife and children.
3. Family allowances, which of course are an infringement upon the
principle of paying employees according to their efficiency, were
mtroduced on a large scale after the revolution, for workers as well as
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EFFICmNCY OF LABOR
145
for salaried employees and for officials. Employees generally were
at first rather suspicious with regard to this reform, bemg afraid that
discrimination against workers with many children would result.
But real wages were so low that emJ?loyers were always ready to hire
married men having children, especially as such men were supposed
to be more steady and less inclined to political agitation. Moreover,
family allowance funds were created which spread the expenses for
family allowances over an entire employers association, thus decreasmg the risk of the individual employer. If these funds have not
become of great importance, this is perhaJ?s due partly to the fact
that it is almost impossible for the association to prevent frauds.
Thus in times of scarcity of labor, when the employers' associations
bound their members not to pay higher wages than those fixed bJ
collective agreements, it frequently liappened that the employees of
a concern were given to understand that no strict examination would
be made by the management of the data submitted as to tho number of
children, and in such cases unduly high family allowances were
granted to many workers at the expense of the fund.
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Chapter VIL-UNEMPLOYMENT
NUMBER OF UNEMPLOYED WORKERS
Immediately before the war unemployment was normal. On the
outbreak of war it became enormous, but began to decrease after a
few weeks and in the early spring of 1915 was again normal. From
the fall of 1916, when the so-callea "Hindenburg munition program"
was put into effect,!. until the armistice there was yracticall_y no
unemplo~ent in uermany. The sudden return o the soldiers
from the front and stoppage of war industries necessarily _made
adjustl:µent of supply and aemand·on the labor market very difficult,
and in the winter of 1918-19 the rate of unemployment was rather
high, but from then until the beginning of 1923 there was no very
long period when unemployment was really serious. Conditions
took a bad turn, however, when the French entered the Ruhr and
passive resistance was inaugurated, and became still worse when
passive resistance broke down and inflation reached its peak. In
the winter of 1923-24 unemployment in Germany was greater than
it has ever been.
Table 53 shows the per cent of trade-union members unemployed
on the last day of each month from January, 1913, to December, 1924:
TABLB
63.-PER CENT OF TRADE-UNION MEMBERS UNEMPLOYED, JANUARY,
1913, TO DECEMBER, 1924, BY MONTHS
Month
!
j
1913, 191411915 19UI 1191711918 / 191911~ 192111922 1923 1924
Malta
January _________________ -------------- - 3.4 5.0 5.8
February __ ---------------------------- 3.1 3.9 4.5
March __ ----------------------- -- ------ 2.4 2. 9 2.6
tea~-_:::::::::::::::::::::::::::::::::
2.3
2. 5
2. 9
2.8
L9
L7
2.8 2L2
L4
4. 9
L5
June_------------------------ --- -- -- --- 2. 7 2. 6 L4
July
____
------------------------------- 2. 9 2. 9 L4
August
_________________________________
October________________________________
September
- ------------------- --------- 2. 7 14. 5 L2
2. 9 9.9 1.0
December
November______________________________
__ --------------------------- 3. 2 7.4 1.4
6.4
1.4
L5
LO
1.0
,9
.9
.9
.7
.7
.6
.6
.7
0. 9
.8
.6
.4
.3
.3
.3
.3
.3
.2
.3
.5
0,5
.5
.4
.3
.3
.2
.2
.2
.2
.2
1.5
5.1
6, 2
5. 6
3. 6
4.8
3. 5
2.1
2.8
2. 6
1. 7
2. 3
2. 7
2.8
3.3
2. 7
1.9
1.9
2. 4
3. 5
5.0
5.2
4.1
4. 0
3. 9
4.3
4. 7 3.8 8.9
4. 9 3.1 4. 8
3. 7 1.2 5.1
3. 8
.9 6, 6
3. 5 .6 5. 9
2. 9 .6 3. 6
2. 6 .5 3.1
2. 2 .5 5. 7
1. 4
.6 9.6
1.1 1.1 19.3
1.4 1.6 24.4
L7 2. 4 30.8
28.6
19.0
11.7
9,:l
11.1
12.9
12. 7
10. 7
8.6
7.6
8.8
3.6
3. 7
8.4 3. 3
9. 7 3. 3
9.5 2. 8
9.5 2. 7
9.5 2. li
8.1 2. 2
7.3 2. 2
6, 3 1.8
5. 0 2.1
2. 5 6.8 2. 2
2.5 5.0 3.8
2.4 3.8 5. 9
2. 2 4. 2 10.0
2. 2 4.8 8. 7
2.2 4.1 5. 9
2.1 3. 9 4. 9
2.8 3.8 3. 8
5.2 3. 6 3. 4
4. 4
4. 4
3. 4
2. 8
2. 3
1. 4
1.4
1.2
1,3
1. 7
L7
.9
.8
.8
1.0
.8
Ll
L4
2. 4
3. 4
4. 3
17.1
13. 3
7.9
6.0
5.6
8.1
11.3
11.5
9.8
7.5
5.9
5. 5
2. 6
2.8
2. 2
2. 3
2. 5
2. 5
2. 4
2. 2
2. I
2.0
L7
L6
0. 9
.8
.9
.8
.8
.8
.7
.7
.8
.7
LS
5.1
29.4
Femalea
January ________________________________
1.5
2.4 11.1
8. 2
4. 7
2.0
7.9
February ___ --------------------------- 1.5 2.1 9.4 8. 8 4. 7 L9 8.0 3.6 4.1
March_ ------------------ -- ----- -- ----- 1.4 1.9 8.3 8.1 3. 9 2.1 4.8 2.1 3. 7
tl:::==::::::::::::::::::::::::::::::::
June_---------------- --- ----- -------- -July_ - - -------------------------------August _____ --------- --- _______ -------t':ti~ber::::::::::::::::::: ::::: :::::
November______________________________
__ --------------------------December
1.5
2. 4
2. 5
2. 9
2. 8
2. 4
2.4
2. 4
3. 9
1. 7
2. 6
2. 6
3.4
32.4
24.3
18. 5
14.3
12. 9
9.1
9.1
9. 7
9.9
10.0
10.0
8. 5
7.8
3.2
2. 9
2.3
2. 3
2. 5
2. 7
2. 9
2.8
2. 7
2.8
3.1
4.8
4. 7
3. 7
2. 8
2. 8
2.8
2. s
2. 9
22. 4
15. 7
10. 9
8. 2
7.2
6. 5
5.1
3.3
2. 9
2. 9
2. 5
2. 7
2.8
2. 6
2. 5
2. 5
2. 6
io.o
Total
ti:t~
_::: -:::::::::::::::::::::::::
March __ ---------------------- _________
tl::::=::::::::::::::::::::::::::::::::
June ___________________________________
July - ---------------------------------August ______ ------------ -- --- --------September_------------October________________________________
-- ------------November-_--------------------------December------------------ -- ----------
146
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Federal Reserve Bank of St. Louis
L7
1.6
1.3
1.0
1.0
.9
.8
,8
.8
.7
.7
.9
6. 6
6.0
3. 9
5. 2
3.8
2. 5
3.1
3.1
2. 2
2. 6
2. 9
2. 9
3. 4 4. 5
2. 9 4. 7
1.9 3. 7
1.9 3. 9
2. 7 3. 7
4.0 3.0
6.0 2.6
5. 9 2. 2
4. 5 1.4
4. 2 1.2
3. 9 1.4
4.1 L6
5. 3
6.4
7.2
8. 5
7.3
5.3
4. 7
7.9
10.8
18.4
20. 1
19. 6
--26.5
3. 3 4. 2
2. 7 5. 2
1.1 5. 6
.9 7.0
,7 6, 2
.6 4.1
,6 3. li
.7 6, 3
.8 9.9
1.4 19.1
20 23.4
2.S 28.2
25.1
16.6
10.4
8.6
10. 5
12.5
12.4
10.5
8. 4
7. 3
8.1
.
147
NUMBER OF UNEMPLOYED WORKERS
The postwar statistics of unemployment, however, do not convey
an exact idea of the condition of the labor market, as many workers
who had a regular job were employed on short time. This was due
mainly to the fact that under tlie decree of January 4, 1919, an
employer who wished to reduce his personnel could not, as in prewar times, simply dismiss a number of employees but first had to
resort to short-time work. Only when he liad reduced the working
week to less than 30 hours (under the decree of March 20, 1919, to
less than 24 hours) was he allowed to dismiss workers.
Table 54 shows the J>er cent of trade-union members working short
time at the end of each month from January, 1921, to December,
1924.
TABLB 54.-PER CENT OF TRADE•UNION MEMBERS WORKING SHORT TIME, JAN•
UARY, 11121, TO DECEMBER, 1924, BY MONTHS
-Males
Females
Total
Month
•
J921 1922 1923 192( 1921 1922 1923 1924 1921 1922 1923 1924
-
.
January.••••••••••••••••••••••••••••••• 6. 3 1.1 7.6 24. 3 8. 7 8. 3 25. 6 2Ll 7.0 LS 12.6 23.4
February•••••••••••••••••••••••••••••• 6.2 LI 9.9 18. 6 12.1 8. 5 27.7 12. 9 7.9 1.9 H.9 17.1
March ••••••••••••••••••••••••••••••••• 7.3 .8 19.1 10. 6 lf-9 2. 3 35. 6 7.7 9,5 L3 28. 6 9.9
.5
.4
.4
.6
.6
September ............................. 2.4 1.4
October •••••••••••••••••••••••••••••••• 1.5 2.8
November ••••••••••••••••••••••••••••• ,8 .. 3
December•••••••••••••••••••••••••••••• LO S.1
ttar:·::::::::::::::::::::::::::::::::::
7.4
6. 8
June.······················· •.••••••••• 6.1
July
•• •••••••••••••••••••·•••·•·••••••• .. 7
August•...•.•.•.....•............••.••. 2. 9
6. 3
19.0 8.6
18.1 17.6
12.4 25. 7
22. 4 26.0
36. 6 16.6
46. 5 11.4
46.1 6.7
42.6 s. 4
25. 4
12. 7 L2
IL 7 .9
10.0 L3
6. 5 L4
8. 8 1.9
.. 2 S.8
.. 8 9.8
2. 0 16.8
2. 6 18.6
37.0
28.6
20. 9
19.8
35.4
47.5
5L8
00. 4
40.2
.. 2
7.2
24.6
35.2
31.8
00-4
14.5
10.0
9.5
8. 9 .7
8.1
.5
7.2 .6
s. 2 .8
8. 2 .9
2. 9 2. 6
2. 5 .. 7
1.1 7.5
L5 8. 7
28. 5 S.8
2L 7 8.2
IS. 3 19.4
lf. 5 28.2
26. 0 27.6
39. 7 17.5
47,3 12.2
47.3 7.5
42.0 6.5
Short-time work, of course, varies greatly as to length. According
to the report of the Ministry of Labor for the end of April, 1924, 33
J>er cent of those working short time worked from 1 to 8 hours less
than the usual hours; 18 per cent worked from 9 to 16 hours less; 26
per cent, from 17 to 24 hours less; and 23 per cent, more than 24
hours less. When business is very slack and unemployment and
short-time work especially wfdespread1 the reduction of hours of
labor is naturally also very great. In October, 1923, for example,
only 10 per cent of short-time workers worked from 1 to 8 hours less
than the normal hours; 20 ~r cent worked 9 to 16 hours less; 47 per
cent 17 to 24 hours less; and 23 per cent more than 24 hours less.
The distribution of short-time work over the week, of course, also
varies greatly. At first, as employers generally hope that short-time
work will be only temporary and are loath to change the organization
of their establishments, they reduce work daily. When they begin
to realize that short-time work will be necessary for some weeks.
they attempt a definite arrangement. The employees, especially 'if
they live at a distance from their working place, prefer to work full
time on some days and to remain away altogether on the other days.
The employers are anxious to save overhead charges (heating cost,
etc.) and so in some cases yield to the wishes of their employees and
SUSJ?,end work altogether on certain days; e.g., from Friday evening
until Tuesday morning. In establishments operated continuously,
however, employers sometimes prefer to shut down part of the establishment and to reduce the length of each.shift.
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148
CHAPTER VII,-UNEMPLOYM:ENT
While, up to the end of 1923, especially in times of slack business,
the number of employees working short time was generally larger
than the number of totally unemployed, short-time work: in the
winter of 1923-24 decreased much more than full unemployment.
Thi& was due to the fact that the decree of October 13, 1923, authoriz~s the employer to dismiss workers if he intends to shut down
his establish.inent or part thereof.
·
UNEMPLOYMENT RELIEF
LEGISLATION IB 1918
Immediately after the conclusion of the armistice the Fedetal
Office for Economic Demobilization (Reii/1,sq,mt fur wirtschaftliche
Demobilmachung) was created for guiding German economic life into
peace channels. Its :first legislative act was an order regulating
unemployment relief. The most important provisions of this order
were as follows:
ARTICLE 1. The Federal Government granlis assistance to communes or
commu,nal unions (Gemeinden oder·Gemeindeverbilnde) giving relief to unemployed.
ABT. 2. The communes are required to institute unemployment relief, which
from a lega! point of view is not to be regarded as poor relief.
ABT. 4. Of the total expenses of the commune or communal union for unemployment relief one-half shall be home by the Federal Government and onethird by the State. The Federal Government * * * may increase its share
in the case of poorer communes or for certain districts. * * *
ABT. 5. The unemployment relief is to be granted by the place of residence of ·
the unemployed. Demobilized soldiers * * * are to receive relief in the
place where they lived before enlisting.
.
Persons who during the war moved to another place to take up work there
shall return, if possible, to their former place of residence, where they are to
receive relief. Expenses of the journey to the former place of residence are to be
paid by the last place of residence out of the funds of the unemployment relief.
ABT. 6. Relief is to be paid only to persons over 14 years of age who are able
and willing to work but who owing to unemployment in consequence of the war
are indigent. Indigence is presumed * * * only when, as a result of total
or partial unemployment, tlie income of the person, together with the income of
the members of his family living with him, has been so reduced that he is no longer
able to meet his necessary living expenses.
ABT. 7. Women are to receive relief only if they are dependent on their own
exertions for a living.
.
.
Persons whose former supporters return home able to work are not to receive
unemployment relief.
ABT. 8. Unemployed persons are bound to accept any suitable work assigned
to them, even if outside their own trade and _place of residence, especially in the
loeality where they were formerly employed and where they lived before the
war, and even if the hours are shorter, provided they are offered ·the customary
wages in the locality for the work assigned them, that the work is not injurious
to their health, that their lodging is morally unobjectionable, and, in the case of
married men, that the maintenance of their family is not impossible. Expenses
of the journey to the place of employment are to be paid by the last place of
residence out of the funds for unemployment relief.
·
ABT. 9. The nature and amount of relief, the fixing of a waiting period not
longer than one week for unemployed persons (with: the exception of ex-soldiers)
and the further payment of their sickness insurance premiums are to be left to
the judgment of the commune or communal union. These must, however, see
that the relief gran~<! is sufficient and that it at least equals the local wage fixed
under the Workmen's Insurance Code, which, for the suP.porter of a family, is to
be suitably increased according to the size of the family. In place of money
grants, relief in kind may be given (granting of food, partial payment of rent,
and the like). * * *
Should workers, because of a temporary shutdown or a limitation of their
work, fail to work the number of hours p~ week usual in their establishments
without overtime, they are to ·receive unemployment nlief for the hours missed,
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UNEMPLOYMENT RELIEF
149
provided that 70 per cent of their regular earnings is not equal to twice the sum
given as relief for total unemployment. * * *
ART. 10. The communes or communal unions may make unemployment relief,
especially in the case of juvenile workers, dependent on further considerations
(attendance at schools, training courses, workshops, etc.). They may determine
causes for the exclusion of persons from the benefits of unemployment relief
(misuse of benefits, failure to conform wit\t the regulations, etc.).
ART. 11. No regard shall be paid to small amounts of property (small savings,
household goods) in defining necessitous cases.
ART. 12. Relief which the unemployed may receive through his own providence
or that of others, such as a pension, may be taken into account in the relief
granted by the commune or communal union only when the unemployment
relief, other relief, and the pension taken together are four times the amount of
the local wages. Interest on savings is likewise to be taken into account.
ART. 13. For the administration of unemployment relief, relief committees are
to be established, to which representatives of the employers and of the employees
are to be appointed in equal numbers.
The relief committees are to decide as to unemployment relief. * * *
ART. 14. Upon the demand of a labor organization, the payment of unemployment relief and the control of the unemployed are to be transferred to such
organization, (1) if it grants, according to its by-laws, unemployment relief to its
members; (2) if it offers sufficient guaranty that the payment of the relief and
the control of the unemployed will be orderly done.
ART. 18. This order goes into force on the day of its promulgation [November
13, 1918) and is to remain in force for at least one year.
Further orders were issued on December 3 and 21, each containing
one or two important provisions. The order of December 3 provided:
The relief may be regulated by the commissioner of demobilization so that
the unemployed will get food and lodging from his former employer in the same
way he got them while he was employed. In that case the commune or communal
union is to grant to the employer compensation, to be fixed in advance. * * *
According to the order of December 21, :Raragraph 2 of article 9
of the original act was thereafter to read as follows:
Should workers because of a temporary shutdown or a limitation of their work
fail to work the number of hours per week usual in their establishments without
overtime and should their wages be reduced on that account, they are to receive
unel_Ilployment relief for the wages not received, provided that 70 per cent of
the weekly earnings remaining to them is not equal to the sum given as relief
for total unemployment; but they shall not receive more in wages and relief
taken together than the amount of their regular full-time earnings.
The same order extended the payment of unemploJ'lllent relief to
unemployed persons during the tune of sickness, as follows:
ART. 12a. In case an unemployed person is entitled under the Workmen's
Insurance Code to a continuation or maintenance of insurance against sickness
with a sick fund * * * , the commune is to attend to his further insurance
in the same class or wage group in which he was insured. It is to * * * pay
the full fees for the unemployed person.
ART. 12b. Unemployed persons wlY.> receive unemployment relief and do not
fall under article 12a are also to receive the full unemployment relief in case of
sickness.
AMOUNT OF UNEMPLOYMENT RELIEF
The order of November 13, 1918, did not fix the amount of the
unemployment relief, each municipality fixing the allowances as it
saw fit. In Berlin, for example, the daily benefit in case of total
unemployment was fixed for males over 17 years of age at 4 marks,
for males between 14 and 17 years and for females over 17 years at
3 marks, and for females between 14 and 17 years at 2.5 marks.
In addition, each unemP.loyed worker was to receive 1 mark a day
for his wife, for each child under 14 years of age, and for each other
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Federal Reserve Bank of St. Louis
150
CHAPTER VII.-UNEMPLOYMENT
membt,r of his household who was unable to earn a living and whom
he was legally obligated to su_pport.
These rates are rather moderate. A single worker received probably less than one-third of his regular w!l-Ses and a roamed worker
with two-children hardl_y more than half his orc:li!tarY wages. Rates
in other towns were at first also rather modest. But the unemployed
soon became dissatisfied with this state of affairs and succeeded now
and then in forcing up the allowances to such a level that there was
gr_eat inducement to abandon work and draw the increased benefits.
Moreover, the workers began to flock into those cities which paid
the highest benefits and those staying_ _there refused to leave.
To counteract such abuses the National Office for Economic
Demobilization on January 15, 1919, issued a new order. Article
5, par~aph 2, of the order of November 13, 1918, was supplemented
by a new provision, as follows:
Pers9ns who during the war moved to another place to take up work there
may, however, receive assistance in the district to which they moved for not
longer than four weeks in all, even if it has not been possible to assign them suitable
work. * '!' *
Under article 8, the terms of which were made stricter, the local
authorities were require(\ to refuse or withdraw assistance if the
unemployed :person declined to accept work assigned to him.
But more 1mportant than the change in the r~ations was the
fact that the new order fixed maximum benefits liy adding the fol)owing provision to article 9:
'
The relief may be granted by the communes and communal unions only for the
six week days and may not exceed, exclusive of the famill all9wances, one and
one-half times the amount of the local wage nor the JD&XImum rates prescribed
for the various localities according to their grouping in the locality classes.
Notwithstanding the provisions in paragi:aph 1, sentence 2, of
article 9, maximum daily rates were fixed as follows:
TABLII 5&-MAXIMUM DAILY RATES OF UNEMPLOYMENT RELIEI' IN LOCALITIES
01' SPECIFIED CLASSES FOR PERSONS IN SPECil'IED AGE GROUPS
Place of residence: Localities of olasa-
~==:?::;.;,.is:::::::::
..............:::::::::::::::-:
Males over lf to 16 years•••••••••••••••••••••••••••••••••••••••
~==rs
t~\,ems.....................................
l!'emales over H to 16 yems----·····················
A
B
C
DandB
Mart,
Marti
Marti
Marti
6.00
f.26
2.1111
3.1111
2.1111
2.00
6.00
8. 50
2.26
3.00
2.26
L75
f.00
3.00
2.00
2.50
2.00
L76
3.60
2.50
1. 76
2.26
L76
LIIII
Maximum daily family allowances were also fixed as follows:
T4BLB 56.-MAXIMUM DAILY l'AMILY ALLOWANCES IN LOCALITIES OF SPECIFIED
CLASSES
Placeofresldence:LocalltlesofClasBPersona for whom granted
WUe. ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••
Childrenandotherdependents.................................
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Federal Reserve Bank of St. Louis
A
B
C
DandB
Marta
Marta
Marta
Mara
1. liO
1.00
l. liO
1.00
1. 26
1.00
1. 00
• 71
UNEMPLOYMENT RELIEF
151
The locality class register established for the granting of housing
allowances to Government employees deternnnes the grouping
of the various localities in locality Classes A to E.
The decree of January 15, 1920, suspended the payment of unemployment benefits to J>ersons under ll>_y~ars of age and increased
the allowances to be paid to females. While those over 21 years of
age had received from 2.25 to 3.50 marks per day they were thereafter
to receive, if they were not living in the liousehold of another person,
from 3 to 5 marks and if they were living in the household of another
person, from 2.50 to 4.25 marks. Fem~es under 21 years were to
get from 2 to 3 marks. The combined family allowances drawn
by an unemployed person were not to exceed one and one-half times
the amount of the unemployment donation which the unemployed
received for himself and in no case more than from 1.75 to 2.50
marks for the wife and from 1.25 to 1.75 marks for each child and
other family member he was legally obligated to support.
The new regulation went into force on February 1, 1920. As the
cost of Jiving was almost three times as high as in February, 1919,
and as wages had in the meantime at least doubled, the unemployment
benefit, which for males had not been altered, was extremely low.
An adult employee with a wife and two children received, for example,
in Berlin from February to April a weekly unemployment allowance
of 72 marks, while the weekly minimum cost of subsistence for a
family of four in the same three months was 254, 322, and 375 marks,
and the weekly wages of bricklayers 185, 205, and 253 marks, and
those of printers 161 marks.
New aecrees increasing the unemployment benefit (in paper
marks) were issued on May 6 and October 13, 1920, on November 1
and December 7, 1921, and on February 8, 1922. But with the
ever-increasing monetary depreciation it became necessary to simplify
the proceedings to change the amount of benefits, and the decree of
March 21, 1922, provided that the maximum rates of the unemployment benefits and the family allowances should thereafter be
fixed by the Minister of Labor conjoint~ with the Minister of
Finances and with the approval of the Reichsrat. Table 57 contains
all the changes that occurred from February 1, 1920, until December,
31, 1924. The rates given are for the lowest {D and E) and the
highest {A) locality classes.
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Federal Reserve Bank of St. Louis
152
TABLE
CHAPTEll VIl._.:.UNEMPLOYMENT
57.--'MAXIMUM DAILY RATES OF UNEMPLOYMENT RELIEF, FEBRUARY 1,
1920, TO DECEMBER 31, 1924
Males
Over 21 years of age
Period beginning-
Not members of another
household
;Feb. 1, 1920... --···-··-Apr. 30, 1920___ ·--·-·--Nov .. i, 1920-·---------Aug. 5,
1, 192L
1921----·------Dec.
____________
Feb. 13, lij22__ __________
Aug. 14, 1922.----·--·--Nov. 20, 1922.-"······-"
Dec. 25, 1922_·-······-··
Jan. 15, 1923.·--·····-·Jan.
--····-·--Feb. 29,
12; 1923
1923_______
, _____
Apr. 16, 1923 ____________
May 14, 1923 ___________
June 4, 1923_____________
June 25, 1923 ____________
July 9, 1923 _____________
July
18, 1923_"---------,July 30,
1923 ____________
Aug. 6,,1923 ____________
Aug. 8, 1923_ .. _________
Aug. 15, 1923, __________
Aug.
