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The War Risk Insurance Act

Creator: Paul H. Douglas (author)
Date: May 1918
Publication: Journal of Political Economy
Source: Available at selected libraries

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II. THE ALLOTMENT AND ALLOWANCE PROVISIONS

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One of the first questions that comes to mind is, Why is it necessary to provide stipends for the families of men in service, when the government's policy has been to exempt men with dependents? Though the farsighted policy of the administration in this respect has made the number of dependent families far fewer than they would otherwise have been, it has by no means eliminated them. Vast numbers of men in service have dependents. They are: (a) married men who were enlisted in either the National Guard or the Regular Army and were consequently mustered into service; (b) married men who, because of the severity of some local exemption boards, were conscripted for service in the first draft; (c) married men who enlisted under assumed names, or without the knowledge of their wives; (d