Aug. 22,
29, 1923-,--------1923 ___________
Sept.
5, 1923------~----Sept. 12,
1923 ___________
Sept. 19, 1923 _-·······-Sept.
1923
_---·-····Oct. 3,26,1923
_____________
Oct. 10, 192lL ___________
Oct. 15, 1923 ____________
Oct. 22, 1923 ____________
Oct. 29,
1923 ____________
-----------Nov.
5, 1923
Nov. 12, 1923 ___________
Nov. 19, 1923 ___________
Dec.District
10, 1923:r_ __________
Under 21 years of age
Marks
Marks
Marks
3.506. 00
8.00
5.0010.00
7.008.2512. 00
11. 2515. 00
18. 00
12. 5028.00
18. 75140
100
255
360
425
600
510
720
1,500
1,200
1,950
2,400
3,200
2,600
5,000
3,950
9,000
7,100
12,800
16,200
16,100
20,000
27,000
33,000
72,000
90,000
225,000
180,000
530,000
650,000
820,000 -1,000, 000
I, 290,000 -1, 570,000
2,000,000 -2, 450,000
6,000,000 -7,500,000
117
21.5
I 33
42
I 48
60
q35
165
1960
1,200
10. 5
'8.4 21
' 16. 8 2 108
135
2 330
420
2 630
780
3.5o6.00
4.5Q7.00
5.508. 00
7.0010.00
12. r,o
8. 7510.0015. 00
10.0015.00
70
100
175
200
290
415
300
500
1,000
1,300
1,650
2,100
2,200
2,800
3,500
4,400
6,300
7,900
14,200
11,300
17,500
13,900
29,000
23,000
60,000
75,000
155,000
185,000
420,000
540,000
650,000
830,000
I, 020, 000 -1, 300,000
I, 610,000 -2, 030, 000
4,800,000 -6,000, 000
114
17
127.5 33. 5
I 39
48
1100
130
1960
1,200
IO. 5
•s.4 2 16. 8 21
'108
135
'330
420
2 630
780
2.5o4.25
3.005.00
4.006.00
5.007.25
8. r,o
6.257.0010.00
7.0010. 00
r,o
35
125
85
..,
140
210
170
200
750
900
1,150
1,450
1,500
1,950
2,450
3,050
4,400
5,500
7,900
9,900
9,800
.12, 200
16,000
20,500
42,000
M,000
105,000
135,000
300,000
390,000
460,000 - 600,000
720,000 - 940,000
1,100,000 -1, 460,000
3,600,000 -4, 500,000
110
13
1 20.525
1 27
36
170
100
1570
720
2 5.1 6. 3
•10.212. 6
81
'66
I 190
250
470
'380
------
---
.-
--
----
·---
1490
District IL---·---District III.. -- ---M·ayDIBtrict
51 1924:1___________
.
2 550
2 630
--
Rentenmarks
IIL--------
1
610
700
780
--------
----
'490
I 550
2 630
---
610
700
780
Rentenmarks
o. 60--0. 75
---
--------
2300
330
'380
I
---
Rentenmarks
.66- .84
• 72-- . 90
0. 36--0. 44
.41-. 50
.42-. 54
• 72-- . 90
• 79-1. 00
.86-1. 10
• 72-- • 90
.42-- . 54
.48- .60
• 79-1. 00
. 91-1.15
1. 01-1. 25
• 79-1.00
• 91-1.15
1. 01-1. 25
0. 60--0. 75
.66- .84
• 72--. 90
District II.--------District IIL---r··Aug.District
11, 1924:I_ __________
District n __________
District IIL. _______
Dec. 15, 1924:
District II
L---------District
__________
District
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Federal Reserve Bank of St. Louis
Members of another
household
Millions.
• 79-1. 00
• 86-1.10
I
BiIIlons.
.54-.66
.48- .60
.54-.69
.60-. 75
360
420
470
153
UNEMPLOYMENT RELIEF
TABLE 37.-MAXIMUM DAILY RATES OF UNEMPLOYMENT RELIEF FEBRUARY 1,
1920, TO DECEMBER 31, 1924-Continued
Females
Over 21 years of age
Period beginning-
Not members of another
household
Members of another
household
Under 21 years of age
.Mark,
Marki
Marki
Feb. 1, 1920_____________
2. 503. 005. 00
~26
2. 003.00
~ - 30, 1920____________
3. 756. 00
2. 505. 00
2. 003. 00
5. 758. 00
3.506.00
ov. 1,
1, 192L
1920-----------3. 00~00
Aug.
___________
10.00
5. 007. 007.26
3.25~75
Dec. 5, 1921-____________
12. 50
6. 258. 758. 50
~757.00
Feb. 13, 1922____________
15.00
7. 0010. 0010.00
5.258. 00
Aug. 14, 1922____________
15. 0022. 50
7.0010.00
5.258. 00
Nov. 20, 1922 ___________
110
50
80
65
26
40
Dec. 26, 1922____________
120
165
275
200
70
100
1an. 15, 1923 ____________
460
200
335
275
115
165
550
240
400
330
140
1an.
200
Feb. 29,
12, 1923-----------1923____________
1,300
950
1,000
1,100
650
800
~r.16, 1923 ____________
2,100
1,450
1,650
1,750
1,000
1,300
ay 14, 1923____________
2,800
1,900
2,350
2,200
1,450
1,750
1une 4, 1923_____________
4,400
2,900
3,500
3,650
2,150
2,750
1une 26, 1923____________
7,900
5,200
6,300
6,600
3,900
5,000
1uly 9, 1923 _____________
9,400
11,300
14,200
11,900
7,000
9,000
1uly 18, 1923 ____________
12,000
13,900
17,500
15,000
9,000
11,000
1uly 30, 1923 ____________
29,000
20,000
23,000
25,000
15,000
18,000
Aug. 6, 1923_____________
75,000
48,000
60,000
60,000
34,000
43,000
Aug. 8, 1923_____________
120,000
150,000
155,000
185,000
90,000
105,000
Aug. 15, 1923____________
540,000
350,000
440,000
420,000
240,000
300,000
Aug. 22, 1923____________
830,000
540,000
650,000
680,000
370,000
460,000
Aug. 29, 1923____________ 1,020,000 -1,300,000
850,000 -1,070,000
580,000
720,000
Sept. 5, 1923 ____________ 1,610,000
-2, 030, 000
1,300,000 -1,660,000
910, 000 -1, 120, 000
Sept. 12, 1923 ___________ 4,800,000
3,950,000 -6, 000, 000
-6,000,000
2,
750,
000
-3,
500,
000
Sept. 19, 1923 ___________
111
1 8.5114
17
14
10
Sept. 26, 1923 ___________
122
33. 5
127.5 28
115
111./l
Oct. 3, 1923 _____________
139
131
122
40
48
28
Oct. 10, 1923 ____________
l 80
160
110
1100
130
75
l 780
1780
1440
960
960
Oct. 15, 1923 -------- ___ 560
Oct. 22, 1923 ____________
8. 4
• 6. 6 • 6. 6 8. 4
~9
'4
Oct. 29, 1923 ____________
16.8
'13. 2 '13.2 16.8
9.8
'8
Nov. 5, 1923 ____________
108
108
'87
'87
63
'51
Nov. 12, 1923 ___________
• 280
• 280
1 170
340
340
200
Nov. 19, 1923 ___________
• 500
1300
620
620
'500
360
Dec.District
10, 1923;
J ___________
490
490
'400
280
'400
'220
District IL _________
560
560
'440
'440
'270
330
District III__ _______
1300
620
620
'500
'500
360
May 5, 1924:
District I__ ________ .Rentenmarka
.Rentenmarka
Rentenmarka
District rr __________
0.48-0. 60
0 .48-0.60
0. 28--0. 34
District III _________
,55- .67
.55- .67
,31- .40
Aug, 11, 19'J4:
,56-.71
.56-.71
,32- .41
District L---------District
II_. _________
,65- .80
,65- .80
.38- .48
District IIL •• ______ .90
.72-.90
.43- .55
Dec.District
15, 1924:J.. __________
• 79-1.00
• 79-1.00
•.s- .60
District rr___________
.72- .90
.72-.90
.43-. 55
District fil __________
,83-1.04
.83-1. 04
,50- .62
• 91-1.12
,91-1.12
• 53-- • 68
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
--
---------
---------
---
---
---
----
------
---------
-
--
-
-
,.72-
I Millions,
I
Billions.
154
CHAPTER VII.-UNEMPLOYMENT
TABLE 57.-MAXIMUM DAILY RATES OF UNEMPLOYMENT RELIEF, FEBRUARY
1, 1920, TO DECEMBER; 31, 1924-Concluded
Family allowance forPeriod beginningChildren and other
dependents
Consort
Feb. 1, 1920 _______________________________________ _
Apr. 30 1920 _______________________________________ _
Nov. 1, 1920_______________________________________ _
Aug. 1, 1921. ______________________________________ _
Dec. 5, 1921. _-------------------------------------Feb. 13,
--------------------------------------_
Aug.
14, 1922_
1922 ______________________________________
Nov. 20, 1922_ -------------------------------------Dec. 15,
25, 1923
1922--------------------------------------_
Jan.
_______________________________________
Jan. 29, 1923 _______________________________________ _
Feb. 12, 1923 ______________________________________ _
Apr. 16,
--------------------------------------_
May
14, 1923_
1923 ______________________________________
June 4, 1923 _--------------------------------------June 9,
25,1923
1923
_--------------------------------------_
July
________________________________________
July 18, 1923 _______________________________________ _
July 30, 1923 _______________________________________ _
Aug. 6, 1923 _______________________________________ _
Aug. 8, 1923 _______________________________________ _
Aug. 15, 1923. _____________________________________ _
Aug. 22, 1923 ______________________________________ _
Aug. 29, 1923 ______________________________________ _
Sept. 5, 1923 _______________________________________ _
Marks
1. 75-2. 50
2. 25-3.00
3. 25-4. 00
3. 505. 00
4. 75-7. 00
5. 508. 75
8. 5013. 00
50 65
120 165
200 275
240 330
550 700
700 850
850 1,150
1, 550 1, 850
2, 800 3, 300
5, 000 5, 900
6, 000 7, 500
10, 000 12, 500
27, 000 33, 000
65, 000 80, 000
170, 000 - 230, 000
260, 000 - 350, 000
410, 000 - 550, 000
620, 000 - 860, 000
2, 150,000 -2, 750, 000
16.58
1 12. 5 15. 5
116 22
145 60
1 350 440
'3 3.9
26
7.8
'39 48
2]20 150
'170 200
~::.
g; !t:______________________________________ _
Sept. 26, 1923______________________________________ _
Oct. 3,
-----------------------------_
Oct.
10,1923
1923____________
_______________________________________
Oct. 15, 1923 _______________________________________ _
Oct. 22, 1923 _______________________________________ _
Oct. 29, 1923 _______________________________________ _
Nov. 5, 1923 _______________________________________ _
Nov. 12, 1923 ______________________________________ _
Nov. 19, 1923 ______________________________________ _
Dec.District
10, 1923:I ____________________________________ _
DistrictUIll
--------------------------_________ __
Disttrict
__________________________________
May 5, 1924:
District L ___________________ ------------- ----District IL ___ -------------- __________________ _
District UL __________________________________ _
Aug. 11, 1924:
District L ____________ ----- ------------ _------District IL __ ----------------------------- ____ _
District UL __ --------------------------------Dec. 15, 1924:
District L __ ----------------------------------District
----------------------------------_
District IL
UL____________________________________
1
Millions.
'130
2 160
'170
-
160
190
200
Rentenmarks
0. 17--0. 20
.19- . 22
.20- .23
Marks
1. 25-1. 75
1. 25-2. 00
2. 25-3. 00
3. 504. 25
4. 506. 00
5. 507. 00
8. 25-11. 25
35 50
85 125
140 210
170 250
450 600
550 700
800 950
1, 150 1, 450
2, 100 2, 600
3, 800 4, 700
4, 800 6, 000
8, 000 10, 000
21, 000 27, 000
50, 000 65, 000
130, 000 - 190, 000
200, 000 - 290, 000
315, 000 - 455, 000
500, 000 - 710, 000
1, 800, 000 -2, 250, 000
I 5
6.5
19.512.5
115 18
135 50
I 300
360
1 2.5 3.1
25
6.2
134 40
'100 130
2 120
150
'90
'110
2 120
-
120
140
150
Rentenmarks
0. 12--0. 15
.14- .17
.15-- .18
.24- .30
.29- .35
.29- .38
.19-. 22
.19- .25
.21-. 27
.29- .35
.31- .40
.35-- .44
.19- . 25
.23-.29
.25--. 31
•Billions.
The decree of May 6, 1920, suspended the provision that the relief
should not exceed one and one-half times the amount of the local
wage and introduced the distinction for unemployed men over 21
years of those living and those not living in the household of another
person, which distinction had formerly prevailed only for women.
The decree of October 13, 1920, provided that from and after
November 1, 1920, the combined family allowances granted to an
unemployed person should not exceed 200 per cent (theretofore 150
per cent) of the benefit he would draw for himself. These family
allowances were also graded in a different way, the higher .rates applying to the consort and the children up to 16 years of age and the lower
rates applying only to" other dependents." The decree of November
1, 1921, reintroduced the old classes.
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Federal Reserve Bank of St. Louis
UNEMPLOYMENT RELIEF
155
The order of August 1, 1922, provided that the combined family
allowances should not exceed 300 per cent of the benefit which the
unemployed would draw for himself. The order of June 8, 1923,
reduced this to 200 per cent. The order of November 9, 1923,
reduced it to 100 per cent, the order of February 14, 1924, raised it
to 150 per cent. The order of August 1, 1924, again reduced it to
100 per cent, but only in case the combined fanuly allowances together with the b!lnefit draWI?- b[ the unemployed person would equal
the average net mcome of sum ar groups of employees. The same
order provided that unemployed females over 21 years of age who
prove that other family members depend upon them for a living shall
get the same benefits as males over 21 years of age; in such cases,
however, the combined family allowances should not exceed 100
per cent of the benefit which the unemployed would draw for herself.
By order of October 19, 1923, the distinction between adults living
and those not living in the household of another person was eliminated.
The order of December 11, 1923, introduced a subdivision into
three "economic districts": District I, comprising Eastern Germany;
District II, Central Germany; and District III, Western Germany.
The locality classes were maintained, so that there were from then
on, so to speak, 12 locality classes.
Table 58 shows the maximum weekly unemployment benefits,
including family allowances, of a man with a wife and two children,
living in a city of locality class A, and the minimum cost of subsistence of a family of four (father, mother, and two children from 6
to 10 years) in Greater Berlin:
TABLE 58.-MAXIMUM WEEKLY UNEMPLOYMENT BENEFITS AND MINIMUM COST
OF SUBSISTENCE FOR A FAMILY OF FOUR IN GREATER BERLIN, JANUARY,
1920, TO DECEMBER, 1924
Period
1920
January••••••........••.•••.••••••••
February ••.•••..•...•.•.••.•••...•.
March •••.••.••••••••.•••••• · ••• · · · •
April 1 to April 29•••••.•..••.•.•••••
April 30 to May 31. ••..•..•••••.••.•
lune •••••••••••••.•••••••.••.•.....•
July.••••••••••............•.••••••••
August•••..•.••.•••.•..••.•.........
September ••••......•..........••.••
October ....••.•.••.•...•..••....•...
November •••....•.•......•.•••.••••
December••••••.••.....••••••••••...
1921
January.•••••••.•••••.••.••••••••••.
Maximum
unemploy•
ment beneftts
January ..............•..••••••••.
90. 00
90. 00
90.00
90. 00
90. 00
132. 00
132. 00
July••••••••••••••••••••••••••••••••
August ••••.•..••....•..•...........
September••...........•.........•.
October.•..•.•.••.•••••.••.........
November •....••.•.•••..•••......•
December.••.•..•.••••••.••.......•
February ..........•..•.••.••••....
March ••.•.•.•••••••••.• · ••••......
~: ~ tfa~L::::::::::::::::::::::::::::::
June •......•...•.•..•..•..•••.••..•
132. 00
132. 00
132. 00
July ·•••••••••••••••••••••••• •••••••
August ..•..•..•.....................
September •••••••••••••••••.•.••••••
October ••••••••.•..•••.••.•••.••.••.
November 1 to December 4 .••....•.
December 5 to December 31•••••••••
132. 00
132. 00
153. 00
153. 00
153. 00
153. 00
204. 00
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
1920
Marb
57.00
72. oo
72.00
February ••••••..•..........••••••••
March ••••••....••.••..•..•..•.•••••
t!!! :::::::::::::::::::::::::::::::
Period
~~ ~
••••.••.1.~1•••.•.•••.••.....
I January
February .•.....•..•..•.•...••.•...
March •••.•.•...•.....•.....••..•..
tfar::::::::::::::::::::::::::::::::
June •••..................•..•••••••
July••••••••••••••••••••••••••••••••
August•••••••••••••••••..•••...•...
September••.•..•.••••••••.•••.••••
October..••••...............••.••••
November •..••.......•.....•.••.••
December••••••••••••••••••••••••••
Minimum
cost of
subsistence
Marb
220.00
254.00
322.00
375.00
365.00
304.00
324.00
308.00
299.00
318. 00
316.00
327.00
320.00
313.00
298. 00
281. 00
285. 00
311.00
324.00
339.00
349. 00
386. 00
509.00
557.00
156
CHAPTER VII.-UNEMPLOYMENT
'l'ABL• 18.-MAXIMUM WEEKLY UNEMPLOYMENT BENEnTS AND MINIMUM COST
OJ' SUBSISTENCE FOR A FAMILY OF FOUR IN GREATER BERLIN, JANUARY,
1920. TO DECEMBER, 11124-0onoluded
·.1.
Period
Maximum
unemploy•
ment benet\ts
l'erlod
·1022
Jlarb
1922
ii BI&11~························~·
January 1 to Febroar,- 12•••••••••••
February 18 to February 28 •••••••••
March ••••••••••••••••••••••••••••••
253. 50
263. liO
263. 50
253. 50
tf::::::::::::::::::::::::::::::::::
June ••••••••••••••••••••••••••.••••
July 1 to August 13 •••••••••••••••••
Augoat 14' to Augost.31••••••••••••••
Sjlptember••••••••••••••••••••••••••
October 1 to October 16•••••••••••••
October JI to October 31 ••••••••••••
November 1 to November 19••••••••
November 28 to November 30••••••.
December 1 to December 15•••••••••
December 16 to December :M..:••••••
December 25 to December 31••••••••
381. 00
381. 00
381. 00
381. 00
381. 00
1,830.00
1, 830. 00
1, 830. 00
4,,650.00
1923
January 1 to January 14..............
January 15 to January 28............
January 29 to February 11..........
February 12 to February 28. ••••••••
March 1 to March 16................
March 16 to March 31...............
April 1 to April 16...................
Ai>rll 16 to April 30..................
May 1 to May 13...................
May H to June 3••••• s..............
June• to June 16....................
June 16 to June 2'....................
June 25 to June 30...................
July 1 to July 8 •• •••••••••••••••••••
July 9 to July 15....................
July 16 to July 29...................
July 80 to August II.................
August 6 to August 7••••••••••••••••
August 8 to August 14................
August 16 to August 21._...........
August 22 to August 28..............
August 29-to September 4'...........
September 6 to September 11........
September 12 to September 18.......
September 19 to September 25.......
September 26 to October 2.. ••••••••
October 3 to October 9. •••••••••••••
October 10 to October 14'.. ••••••••••
4c, 650. 00
7, 770. 00
9,300.00
20, 400. 00
20, 400. 00
20, 400. 00
20, 400. 00
'.¥1, llOD. 00
'.¥1, llOD. 00
37, 600. 00
58,600.00
68,600.00
105,000.00
105, 000. 00
189,000.00
237,000.00
3113, 000. 00
1, 062, 000. 00
2, 610, 000. 00
7,660,000.00
11, 580, 000. 00
18,180,000.00
28, 380, 000. 00
88, 0001000. 00
255
I 496
g:::= ~: g=: ~::::::::::::
October 29 to November 4...........
November 5 to November 11........
November 12 to November 18.......
November 19 to November 30.......
December 1 to December 9..........
December 10 to December 31........
1924
~:::::::::::::::::::::::::::
,April 1 to May 4••••••••••••••••••••
I 708
I
I
1, 960
I~
1,
6
• 24'7. 2
'1,578
1 4c, 980
• 7,680
I 7. 68
I 7. 02
May 5 to May 31 •••••••••••••••••••
June ••••••••••••••••••••••••••••••••
July 1 to August 10••••••••••••••••••
August 11 to August 31••••••••••••~.
September••••••••••••••••••••••••••
Octol)Ar ••••••••••••••••••••••••••
November 1 to December M••••••••
December 16 to December 31. •••••••
I
Millions.
,April•••••••••••••••••••••••••••••••
May •••••••••••••••••••••••••••••••
June............................... •
July··············---······
August.••••••••••••••••••••••••••••
September•••••••••••••••••••••••••
October 1 to October lli••••••••.••·•
October 16~ October 81 •••••••••••
November 1 to November 15•••••••
November16toNovember80 •••• - .
December 1 to December 16••••••••
December 16 to December 31.••••••
1923 l_K_ __
January 1 to January
January 16 to January 31..•••••••••
February 1 to February 15•••••••• ~
February 16 to February 28 ••••••••
March 1 to March 16
~ ••
March 16 to March 31-••••••••••••
April 1 to April 15••••••••••••••••••
April 16 to April 30•••••••••••••••••
May 1 to May 15••••••••••••••••••
May 16 to May 31 •••••••••••••••••
June 1 to June 16•••••••••••••••••••
June 16 to June 30••••••••••••••••••
8.40
uo
8.40
lLl0
lLl0
lLl0
lLl0
12, 78
1
Jlarb
1148.00
6'.¥1.00
789.00
916.00
1)1)6.00
1,196.00
1,763.00
. 2,968.00
. .. 714.l)O
6,136.00
8,871.00
13,238.00
19,303.00
24,,395.00
25,579.00
July 1 to July 15 •••••••••••••••••••
S0,383.00
4,3,821.00
81,671.90
80,350.00
77, 74'1.00
72,483.00
7o,832.00
78, 71LOO
107,821.00
186, .... 00
198,676.00
306, 4'88. eo
. 688, li89. 00
July 16 to July 31 ••••••••••••••••••
August 1 to August 16••••••••••••••
II, 24'5, 689. 00
August 16 to August 3,.___ _ _ •
24', 822,120.00
1, 201, 761. 00
September 1 to September 15....... 17o, 620,606.00
September 16 to September 30••••••
1683.3
October 1 to October 16 ••••••••••••
17,184.9
October 16 to October 31 •••••••••••
1266, liS8
November 1 to November 16•••••••
14,,4'98.8
November 16 to November 30••••••
December 1 to December 15••••••••
December 16 to December 31•••••••
135,ssi.-11
Rmu,unarb
7.02
7.02
7.02
7.02
Minimum
OOfit of ..
BUblllstence
1924
&11~:::::::::::::::::::::. ::::
tFar:·::::::::::::::::::::::::::::::
June •••••••••••••••••••••••••••••••
July
•••••••••••••••••••••••••••••••
August.
••••••••••••••••••••••••••••
~ct~ber:::::::::::::::::::::::::
November_
•••••••••••••••••••••••••
December
_ _ _ __
Billlons.
I
•33.M
• 28. 73
R,nt,nmort,
'.¥1.74'
26. 511
26.91
28.4'9
29.29
28.43
29.28
28.81
29. 78
3L30
3L22
3L18
Bentemnarlm.
In comparing the two sets of fu?ures, it must be borne in mind that
in the time of rapid monetary a:e_preciation everything depends on
the day the benefits were actually paid. Very often tlie decree
which raised the benefits for a certain period was issued in the middle
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Federal Reserve Bank of St. Louis
157
UNEMPLOYMENT BEL1E1!'
of that period, and so the increased benefits were _paid when the
money liad lost part of its value. 1 The "real" allowances were
thus smaller than one might judge from the table.
Most of the time these allowances were, however, very small, even
when the day of payment is not taken into account. In general the
allowances furnished onlx. between one-fourth and one-third of the
minimum cost of subsiste:dce. The proportion was higher only from
November, 1920, to October, 1921, from December, 1921, to February, 1922, in the second half of April, 1923, during some days
in August and September, 1923, and from August 11, 1924, on. But
in certain other periods it was much smaller. From September
1922, tmtil Christmas of that :year the unemployment allowances did
not cover even one-tenth of the minimum cost of subsistence, and
in the :first half of November, 1922, not even one-thirtieth.
Early statistics of the persons receiving unemployment benefits
are incomplete. From May to December, 1919, reports are available only for some cities and one must resort to estimates in order to
get a notion of the amount of unemployment which then prevailed.
From March 1, 1923, to April 15, 1924, no figures are available for
the occupied territory. Table 59 shows, for 1918 to 1924, the
number of totally unemployed workers receiving unemployment
benefits, by sex, the number of dependents of such unemployed
for whom an allowance was paid, and the number of short-time
workers assisted, so far as data are available.
TABLE 59.-NUMBER OF PERSONS RECEIVING UNEMPLOYMENT BENEFITS,
DECEMBER 1, 1918, TO DECEMBER 15, lll'l4
Date
Totally unemployed workers Number
receiving benefits
of deShortpendents time
i - - - - - , - - - - , - - - - 1 for whom workers
allow• receiving
Males Females Total
benefits
made
ances
1918
Deo. ,..________________________________
---------- ----------
liOl, 610 ---------- ----------
1919
1an.
L----------------------------------------------- ---------- ---------- 905,137 ---------- ---------Feb. 1----------------------------------------------- ---------- ---------- 1,076,368 ---------- ---------Mar. 1----------------------------------------------- ---------- ---------- 1,003,854 ---------- ----------
Mi! i-============================================== ========== ==========
aa
Nov. 1----------------------------------------------- ---------- ----------
liOO, 000 ---------- ---------470,000 ---------- _________ _
========== ==========
iDec. )-:1----------------------------------------------: : : : : : : : : : : : : : : : : : : : : : : :__________
: : : : :__________
: : : : i ffl :::::::::: ::::::::::
1920
1an.
15---------------------------------------------347,783
Feb. 1----------------------------------------------- 333,204
Mar. 1----------------------------------------------- 287,531
tray½::::::::::::::::::::::::::::::::::::::::::::::: =: ~
lune 1----------------------------------------------- 209,930
1uly 1----------------------------------------------- 240,812
Aug. 1----------------------------------------------- 294,747
Sept. 1----------------------------------------------- 309,579
Oct.1----------------------------------------------- 301,809
Nov. 4----------------------------------------------- 282,126
Dec.
l ----------------------------------------------- 277,007
106,1192
97,562
82,765
:: ~
454,775
430, 766
370,296
:i
::~
271,660
379,071 _________ _
392,321 ----------
849,381 ----------
=:256,840:: ::::::::::
_________ _
61,730
82,111 322,923 293,520 ---------109,088 403,835 370,015 _________ _
105,022 414,601 387, 2M ---------·
91,014 392,823 362,423 ---------79,185 361,311 345,646 _________ _
73,080 300,087 352,875 ---------1 For e:mmnle, the benefits were raised by order of Aug. 4, 1923, as from Aug. 6, and by order of Aug. 14
for the period beglmrlng Aug. 8 and ending Aug. 14.
20168°-25t-11
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Federal Reserve Bank of St. Louis
158
CHAPTER VII.-UNEM:PLOYMENT
TABLE 59.-NUMBER OF PERSONS RECEIVING UNEMPLOYMENT BENEFITS.
DECEMBER 1, 1918, TO DECEMBER 15, 1924--0oncluded
Date
Totally unemployed workers Number
receiving benefits
of deShorlipendents time
1
for whom workers
allow• receiving
Males Females
Total
ances
benefits
-----------1
made
1921
Jan. 1 ...••••••••••••••••••••••••••••••••••••••••••••
Feb. 1 •.•••••••••••••••••••••••••••••••••••••••••••••
Mar. 1.............................................. .
334,912
347,974
346,532
333,630
f!i~ L:::::·::::::::::::::::::::::::::::::::::::::
313,653
282,468
244,067
204,185
176,595
11:::::::::::::::::::::::::::::::::::::::::::::: 142,759
Nov. 1••••••••••••••••••••••••••••••••••••••••••••••• 113,672
Dec. 1 ••••••••••••••••••••••••••••••••••••••••••••••• 114,339
July 1 •••••••••••••••••••••••••••••••••••••••••••••••
Aug. 4•••••••••••••••••••••••••••••••••••••••••••••••
t4;,¥t
1922
Jan.1 ••••••••••••••••••.••••.•••••••••••••••••••••••
Feb.1 ••••••.••••••••.•••••••••••••••••••••••••••••••
Mar. 1. ............................................. .
132,223
171,517
182,629
94,711
49,191
June 1 •••.•••••••••.•••.•••..•••....•••.•..•.••••••..
20,136
July 1 ••••••••••••.••.••••..•...••.••••••..•••••••••• 13,781
10,603
Aug. 1. ............................................. .
7,946
Sept. 1••••••••••••••••.••••••••••...•.•.•••.••••••.••
Oct. 1 .•.......•••..•...........................•.... 12,054
Nov. L ...••••.••••••••••••...•..•.••..•..••.•••••••• 19,297
Dec. 1 •••••••••••••••••••••.••••••••••••••••••••••••• 34,463
t/':y l:::::::::::::::::::::::::::::::::::::::::::::::
1923
Jan. 1............................................... 71,429
Feb. 1............................................... 129,405
Mar. 1............................................... 165,089
~~:
t/':y ½.-:.::::::::::::::::::::::::::::::::::::::::::::
i:
June 1............................................... 211,863
June 15.............................................. 181,893
July 1 •• ••••••••••••••••••••••••••••••••••••••••••••• 152,081
July 15 •• •••••••••·••••••·······•··•••••••••••••••••• 133,084
Aug. L ••••••••••••.••••••.•••••.•••....••.•••••••••• 111,457
Aug. 15.............................................. 116,323
Sept. 1.. •• • ••• ••••.•• ••• .• • •• • • • ••• •• •• ••• ••••• ••••• 202, 512
m: m
~tit 115 .~:::::::::::::::::::::::::::::::::::::::::::
Oct. 15.. .•••••••.•••••.••••••••••••••••••••••••••••• 575,650
NOV. L... ••• •••••. .•• • ••• •. • ... ••••• ••• •. ••• •• •••••. 784, 690
Nov. in ..•••••••••.•••••••••••••••••••••••.•.•.••••• 1,028,563
Dec. L •••••••••.............•..........••••••••.... 1,190,543
Dec. 15•••••••••••.•••••••••••••••.••••••••••••••••••• 1,216,639
1924
Jan. l .•••••••••••••••••••••••••••••••••••••••••••••• 1,2'12,997
Jan.15 ••••••••••••••.•••••••••••••.••••••••••••••••. 1,351,895
Feb.1 •••••••••••••••••••••••••••.••••••••••••••••••• 1,258,948
Feb. 15 ••••••••••••.•••••••.•••••••••..•.•••••••••••• 1,162,091
l
75,326
75,190
80,068
79,691
80,609
74,884
70,408
62,923
55,462
43,047
36,432
34,998
410,238
423,164
426,600
413,321
394,262
357,352
314,475
267,108
232,057
185,806
150,104
149,337
458,924
499,140
494,738
468,148
444,357
384,683
339,008
300,856
253,431
208,326
165,194
172,510
33,025
31,077
29,897
21,134
15,517
8,490
5,867
4,534
8,725
4,624
li,516
8,437
165,248
202,594
212,526
115,845
64,708
28,626
19,648
15,137
11,671
16,678
24,813
42,900
210,468
288,030
308,265
157,699
79,855
35,824
25,339
18,611
13,308
21,028
28,068
50,638
13,989
85,418 106,108
20,815 150,220 190,336
24,919 190,008 240,253
33,735 222,410 273,229
43,270 266,966 312,282
41,666 253,529 279,683
38,055 219,948 239,362
33,901
185,982 189,471
30,724
163,808 159,907
27,559 139,016 138,257
31,020 147,343 147,260
46,680 249,192 248,616
70,962 384,439 379,015
94,996 534,360 543,582
121,425 697,075 701,451
169,974 954,664 962,181
236,941 1,265,504 1,257,113
283,145 1,473,688 1,447,644
271,532 1,488,171 1,470,375
260,498
238,155
180,832
145,145
112,555
83,975
159,434
141,362
l 43,558
1 26,720
I 32,127
I o0, 723
I 61,185
:!5:m
1
• ~p~· 0 ~::::::::::::::::::::::::::::::::::::::::::::
tf:Y is:::::::~:::::::::::::::::::::::::::::::::::::: :~ g~
June 1. ••••••••••••••••••.••••••••••••••••••••••••••• t 375,238
July L ••••••••••••••••••••••••••.•.••••••••••••••••• l 394,293
Aug. 1............................................... I 475,465
Sept. L... ••• ••••• .•• •• • • • • •• ..•. ••• ••. . •• •..••••••• 1 527, 300
Sept. 15.... •••••••••.•.........•••••.•.....••••••••• 1 517, 704
8~t k::::::::::::::::::::::::::::::::::::::::::::: :~: ~
Nov.1-•••••••••••••••••••••.....••••.•••...••••••••• •396,193
Nov. 15••••••••••••.........•... ··•·• ... .. . .•••••.... 1 388, 890
E:: k::::::::::::::::::::::::::::::::::::::::::::: ::gg; ;:
I
58,886
50,403
145,662
139,128
137,492
135,916
137,416
l
t Includes also figures for short-time workers receiving benefit.
• Included in figures for totally unemployed workers receiving benefit.
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1,533,495
1,590,050
1,439,780
1,307,236
1,167,785
975,885
I 694,559
I 475,988
I 571,783
1401,958
I 426,420
I 526,188
:m;:gg
513,496
1473,023
t 435,321
I 426,382
1436,607
1458, 125
I
1,572,403
1,690,214
1,592,549
1,481,018
1,378,143
1,182,248
865,332
577,945
722,562
659,248
596,888
555,869
550,190
571,582
605,938
125,352
379,620
412,304
300,536
259,875
254,833
191,632
210,774
526,010
934,731
1,158,061
1,476,437
1,719,738
1,816,979
1,795,824
1,227,628
849,162
624,932
363,634
252,328
149,871
90,006
(1)
r
~
~~
~~
(')
~~
(l~
(I
UNEMPLOYMENT RELIEF
159
EXPENSES OP UNEM:PLOYIIENT RELID'
Originally only such sums were considered unem~loYlll,ent relief
~8!18es as were actually paid to the persons assistea. The decree
of March 14, 1919, however, provided that expenses of administration should also be included.
Previous to the regulation of October, 1923, the funds for unemployment relief were contributed.z in fixed proportions, by the
Federal Government, the States, anc1 the communes concerned, the
Federal Government bearing one-half, the State one-third, and the
communes the remaining one-sixth. In the case of communes of
limited means the proportion borne by the Federal Government
could be increased.
By decree of October 13, 1923, the method of raising funds for
unemployment relief was radically altered. 2 It seemed important
that the funds for unemployment relief and for the public employment offices should come from the same source, such institutions
being intimately connected and established in the same communes.
The principal provisions of this decree are as follows:
ARTICLE 1. The funds for carrying on the struggle against the scarcity of
employment and for unemployment relief are to be raised, up to the limit fixed
in article 2, by contributions of employers and employees and by ~ t s from the
commune.
In so far as the maximum contributions of employers, employees, and communes fail temporarily to cover the necessary expenditures in districts with
extraordinarily serious unemployment, the Federal Government and the States
shall make the necessary grants.
ART. 2. All employees liable to compulsory sickness insurance under the Workmen's Insurance Code or to sickness insurance in a miners' fund, as well as their
employers, are required to make contributions.
The amount of such contributions is to be fixed by the administrative committee of the public employment office for its district in fractions of the contributions to sickness insurance.
The contributions shall be so fixed as to cover four-fifths of the necessary
expenditures for unemployment relief in the district of the employment office
and of the necessary cost of the public employment office, but not to exceednotwithstandin!i the provision of article 6, paragraph 2-20 per cent of the contributions for B1ckness insurance. One-half of the contributions shall be paid
by the employers and one-half by the emplo;rees.
ART. 3. The contributions are to be paid m addition to the contributions for
sickness insurance. * * *
ART. 4. The commune (communes) which has established a public employment office shall contribute one-fifth of the necessary expenditures for unemployment relief in its district and one-fifth of the necessary cost of the public emplorment office, but not more than one-fourth of the combined contributions paid
by the employers and employees under article 2, paragraph 3. * * *
ART. 5. On unanimous resolution of the communes concerned, several public
employment offices may form an association to bear the common risk of raising
the necessary funds. * * *
ART. 6. The grants necessary under article 1, paragraph 2, will be borne by
the Federal Government and the State in equal parts.
·
The grants by the Federal Government and the States fall due only when the
maximum contributions permissible under article 2, paragraph 3, have been
collected for at least two weeks.
This decree, which went into force November 1, 1923, was amended
in some essential points by the decree of February 13 1 1924. The
main changes were:
1. The amount of the contributions shall no longer be fixed in
fractions of the contributions to sickness insurance out in fractions
1 Tbls' decree was Issued under the emergency law of the same date granting extraordinary powers to the
Government but before the latter was_proclalmed. In order to avoid contests, the decree was reissued
Olli. lo, and tbls ls the date which ls ofllolally quoted.
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Federal Reserve Bank of St. Louis
160
CHAPTER VII.-UNEMPLOYMENT
of the basic wages (adopted for calculating sickness insurance contributions).
This provision was to eliminate the advantages to those employers and employees whose sickness insurance fund did not raise
the permissible maximum sickness insurance contributions.
2. The contributions shall be so fixed as to cover two-thirds of the
necessary cost of the public employment office and eight-ninths of
the necessary expenditures for unemployment relief in the district
of the public employment office. They shall not, however, except
for a period of two weeks, exceed 3 per cent of the basic wage. The
commune shall bear the remaining one-third of the cost of the public
employment office and one-ninth of the expenditure for unemployment relief, the Federal Government and the States making grants
only in so far as the expenditures for unemployment relief after two.
weeks are not covered by the contributions of the employers, the
employees, and the communes. The Minister of Labor, moreover,
may fix a higher percentage of the basic ·wage than 3 per cent as the
contribution of employers and employees, and he may order, as from
July 1 1924, that the contribution of the communes shall be increased up to one-sixth of the expenditure for unemrloyment relief.
The ob3ect of these provisions was to lighten the financial burden
of the communes but especially of the Federal Government and the
States. ·
3. The State governments and the Minister of Labor may order
that the contributions of employers and employees shall be calculated on the total expenditure for unemployment relief in large
districts or even in the whole of Germany.
The object of this provision is the better distribution of the financial
burden of unemployment.
4. The Minister of Labor may exempt certain occupations or
groups of persons from contribution or may grade the contributions.
In pursuance of the last provision, the Minister of Labor, by order
of March 13, 1924, exempted the following persons from the payment
of contributions:
1. Persons engaged in agriculture or forestry as workers during
part of the year, in case they, at the same time, own or rent agricultural property of such size that it furnishes the principal means
of supJ>ort for themselves and their family.
2. The consort and descendants of the persons mentioned in section 1, if they live under the same roof and are employed part of the
year as workers in agriculture or forestry.
3. Workers who are engaged by contract of not less than a year's
duration or for an indefinite period, in case the time allowed for giving
notice without any sufficient reason is at least 6 months. The
exemption ceases six months before the expiration of the contract,
either by the expiration of the stipulated term or by the giving of
regular notice.
13y order of May 24, 1924, persons engaged in river, lake, and offshore :fishery are also exempted, if they own or rent agricultural
property of such size that it furnishes the principal means of support for themselves and their family.
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Federal Reserve Bank of St. Louis
UNEMPLOYMENT RELIBF
161
The total expenses for unemployment relief and public employment offices in the five months from August to December, 1924,
were as follows: August, 1924, 20,495,318 marks; September, 1924,
22,456,941 marks; October, 1924, 21,901,132 marks; November,
1924, 19,326,565 marks; December, 1924, 22,810,411 marks.
•
UNEMPLOYMENT RELIEF WORK
Unemployment relief work was provided for by section 16 of the
decree of January 15, 1920, authorizing the Minister of Labor, in
furtherance of measures calculated to diminish the number of persons
depending on unemployment relief, more especially by providing
work for the unemployed, to grant loans and contributions out of
the funds appropriated for unemployment relief, the amount of such
loans and contributions being based on the number of persons thereby
becoming independent of unemployment relief. The funds appropriated for unemployment relief work are raised in the same manner
as those for unemployment relief-by the Federal Government, the
States, and the communes concerned. Measures to be promoted
under this section are, first of all, those considered profitable from
the standpoint of J?Ublic economy. In such cases an application
must be filed in which the nature and extent of the undertaking in
question are accurately specified and the number of workmen who
will thereby become independent of unemployment relief given, and
an estimate of the cost involved presented. In case the commune
does not itself intend to carry out the relief work, the application is
presented by the commune to the competent department. The
conditions under which the Federal Employment Office and the
Minister of Finance are authorized to grant loans and contributions
are specified in detail. The principal consideration is the saving of
expense for unemployment relief by the relief work proposed. In
the beginning the undertakings to be promoted were restricted to
relief work undertaken by corporations invested with public authori~.
Private enterprises expected to yield a profit are not as a rule to be
promoted out of public funds and if so o:rily when the commune which
supervises the undertaking is in a position to reduce the profit.
Grants are to be made only to undertakings which produce goods of
general utility. .An employer receiving a subsidy is required to
supply the product of his undertaking at cost price.
The period for repa_yment of the loans provided in the various
decrees was of various lengths, being at first long, but later generally
short. The installments and the rate of interest were at first calculated accurately, but as the German currency became more and
more depreciated they were calculated in terms of the produce
yielded by the undertaking, until finally, on May 16, 1923, the rate
of discount used by the Reichsbank was taken as the standard,
except in cases where the real value of the produce was taken as a
basis, 5 per cent being paid as interest.
As a rule loans and subsidies are to be given only for the current
fiscal year, and even in case of exception not beyond the end of the
current calendar year.
Under section 32 of the decree of February 16, 1924, the expense
of the unemployment relief work is shared by the Federal Government and the State concerned. More and more the assistance
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Federal Reserve Bank of St. Louis
162
CHAPTER VII.-UNEMPLOYMENT
granted for unemploYJ!l.ent relief work is beiilg extended to private
enteryrises. This is done, however, as explained above, only on
condition that, under the regulation of January 18, 1924, the product
of the undertaking is employed for the public benefit, so that prices
may to a. certain extent be artificially lowered. To receive loans or
subsidies from the Government a private unde1-taking must employ
at least 20 unemployed who have received unemployment relief for
not less than two weeks and who could not expect to find other
work for some time. They must be employed to such an extent that
th~ will not become entitled ·to assistance for short hours.
The undertakings started or promoted as unemplo_yment relief
work are considered emergency work. An order issued on November 17, 1923, by the Minister of Labor, contains the following regulations regarding relief works:
De.finition.-Relief works are undertakings subsidized by the unemplopnent
relief fund. The obligatory work done by the unemployed under section 9,
paragraph 2, of the decree of October 15, 1923, as an equivalent of the assistance
the]' receive, is not regarded as relief work.
Cla88ification.-Small relief works are undertakings subsidized by the unemployment relief work fund, the funds being raised by contributions of the employers and workmen. [Road repairs are considered as small relief works
according to a circular of the Minister of Labor of February 16, 1924.] Large
relief works are undertakings subsidized in addition by the State and the communes. Large relief works are started only in cases of the most urgent need
and must give work to 2,000 uneml>!oyed who have received unemployment
relief for not less than two weeks. The unemployed assisted must consti · ute
at least 2 per cent of the population of the communes, and employers and workmen in the communes concerned must pay the maximum rates.
Conditiom.-Workmen who are engaged on relief works nevertheless remain
at the disposition of the employment office and may be recalled as soon as they
have a chance for profitable work. In order that as many unemployed as possible may find work on the relief works, the working time must be shortened,
and, if this is not sufficient, the men must work in shifts.
At first (by decree of June 18 1920} fair wages according to the
local rate were paid for relief work, but later on the rate was lowered.
A low rate of wages is paid in order to make the men em_ployed on
relief work anxious to find other employment for which they would
receive the w~es customary in the locality or those fixed by collective
agreement. For some time also the maximum rate of wages was
uniformly fixed (in 1923); generally, however, this was left to the
local authorities.
•
Amo11g relief works which the Minister of Public Works considers
especially worth promoting are the following:_ .
1. Buil~ of electric lines and systems (high voltage lines up to
30,000 volts, transformer or converter stations, switching ~tations
and low tension s~tems).
2. Building of houses. This does not refer to house building
already subsidized by the Federal Government in one way or another.
Not until the _grants for this purpose by the Federal Government are
exhausted is the buil~ of liouses to be subsidized by the unemployment relief fund, and tlien only in case the available workmen are
thereby distributed in a. manner advantageous to the builder or the
nUID,ber given employment considerably increased. Concerns engaged
exclusively in tlie manufacture of building materials or of doors,
window frames, and the like are not to be subsidized except in the
case of building enterprises of public utility which manufacture such
parts for their own use.
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Federal Reserve Bank of St. Louis
UNEMPLOYMENT RELIEJ!'
163
The building of residences for Government, etc., employees is
also considered as deserving of encouragement by grants from the
unemployment relief fund. The building of houses for rural laborers
is to be J:>romoted as far as possible and for this purpose noninterestbearing loans are granted. Such houses may be built of wood,
provided they are not mere temJ:>orary structures but are built to
last for at least 30 years. These frame houses must conform to the
building regulation and be well built and habitable in all seasons of
the year. '"'.By means of noninterest-bearing loans running for 20
years, about 14,000 houses for rural laborers have thus far been
built.
Building trades workers are to be prevented, if possible, from leaving their _place of employment during the winter, and therefore
their applications for unemployment relief are, as far as possible,
to be granted and they are to be given special consideration as to
the amount thereof and in the obtaining of employment. The
railwa~ are allowed to diminish their force, transferring men to
the building trade. Railway employees .who belong to the building
trade are to be discharged and sent to the local employment exchange
to obtain employment in their trade.
Unemployed workers of all trades may be given a course of training for the purpose of transferring them to other trades, but for
workers in tlie building trades the procedure is regulated in detail.
In 1922 the following regulations were in force:
(a) The transfer of unemployed workers to other trades will be
carried out by a committee consisting of equal numbers of employers
and employees, with the president of the employment office as chairman. The duties of this committee are selection of suitable workmen
to be apprenticed to other trades and establishments or workshops
in which they can be trained, approval and supervision of the course
of training, and arbitration of matters relating to the apprenticeship
contract. The committee is to fix the length of the training, distribute the funds granted for the training of apprentices, etc.
(b) The workers to be apprenticed are to be selected from the
following trades: Building laborers, stove fitters, joiners, and related
trades. They must be unemployed or such workers as can be replaced by unemployed workers. Such apprentices are to be from
18 to 30 years of age.
(c) Tlie length of the apprenticeship is to be fixed in each case
according to circumstances; as a rule, one year for masons and one
and one-half to two years for carpenters.
(d) On principle apprentices are to be trained in workshops or
industrial establishments, this practical training to be supplemented
by theoretical instruction. A contract is to be entered into between
tlie employer and the apprentices. At the end of the aJ:>prenticeship
the aJ:>prentice must pass a test before a committee before being
classea. as a journeyman. These conditions may be modified under
certain conditions.
(e) The apprentice is to receive the wages of a helper in the building trade under the collective agreement. The workshop or concern taking an apprentice is allowed a grant from the unemployment
relief fund. One-half of this allowance is due when one-third of
the apprenticeship is over, one-third when two-thirds of the term
is over, and the remaining one-sixth at the end of the apprenticeship.
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Federal Reserve Bank of St. Louis
164
CHAPTER VII.-UNEMPLOYMENT
In exceptional cases the grant may be used for the purchase of tools
and working clothes.
3. In order to meet the ~eat demand for rural labor, em_ployment
offices are to see that wor.1:anen out of emploYII!ent are directed to
places where work is to be had in the countrr.. By decree of March
16, 1919, such workmen are allowed free railroad transportation to
the place of work. In Janual'J7', 1922, the following measures were
recommended by the Federal Employment Office: Advertisements
for work in the country for unemployed city workmen; investigation
of vacancies of this kind, especially as to board and lodging; selection
of suitable men for such work; arrangements for taking the unemployed workers to the place of wo:rk1 and board and accommodation
during the journey; provision of smtable clothing for the workmen
(as far as possible), to be paid for by the employer; supervision of
the treatment of the workmen in thell' new places of work; payment
of traveling expenses on the return journey in case of illness, or
illness or deatli in their families, or because the workmen prove
unfitted for the work. .
A separate fund was appropriated in April, 1923, out of the unemployment relief fund for the expenses incurred in _procuring workers
for rural lab,pr. In 1923 a total of 14,000 city workmen were b,v: this
means transferred to the country, of which 30 to 35 per cent did not
remain because of lack of working clothes, physical mability, dislike
of the work, etc. The expenses for this agency dllring 1924 are
provided for in the following manner: For every suitable unemployed
workman for whom employment is procured in the country from
January 1 to December 31, 1924, a sum equal to :five times the amount
of the unemploYII!ent benefit due to a single workman over 21 years
of age in towns of class A in economic District II, but not exceeding
the extra expenses incurred by the State employment office in promoting such labor movement will be 1>_aid. Up to April 1st threefifths of this amount was borne by the Federal Government and twofifths by the State, thereafter the Federal Government and State to
contribute equal shares.
From April 1, 1920, to August 20, 1923, the number of da_ys worked
in the performance of unemployment relief work, was as follows:
Days'work
Road making and digging _________________________ 27,835, 714
Public improvements _____________________________ 10,294,499
River and canal construction ______________________ 12,350,310
Gas, water, and sewer work_______________________ 5,564,852
Railroadwork ___________________________________ 3,343,084
Electrical plants_________________________________
867,968
162,369
Gardening______________________________________
House building __________________________________ 4,696,953
Miscellaneous ___________________________________ 8,523,801
Total _________________________________________ 73,639,550
EMPLOYMENT OFFICES
Pre-war time.-In pre-war time the conduct of employment
~encies was left to private enterprise. In consequence man;y
different kinds of employment agencies were established and flourishe<l
side by side without any connection with each other. The earliest
form was the employment office of the trade guild, which by the
supplement to the Industrial Code of June 18, 1884, was given the
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Federal Reserve Bank of St. Louis
EMPLOYMENT OFFICES
165
task of procuring employment for journeymen. With the rise of the
trade-union movement the trade-unions established emplo_yment
offices for almost all trades, but they did not acquire any considerable
importance. The employment offices of the salaried employees'
associations were centralized and also served as registration offices.
The emplo_yers' associations also established employment offices,
some of which attained importance. Other offices managed conjointly by employers and employees were established on the basis of
collective agreements, but they were only for certain trades. Public
welfare or charitable associations also established employment
offices, but they generally restricted their activities to procuring
employment for the needy. In addition to all these private agencies
there existed public employment offices, established or subsidized by
communes or communal unions, which soon acquired greater importance than any of the others.
Because of this great variety of employment offices working side
b_y side but without a common contro1 or unity of purpose, a sufficiently regular supply oflabor for the vacancies occurring could not be
maintained. In order to remedy this and other defects of the employment service, the public employment offices deemed it advisable to
cooperate more closely and so formed associations of the employment
offices in the Province or State, these associations being united in the
Federation of German Employment Offices. In order to secure
regular adjustment between su_pply and demand of labor in the
different localities, they published regular lists of vacancies and
established a journal for emplo_yment agencies. 3 As these associations, however, comprised only the public emP.loyment exchanges, the
defects arising from lack of unity and uniformity among private
offices could not be entirely eliminated.
Legislation regulating comprehensively the organization of employment offices was lacking. The States, especiallym southern Germany,
had issued ministerial decrees by which public employment offices
were _promoted but whicli did not/rovide for uniform organization.
The Federal Government confine its activities to giving financial
assistance for the maintenance of the public employment offices.
Only the private employment office operated for profit, about which
complaints were frequently heard at the time, was strictly regulated
by law. Sections 1 to 14 of the law of June 2, 1910, covered private
employment offices operated for profit and provided that such
agencies were not thereafter to be established ui:iless urgently necessacy-. The management of such em_ployment agencies was made ·
suliject to the control of the local authonties and the carrying on of
certain other business in connection with such employment agencies
was forbidden. Employment a_,gencies for female workers were
subjected to strict control by tlie police authorities, and it was
provided that maximum fees were to be fixed by the authorities.
Sections 15 to 18 of the law related to nonprofit employment agencies,
authorizing the State governments to prescribe their q_uali:fications
and duties, but the States took very little advantage of this permission.
War time.-The complete change in economic conditions caused
the outbreak of the war made it necessary to adjust the organization
o the employment offices to the altered conditions. The Central
hr
• Der Arbeitsmarkt, later Der Arbeitsnachweis in Deutschland.
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Federal Reserve Bank of St. Louis
166
CHAPTER VII.-UNEMPLOYMENT
•
Bureau of the Federal Employment Service (Reickszentrale der
.Arbeitsnachweise) was thus established on August 6, 1914, within
the Ministry of the Interior, with the object of organizing the employment offices throughout the country on a uniform basis, of affording
a comprehensive survey of the labor market, and of equalizing the
supply and demand of labor. This department, however, did not
exert v~ry great ~fl.uence on the orgf!,n~zation of emplo~ent offices.
In addition to this the Federal Stat1st1cal Office published a labor
market gazette, each employment office reporting twice a week the
number of applications for employment still pending and the number
of vacancies. Finally, under section 15 of the law on employinent
agencies all employment offices were required from and after May,
1915, to report concerning their establishment and organization, and
once a month on the number of apJ?lications filed and vacancies
registered, with the object of obtammg a survey of the existing
employment offices and of the state of the labor market. The decree
of the Federal Council (Reichsrat) of June 14, 1916, authorizing the
State governments to make it the duty of the communes or communal
unions to establish or subsidize _public employment offices and to
issue regulations for their orgaruzation and management, did not
lead to any important results. Prussia, for instance, merely instructed
the presidents of the administrative districts to make use of their
powers, "in case the communes or counties should decline to supply
an evident want."
The first e.ffective step towards unification of the individual
employment offices was taken when the national auxiliary service
law of December 5, 1916, went into effect. Under the management
of the newly-established War Office central information bureaus
comprising all the employment offices were established, and attached
to the associations of employment offices, with advisory committees
composed of equal numbers of employers and of employees. Re~tration offices for the auxiliary service were also established, which
were in all cases attached to the public employment offices and to
which vacancies and applications for employment were required to
be repor.ted.
•
Postwar period.-The sudden demobilization s~bsequent to the
revolution of 1918 and the consequent enormous increase in the
number (Jf the unemployed resulted· in a reorganization of the
employment offices. The mana_gement of the entire em_ployment
service was transferred from the War Office to the Demobilization Office on November 9, 1918. In an attempt to regulate the
labor market the new Government issued the decree of December 9,
1918, confining itself, however, to conferring extensive powers on
the States. Thus authorized, most of the States issued decrees;
e. g., the provisional decree of September 12, 1919, of Prussia
requiring on principle every subordinate _government board to establish puolic employment offices in its district and providing that
provmcial boards (which later became the State employment
offices), composed of all the employment offices in the Province or
district, should be established.
The growing importance of the employment offices, especially in
connection with unemployment relief and unemployment relief
work, made it necessary to centralize the employment agency in a
Federal Employment Office (Reichsamt fur .Arbeitsvermittlung)
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Federal Reserve Bank of St. Louis
EMPLOYMENT OFFICES
167
established by decree of the Federal Government May 6, 1920.
Soon after its establishment, the Federal Employment Office was
instructed to submit a draft of a comprehensive bill re~ating
employirient agencies. On December 7, 1921, this bill was submitted
to the Reichstag in the form given it by tne Reichsrath and after
numerous amendments was passed almost unanimously, being
signed by the President of the Republic, July 22, 1922.
OPERATIONS 011' EMPLOYMENT 011'11'ICES
The economic importance of the public employment office organization established by the employment office act of July 22, 1922, is
evidenced by statistics of vacancies filled through the various employment offices. Up to the passing of the employment office act,
as shown above, public (at that time the communal) employment
offices had not been promoted to any considerable degree by legislative measures. But in spite of unrestricted competition in
the labor market the public employment offices had succeeded in
distancing all other emplo_yment offices. This is due mainly to the
advantages they offer both to employers and to employees, such as
gratuitous services, impartiality and, last but not least, management
by boards composed of equal numbers of employers and employees.
Of the total vacancies for men 'filled by all employment offices in
1913 the public offices had filled 44 per cent; in 1920 the proportion
filled by them was 78 per cent, due mainly to the growth of the
communal employment offices during the war. In 1923 the proportion was 90 per cent, which shows that the employment office
act has had a favorable influence on the activities of the public
employment offices. The proportion of vacancies for women filled
by such offices has increasea correspondingly, being in 1913, 86 per
cent; in 1920, 89 per cent; and in 1923, 91 per cent.
The proportion of vacancies negotiated by the employers' employment offices, whose operations in pre-war time came next in importance to those of the public employment offices, has fallen from 34
per cent in 1913 to 14 per cent in 1920 and in 1923 was only 0.4 per
cent. This exceptionally low :figure is due mainly to the fact that
the employment office of the port of Hamburg, wliich filled 362,353
vacancies in 1920, was in the beginning of 1921 attached to the
State employment service. The vacancies for women filled by the
employers' employment offices has never been of importance, being
in 1913, 4.5 per cent and in 1920, 0.4 per cent. In 1923 the :figure
fell to 0.1 per cent of the total business done by all offices.
The proportion of vacancies for men filled by the workers' employment offices has fallen from 11 per cent in 1913 to 3 per cent in 1923.
The proportion of vacancies .negotiated by the salaried employees'
employirient offices has been maintained at approximately the same
level. Vacancies for men filled dropped from 1.4 per cent to· 0.8
per cent and vacancies for women :filled from 2.2 per cent to 1.8 per
cent. The offices managed jointly by employers and employees
have increased the extent of their operations from 2 J?er cent m 1913
to 4 per cent in 1920 and 1923. Wliereas the proportion of vacancies
for men filled by public welfare employment offices fell from 1.6
per cent in 1913 to 0.6 per cent in 1920 and to 0.5 per cent in 1923,
the vacancies for women filled has averaged 4 per cent.
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Federal Reserve Bank of St. Louis
168
CHAPTER VII.-ee-UNEMPLOYMENT
Table 60 shows the number of vacancies filled by the various kinds
of employment offices in 19i3, 1920, and 1923:
TABLB 60.-NUMBER AND PER OENT OF AO.A.NOIES FILLED BY EMPLOYMENT
OFFICES IN GERMANY, 1913, 1920, 1923, BY KIND OF OFFICE
NlJHBEB
Females
Males
Kind of employment office
1913
1920
1923
1913
1920
1923
Public e~loyment office ••••••••••••••••• 1,086,738 3,0M,103 2,075,360
22,773
10. 940
Public w tare =oyment office ••••••••• 37,845
Equi
em oyment office •••••••••• 47,800 162,428
99,710
9,730
Emp~m oyment office •••••••••••• 836,644 575,634
84,401
70,0'a
Workers' e~oyment office••••••••••••••• 280,335
19,0'Jo
Salaried em oyees' employment office•••• 36,370
42,123
17,007
Guilds, eto., employment office ••••••••••• 127,730
9,862
655,843 1,312,108
25,766
64,946
6,734
66,353
1,006, IIOl
52,586
Total ••••••••••••••••••••••••••••••• 2,%3,462 3,991,SM 2,301, 71K
648,775 1,481,033
1,11M, 7111.
29,018
10,607
14,684
6,133
5,419
15,782
37,294
132
PEB CENT
Public e ~ e n t office •••••••••••••••••
Public w
emJ:loyment office •••••••••
Equi,::san em oyment office ••••••••••
Emp oyers' employment office ••••••••••••
Workers' emJ:loyment office•••••••••••••••
Salaried em oyees' employment office ••••
Guilds, etc., emoloyment office •••••••••••
44.3
1.6
2.0
34.1
11.4
L4
6. 2
77.5
.6
4.1
14.4
2.1
Ll
.2
90.3
------------
100.0
100.0
Total •••••
9,601
1,631
7,7111
20,301
6,380
-
••
88.6
3. 7
3. 7
3.0
.8
.7
85. 7
4.0
LO
.. 5
L6
2.2
LO
.o
9Ll
4.8
.9
.1
.7
LS
.6
100.0
100.0
100.0
100.0
.5
.. 3
••
Ll
2. II
On comparing the business transacted by the various kinds of
emJ>loyment offices with respect to the occupations followed by the
applicants, the difference in importance of the public employment
offices and of the other kinds of employment offices becomes evident.
In numbers and proportion the figures ft>r communal J>Ublic employment offices are highest for common labor of various kinds and
for domestic servants, which classes include the main body of unskilled employees employed on short contracts. The total vacancies
filled in these classes in 1923 is 566,764 for men and 608,300 for women.
The number of vacancies negotiated. by the communal public employment offices in 1923-546,745 men and 556,653 women-and
by the public-welfare employment offices-6,815 men and 46,490
women-are significant in this connection. As regards the skilled
occupations, the share of the communal public employment offices in
the vacancies filled in agriculture is remarkaole, amounting to
205,401 for men out of a total of 231,663 and 74,217 for women, out
of a total of 80,379. In many trades the public employment offices
seem almost to have a monopoly, and there are only a few trades in
which other employment offices man~e to surpass the public offices,
such as the printing trades in which the eqmpartisan employment
office has filled 16,359 vacancies for men out of a total of 23,422.
In Table 61 are shown the number of vacancies filled oy nonprofit employment offices in 1923, by occupations:
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Federal Reserve Bank of St. Louis
TABLE
61.-VACANCIES FILLED BY NONPROFIT EMPLOYMENT OFFICES IN GERMANY, 1923, BY OCCUPATIONS
Vacancies filled by public employment offices
Applications
Vacancies
Occupation
Offices for
specific
occupations
Males
Agriculture, gardening, forestry •.••••••••••••••••••••••••••••. 336,546
Mines, smelting works, salt mines .•••••••••••••••••••••••••••. 96,202
Stone, clay, and glass products ••••••••••••••••••••••••••••••••
78,271
Metal working and machinery •••••••••••••••••••••••••••••••• 770,951
Chemicals••••••••••••••.••••••••••••••..•••••••••••••••••••••• 25,032
Textiles •••••••••••••••••••••••••••••.••••••••••••••••••••••••• 61,633
Paper .•••••••••••••••••••••••••••••••••••••••••••••••••••••••• 24,632
Leather •••••••••••••••••.•••••••••••••••.•.••••••••••••••••••• 51,995
Lumber and timber.••.••..•••••••••••••.••••••••••••••••••••• 225,413
Food, liquors, and tobacco.•••••••••••••••••••.• , ••••••••••••• 143,475
Clothing •••••••••••••••••••••••••••••••••.•••••••••••••••••••• 163,627
Cleaning.•••••••••••••••••••••••••••••••....•••••••••••••••••• . 36,806
Building ••••••••••••••••••••••••••••.•...•.••••••••••••••••••• 472,346
Printing••••••••••••••••••••••.••••••••••••••.•...••••••••••••. 75,105
Art industries.•••••••••••••••..••.•.•••••••••••••••••••.••••••
4,356
Musical, theatrical, etc., shows••••••••••..•••••••••••••••••••• 184,213
Hotels and restaurants ••••••••••••••••••.•••.•••.••••••••••••• 282,228
580,217
8,918
fi~~Jt~~:!~~fce ••••••••••••••••••••••••••.•••••••••••••••••••
Common labor..•.•••••••••••••••••••••••••••••••••••••••••••• 1,523,467
Firemen and engineers •••••••••••••••••••••••••••••••••••••••. 53,965
Commercial clerks •••••••••••••••.••.•••...••••••••••••••••••• 179,044
Office clerks .••...•.•••••••••••••••••..•••••••••••••••••••••••• 43,233
40,588
27,567
Not specified •••••••••••••••••••••••••••••••••••••••••••••••••• 12,006
rf~!':.l~i~~/gKs~~::::::::::::::::::::::::::::::::::::::::::
Females
Males
Females
Males
92,227
2,491
9,681
87,472
15,602
108,948
50,388
9,812
10,498
111,628
167,877
27,371
279,252
34,935
23,546
238,480
14,162
16,172
8,004
16,129
93,616
58,930
36,205
22,906
169,036
24,117
1,324
169,352
243,693
335,634
6,676
578,919
21,135
72,189
20,471
8,555
5,673
3,860
123,658
1,880
3,243
35,985
6,082
38,613
22,430
4,323
4,633
49,740
67,687
20,753
231,663
32,138
21,788
203,000
14,018
15,151
7,626
14,644
84,422
57,139
32,344
18,740
154,340
23,422
870
167,171
235,982
325,478
6,000
560,764
20,598
43,591
15,937
6,754
4,756
3,458
25,761
5.57
6,501
148,467
15,713
683,510
384,008
---------137,417
59,230
597
8,654
3,908
13,437
303
4,433
143,392
7,279
829,444
98,514
---------58,796
40,123
160
3,602
2,371
Females Males
80,379
1,682
3,059
31,192
5,912
35,163
21,376
4,004
4,303
48,325
55,402
16,383
12,969
250
4,109
106,166
6,567
515,844
92,456
33,932
21,509
97
2,176
1,501
Total ••••••••••••••••••••••••••••••••••••••••••••••••••• 5,501,856 2,168,318 2,502,971 1,580,881 2,301,794 1,104,756
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Federal Reserve Bank of St. Louis
State
Vacancies filled
4,352
96
67
10
1
Fe•
males
Males
Females
Males
3,699
___1,347
., ____
1,385
16
205,401
31,688
20,550
193,874
13,736
14,869
7,157
14,197
74,446
44,675
30,268
10,797
146,467
5,763
836
148,071
206,707
284,673
4,952
541,793
6,758
23,689
13,182
5,685
3,819
3,214
----------------------- --------------·
3 --------------3 -------3 -------4 -------8
2
4 ---------------6 -------······s·
95
7
457
1
--------
·····so·
212
····s3s· ······1·
485
460
299
47
7,251
Communal
Branch
offices
6
......7°
-------1,662
259
51
879
11
13
33
132
388
228
237
128
550
57
7
144
403
829
61
1,511
123
493
349
68
166
23
10,842
·····i4·
·····29·
11
4
2
23
385
173
······r
3
101
261
368
1,630
602
····373·
254
3
111
--------
5,749 2,057,267
Females
74,217
1,666
2,828
30,886
5,762
34,811
20,650
3,794
3,895
46,069
52,625
13,385
5,181
246
3,273
100,393
6,169
465,633
91,020
--------20,276
13,251
83
1,635
1,347
999,095
TABLE 61.-VACANCIES FILLED BY NONPROFIT EMPLOYMENT OFFICES IN GERMANY, 1923, BY.OCCUPATIONS-Concluded
Vacancfes filled by other employment agencies
Guilds'
Occupation
Males
Iles
Equipartlsan
Males
Iles
Employers'
Salaried
employees'
Workers'
Males
Females
Males
230
5
8,602
Females
Males
Females
Public
welfare
Others
Males
Females
Males
2,502
794
178
Females
Q
Agriculture! prdening, forestr?;i······························ 6,250 2,252
114 ••••••••
~~;~· J~;, ~~ ;i~~r~~~:a.~~:::::::::::::::::::::::::::: ::::::: ::::::: ······s· :::::::: :::::::: ::::::::
Meta1 working and machinery................................ 794 ••••••. 6,434
263
38 ••••••••
Chemicals.•.••••••.••••.••.•••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••
Textiles....................................................... ••••••. ••••••• •••••••• ••••••••
51 ••••••••
r!riter::::::::::::::::::::::::::::::::::::::::::::::::::::::: ·····5• ::::::: 8,121
U:
Lumber and timber...........................................
24
Food, liquors, and tobacco.................................... 1,558
8,534
g~;~gt:::::::::::::::::::::::::::::::::::::::::::::::::::::
B
:i, 7
152402
s~
250 .·.·.··..·s_·_
617 •••••••• ••••••••
249
3 ••••••••
20 ••••••.•••••••••
····Mi.
2, 1~g
18!
•••••••• 1,868 ••••••••
18_ •••• 10. 16,35~ 6,739 ••••••••••••••••
Musical, theatrical, etc., shows................................ ••.•••• .••••••
718
714 ••••••••••••••••
rJni~~tirle.•=················································ ....
f~~i~:e~turants .••.••••••••••••••••••••••••.••••••.••..••••••. ·····~·. ~ ~. ::::::
~~!i:::iiSJ:r~~~~:::::::::::::::::::::::::::::::::::::::: : : :~: ::::::: I~!
Office clerks................................................... .•••••• •••••••
Technical employees.......................................... ••••••• .••••••
Liberal professions................................................... •••••••
Not specified................................................. ••••••• •••••••
54
1
1
9
2,
~l ::
~i ·····-r
1
1
• ••
••••
6 ••••••••••••••• : •
892
2,121
54
5
2
50
• ••
47
3
8
1,631
70,022
m······2·········
2
~~
53
--i;ooo·
i! ·····-r8
259
7
10
J
25
477
24
20
~
1:~ ··--ioo·
546
·····T
..... iii. :::::::: :::::::: .•••..~.••••• T
808 •••••••• ••••••••
133
33
110 ••••••••
16
100
16,873 ·i:f70i"
001
1, 303
449
8
······r
······r ··--~~~. ·---~~-
233
67
80
6,735
Ji
3,661
25
46,104
386
····400·
117
218
99
24
176
99
10,940
52,586
8
i:i:l
······is
~
i,:t
86
115
3
1
5
134
55
24
95
3
6218
127
58
92
539
125
57
1
12
27
1,084
4
1,644
71
1,313
1,239
32
260
·······4
2
.••••. iii
122
1,563
·······;;
1
.......i
5
1,449
72
..... iii7
471
--·--i20
136
2
7,711
4,109
1--+--1---+---,'------+---+---,--+--+.---I--+--+---+
Total ••••••••••••••••••••••••••••••••••••••••••••••••••• 9,296 2,271
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Federal Reserve Bank of St. Louis
1::
~;
2
1,041
374
243
197
225
161
1,264
1,761
1,433
1,309
4,264
1,134
10
18,226
18, 791
7,850
167
335
117
····231
••
• • ••
14
5 ••••••••
150 •••••••• ••••••••
319 •••••••• ••••••••
96 •••••••• ••••••••
99, 710
9,601
9, 730
7,751
19,025 . 20,301
ii>t,:j
....~
1
z
t.:::!
::::
t,:j
t"'
0
~
::::
t.:::!
z
~
EMPLOYMENT OFFICES
171
The number of employment offices in 1923 has not yet been
ascertained. There are, however, 21 State employment offices distributed over the States and Provinces. On December 1, 1921, the
number of registered employment offices of each kind was as follows:
Public employment offices ______________________________ 1,332
Public-welfare employment offices_______________________
168
Equipartisan employment offices-----------------------72
Employers' employment offices__________________________
35
195
Workers' employment offices____________________________
Salaried employees' employment offices__________________
314
86
Guilds, etc., employment offices_________________________
Total__________________________________________ 2,202
ORGANIZATION OF EMPLOYMENT OFFICES
The employment office act of July 22, 1922, provides for a system
of public employment offices based on the eX1Sting communal employment offices. It thus creates a system of free public employment
offices under a common management (section 1), m accordance with
the principles established in article 2 of the draft convention on
unemployment passed at the International Labor Conference at
Washington in 1919. The act further provides that in these public
employment offices trade departments shall be established. Other
provisions regulate the management of the employment offices.
Although the act provides a systematic organization of the public
employment offices (ojfentliche Arbeitsnachweise), it does not give
them a monopoly. On the contrary, the existing private nonprofit
employment offices are allowed to carry on business as before and
even the establishment of new offices of this kind is not prohibited.
They are, however, subject to the supervision of the State employment offices. Private employment offices operated for profit are
also permitted to continue in business but their operation will be
prohibited after January 1, 1931.
The r~ation of the public employment service is based, first, on
the principle of systematic organization; second, on the administration of the employment offices by the persons interested. Special
provisions of the act relate to the personnel of the employment
offices. The procedure in case of complaints and the method of
financing the employment offices are also provided for.
The systematic organization of the public employment service, in
contradistinction to the uncontrolled operation theretofore obtaining, is efiected by providing a complete system of public employment
offices (secs. 2-14) under State employment offices for larger districts
(secs. 15-25), and by establishing a Federal Employment Office for
the entire country (secs. 26-31).
OOIIIIUJ.UL PUBLIC Dtl'LOYIIDT OfflOBS
Public employment offices form the first class in the organization
of the public employment service. In order that the entire country
may be covered liy a network of employment offices, the act provides
that every commune must be covered by a public employment office.
As a rule, a public employment office must be estalilished in every
subcrdinate administrative district (sec. 3). In order, however-I that
this system of public employment offices may not bf\ distriouted
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arbitrarily according to a fixed pattern, which would be the case if
the districts were limited by political demarcations, the State government may, in :fixing the distncts for public employment offices, ignore
the limits of the subordinate administrative districts and make the
districts larger or smaller according to economic needs.
The public emplo_yment office is to be established by the communal
administration, and several communes may combine to establish a
public employment office in_ <;irder that _it may be .m?re efficient.
The management of such a Jomt employment office IS mtrusted by
the State government to one of the communes concerned (sec. 6).
In case the district covered by a public employment office, while
extensive, is yet not large enough to render it advisable to divide it
and establish a second office, the existing office may establish a
branch office within its own district. Branch offices of this. kind,
which generally carry on their business independently, are frequently
charged with the management of s:peoial departments. Tliey remain, however, a part of the :public employment office and are
subordinate to the general administrative committee, unless they
happen to be trade departments (seep. 174).
The chief work of the public employment service is performed in
the communal public employment offices. Their fundamental duty
is to procure employment for workers and salaried employees, and
in addition they are to assist in carrying out relief measures provided
for by law, especially unemployment relief. The decree of the
Federal Government of February 16, 1924, relating to unemployment
relief regulates in detail the assistance to be rendered by employment o:flfoes, and especially the public employment offices, in carrying
out the unemployment relief measures. Besides this, the act provides that employment offices shall undertake, either voluntarily or
at the direction of the authorities, vocational guidance and the
placement of apprentices. ' The Minister of Labor or the State
government may assign to the public employment offices additional
duties in the field of r~ating the labor market, such as procutjng
employment for and asSISting in the relief of persons of limited earning
capacity and itinerant workers' (sec. 2).
STATB DIPLOYXBRT omoBS
The State employment offices form the second class in the organization of the public employment service, being also established on the
basis of existing institutions, for during the war central information
bureaus had been established which consolidated a number of employment offices with the object of adjusting the interlocal labor
supply and demand.
These State employment offices are established in States, Provinces,
or other large districts (sec~ 17), either as independent boards or in
connection with some other State or communal administrative
agency:. The State employment office district are also to be fixed.
according to economic needs and without regard to political demarc~
• The public employment offices have not as yet beml charged authoritatively with these additional
duties. The gijneral regulations relating to vocational guidance and the placement of apprentices contain
only regulations for such.public employment offices as have already assumed these functions. ·
• According to the law of Dec. 23, 1922, as amended 1an. 12, 1923, regulating the employment of cripples,
public employment offices are required to aend repreaentat1vcs to the central relief committees. Under
article 1, No. 4, of the decree of Oct. 30, 1923, the employment offices may, with the permission of the Minlllter of Labor, also be charged with fllrther duties.
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tions. Thus several State governments may establish a common
State employment office if one or more of the States concerned is
not able to support an efficient State office because of limited territory. .As it may be expedient for certain work by the State office
to be performed in the locality~ the act explicitly provides that branch
offices may be established witn the consent of tlie State government
(sec. 16). Thus the State office at Munster in Westphalia, which
covers Lippe and the Province of Westphalia, has established a
branch office for the mining industry.
The primary duties of tlie State employment offices consist in the
supervision of all employment offices and the rendering of decisions
on complaints against them, the observation of the labor market,
and the adjustment of supply and demand in the different localities.
The supervision of the public employment offices and the rendering
of decisions on complaints agamst them are ·confined, however,
to their administration, and does not extend to their management,
the control of which-is reserved to the competent provincial, etc.,
authorities. The State employment agency in its supervision of
the employment offices has no means of enforcing its orders but
may call upon the provincial, etc., authorities in case of disobedience
thereof. Subject to the approval of the administrative committee
and the State government, the State offices may establish rules for
the administration of the employment offices of their districts, in
order that such administration may be uniform.
The State employment offices shall, on principle refrain from
filling vacancies or entertaining applications for em_ployment themselves, but may do so in exc~ptional cases when adjustment of the
supply and demand among different localities is urgent. In addition,
State offices are authorized to fill vacancies themselves when departments for separate trades are established within a State office, but
only in case a similar department does not exist in one of the employment offices of the district (sec. 38).
In order to promote interlocal adjustment of supply and demand,
the State offices publish weekly reports of vacancies still pending
and of the state of the labor market in their districts. They have
general authority to demand such information from all institutions
engaged in workers' relief, and section 54 of the employment office
act provides that any person refusing to give information or J>Urposely giving misleading information may be :fined or imprisoned.
The Minister of Labor may, with the approval of the Reichsrat
assign to the State employment offices additional duties in the :field
of regulating the labor market. 11 By "general directions to the
employment offices relating to vocational guidance and the placement of apJ>rentices," dated May 12, 1923, the State offices are
directed by the Federal Employment Office to extend their operations
to these matters. •
1BDBRAL BJIPLOYJUNT omcB
Th~ Federal Employment Office is at the head of the organization
of the employment service and is responsible for uniform management and cooperation of the entire service,7 so that it will function
• The same restrictions apply here as with the public employment offices.
' The Federal Employment Office, by decree of Sept. 30, 1922, of the Ministry of Labor, was made a department of the Ministry of Labor.
20168°-25t-12
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CHAPTER VII.-UNEMPLOYMENT
as a single employment organization. It covers the whole of Germ8.ll_y, its headquarters being in Berlin.
The Federal Employment Office, conjointly with the State governments, supervises the enforcement of the emplo~ent office a.ct.
It exercises technical supervision over the State employment offices
and the communal public emrloyment offices. rt also observes
the labor market, section 31 o tlie act authorizing it to institute
inquiries concerning the state of the labor market, working conditions, strikes, lockouts, etc. Under section 54 of the act any person
declining to give information or knowingly giving false information
m~ be :fined or imprisoned.
The Federal office is to take measures to adjust the supply and
demand of labor in different economic districts, and for this purpose
publishes weekly a labor market bulletin cont~ reports of· the
State offices on the state of the labor market, applications for employment, and vacancies in the country which can not be filled
within the district of a State office. It is also required to report
regularly on the state of the labor market, the amount of unemployment, the development of collective bargaining, and all matters
oonnected therewith. 8 In addition, the Federal office is charged
with the duty of regulating and supervising coniointly with the
State governments, t:fie recruiting, placing, ana employment of alien
workers.•
The Federal office is to lay down general principles for vocational
guidance and for the. placement of apprentices, not orµy for the
public employment offices but also for private concerns engaged
m this work. 10 In case of persistent violations of these principles
the Federal office may, subject to the approval of the advisory
council, demand the closing of the offending private establishments.
The Federal Employment Office, as well as communal and State
employment offices, ma.y be charged with additional duties relating
to the labor market. This has been done in the case of unemployment relief.
TBA.DB DBPilTJIBNTS
The · organization of the employment service. must be adapted
not only to the local but also to the economic requirements of the
individual trades. An effective employment agency, one that takes
into consideration the special req~rements of ea.ch trade, the requirements of each vacancy to be filled, and the special qualifications
of each worker, is possible only on the basis of an organiz11,tion by
trade departments. Before the passage of the employment office
act many large employment offices had established separate departments for certain trades and this development was promoted by the
act. In all classes of the employment service, trade departments
may be established, to which a. great measure of independence is
given by the act.
Trade departments may be established voluntarily or by order
of the authorities. A trade department may be formed voluntarily
if the employers' and employees' organizations1 after an inquiry,
decide that it is needed, the commune as a. rwe having the right
1 These reports are published In the Relchsarbeit.sblatt, the official bulletin of the Ministry of Labor
md of the Federal Employment Office.
• See pp. 183 8lld 18' for provisions regulating this matter.
11 Such regulations have been issued and are dlscussed In the sections on vocational guidance and pl-.
ment of apprentices (pp. 186 to 188).
·
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only of contesting such decision. If such trade organizations do
not exist, the question is decided by the administrative committees
of the employment offices (sec. 32). The State employment office
may order the establishment of a trade department ma public emploYJ'.!lent office, and the Federal Employment Office may order the
establishment of one in the State employment office (sec. 37), which
permits of the creation of a sufficiently broad trade basis in such
em]>_loyment offices.
•
The trade departments are not independent employment offices but
rather departments of the employment offices with a large measure
of independence. They are under the management of the employment offices in which they are established, the chairman of the
administrative committee of the employment office being also chairman of the committee of the trade department. The trade departments are to concern themselves witli conditions in the trades for
which they a.re established and especially employment in such trades.
The trade departments in the State and '.Federal employment
offices may fill vacancies directly if there is no such trade department
in a subordinate office (sec. 38).
Separate departments for men and women may be established
whenever it is deemed advisable for technical or moral reasons to
separate male and female workers in the employment office.· In the
women's department the manager must be a woman and as far as
possible the agents also should be women. These separate departments should not be confounded with the trade departments established for certain trades, such as the metal industry, the building
trades, domestic service, and the like. A department for working
men or women, unless it is a trade department for a certain trade, is
under the administrative committee of the employment office and
subject thereto in the conduct of its business.
IQ1llPABTlBA1ll BOABDS
Another basic principle of the public employment service is that of
government by tlie parties concerned-the employers and the em.ploJees.11 This principle :finds expression in the administrative comnuttees of the communal and the State employment offices, the advisory
council of the Federal Employment Officet !),Ild the trade committees
of the trade departments, on all of which both employers and
emJ>.loyees a.re represented.
The composition of these equipartisan boards is different in each of
the classes of the employment service. In the communal public
employment offices, tlie administrative committee consists of the
chairman three employers, and three employees. The trade committee, whether belongmg to a communal office, a State office, or the
Federal office, is also composed of three employers and three employees. The chairman of the administrative committee is, however, also
the chairman of the trade committee. In the administrative committee of the State employment office, one-third of the members a.re
employers, one-third employees, and the remain.4tg one-third representatives of the communes in which public employment offices are
established. The advisory council of the Federal Employment
11 This is In accordance with the draft convention on unemploYinent adopted by the International Labor
Conference at Wlll!hington In 1919: "Committees which shall Include representatives of em~oyers and
employees shall be appointed to advise on matters concernlug the carrylng on of these agencies.' -Monthly
Labor Review, February, 1920, p. 20.
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CHAPTER VII.-UNEMPLOYMENT
Office is comJ>osed of four representatives of public bodies~ four
employers, ana four employees, to whom experts may be adaed as
advisers. It is provided that one .of the members of the advisory
council must be a woman (sec. 29).
Alth01.1gh the principle of equipartisanshi:e is thus followed throughout in the composition of the. administrative committees, parity of
voting members is not in all cases considered indispensable, as the
by-laws of the employment offices may designate the 8roportions of
nly for decivoting members on the administrative committee.
sions ori appeals is a parity of voting members on the administrative
committee of State offices and the advisory council of the Federal
office required (secs. 22, 29).
All employer and employee members of these administrative committees must be German citizens at least 24 years of age. They are.
appointed for periods of three years,12 and receive no pay (sec. 10).
Tlie members of the committees of the public employment offices and
of the trade de_partments are proposed by the employers' and
e~ployees' organizations (sec. 9)-in the latter case by ~uch organizations of the trades concerned (sec.· 33)-and appomted by the
commune in which the employment office is establislied or by which it
is managed.
The employer and employee members of the administrative committee of the State offices are to be elected by the employers' section·
and the workers' section, respectively, of the district economic council;
if there is no such council they are appointed by the State government
on recommendation of employers' and employees' organizations of the
State office district (sec. 65). The members of the advisory council
of the Federal office representing the employers and the workers are
elected by the employer section and the workers' section, respectively,
of the Federal economic council (secs. 29 and 66).
The duties of all the equipartisan committees of the employment
service are essentially the same. They lay down principles for the
administration of the employment offices and issue regulations therefor, supervise the operations of the office, being authorized to demand
books, files, and other documents for examination, and receive and
render decisions on complaints.
The committees have great influence in other ways. The by-laws
of the employment offices are formulated after consultation with
them (secs. 5 and 18). They are consulted as to the appointment
of the heads of the employment offices and may protest against such
appointments. The duty of the administrative and trade committees
involving the highest responsibility is, however, the selection of the
managers and employees of the employment offices, whom they
propose (secs. 13 and 23). The committees take a prominent part in
t h e ~ of the budget (secs. 14 and 22) ..
The trade committee of the trade department is independent of the
administrative committee of the employment office, but its authority
may be restricted by the general administrative committee and it 1S
obliged to follow the general principles laid down by the latter.
The advisory council of the Federal Employment Office must
approve the .principles laid down for vocational guidance and the
u Busoenslon from office ol committee members must be provided for ln the b;y•laws, as the act contains
no proilsiona therefor.
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placement of apprentices, as well as the general regulations for the
management of public employment offices and the State employment
offices (sec. 30).
KAll'AGBDll'T
or DtPLOYJIBNT
OrFICBS
The communes and the State and the Federal Governments manage
the public, State, and Federal employment offices, respectively,
through a representative who acts as chairman of the office. As
the reJ?resentative of the Government he is also the chairman of the
admiriistrative committee or advisory council, and thus acts in a
double capacity-as representative of the Government authorities
in the management of tlie office and as chairman of the administrative
committee or advisory council, but he is primarily the representative
of the Government, and is appointed by it, after consultation with
the equipartisan boards (secs. 8 and 20).
These public employment offices are established by the civil
authorities and are therefore public bodies, being departments of
the communal or communal umon boards and the State and Federal
Governments, respectively. Subject to the approval of the administrative committees the authorities of such governments issue rules
governing the employment offices (secs. 5 and 18),13 and in the case
of communes ap_point the members of the committees and their
alternates; as well as the managers and employees, on approval of
the administrative committee.
As the budget of the communal public employment office forms
part of the budget of the commune in which it 18 established, it is
fixed by the latter, but the administrative committee has tho right
to suggest alterations and to raise objections (sec. 14). The same is
true as to the budgets of the State offices, which are fixed by the
· State government, except that if the State office is an independent
board or attached to an independent board, the administrative
committee is restricted to maKing suggestions and can not raise
objections, as in that case the budget forms pa_rt of the general budget
of the State. In the Federal Employment Office the advisory council
has no part in the fixing of the budget, as it forms part of the Federal
budget.
·
·
PBBSOlflfBL
or BltPLOYXBNT
OrrICES
Special provisions concerning the personnel of the employment
offices appear in section 13 of tlie employment office act.
The liead of the employment office is the chairman of the administrative committee. Of the other ell!ployees in the communal :public
employment office and the State office the most important 18 the
manager (secs. 13 and 23). The offices of chairman of the committee
and manager of the employment office may, however, be united in
the same person and this is the rule, especially in the smaller offices.
The manager of a communal office 18 appointed, on proposal by
the administrative committee, by the commune and of a State
office by the State government. As the efficiency of an emploYil!ent
office depends on the qualifications of the manager, the act provides
n The prl!l!ident of the Federal Labor Office on Nov. 17, 1922, under the authority of section 5, paragraph 4, of the employment office aot issued "regulations concerning the contents of by-laws of public
employment offiq," under which the by-laws must set forth the commune estabJlshlug or managing the
employment o:fll~1 the name, district, and locality of the employment office, duties, fiscal year, expenditure, the oomposiuon, appointment, and period of service of the administrative committee, dismissal of
members of tlie committee, etc. The decree, under seoticftl 11 of the aot, further sets forth model by-laws
for a larger public employment office and model business rules for an employment office.
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CHAPTER VII.-UNEMPLOYMENT
that he must be a person possessing "the necessary practical knowledge of employment office work." If a separate manager is a_ppomted for the trade department by the administrative authorities
on proposal by the trade committee, he must possess the same
qualifications as . the manager of the employment office, and in
addition have practical experience of employment office work in the
trade concerned (sec. 34).
The administrative and trade committees have also the right of
prop_o_s~ the other emplo_yees. While as a general rule no special
qualifications are required of such employees, those of the trade
departments should, as far as p_ossible, belong to the trade concerned.
At the head of the Federal Employment Office is a president, who
is also chairman of the advisory council. Among the other employees
a.re to be women possessing practical experience of employment
office work (sec. 29).
APPBLLATI PBOCBDVU
A written complaint may be lod~ed by any interested per_son with
the administrative committee a.gamst decisions of the chairman -of
the employment office or with a trade committee if the complaint is
against a trade department. If the decision of the chairman is
reversed by the committee, he may appeal within two weeks to the
administrative or trade committee of the State office. In the case
of decisions of the State office, the procedure is similar.
Decisions of the administrative or trade committees not rendered
on appeal may be appealed to the administrative or trade committee
of the State office and such decisions of the State office may be
pealed to the advisory council of the Federal office, while decisions
o the trade committees of the Federal office may be appealed to the
advisory council.
af
JID'D'SJIS 01' DPLOYJOBT omcBS
' Before the employment office a.et went into effect the necessary
funds for the employment offices were raised by the communes, and
for the State offices by the States and the provincial unions, but as
the communes and the provincial unions were in most cases neither
able nor willing to continue to bear the expense, section 67 of the
act provides. that until the pass~ of special legislation the expense
of the three different classes ·of employment offices is to be home
!>Y the establishing communes, the State _governments, and the
Federal Government, respectively, but the Federal Government is
to grant subsidies of the cost to the State offices and reasonable
contributions to the public employment exchanges.
By the decree on unemployment relief as am.ended February 16,
19247 the establishing communes are to bear the expense of the
public employment exchanges (sec. 37), but may appropriate for this
P"!ll'Pose an amount equal to two.:thirds of the necessary expense out
of the amounts paid liy employers and employees for unemployment
relief. If a pub1ic employment office is established for several communes or by a communal union, the cost is to be divided among them.
In the case of the State offices, section 36, paragraph 2, provides that
two-thirds of the cost may be paid out of the amounts paid by
employers and employees for unemployment relief in the district
of the State employment office, the rest to be borne by the body or
board establishing the office.
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l'U.VMB BJIPLOYIDNT OJ'FICIS
Private 'IUYTl,profU empl~m offices.-Under the employment office
act private empfoyment offices not operated for profit are permitted
to continue their operations, but their authority has been greatly
restricted. In the first place, such offices are subject to the supervision of the State employment office in whose district they do
business (sec. 44, par. 1), or if their operations extend beyond the
district of a State office, by the State office in the district of their
location, or the Federal office may decide itself to supervise the private
employment office. Il the orders of the supervising authonty are
not complied with, the private employment office may be clvsed
(sec. 45, par. 2).
The Federal office may issue regulations as to the establishment
and management of these private offices (sec. 44, par. 3) and this
was done by decree of the Federal office, October 26, 1923. The
body establishing the employment office must appoint a manager,
who is responsible for compliance with the rei?Ulations. Such
manager is prohibited from also acting as an independent labor agent.
The name of such private employment office must show who established it and for what trades and classes of persons it is operated.
The office must be unobjectionable from a moral and sanitary
standpoint.
Such private employment offices must abide by the regulations
governing public employment offices. While not obfu?ed to give
gratuitous service the fees charged must not be more tnan enough
to cover their expenses. Il the fees charged are higher and are not
reduced on demand, the supervising employment office may demand
the closing of the private office on tlie ground that it is being operated
for profit. Fees may not be charged unless a labor contract has been
concluded through the efforts of the employment office. This does
not apply, however, to the prepayment of cash expenses incurred.
Employnient offices established oy economic organizations of workers,
and which by statute negotiate vacancies for members of such
organizations only, are permitted to question their clients as to the
organization to which they belong (sec. 44, par. 2). By the orders
put~ the employment office act into effect, private offices are
prohibited from making misleading statements, especially as to the
conditions of labor contracts and the number of vacancies, of applications for work, or of placements. They are also forbidden to procure employn'.!ent in other trades or for other groups of persons than
those specified by them.
In order to adjust supply and demand between the employmen~
offices, the private offices must rE_:lport to the public employment
offices all vacancies they can not fill and all applicants they are not
able to place. Lists of vacancies published by private emploY!!}ent
offices must be submitted to the supervising employment offices.
In order to enable the supervising employment offices effectively
to control the private offices, the latter are required to keep systematic and up-to-date lists of vacancies and applications, and also to
give the supervising office all necessary information concerning the
management of the business.
The employment office act provides that a private employment
office not operated for profit may be converted into a public employment office on application by the body bearing the cost of the pnvate
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CHAPTER VII.-UNEMPLOYMENT
office. The State office may, with the· approval of the administrative committee, apply to the Federal office for permission either to
convert the private office into a public employment office or to close
the private office if the former, after repeated demands, does not
comply with the requirements of the employment office act and the
decrees ·rela~ to private em:J?loyment offices within a reasonable
~e-1 or if its l>usiness is of no unportance to the district, or if twouriras of the administrative committee consent. On the approval
of two-thirds · of its advisory council, the Federal Em_ployment
Office may then order the conversion or. closing of the pnvate employment office. Appeal from such order may be taken to the
Minister of Labor, whose decision is final.
The reestablishment of a private employment office not operated
for profit, or the restoration of the independence of a private office
converted into a public employment office, may be authorized by
the State board if it is proved that because of the nature of the
trade in question or the special requirements of the interested persons
the office can be managed to greater advantage b_y .an economic
organization or a trade corporation than by a public employment
office.
·
. Thus, although the competition of private nonprofit employment
offices is permitted on principle, the act provides means of prevent~
private einplo)7lllent offices from in any way prejudicing or frustrating
the object of the public employment sel'Vlce. Further, the c ~
on of a nonprofit employment office without permission is made
punishable by fine or imprisonment on demand of the competent
employment office (sec. 56).
Private empl<!?f!nent offices operateil, for projit.-Private employment
offices operated for profit were regulateaby the law of June 2, 19101
relating to professional employment agents, but the provisions ot
this law were from the very first regarded as merely provisional, the
end in view being complete abolition of the private employment
agency: in favor of communal public employment offices, because
of the p.igli fees ch~ed by the private offices, the frequent temp ping
of workers and others to change or to leave their positions and to
break their contracts, and the consequent injury to the public interest.
The employment office act endeavors to put an end to these evils
in three ways:
(a) The private employment agency operated for p_rofit is prohil>ited altogether from and after January 1, 1931, all licenses to
carry on such offices then becoming void. Agents who on that date
have been operating a licensed office since June 2, 1910, are to receive
reasonable compensation, to be :fixed by a special law. The Minister
of Labor may allow exem_ptions from this general prohibition, especially in cases in which the employment service can not be earned
on as effectually by the public offices, such as obtaining situations
for actors.
(b) A gradual reduction in the number of such private employ-:
ment agencies is to be brought about under the provision that, from
the time of its go~ into effect, licenses to carry on such emploY.ment agencies will no longer be granted and existing licenses will
not be extended or transferred. In this case, also, tlie Minister of
Labor may allow exemptions.
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(c) Such private em.Ployment agencies are placed under the
supervision of the public employment offices in whose jurisdiction
they are located, tliough witliout pr~judice to the supervision exercised by the police authorities. Under the general regulations,
issued by authority of section 69 of the act, technical supervision
of the private employment agents doing business for profit is exercised by the chairman of the public employment office in whose jurisdiction such an agency is situated. These agents are required to
allow representatives of the competent public office to enter all
rooms used for business, to submit all their books and business papers,
and to answer all inquiries relating to their bus4iess operations correctly. They are further required to keep a book in wliich all applications and vacancies are registered on the day they are received.
(d) The employment office act has included under the definition
of "private employment agency operated for profit" the publication,
for profit, of lists of vacancrns and also the supplying, for a consideration, of workers to employers for temporary employment where the
agent or contractor does not himself supply the necessary tools or
assume the employers' share of the insurance, etc., charges on their
account.
(e) The carrying on of such a private employment office without a
license and in contravention of the law is punishable by fine under
section 57 of the act and, in cases of previous conviction, by imprisonment.
PRINCIPLES GOVBRJIING l:MPLOYJDNT SBRVICB
The employment office act relates exclusively to the organization
of employment offices. Principles for their business operation are
determined by the offices themselves in their rules and regulations
and by their officials. The act, however, sets forth (secs. 39-43)
a few important principles, which are supplemented by regulations
concernin~ foreign workmen, the secu$g of situations for German
workmen m foreign countries, and the :filling of vacancies for seamen.
These principles apply not only to public employment offices but
also, with the exception of the provision as to gratuitous service, to
the other nonprofit offices.
The fundamental principle of the entire public employment
system is gratuitous service (sec. 39) both for employers and for
employees. This applies solely, however, to the main function of
the employment agency; i.e., the filling of vacancies and/lacement
of employees, inclu~ apprentices, but not to ·other ai given by
the employment office, especially vocational guidance.
The em_plo:yment office service should be impartial and take account
of the individual circumstances of the applicant (sec. 40). The act
states explicitly that the placing of workers in employment must
be effected witliout regard to membership in an organization, ~quiries
as to whether the a,licant belongs to an association of any kind
·ous denommation, etc.) being prohibited,
(political party, r
except in the case o establishments with a pronounced political
or religious tendency. Private employment offices earned on by
workers' organizations are allowed to ask questions of this nature.
Blacklists are explicitly prohibited.
In order_ to brmg tlie right man and the right place together, the
act provides that vacancies are, as far as possible, to be filled with
the most suitable applicants, taking into account, on the one hand,
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CHAPTER VII,-UN:ii:MPLOYMENT
the nature and conditions of the work, and on the other hand, the
trade and physical qualifications, as well as the personal and family
circumstanc~, of the workman and the length of time he has been
out of work.
Placement according to qualification may be supplemented with
advantage to employers and employees by information given by
the manager and the agent, for it is frequently necess~, especially in
filling positions of trust, that the _agent give information concerning
the person he wishes to place. Manager and agent are therefore
autnorized to give information of the particular conditions of a vacant
situation that may be of importance to an applicant as well as of
the peculiar qualifications of an apJ>licant whicn may be of importance
in an available vacancy. Such information :;1 however, be given
only if the particular conditions or special qu · cations have become
known to the emP,loyee of the employment office in his official
capacity and if justified by special circumstances; e.g., if the applicant
is to live under the same roof with the employer (sec. 43).
The terms of the offered employip.ent may determine decisively
the filling of a vacancy. While employment offices are not to interfere in tli.e guestion of rates of w~es, neither are they to become
accessory to infringements of collective agi:eements by filling vacancies
where tlie rate of w~es proposed is considerably below the minimum
rate customary in the trade and place.
If the terms of the labor contract are regulated by collective
agreement, the employment office is not to secure employees for
employers unless tlie conditions of the contract are in accordance
with the collective agreement (sec. 41). The employment offices
must therefore be well versed in the terms of collective agreements.•
In case the conditions of the contract are not fixed by a collective
agreement, the public emplo~ent office must decline to place
workers whenever the wages offered are lower than the minimum
rates customary in the place. Although the employment· office
should, in general refrain from interfering in the fii:ing of the rate
of wages, the trade committee may, in case there is no established
minimum rate of wages for that trade in the place, fix such a rate
and the employment office is then bound by it.
The attitude of the employment offices in case of strikes and lockouts
is r~ated in detail by the act. Section 42 provides that in case of
such economic struggles the employment offices are to take an
impartial attitude, and to favor neither side, either by procuri!].g
workers for employers or by refusing to supply workers. As the
existence of a strike or lockout is of great importance to an apJ>licant
in deciding whether or not to take a job, the employment office is
bound to gj.ve information on this point.
The employers are required and the workers' economic associations
are permitted to inform the competent employment office in writi!ig
of the outbreak or termination of a strike or lockout. Under the
r8'?1llations on this point issued by the Federal office the employment
o:flice to receive the notice is the office in whose district the business
concerned in the strike is located. The notice should arrive, or at
least be in the post, on the workine:-day following the outbreak of
the strike or the commencement of the lockout. Failure to send the
notice is punishable by :fine or imprisonment (sec. 54).
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When the written notice has been received, the employment agent
is bound to inform an applicant of the strike or lockout, and to place
him only in case he requests it after knowledge of the strike. Placement of striking or locked-out workers may be made only in case the
employer has been- informed of the strike or lockout, even if such
strike or lockout is in a. different trade.
OBLIGATORY UPORTING 01' VAOABCIIS
An important condition of effective unemployment relief is the
adjustment of supply and demand on the labor market, for it is
eVIdent that unemployment relief can operate smoothly and effectively only if vacancies are as fo.r as possible reported to such offices.
The employment office act has not, however, made the reporting of
vacancies to the employment office comJ>ulsory (which would mean
that vacancies could not be filled ana no employee could be
engaged except through the employment office), as the o:r:ganization
of public employment offices in va.nous places and for various trades
and professions is not so com_plete as to enable them fully to adjust
supply and demand in all branches of the labor market. The
reporting of vacancies by employers was thus made optional.
The Minister of Labor may, however, after consulting the advisory
council of the Federal Employment Office, order that certain employers shall report all vacancies to the competent em:eloyment
office (sec. 49), but this authority is subject to four restrictions, viz:
The reporting of vacancies may be made obligatory only in the case
of workers subject to sickness and old-age insurance; it may not be
made ob)katory in agriculture and in domestic service; establishments wit1i less than five employees may not be compelled to report
vacancies; and employers can not be compelled to· report vacancies
caused by strikes or lockouts. The act provides no means of compulsion m case an employer neglects to report vacancies, which
·
greatly reduces the value of these provisions..
The obligation to report vacancies :provided in section 49 of the
act is extended by other laws. Section 74 of the law on works
councils provides that in case of intended dismissal of large numbers
of workers in consequence of reorganization of the business the
employer shall be obliged, at the instance of the works councils, to
report the same to the State employment office or the public employment office designated by the State office, in order that the necessary
measures may be taken to place such workers.
SPBOIAL DIPilTDJITS
The following departments of the employment service are separately
regulated by tlie employment office act: (1) The recruiting, placing,
and employment of foreigp. workmen; (2) the recruiting and placing
of German workmen in other countries; and (3) vocational guidance
and the J?lacement of apprentices.
ReC'l"Uiting, p'lacing, and employment of foreign workmen.-Under
sectidn 26 of the act the recruiting, placing, and em~loyment of
foreign workmen has been regulat_ed Dy decrees of the Federal Employment Office.
In pre-war time no r~ulations were issued on these points. In the
period of sudden growtli of German industry the number of workers
available in Germany was not sufficient for the requirements of
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CHAPTER VII.-UNEMPLOYMENT
industry and foreign workmen were engaged to fill the gn.ps in manufactures and fttrming. The influence of these foreign workers on
conditions in German industry may be judged from their number,
which was approximately a million. After the war when em;1;>loyment became scarce, the question of how to eliminate the com__petition
of these foreign workers became urgent, and the Federal Employment Office, under the authority given it by section 26, regulated the
placement of foreign workmen oy the decree of October 19, 1922,
amended Januacy- 2, 1923 on the recruiting and plac~ of foreign
rural workers, and by the decree of January 2, 1923, on the recruiting
and employment of foreign workers.
Even before these decrees had gone into effect a perceptible reduction in the number of foreign workers had set m. According to
statistics of the Federal Office for the Placement of Foreign Workers
their number in 1922 was:
Men
Manufactures ____________________ 114,910
Farming _________________________ 75,590
Total______________________ 190,500
Women
24,588
72,496
97,084
The leading principle of the decree of October 19, 1922, is that
foreign workers shall be engaged only when suitable German workers
are not available. The State employment office decides whether the
engagement of foreign workers is to be permitted. Certain grc?Ups
of foreign workers, however, are excepted from the rule; e. g., workers
who have been employed in Germany for many years. To enable
the authorities to supervise the employment of foreign workmen,
employers are· not permitted to engage foreign workers who do not
possess workers' identification cards. These identification cards are
1Ssued by a system of frontier offices organized for that purpose by
the Federal Office for the Placement of Foreign Workers, As the
foreign workmen are engaged only for certain jobs, measures are
taken to prevent then:J. from changing their places of work easily.
Such change is permitted only if the contract of the forei_gn workman is
in l>erfect order. In case of dispute the public employment office
decides. Foreign rural workers may not change from farming to
manufacturing work without express permission of the State employment office. Special provision lS made as to wage and working conditions of foreign seasonal workers. Such workers may be employed
only on the basis of the standard contract for foreign seasonal workers
formulated b;y the agricultural trade. committee . of the Federal
Employment Office.
Application to employ foreign workers is subject to' the approval
of the competent public employment office and of the State office.
Violations of these provisions are punished by fine and imprisonment.
Under the above-mentioned decree the recruiting and _placing of
for~ rural workers is done by the Federal Office for the Plac'eme~t
of Foreign Workers but only for concerns that have permission from
the competent State empl~ent office to employ foreign workm~n.
Recruiti'TUJ and placi1UJ o German workers in forej,gn countries.-As
the abuses connected wi the recruiting ana J>lacing of Germ.an
workers in foreign countries could not be effectually combated under
existing legal regulations and such recruiting and placing directly
influences the German labor market, section 60 of the employment
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185
office act provides that the recruiting and placing of German workers
in other countries is to be regulated by the Minister of Labor and the
Minister of the Interior conjointly, after consultation with the advisory council of the Federal Employment Office. Under this
authority the decree of October 4, 1923, on recruiting and plttcing of
workers in foreign countries was issued, going into effect March 1,
1924.
The decree provides that private nonprofit employment agencies
and employment agencies operated for profit may place workers in
foreign countries only when they have a special license therefor.
Public employment offices are exceJ>ted from this rule. A license to
place workers in foreign countries will be granted only if there is urgent
necessity there£or ana the agency in question is proved to be trustworthy. Application for a license must be made to the competent
State em_ployment office, but is granted only by tho Federal Employment Office. Certain untrustworthy agencies are prohibited altogether; e. g., itinerant employment agents doing business for gain.
Violations are funishable by fine and imprisonment under section 60,
paragraJ.>h 2, o the employment office act.
Vocational gui<lance ar,li, pl,acement of apprentices.-In the last 10
years there has been a tendency in many communal employment offices
to advise applicants as to the choice of a trade, in order to advance
the trades requiring training and also the selection of suitable masters
for apprentices and of places for the latter when they have :finished
their training. A number of communal employment offices had accordingly established departments for this _purpose but a systematic
organization was lacking. The decree of December 9, 1918, of the
Federal Office for Economic Demobilization relating to emJ>loyment
offices provided (sec. 4) that the State governments shoula. require
the communes and communal unions to establish departments for
general vocational guidance and for placement of apprentices. The
decrees issued by the State governments thereunder left it to the
communal authorities as to whether they would place such offices
under the employment offices or under other communal bodies, such
as the office for the protection of juveniles.
In September, 1922,1' there existed in the 1,035 subordinate administrative districts 592 public vocational guidance offices. This
number, however, includes many offices in which the manager had
another main occupation. Of these 592 vocational guidance offices
71 were independent, 397 were departments of public employment
offices, 79 of public welfare offices, 14 of offices for the protection of
juveniles, 14 of schools, 12 of offices for widows and orphans' relief,
and 5 of other public offices. Although the employment office act
does not provide that the vocational guidance offices shall be placed
under the public employment offices, this will probably become the
rule because the communes have to bear the principal part of the
expense of such offices unless they are placed under the public employment offices.
Of the 592 vocational guidance offices, 17 assisted male youths, 1
assisted girls, and 574 assisted youths of both sexes; 506 of these offices
also assisted adults, and 563 partial cripples.
11 That la, before the emploJDU!Dt office act went Into force; later data are not yet available.
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CHAPTER VII.-UNEMPLOYMENT
. '·
L As men and women generally follow different trades, it has_ proved
convenient in practice to have separate offices for them. Thus in
168 offices separate departments for males and for females have been
established. That vocational guidance is intimately connected with
placement of apprentices is indicated by the fact that in 568 cases the
two are combin.ed.
Table 62 shows how many of the 592 offices in 1922 had agents who
devoted all or a part of their time to vocational guidance work or
worked without salary:
'
TABLB 69.-NUMBER AND PER CENT OF VOCATIONAL GUIDANCE OFFICES WHOSE
AGENTS DID VOCATIONAL GUIDANCE WORK AS REGULAR OR AUXILIARY DUTY
OR WITHOUT SAL.A.RY, 1922, BY SEX OF MANAGER
Ollicea having agents whose vocational guidance work was done
1111--
!leJ: of manager
Male••••
Fmnale. ••••••••••••••••••••••••••••••
Regular duty
Amlllary duty Without salary Not specified t
Num•
ber
Num•
ber
00
49
Per
cent
9.li
8.3
433
113
Per
cent
73.1
19.1
Number
92
13
Per
cent
lli.5
12. 2
Number
11
417
Per
cent
\
L9
70. 4
1 Includes all cases In whioh no special vocational guidance agent was employed but where, for
example, the manager of the employment ollice acted as vocational guidance agent.
In order that the ,fil~c;:1ent not only of juveniles but also of adults
who chqe their c ·
may be regulated systematically, the Federal Employment Office was, by section 2, No. 4, of the decree of May
5, 1920, charged with the su_pervision of all bodies engaged in vocational gaj.dance work and the placement of apprentices. The provisions of the employment office act charge the Federal Emplo~ent
Office with extended duties relating to vocational guidance and the
placement of apprentices.
Under section26 theFederalofficeisauthorized to lay down principles
for the management not only of the public vocational guidance agencies but also of private institutions of this kind, subJect to the approval of the advisory council and after h e ~ of the guilds and
economic organizations. It also supervises the management of offices
for vocational guidance and the placement of apprentices conjointly with the respective State governments and may, with the
approvj!,). of the advisory council, demand the closing of such offices
if, by persistent violation of the principles laid down, they endanger the primary purpose of vocational gtridance and the placement
of apprentices, in which case the offending office is closed by the
State government.
The Federal EmploYll!ent Office on May 12, 1923, issued "general
regylations for vocational guidance and the placement of apprentices in
employment offices" and also "general principles to be followed in
vocational guidance and the placement of apprentices in institutions
not under the public employment offices."
While public emplo~ent offices are not obliged by these orders to
establish departments for vocational guidance and the placement of
apprentices1 in so far as they have undertaken these duties they are
bound by tne rules laid down by the Federal office.
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Under these rules the departments for vocational guidance and the
filacement of apprentices in the public employment offices are to make
'systematic arrangements for gui~ young people in choos~ a
trade or profession and to inform the public as to all matters relatmg
to the prospects in trades or ·professions." In this the employment
offices are to cooperate closely with the schools, and in most of the
States such cooperation is already established by law.
It is also the duty of the vocational guidance offices of public
employment offices "to give advice to applicants of both sexes in all
matters relating to the choosing of a profession, both on entering
business life and on changing then- trade or profession, and to training
for the same. It is especially desirable in this respect to acquire an
influence over the young peor,le under 18 years of age who apply to
the public emJ>lOJIIl;ent office. ' Supervising the subsequent career of
the persons adVISed or placed may also be included in the sCOJ?e of
vocational guidance and placement of apprentices. The vocational
~dance offices shall also direct applicants to suitable training
establishments.
ApJ?rentices should not be placed in businesses or workshops that are
tecbmcally, morally, or hygienically objectionable, and it is therefore the duty of placement agents to investigate a business or workshop taking apprentices, cooperating with the authorities char~ed
with that matter. In other matters placement agents are subJect
to the provisions of the employment office act for the general employment service. It is, however, emphasized in the "general regulations" that vocational guidance and the placement of apprentices
must be impartial and that the interests of a trade must be made subordinate to general economic and social considerations.
The pubhc employment offices may not undertake other duties
relating to vocational ~idance and the placement of apprentices
without the approval of the State employment office.
No express regulations have been issued for :putting the vocational
guidance agencies and the placement of apprentices under the employment offices, this being a matter to be settled accor<!!ng to the circumstances of each case. In smaller employment offices this work is
frequently performed by an employment agent as a subsidiary duty.
In the larger public employnient offices in large towns special
departments have been created for the J?u.rpose, which are subJect to
the management of the general administrative committee. The
administrative committee lays down the lines along which vocational
guidance and the placement of apprentices are to be administered and
settles complaints. A council of experts, whose services are to be
gratuitous, may be consulted for advice on pro_posed measures, the
size and composition of such council varying with local requirements.
The members of such council should be, first, employers and employees
of the trades, commerce, manufactures, farming and domestic service,
and then representatives of other c ~ , persons with practical
knowledge ~f vocation~ guidance and the placement of appr~~ices,
representatives of/ublic employment offices and schools, physicians,
psychologists, an J>ersons engaged in public welfare work and in
factory inspection. The number of representatives of employers and
employees must be equal, and women must be included among the
members. The term of office of the council should coincide witn that
of the administrative committee. The standard rules and regulations
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OHAPTER VII.-UNEMPLOYMENT
for a lar~e public employment office, issued by .the Federal Employment Office, provide ~ressly that a council of experts shall be consulted before principles of management and items of the budget
relating to vocational guidance and the placement of apprentices are
adopted. The council a.ids in ascertaining the state of the labor
market and the demand for apprentices, in procuring suitable
instructors and traiajng schools, and in establishing cooperation with
the schools, especially the technical schools, the juvenile department, the health department, the relief funds for mutilated soldiers,
the survivors of soldiers killed in war, and cripples, and the factory
ins_J>___ection service.
·
Wi~ the o~ject of sec~ persons of extended mcperience for this
work, mstructions have been issued tha;t only persons at lea.st 28 years
qf age with five yea.rs' successful work in a profession or trade, and
experience in the treatment of juveniles are to be selected as vocational
guidance agents. Teachers in technical schools are especially suitable
persons for this work, because their ce,lling b;rings them mto close
contact with the trades and professions and gives them, a personal
knowledge of the employers who take apprentices. A woman should,
if p<>ssible, be appointed in vocational guidance work for women.
The employment office act has made vocational guidance and placement of apprentices part of the regular duty of the State employment
offices.. This was done so that the local institutions in a district
could be organized and their work coordinated and l?romoted. The
provisions regulating the management of such agencies by the State·
office are similar to those for the public employment offices. The
State office must, howeveri form. a council composed of representatives
of the principal vocational guidance agencies of the district.
The duties of the State offices along these lines are to cooperate in
establishing and developing agencies for vocational gajdance and
placement of apprentices in the public employment offices of the
district to supervise their administration when commissioned by the
FederJ Employment Office, to supervise the organization and
management of the agencies for vocational guidance and placement
of aJ>prentices outside the public employment offices, to observe the
suppJy and demand for apprentices in the trades, to adjust interlocally supply and demand, to secure cooperation between public
yocational guidance and apprenticeship agencies and the persons and
associations interested, to instruct vocational guidance agents, to
collect statistics and inform.ation relating to trades and professions,
to undertake vocational guidance work for professions or groups of
persons not served by the employment offices, and_to promote opportunities for training in agnculture and domestic service, trades,
commerce, and manufactures. The State office may not undertake
other duties without the approval of the Federal Employment Office.
The supervision the State offices exercise over the vocational guidance agencies relates only to their primary work and does not extend
to details of management, which are supervised by the general administrative authorities.
Vocational guidance and the placement ofi!prentices by agencies
not under the public employment offices is re ated by the decree of
May 12, 1923. The principles therein set orth a:pply to all such
organizations, which are mainly or partly engaged m giving advice
and information to applicants as to the choice of a trade or profession
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on entering business life, or on changing their calling, and apprenticeship and additional training, and also to agencies for the placement of
apprentices. They do not apply to organizations giving only occasional advice and information, such as trade-unions, organizations for
the prot~ction of juveniles, schools, etc.
The decree l~ys down the general principle that the free action of
individuals or associations along these lines, if really for the public
welfare, should not be hampered, but that the State employment
offices must have jurisdiction to proceed against such individuals or
associations for abuses or incompetency.
In order that private organizations engaged in such work may not
be used for political purposes, the act prohibits their obtaining members for economic, religious, or political associations. Special regulations provide that it must appear from the name of the agency who
is the organizer and for what trade or trades it is established. The
management of such agencies must be impartial, and should consider
primarily the preferences and the physical qualifications, etc., of its
clients. The agents employed must be qualified and have had
practical experience.
Under the present law, employers having vacancies for apprentices
are not obliged to apply for apprentices to the public offices for
vocational guidance and the placement of apprentices. The State ·
employment offices may, however, demand reports from private
agencies. The cooperation of private agencies with the public
agencies must be arranged according to local circumstances. The
State employment office m whose district private agencies are situated
has supervision of their activities. Notice of the establishment of
new and the closing of existing agencies must be given to the competent State employment office.
In case the primary object of vocational guidance and the placement of apprentices is prejudiced by persistent violation of the above
regula-tioils and principles, the Federal Employment Office may, with
the approval of the advisory council, demand the closing of the
offending agencies. The closing is done by the State government.
20168°-25t-13
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Chapter VIII.-COOPERATIVE MOVEMENT
CONSUMERS' COOPERATIVE SOCIETIES
Consumers' cooperative societies are associations formed for the
purpose of purchasiilg at wholesale food and other goods, thus saviilg
for the members the retailer's profit. These societies frequently
manufacture the goods they deaf in, as soon as their sales warrant
it. In Germ.any for the last 30 years they have been organized as
registered- limited liability cooperative societies, though some few
have kept to their original form of ·joint-stock companies. The law
on cooperative societies prescribes their organization-managing
committee, board of supervisors, general assembly-and regulates
the :financial relations of the members to the society. Every member
of the society has to contribute a certain amount of share capital and
is also liable for a certain additional amount in case of failure. The
law further provides for regular audits of the cooperative societies.
These audits are usually carried out by the central unions of cooperative societies, or by special societies-auditing unions-formed for
the purpose.
.
. The consumers' cooperative movement in Germany began in the
fifties of the last cent~, such societies being formed by workmen
and people of the middle classes. Their business was on a small
scale, and it was not till the eighties that the movement received a
fresh impetus. At that time the socialist workmen of the Saxon
manufacturi!ig district began to join the existing societies in large
.
numbers and to establish new societies.
In the last decade of the century the masses of the workmen, who
in consequence of the economic prosperity of Germ.any flocked into
the trade-unions in large numbers, took up the idea of consumers'
cooperation spontaneously and with enthusiasm. The result wa.s
that the movement for the establishment of consumers' societies
suddenly assumed great· proportions. As a result of difference of
p_olitical opinion between the conservative managers of the General
Union of Germ.an Cooperative Societies and the representatives of
the modem tendency in the movement, the latter, in 1903, established
the Central Union of Germ.an Cooperative Consumers' Societies. A
few years later a number of societies established by members of the
so-called Christian trade-unions separated from tlie General Union
and established the Union of West Germ.an 'Consumers' Cooperative
Societies, later called the National Union of Germ.an Consumers'
Cooperative Societies. The members of the societies belonging to
this union are mainly persons connected with the Christian tradeunion movement.
However, the establishment of consumers' retail societies is only
the first step; the next is the formation of the cooperative wholesale
society, in which may be pooled the purchasing power of the individual retail societies. The consumers' cooperative societies of
Saxony had already (1893) established a wholesale purchasing
society in Hambm-g. The members of the General Cooperative
Union would, for a long time, have nothing to do with this wholesale
society. The Nation.al Cooperative Union established its own
wholesale society.
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POSITION AT OUTBREAK OF Wil
In December, 1913, the Central Union of German Consumers'
Cooperative Societies comprised 1,157 societies with 4,881 stores
and 1,621,195 members. Of their members, 1,220,530 were workmen. These societies had a business for the year of 742,006,215
marks, of which 99,877,629 marks were for goods of their own production. They employed 25,348 persons and their working capital
amounted to 31,066,373 marks in share ca1;>ital, 22,503,801 marks in
reserve funds, and 67,973,689 marks in savmgs deposits of members.
Before the war, 807 cooperative societies were affiliated with the
wholesale -purchasing society of the union (the G. E. G.). The
wholesale's business amounted to 154,047,316 marks, of which
11,076,578 marks were for goods of its own production (soaJ?, cigars,
and matches). The working capital of the wholesale society was
4,000,000 marks and its reserves 6,606,734 marks. This shows that
the wholesale had been at pains to increase its capital as far as possible out of the profits and not to make calls on the societies for new
capital. To what eJCtent it has worked with capital from other sources
does not appear from the balance sheet, as the society also carries
on a banking business and makes only one balance sheet for both
departments of business.
'
At the end of 1913, the membership of the General Union of German Consumers' Cooperative Societies included 287 consumers'
cooperative societies liaving 623 stores, 323,228 members, and a
turnover of 83,510,509 marks, of which amount 4,272,725 marks
were for goods of their own production. The societies' reserves
amounted to 4,558,571 marks and members' savings deposits to
2,123,782 marks.
The National Union of German Consumers' CooJ>erative Societies
comprised in 1913 159 societies, with 143,444 members. The business of these societies amounted to 38,597,252 marks, of which
3,943,540 marks were for articles produced by the societies. These
societies employed· 1,877 persons and o:eerated 599 stores. Reserves
amounted to 1,369,811 marks and saVIngs deposits of membel"\'I to
579,836 marks. Among its members were 82,715 industrial workers.
The· wholesale society of the national union had a turnover for the
year of 9,718,670 marks.
SITUATION DURING THE WAR
The war· affected the development of the German consumers'
cooperative societies mainly as regards membership and business.
On the outbreak of the war the ban formerly imposed by the Imperial
Government, and in many cases also by the communal authorities,
upon membership of their employees in consumers' cooperative
societies was removed. Also, the prejudice of the middle classes
against joining organizations of workmen disappeared. The- membershiJ;> field was tlierefore greatly enlarged and in some cases the
societies received such an influx of new members that their requirements could not be satisfied, owing to the limitations on business
operations because of the exigencies of war. In a few months, however, things were totally changed. When food became scarce in
Germany and was rationed, some cooperative societies were favorably
situated because their managers were employed in the commu1;uil
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OHAPTER VIII.-COOPERATIVE MOVEMENT
distribution of food, but ·on the whole the societies began to suffer
because the authorities favored private business- concerns over the
cooperative societies. The central purchasii}g o~anizations of the
cooperative societies were ignored by the distriliuting authorities.
The more the food-rationing system was developed_, the less completely was it carried out, so that illicit trade flourished and almost
every dealer had a double stock-a legal one to sell openly over the
counter and an illicit one under tlie counter. Tlie cooperative
societies as wholesale dealers could not risk joining this illicit trade.
Their members therefore freg_uently preferred to go to the private
·dealers, by whom they were lietter sup_plied. In consequence of the
very great loss they thus sustained, the cooperative societies after
the revolution were among the first to demand the abolition of the
public distribution of food, altho~h the trade-unions and the
Socialist Party vehemently opposed the slightest relaxation in the:
rigor of the system.
.
CONDITIOB il'TD THE WAR
Data showing the amount of business done since the war are very
unsatisfactory, as the figures are comparable with those of previous
yeus only if reduced to gold marks on the basis of the weekly or
monthl_y mdex of the cost of liv_ing.
In the following statistics the number of members is therefore
given and the amount of business done stated only_jn a few cases, to
allow the turnover of the different groups of societies to .be approximately compared. . The figures seem to show that the consumeril
cooperative movement has extended but has made 4ttle gain in
vigor, for the business done per member hardly reaches the pre-war
figure .. The figures given are, however, taken at random and· may
be misleading.
·
·
·
.
The Central Union of German Cooperative Sc>cieties comprised ·at.
the end of 1918, 1,090 societies operating 5,360 stores and having
2,231,917 members. At the end of 1922 the union comprised 1,350
societies running 8,066 stores and having 3,161,794 members. In
thE! year 1922 these societies had ·sales of 13,889,3_14,620 marks, of
which 2,264,443,400 marks was for goods produced by the union
societies themselves. The number of societies affiliated with the
cooperative wholesale society increased from 969 in 1918 to 1,030
at the end of 1922.
At the end of 1918 the General Union of German Cooperative
Societies comprised 253 consumers' societies, with 303,025 members.
It had 506 stores and did business to the value of 80,000,000 marks.
Since then it has lost a great many of it.s members, these societies.
hav~ joined the Central Union of German Cooperative Consumers'
Societies.
The National Union of Cooperative Consumers' Societies comprised in 1918, 274 societies1 with 354,293 members and annual sales
of 73,225,555 .marks, of which 5,492,283 marks were for goods produced by the societies. At the end of 1922, the union comprised 449
societies, with 654.583 members, 1,858 stores, and annual sales of
4,919,900,000 marks, of which 345,200,000 marks were for goods
produced by the societies'. union.
The most remarkable change occurring in the postwar period in
the organization of the consumers' cooperative societies is the estab.
'
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CONSUMERS' COOPERATIVE SOCIETIES
193
lisbment of a joint committee consisting of representatives of the
'various cooperative unions. ·The mere intimate connections between
the unions have not led to business relations of any considerable
importance between consumers' and producers' coo:eerative societies
but only to joint action on questions of taxation ana legislation.
The most important result of this joint action is an amendment to
the cooperative societies law b,y which the legal obstacles to the
amalgamation of cooperative societies were removed. Under the law
in its original form amalgamation of societies could take place only
by one of the societies winding up its affairs and its members joining
the other society. This method always resulted in a considerable loss
of members. By the amendment amalgamation may be effected by
a two-thirds vote of the members at general meetings of the societies
concerned, by 'virtue of which the members of both societies automatically become members of the new societv from the day on which
amalgamation takes ]?lace. In view of the tendency for small cooperative societies in a neighborhood to join the larger and more efficient
societies, this amendment is of some importance. The cooperative
societies law has further introduced the system of representation by
delegates in the general assemblies, making the representation by
delegates obligatory for the societies with more than 10,000 members
and optional for those of medium size (with more than 3,000
members). By their close cooperaiion the unions, which had drafted
the bill of amendments, succeeded in having the new act so formulated that the application of theae provisions of the act was left
altogether to the societies.
T.he business of the consumers' cooperative societies in the years
f ollowi~ the war has suffered because the time of the managers has
necessarily been so much occupied by the fluctuations of the market
and the depreciation of the money. The need of capital has also
been frequently felt to a considerable degree. Finally the reorganization of business after the war had to be carried out with the older
generation of managers, who, while having an extended experience,
were not always enterprising enough to take up new lines with enthusiasm but preferred a slow rate of evolution. One reason for this
may- be that the extension of business has been mainly concentrated
on dry goods. Before the war, the tax on department stores made
it almost impossible, at least in Prussia, for cooperative societies to
deal in dry goods. In other parts of Germany, the dry goods and
shoe business wp.s of great importance, but nowhere of the importance
it had attained in the cooperative consumers' societies in England
at that time. The repeal of the tax on department stores produced
a considerable change in this respect. A number of consumers'
cooperative societies in l ~ cities have established department
goods, boots and shoes, and housestores, and the business in
hold articles has on the who e been greatl_y _extended. Here and
there furniture departments have been established.
It is especially difficult to gain an insight into the financial position of tlie consumers' cooperative societies. The unions 4ave, it
is true, published the figures relating to their business operations
during the whole period of inflation, but data. for re duet~ these
figures to gold value so as to have a stable basis for calculation are
not available. On the whole, though the societies sustained some
losses, they have not suffered much either by the war or by the revo-
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CHAPTER· VIII.-COOPERATIVE MOVEMENT
lution. Their :financial position was, however, decisiveli influenced
by the inflation of the currency· and this in two op_posite ·directions.
On ~he one hand, the consumers' cooperative societies have1 along
with th.e retail business generally, suffered in many ways t>y the
legislation against usurious trade practices and the way in which it
was administered, and as they were prohibited frotn demanding the
cost _price of their goods, they sufferea loss of capital; On the other
hand, the food business has, on the whole, flourished during this
period. Preferential credits were accorded to food dealers by the
Reichsbank and they thus succeeded, though generally wanting_ in
business capacity, in profiting by the inflation of the currency. The
cooperative consumers' societies also profited by this condition.
Though for a few months they lost continually: they then made
extraordinarily high profits on their stock through the depreciation
of the currency. A survey of the business done and the bills for
goods in the periods of relative stability of the currency shows that
the societies do not pay as promptly as in pre-war times and demand
longer terms. This indicates a certain need of ca:eital, but on the
whole they seem to have held their own, with varying success, until
the autumn of 1923, when the currency broke down altogether. At
this time the cooperative consumers' societies have evidently sustained severe losses of working capital. As soon as the rentenmark
was introduced and even before i;he stability of the new currency
was recognizable, they proceeded to declare the old shares void ana
to sell new shares payable in rentenmarks. The societies had already
made a number of increases in the nominal amount of the old shares,
which virtually amounted to .assessments on the members, a proceeding which caused a certain amount of discontent. It is tlierefore rather doubtful whether this fresh demand for capital in the
form of new shares will be altogether successful.
The ability of the consumers' cooperative societies to · compete
with private dealers has been c~nsiderably reduced in the last few
years by the ~eneral sales tax and by the situation as to wage and
working conditions.
The changes in working conditions produced b_y the war and the
revolution showed themselves most forcibly in the relations of the
cooperative societies to their workmen and salaried e!llplorees.
Before the war the societies belonging to the Central Union of German Consumers' Cooperative Societies had concluded national
collective agreements with the bakers' and transport workers'
trade-unions. On the whole the relations of the consumers'.societies
. with the bakers' union were excellent and with the transport workers'
union rather good. The only serious conflicts were with the head
salesmen who had a union of their own. The shop girls as well as
the female clerks regarded their occupation with the consumers'
societies as transitory and were of little importance as trade-union
members. After the revolution there was a tendency, perceptible
though short lived, to substitute works' councils for the tradeunions •in negotiations with the· workmen. This tendency was
more pronounced with the cooperative societies than with private
business as the m~~ement of the cooperative consumers' societies
was restricted by various obligations towards their members. The
subject of collective agreements next came to the fore. After the
rev-0lution1 the managers of the consumers' cooperative societies
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CONSUMERS 1 COOPERATIVE SOCIETIES
195
attempted to regulate the relations of the societies with their employees . b_y concluding ~eneral collective agreements with - each
of the different trade-umons in the same way that the collective
agreement in the printers' trade had alw__ttys applied to the printers
employed by the consumers' societies. This attempt, however, was
a complete failure, the only result being that the trade-unions concernedbegan individually to assail the consumers' societies. Because
of these continual conflicts the societies :finally resorted to national
collective agreements. The relation between the societies and the
bakers' trade-union, the old management of which had been overturned, has become especially bad. During the war night work in
the bakers' trade was ·prohibited, in order to prevent the consumption of fresh rolls in the morning and thus to economize wheat flour.
This prohibition of baking du.ring the night has remained in force,
although the consumers' societies, which worked three shifts, were
thereby prevented from utilizing their plant to full advantage.
Consumers' cooperative societies and the General Federation of
Trade-Unions at fresent unite in the demand for the abrogation of
the prohibition o night work in concerns working three shifts, but
the bakers oppose this vehemently.
The works councils have, with the exception of a short period in
1919, been of little more importance than the workmen's committees
in former times. Attempts to give the works councils' delegate a
seat on the supervising board came to naught because of the provisions
of the cooperative societies act.
The cooperative wholesale society has, perhaps, experienced the
most remarkable development in the whole cooperative movement.
During the war nothing could be done to increase its business, but
after the war it began to develop its business in manufactured goods
and household articles and created a central office for this department in Saxony. It also greatly increased the number of its industrial
works and 110w manufactures soai>, tobacco products, matches,
mustard, fish products, macaroni, boxes, clotliing, confectionery,
brushes, furniture, etc. It is difficult to give exact figures showing
its :financial condition, but comparison of the business reports pf 1913
and 1922 shows that there has been considerable expansion.
In general, the progress of German consumers' cooperative societies
may be summarized as follows: They have been less crippled by the
war than _an_y other economic movement in Germany, and they have
not been influenced permanently by the revolution. The war found
them in a period of rapid growth and development, for which their
:financial resources were not quite adequate, and this was in a great
measure interrupted by the war. Since the war they have been
hindered by lack of capital and the precarious economic conditions.
Their members have increased and they have extended their business
considerably in manufactured goods and household articles, but
hardly any in foodstuffs. They sustained considerable losses of
workim? capital owing to the breakdown of the currency and are now
engagea in reo~anizing their business. In spite of their great
importance to tlie workmen, before the war tliey took no part in
public life, and public opinion took no notice of them; this condition
has not been clianged by the disturbances and econoinic and political
revolutions which have occurred.
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CHAPTER VIII.-COOPERATIVE MOVEMENT
COOPERATIVE BUILDING SOCIETIES AND BUILDING GUILDS
COOPDATIVB BUILDING SOCIETIES
The German cooperative building societies, like the consumers'
societies, are almost exclusively registered ·societies with · limited
liability. Their importance before tlie war lay mostly along educational lines. They departed from the apartment-house system/revailing in many large cities, and again and again demonstrate b7.
practical examples that even with rather high building-lot prices 1t
was possible for one-family and two-family houses to compete with
apartment houses; and they educated public opinion by interesting
especially the workers in housing reform. But their activity was not
· ·of great importance if measured by the number of their members and
the dwellings they erected. According to the last comprehensive
pre-war statistics, which refer to January 1, 1912, the number of
cooperative building societies was 1,173, with 225,672 members.
The number of houses and dwellings erected is reported for only- 494
societies, with 127,377 members; by the end of 1910 these had built
10,678 houses, with 51,086 dwellings. It is therefore safe to say that
up to the war these societies had not constructed more than 100,000
dwellings.
.
During the war the cooperative building societies naturally made
little progress. At first they suffered financial losses through the
vacating of shops and the mcapacity of many of their members,
especially the wives of their enrolled members, to pay the full rent.
Later, when industry became more prosperous and the demand for
·dwellings increased, other difficulties-in/articular the scarcity and
high cost of building materials-prevente them from erecting houses
to any extent.
After the war there was a very_ strong trend toward cooperative
building societies. Their number increased from 1,391 on January 1,
1918, to 1,485 on January 1, 1919, 2,126 on January 1, 1920, 2,545
on January 1, 1921, 3,118 on January 1, 1922, 3,311 on January 1,
1923, 3,422 on January 1, 1924, and 3,795 on January 1, 1925. But
many of the new societies h,.1,d very few membe~, and some of them
were not genuinely cooperative societies but so.cieties :financed more
or less by employers or contractors.
Because of the difficulties encountered in the construction of dwellillgs duri~ the period of inflation (see pages 39 to 47), the record of
the activities of the cooperative building societies was small, if measured by the need for housing accommodations, but very large if
measured by- the total number of new dwellings. According to data
of investigations made by the Federal Statistical Office, the number of
houses and dwellings constructed by public welfare buil~ activities
(Gemeinnutzige Ba'IJJ,ii,ti,gkfnt) and by other building activities was as
follows:
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COOPERATIVE BUILDING SOCIETIES AND BUILDING GUILDS
TABLII
63.-NUMB"ER OF HOUSES AND DWELLINGS ERECTED IN GERMAN CITIES,
1929 TO 1923
•
Num• Number oflnhabi•
berof
tants
cities
Year
1920••••••••••••••••••• --- --------lll'Jl. -····· '···-·- -· ···-·· •••••••••
1922•••••••
-·-·-----------·--------i
1923-··········-···-···············
35
35
35
42
43
42
44
Public welfare
building activities
Dwell•
Houses
Over 100,000____ •••
Over 100,000__ •••••
Over 100,000___ ••••
Over 100,000_____ ._
ings
4,497
6,470
5,490
6,612
3,163
6,901
.2, 911
50,000 to 100,000_ ·Over 100,000_______
50,000 to 100,000 --
10,468
12,228
12,988
15,619
6,301
18,699
6,922
Other building activitles
Houses
Dwell•
710
1,139
2,226
3,523
758
3,660
684
ings
8,433
9,045
10,562
14,381
2,711
12,!!68
2,711
In the cities with over 100,000 inhabitants covered by these statistics the per cent of dwelling houses constructed for public welfare
amountecl in 1920 to 86.4, in 1921 to 85.0, in 1922 to 65.2, and in 1923
to 65.3, and the per cent of new dwellings in 1920 to 55.4, in 1921 to
57.5, in 1922 to 52.1, and in 1923 to 59.2. The fact that the percent~e of houses built by public welfare activities was in each year larger
than the percentage of dwellings so constructed, while the difference between the two percentages decreased each year, is due to the larger size
of the houses constructed by' other building activities and the increasing tendency to erect smaller houses, and also to a certain extent
to the mcreasing number of villas constructed by the newly rich.
Building for _public welfare was carried on during these 7ears in the
smaller more than in the larger cities. The percentage o the houses
erected for public welfare was in 1922, 80.7 and in 1923, 81.0 in the
cities from 50,000 to 100,000 inhabitants, as compared with 65.2 in
1922 and 65.3 in 1923 in the larger cities, and the percentage of dwellings in 1922, 69.9 and in 1923, 71.9, as compared with 52.l m 1922 and
59.2 in 1923.
One must, however, bear in mind that these figures include not
only dwelling houses erected b_y cooperative building societies but
also dwellings constructed by the Federal Government, the municipalities, private employers, foundations, etc. It is possible-I.however,
at least for the year 1922, separately to consider the dwellings constructed by cooperative building societies (including foundations)
and to add some details about the size of the dwellings.
TABLB 64.-NUMBER OF HOUSES AND DWELLINGS ERECTED BY GERMAN COOPER·
A TIVE BUILDING SOCIETIES, 1922
Size of city
Dwelllnp withNumber Houses
6
of
1
2
3
4
5 rooms
cities
room rooms rooms rooms rooms and Total
more
._···············--1
Over 100,000
lnhabltants
__
80,000
to 100,000
Inhabitants_.-•••••••••••••••
42
43
4,272
2,093
3
------
128 ,2,267 4,164 2,008 1,042
77 606 1,572 757 117
I
9,632
3, 1211
Of the total houses erected the per cent erected by cooperative
building societies was thus, in the cities over 100,000 inhabitants,
42.2, and in the cities from 50,000 to 100,000 inhabitants 53.41 the
per .cent of tota.l·dwellings-was 32.1.and 34.7,-respectively.
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CHAPTER VIlI.-COOPERATIVE MOVEMENT
One-third of all the dwellings constructed in German cities with
over 50,000 inhabitants were erected by cooperative building societi~1 and yet the building activities of these societies was small,
even il: measured by their activity in pre-war times.
The cooperative building societies l:iave gained considerable moral
ground since the war as the general public has come to see that
these societies, which had been so belittled in pre-war times, had
after all in a •time of great crisis shown more power of resistance
than private business enterprises. It was generally hoped that after
the stabilization of the mark the cooperative societies would take up
the construction of new dwellings on a very large scale, but as the
cost of building is about 60 per cent higher than 10 years ago and
the rate of interest on mortgages exceeds the pre-war level by at
least 100 per cent, these hopes have so far not been fulfilled.
BUILDING GUILDS
While the p~ose of cooperative building societies is to supply
to their memoers for their own use adequate dwellings at a reasonable
price, builders' cooperative societies and building _guilds build for
third parties. Builders' cooperative societies existed to some extent
before the war, gained some ground during the war, and developed
eonsiderabl:y in the first ye~rs. after _the war, but they_ were more and
more outstnpped by the buildmg guilds, the first of which was founded
in 1919.
The objects of building guilds a.re (1) to carry on building work
of all kinds and to acce:rt contracts for such work, especiallk:1
connection with workers hous~, and (2) to acquire bull · material establishments. "The ouilding guild," according to its
by-laws, "shall aim at relieving the housmg short~e, improving
housing conditions, and encouragmg technical progress m the ouildip.g
trade. It shall especially attempt to accomplish these aims by
means of tryuig and pe:ffect~ the various methods of building
and working, by s~tema.tically developing professional skill, and
by increasing the willingness of their salaried employees and workers
to do efficient work. Its guidini? principle shall always be to construct
buildings for the community o1 as good a quality as possible at the
lowest practicable cost. "
,
The advantages of the building guilds over the builders' societies
are:
(a) The members of the guilds a.re not single individuals but
public bodies or public-welfare bodies, and therefore public interest
1s better safeguarded than in the builders' societies.
(b) AB the principal shareholders of the building guilds (which
are limited-liability companies) are the Federal Government, State
governments1 mumcipa.lities, trade-unions, home settlement societies,
etc., the building guilds have a more stable :financial foundation
than the ,builders' societies, which depend on single individuals,
generally of small means.
(c) The building guilds are also superior· to the builders' societies
in that the latter are subject to ~he decisJons of the majority of the
general assembly, the membership of which may ch~e qmckly.From the.very outset the building guilds had considerable practical
success in spite of the opposition of vested interests; As they: limited
profits to 5 per cent and as the best workers sought employment
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COOPERATIVE BUILDING SOCIETIES AND BUILDING GUILDS
199
by the guilds, they could easily submit lower bids than those of
private contractors and were soon offered more contracts than they
could carry out.
The building trades-unions soon r~cognized the importance of the
building guilds in the slow recovery of the building trades and assisted the guilds in many ways. It was indeed mainly due to their
financial help that it was possible to create, as early as September 16,
1920, a Federation of Public Welfare Building Enterprises (Verband
sozialer Betriebe), which included both the building guilds and the
builders' cooperative societies. The objects of this federation,
according to its by-laws, are "to found and encourage public welfare
enterprises organized as cooperative or other societies, not working
on private capitalistic lines, and to represent such enterprises in
negotiations with the authorities of the Federal Government, the
State governments, and the municipalities."
The number of enterprises affiliated with the federation was 200
on December 31, 1921, 207 on December 31, 1922, and 214 on June 30,
1923. But in the meantime the transformation of builders' cooperative societies into building guilds had made so much progress that
the number of affiliated cooperative societies dropped from 140
to 107 and then to 74, while the number of affiliated guilds had
increased from 60 to 100 and then to 140.
The number of workers employed in the enterprises affiliated with
the federation is about 20,000. While this represents only about
2 per cent of the total number of German building trades workers,
the enterprises have, according to the reports of the federation,
constructed almost 10 per cent of the total number of small dwellings
built since the formation of the federation.
The paid-in and working capital of the building guilds eix:c;eeds
10,000,000 gold marks and it steadily increases, as the building
trades-union has yassed a resolution that 5 per cent of the union
contributions shal be placed at the disposal of the building guilds.
The ~uilds own works for the production of building materials, such
as bnck kilns, sawmills, compo factories, gravel pits, stone quarries,
slate quarries, etc. They also own a woodworking factory, and a
good deal of land, scaffolding, etc.
The guild idea has taken hold of all the branches of the building
trade, and the guilds may be expected to grow rapidly as soon as the
general impediments to building activity disappear.,
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SERIES OF BULLETINS PUBLISHED BY THE BUREAU OF WOR STATISTICS
[The publf.catlon of the annual and apecial report• and of the bimonthly bullstin , _
dllH:ontlnW#l in July, lllJ, and atnce that time a bulletin haa been publt,,hed at irregular
inter.,,,,.. Bach number contalna matter der,oted to one of a aeries of general aubjecta.
T,._,, bulletina are numbered COlllleCUtir,ely, beginning u,ith No. 101, and up to No. ZII
they alao carry co1111eCutir,e numbers under each aerlea. Beginning u,ith No. m the aerial
numbering haa been dllH:ontinued. A liat of the- aeries t,, gu,en belou,. Under each i•
grouped all the bulletina u,hi.ch contain material relating to the aubject matter of that
aerla. A lt,,t of the report• and bulletina of the Bureau "'8ued prior to July 1, 1111, UJill
be furnt,,hsd on a,pplf.cation. The bulletina marked thua • are out of print.]
Wholeme~.
•Bui. 114. Wholesale prices, 1890 to 1912.
Bui. 149. Wholesale prices, 1890 to 1913.
•Bui. 173. Index numbers of wholesale prices In the United States and foreign ooanbieB.
•Bui. 181. Wholesale prices, 1890 to 1914.
•Bui. 200. Wholesale prices, 1890 to 1915.
•Bui. 226. Wholesale prices, 1890 to 1916.
Bui. 269. Wholesale prices, 1890 to 1919.
Bui. 284. Index numbers of wholesale prices In the United States and foreign COUIJtrles. [Bevlalcm
of Bulletin No. 173.)
Bui. 296. Wholesale. prices, 1890 to 1920.
Bui. 320. WholesBle prices, 1890 to 1921.
Bui. 335. Wholesale prices, 1890 to 1922.
Bui. 367. Wholesale prices, 1890 to 1923
ReCaU Prlees and CNt of Lhlna.
•Bui. 105. Retail prices, 1890 to 1911: Part I.
Retail prices, 1890 to 1911: Part !I-General tables.
•Bui. 100. Retail prices, 1890 to J'une. 1912: Part I.
Retail prices, 1890 to J'une, 1912: Part II-General tabla
Bui. lOII. Retail prices, 1890 to Augost, 1912
Bui. 110. Retail prices, 1890 to October, 1912.
Bui. 113. Retail prices, 1890 to December, 1912.
Bui. 115. Retail prices, 1890 to February, 1913.
•Bui. 121. Sugar prices, from re1lner to consumer.
Bui. 125. Retail prices, 1890 to April, 1913.
•Bui. 130. Wheat and II.our prices, from farmer to cousllllllr.
Bui. 132. Retail prices, 1890 to J'une, 1913.
Bui. 136. Retail prices, 1890 to August, 1913.
•Bui. 138. Retail prices, 1890 to October, 1913.
•Bui. 140. Retail prices, 1890 to Deoember, 1913
Bui. 156. Retail prices, 1907 to Deoember, 1914.
Bui. 164. Butter prices, from producer to conaumer.
Bui. 170. Foreign food prices as affected by the WIil'.
· •Bui. 184. Retail prices, 1907 to J'une, 1915.
Bui. 197. Retail prices, 1907 to Deoember, 1915.
Bui. 228. Retail prices, 1907 to December, 1916.
Bui. 270. Retail prices, 1913 to 1919.
Bui 300. Retail prices, 1913 to 1920.
Bui. 315. Retail prices, 1913 to 1921.
Bui. 334. Retail prices, 1918 to 1922.
Bui. 367. Coat of living in the United States.
Bui. 366. Retail prices, 1913 to December, 1928,
Bui. 369. The use of cost-of-living 11.gures in wage adjustment&. [In p1'8118.)
Wases and Boars of Labor.
· Bui. 116. Hours, earnings, and duration of employment of -wage-earning women in selected Industries
in the District of Columbia.
Ten-hour maximum working-day for women and young persons.
Working hours of women In the pea 08Dllerles of Wl8consln.
Wages and hours oflabor in the cotton, woolen, and silk industries, 1890 to 1912.
Wages and hours oflabor in the lumber, millwork, and furniture Industries, 1890 to 1912.
Union scB1e of wages and hours oflabor, 1907 to 1912.
Wages and hours oflabor in the boot and shoe and hoatery and knit good& industries, l8DO
to 1912.
•Bnl. 136. W aaea and hours of labor In the cigar and c1othlug Industries, 1911 and 1912.
Bul. 137. Wages and hours of labor In the building and repairing of steam railroad cars, 1890 to 19U.
•Bui. 118.
Bui. 119.
•Bui. 128.
•Bui. 129.
•Bw. 131.
•Bui. 134.
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Federal Reserve Bank of St. Louis
(I)
Waae• 1111d Ronn of Labol'-Ooncluded.
Bui. 143. Union scale of wages and hours of labor, May 15, 1013.
•Bui. 146. Wages and regularity of employmant and standardization of P'- rates In the dress and
waist industry of New York City.
•Bui. 147. Wages and regularity of employment In the cloak, suit, and skirt Industry.
•Bui. lliO. Wages and hours oflabor in the cotton, woolen, and silk industries, 1907 to 1913.
•Bui. 151. Wages and hours oflabor in the Iron and steel industry In the United States, 1907 to 1912.
Bui. 153. Wages and hours of labor in the lumber, mmwork, and furniture industries, 1907 to 1913.
154. Wages and hours of labor in the boot and sboe and hosiery and underwear Industries, 1907
to 1913.
. .
Bui. 160. Hours, eamlnp, and conditions of labor of women In Indiana mercantile establishments
and garment factories.
·
Bui. 161. Wages and hours oflabor In the clothing and cigar industries, 1911 to 1913.
Bui. 163. Wages and hours oflabor in the building and repairing of steam railroad cars, 1907 to 1913.
Bui. 168. Wages and hours of labor in the Iron and steel industry, 1907 to 1918.
•Bui. 171. Union scale of wages and hours of labor, May 1, 1914.
·
Bui. 177. Wages and hours oflabor in the hosiery and underwear industry, 1907 to 1914.
Bui. 178, Wages and hours of labor in the boot and shoe industry, 1907 to 1914.
•Bui. 187. Wages and hours oflabor in the men's clothing Industry, 1911 to 1914.
•Bui. 190. Wages and hours oflabor in the cotton, woolen, and silk Industries, 1907 to 191'194. Union scale of wages and hours oflabor, May 1, 1915.
Bui. l!M. Street railway employment In the United States.
Bui. 214. Union scale of wages and hours oflabor, May 15, 1916.
Bui. 218. Wages and hours of labor In the Iron and steel Industry, 1907 to 1914.
Bui. 221. Hours, fatigue, and health In British munition fact<lries.
Bui. 225. Wages and hours of labor in the lumber, millwork, and furniture Industries, 1915.
Bui. 232. Wages and hours of labor in the boot and shoe Industry, 1907 to 1918.
Bui. 238. Wages and hours oflallor In woolen and worsted goods manufacturing, 1916.
Bui. 239. Wages and hours oflabor In cotton goods manufacturing and ftnlshlng, 1918.
Bui. :Mii. Union scale of wages and hours oflabor, May 15, 1917.
Bui. 252. Wages and hours of labor hi the slaughtering and meat-packing Industry, 1917.
Bui. 259. Union scale of wages and hours of labor, May 15, 1918.
Bui. 260. Wages and hours of labor In the boot and shoe industry, 1907 to 1918.
Bui. 261. Wages and hours of labor In woolen and worsted goods manufacturing, 1918.
Bui. 262. Wages and hours oflabor In cotton gooda manufacturing and tlnishlng, 1918.
Bui. ~- Industrial survey In eelected Industries in the United States, 1919. Preliminary report.
Bui. 274. Union scale of wages and hours of labor, May 15, 1919.
Bui. 278. Wages and hours of labor In the boot and shoe Industry, 1907 to 1930.
Bui. 2'19. Hours and earnings In anthracite and bituminous coal mining.
Bui. 286. Union scale of wages and hours oflabor, May 111, 1920.
Bui. 288. Wages and hours of labor In cotton gooda manufacturing, 1920.
Bui. 289. Wages and hours of labor In woolen and worsted goods manufacturing, 1920.
Bui. 294. Wages and hours of labor In the Blaugbterlng and meat-packing Industry In
Bui. 'NI. Wages and hours of labor in the petroleum industry.
.
Bui. 302. Union scale of wages and hours of labor, May 15, 1921.
Bul. 306. Wages and hours of labor In the Iron and steel industry, 1907 to 1920.
Bul. 316. Hours and earnlnga in anthracite and bituminous coal :mlnlng-anthraclte, JanllllrJ', 1922;
bituminous, winter of 1921-22.
.
Bui. 317, Wages and hours of labor in lumber manufacturing, 1921·.
Bul. 32'. Wages and hours of labor in the boot and shoe industry, 1907 to 11122.
Bul. 325. Union scale of wages and hours oflabor, May 111, 1922.
Bul. 327. Wages and hours oflabor In woolen and worsted goods manofaoturlng, 1921.
Bui. 328. Wages and hours oflabor in hosiery and underwear Industry, 11121.
Bul. 329. Wages and hours oflabor In the men's clothing Industry, 11122.
Bul. Mil, Wages and hours of labor In cotton-goods mannfacturlng; 1922.
Bui. 348. Wages and hours of labor In the automobile Industry, um.
Bui. 353. Wages end hours of labor In the Iron and steel industry, 1907 to 11121,
Bui. 354. Union sca1e of wages and hours of labor, May 111, 1923.
Bui. 356. Prodwiivity costs In the common-brick Industry, 1922-23.
Bui. 3118. Wages and hours of labor In the automobile-tire industry, 1928,
Bui. 360. Time and labor costs In manufacturing 100 pairs of shoes.
Bui. 362. Wages and hours of labor In foundries and machine shops, 111211.
Bui. 363. Wages.and hours of labor In lumber manufacturing, 1923.
Bui. 365. Wages and hours of labor In the paper and pulp Industry.
Bui. 371. Wages and hours of labor in cotton-goods manufacturing. 19H.
Bui. 873. 'Wages and hours of labor in Blaugbtering and meat packing, 11123.
Bui. 374. Wages and hours of labor In the boot and shoe Industry, 1907 to ill24. .
Bul. 376. Wages and hours of labor in hosiery and underwear Industry, 1907 to 192'.
Bul 377. Wages and hours of labor In woolen and worsted goods manufacturlnr, 11126.
•:eu1.
•:eul.
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(D)
Bmploymen& and Unemploy1118111•Bul. 109. Statistics of unemployment and the work of employment offices.
Bnl, m1. BolllB, earnings, and duration of employment of w ~ women In selected IDdUBtrles
In the District of Columbia.
Bul. 172. Unemployment In New York City, N. Y.
•Bul. 182. Unemployment among women In department and other retail stores of Boston, Mass.
-Dul. 183. Regularity of employment In the women's ready-to-wear garment Industries.
Bul. 192. Proceedings of the American Association of Public Employment Offices.
•Bul. 195. Unemployment In the United States.
Bui. 196. Proceedings of the Employment Managers' Conference held at Minneapolis, Minn., January, 1916.
•Bui. 202. Prooeedlngs of the confarence of Employment Managers' A.ssoolatlon of Boston, Mass.,
held May 10, 1916.
Bul. 206. The 1'rltlsh system of labor exobanges.
Bul. 220. Prooeedlngs of the Fourth Annual Meeting of the American Assoolatlon of Public Employment Offices.
Bul. 223. Employment of women and Juveniles In Great Britain during the war.
•Bui. '01. Proceedings of the Employment Managers' Confarence, Philadelphia, Pa., April 2 and 3, 1917.
Bui. 235. Employment system of the Lake Carrlars' Association.
Bul. 241. Public employment offices In the United States.
Bul. 247. Proceedings of Employment Managers' Conference, Roobestar, N. Y., May 9-11, 1918.
Bul. 310. lndUBtrlal unemployment: A statistical study of Its extent and causes.
Bui. 311. Proceedings of the Ninth Annual Meeting of the Intarnational Assoolatlon of Public Em•
ployment Sarvioes, Buffalo, N. Y., Septembar 7-9, 1921.
Bui. 337. Proceedings of the Tenth Annual Meeting of the lntarnational .Association of Public Em•
ployment Services, Washington, D. C., Septembar 11-13, 1922.
Bul. 3M, Prooeedlngs of the Eleventh Annual Meeting of the Intarnatlonal A.ssoolatlon of Public
Employment Services, September 4-7, 1923.
Women In Indu&r,,
Bul. 116. BolllB, earnings, and duration of employment of w&gHBrD!ng women In 8eleoted lndUBtrles
In the District of Columbia.
•Bui. 117. Prohibition of night work of young parsons.
•Bul. 118. Ten-hour maximum working-day for women and young persons.
Bui. 119. Working hOlllB of women In the pea cannarles of Wisconsin.
•Bul. 122. Employment of women In powar laundries In Milwaukee.
Bul. 160. llolllB, earnings, and conditions of labor of women In Indiana mercantile establishments
and garment factories.
•Bul. 167. Minimum-wage legislation in the United States and foreign countries.
•Bul. 175. Summary of the report on condition of woman and child wage earners In the United States.
•Bui. 176. Effect of minimum-wage detarminatlons In Oregon.
•Bul. 180, The boot and shoe lndUBtry In MassachUBetts as a vocation for women.
•Bul. 182, Unemployment among women In department and other retail stores of Boston, Mass.
Bul. 193. Dressmaking as a trade for women In MassacbUBetts.
Bui. 215. Industrial experience of trade-school girls in Massachusetts.
Bul. 217. Effect of workmen's compensation laws In diminishing the necessity of lndUBtrial employ.
ment of women and children.
Bul. 223. Employment of women and Juveniles In Great Britain during the war.
Bul. 253. Women In the lead Industries,
Wol'kmen'e lneurance·and Compenaadon (lncladlnc laW8 relatlnc thento).
•Bul. 101. Care of tubarculoUB wage earners In Germany.
•Bul. 102. British National Insurance Act, 1911.
Bui. 103. Sickness and accident Insurance law of Switzerland.
Bul. 107. Law relating to Insurance of salaried employees In Germany.
•Bui. 126. Workmen's compensation laws of the U nlted States and foreign countries•
. •Bul. 155. Compensation for accidents to employees· of the United States.
•Bui. 185. Compensation legislation of 1914 and 1915.
•Bui. 203. Workmen's compensation laws of the United States and foreign countries.
Bui. 210, Proceedings of the Third Annual Meeting of the lntarnatlonal Aaioclatlon of IndustrlaJ
Accident Boards and Commissions.
Bui. 212. Proceedings of the conference on social Insurance called by the International Association of
Industrial Accident Boards and Commissions.
Bui. 217, Effect of workmen's oompensatlon laws In diminishing the necessity of Industrial employ•
ment of women and children.
Bul. 240. Comparison of worli:men's compensation laws of the United States.
Bul. 243. Workmen's compensation legislation In the United States and foreign oountrles.
Bul. MS. Prooeedlngs of the Fourth Annual Meeting of the Intarnatlonal Aaloc1atlon of Industrial
Aeoldent Boards and Commissions.
•
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Federal Reserve Bank of St. Louis
Wen:men'•1 - and Compenadlen-Ooncluded.
Bui. 26'. Proceedlnp of the• Fifth Annual Meeting of the International Allloclatlon of Indl18trfal
Accident Boards and Commissions.
Bui. 272. Workmen's compensation legislation of the United States and Canada, 1919.
*Bui. 273. Proceedings of the Sixth Annual Meeting of the International Association of Industrial
Accident Boards and Commissions.
Bui. 275. Comparlson of workmen's compensation laws of the United States and Canada.
Bui. 281. Proceedings of the Seventh Annual Meeting of the Intenaatlonal ABSOCiatlon of Industrial
Accident Boards and Commissions.
Bui. 801. Comparison of workmen's compensation iDsonmce and administration.
Bui. 304. Proceedings of the Eighth Annual Meeting of the International ABSOCiation of Industrial
Accident Boards and Commissions.
Bui. 812. National Health IDSU1'811oe In Great Britain, 1911 to 1920.
Bui. 832. Workmen's compensation legislation of the United States and Canada, 1920 to 1922;
Bui. 333. Proceedings of the Ninth Annual Meeting of the International ABSOCiatlon of Industrial
Accident Boards and Commissions.
BDI. 3511. Proceedings of the Tenth Annual Meeting of the International AIIOolatiOD of Industrlal
Accident Boards and Commissions.
Bui. 379. Comparison of workmen's compensation laws of the United States as of 1an~ 1, 11125.
Jaclall<al Aeddent■ and 'R:,.a"Bul. l°'. Lead poisoning In potteries, tile works, and poreeialn enameled 811Ditaty wate faotorlla.
BDI. 120. Hygiene of the painters' trade.
"BDI. 127. DBDgerS to workers from dust and fumes, and-methods of proteottoa.
"BDI..1,1. -Lead pollonlq·ln the smeltADg.and-ftftDinlf of-lead.
*Bui. 167. Industrial accident statistics.
*Bui. 166. Lead poisoning In the manufacture of storage batteriel.
"Bui. 179. Industrial poisons used In the rubber lndasllr,-.
Bui. 188. Report of British departmental committee OD the danger In the use of lead In the painting
ofbuildings.
,
*Bui. 201. Report of committee OD statistics and compensation Insurance cost of -the International
Association of Industrial Accident Boards and Commissions, [Llmited edition.I
Bui. 205. Anthrax as an occupational disease.
Bui. 2C11. 01111868 of death by occqpatlon.
Bui. 209. Hygiene of the printing trades.
"Bui. 216. Accidents and accident prevention In machine building.
Bui. 219. Industrial poisons used or produced In the manufacture of explosives.
Bui. 221. Hours, fatigue, and health In British munition factories.
·
Bui. 280. Industrial efficiency and fatigue In British mnnltion factories,
*Bui. 281. Mortality from respiratory diseases In dusty trades. .
*Bui.~- Safety movement In the Iron and steel Ind~, 1907 to 1917,
Bui. 236. Effect of the air hammer OD the hands of stpnecutters.
Bui. 2111; .Preventable death In the cotton manufacturing lndwttt7.·
Bui. 253. Women In the lead Industries. .
Bui. 266. Accidents and accident prevention In machine building. Revlalon of Bui. 118.
Bui. 267. Anthrax· as an occupational disease. [Revised.}
Bui. 278. Standardization of Industrial accident statistics.
BDI, 280. Industrial poisoning in making coal-tar dyes and dye Intermediates.
Bui. 291. Carbon monoxide poisoning.
Bui. 298. The problem of dust phthlsls In the granite-stone lndnstry.
Bui. 298. CBll86S and prevention of accidents In the Iron and steel lndnstry, 1910 to 1919.
Bui. 306. Oocopatlon hazards and diagnostic signs: A guide to Impairment to be looked for In haz·
ardous occupations.
Bui. 889. Statistics of Industrial accidents In the United States.
Coadllatlon and AdJltndon (bicladlna lltrlkeB and lockouCll)o
"Bui. 124. Conciliation and arbitration In the bulldlpg trades of Greater New York.
"Bui. 188. Report of the Industrial counoll of the British Board of Trade OD Its inquiry Into Industrial
agreements.
*Bui. 189. Michigan copper dlstrlot strike.
Bui. l«. lndll!'trlal court of the cloak, salt, and skirt ndnstry of New York City.
Bui. 1'5. Conolllatlon, arbitration, and 88Dltat!,on In the dress and waist lndUBtry of New York City.
Bul.191. Collective bargaining in the anthracite coal lndnstry.,
"Bui. 1118. Collective agreements In the men's clothing lndnstry.
Bui. 233. Operation of the Industrial Dlspntes Investigation Act of Canada.
Bui. am. Use of Federal power In settlement of railway labor disputes.
Bui. 8'1. Trade agreement In the silk-ribbon lndnstry of New York Olty,
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Federal Reserve Bank of St. Louis
(IV)
Labor Laws of the United States (Including decisions of courts relating to labor)•
.•Bui. 111. Labor legislation of 1912.
•Bui. 112. Decisions of courts and opinions affecting labor, 1912.
•BuI. 148. Labor laws of the United States, with decisions of courts relating thereto.
•Bui. 152. Decisions ol courts and opinions affecting labor, 1013.
•Bui. 166. Labor legislation of 1914.
•Bui. 169. Decisions of courts affecting labor, 1914.
•Bui. 186. Labor legislation of 1915,
•Bui. 189. Decisions of courts affecting labor, 1915.
Bui. 211. Labor laws and their administration in the Paclftc States.
•Bui. 213. Labor legislation of 1916.
Bui. 224. Decisions of courts affecting labor, 1916.
Bui 22~. Wage-payment legislation in the United States.
Bui. 244. Labor legislation of 1917.
Bui. 246. Decisions of courts affecting labor, 1917.
Bui. 257. Labor legislation of 1918.
Bui. 258. Decisions of courts and opinions affecting labor, 1918.
0 Bul. 277. Labor legislation of 1919.
Bui. 285. Minimum-wage legislation in the United States.
Bui. 290. Decisions of courts and opinions affecting labor, 1919-1920,
Bui. 292. Labor legislation of 1920.
Bui. 308. Labor legislation of 1921.
Bui. 309. Decisions of courts and opinions affecting labor, 1921.
Bui. 321. Labor laws that have been declared unconstitutional.
Bui. 322. Kansas Court of Industrial Relations.
Bui. 330. Labor legislation of 1922.
Bui. 343. Laws providing !or bureaus of labor statistics, etc.
Bui. 344. Decisions of courts and opinions affecting labor, 1922.
Bui. 370. Labor laws of the United States, with decisions of courts relating thereto. [In press.]
Foreign Labor Laws,
Bui. 142. Administration of labor laws and factory inspection in cert,iin European countries.
Vocational EduCDtion,
Bui. 145. Conciliation, arbitration, and sanitation in the dress and waist industry of New York City.
•Bui. 147. Wages and regularity of employment in the cloak, suit, and skirt industry,
*Bui. 159. Short-unit courses for wage earners, and a factory school experiment.
*Bul 162. Vocational education survey of Richmond, Va.
Bui. 199. Vocational education survey of Minneapolis, Minn.
Bui. 271. Adult working class education (Great Britain and the United States).
Labor as Affected by the War,
Bui. 170. Foreign food prices as affected by the war.
Bul. 219. Industrial poisons used or produced in the manufacture of explosives.
Bui. 221. Hours, fatigue, and health in British munition factories.
Bui. 222. Welfare work in British munition factories.
Bui. 223. Employment of women and juveniles in Great Britain during the war.
Bui. 230. Industrial efficiency and fatigue in British munition factories.
Bul. 237. Industrial unrest in Great Britain.
Bui. 249. Industrial health and efficiency. Final report of British Health of Munlti~n Workers
Committee.
Bui. 255. Joint industrial councils in Great Britain.
Bui. 283. History of the Shlpbuilding Labor Adjustment Board, 1917 to 19111.
Bui. 287. National War Labor Board.
8afety Codes.
· Bui. 331. Code of lighting factories, mills, and other work places.
Bui. 336. Safety code !or the protection of industrial workers in foundries.
Bui. 338. Safety code for the use, care, and protection of abrasive wheels.
Bui. 350. Rules governing the approval of bead-lighting devices for motor vehlcles.
Bui. 351. Safety code for the construction, care, and use ofladders.
Bui. 364. Safety code for mechanical power-transmission apparatus.
Bui. 375. Safety code for laundry machinery and operations.
Bui. 378. Safety code for woodworking machinery.
20168°-25t--14
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Federal Reserve Bank of St. Louis
(V)
Mlaeellaneou11 Sedea.
Prohibition of night work of yOUDg persons.
Ten-hour maximum working-day for women and YOUDg persons.
Employers' welfare work.
Government aid to home owning and holl8ing of working people In foreign countnea.
Short-unit courses for wage earners and a factory school experiment.
0 :Qul. 167. Minimum-wage legislation in the United States and foreign countries.
Bui. 170. Foreign food prices as affected by the war.
•Bui. 174. Subject index of the publications of the United States Bureau of Labor Statlatics up to
May 1, 1916.
Bui. 208. Profit sharing In the United States.
Bui. 222. Welfare work in British munition factories.
Bui. 242. Food situation in central Europe, 1917.
•Bui. 260. Welfare work for employees In indll8trlal establishments In the United States,
Bui. 254. International labor legislation and the society of nations.
·
Bui. 263. HOW!lng by employers in the United States.
Bui. 266. Proceedings of Seventh Annual Convention of Governmental Labor Olllolals of the United
States and Canada,
Bui. 268. Historical survey of International action affecting labor.
Bui, 271. Adult working-class education In Great Britain and the United States.
Bui. 282. Mutual relief associations among Government employees In Washington, D. C.
Bui. 2911. Building operations In representative cities in 1920.
Bui. 2911. Personnel research agencies. A guide to organized research In employment management,
indll8trial relations, tralnlng, and working conditions.
Bui. 313. Consumers' cooperative societies in the United States in 1920,
Bui. 314. Cooperative oredit societies In America and foreign eountries.
Bui. 318. Building permits In the principal cities of the United States.
Bui. 320. The Bureau of Labor Statistics, Its history, activities, and organization.
Bui. 323. Proceedings of the Ninth Annual Convention of the All8oclatloli. of Governmental Labor
Officials of the United States and Canada, held at Hanlsburg, Pa., May 22-26, 1922.
Bui. 326. Methods of procuring and computing statlstloal information of the Bureau of Labor Statistics.
Bui. MO. Chinese migrations, with speola1 reference to labor conditions.
Bui. 342. International Seamen's Union of America. A study ofits history and problems.
Bui. 346. Humanity In government.
Bui. 347. Building permits In the principal cities of the United States In 1922.
Bui. 349. Indll8trial relations In the West Coast lumber lndmtry.
· Bui. 362. Proceedings of the Tenth Annual Convention of Governmental Labor Officials or the
United States and Canada.
Bui. 861. Labor relations in the Fslrmont (W. Va.) bltumin01l8 coal fl.eld.
Bui. 868. Building permits In the principal cities of the United States In 11123,
Bui. 872. Convict labor In 1923.
•Bui. 117.
•Bui. 118.
•Bui. 123.
•Bui. 158.
"Bui. 159.
SPECIAL PUBLICATIONS ISSUED BY THE BUREAU OF LABOR STATISTICS
o-dpdon of oeeapaClou, prepared for the United States Bmploy-i Senke, 1918-19.
•Boots and shoes, harness and saddlery, and tanning.
•cllllHUglll' refl.ning and llour milling.
Coal and water gas, paint and varnish, paper, printing trades, and rubber good&
•Electrical manufacturing, distribution, and maintenance.
Glass.
Hotels and restaurants.
•Logging camps and sawmDJs.
Medicinal manilfacturlng.
Metal working, building and general oonstractlon, railroad transportation, and shipbuilding,
•Mines and mining.
•office employees.
Slaughtering and meat paoklnc.
Street railways.
•Textiles and clothing.
-Water transportation.
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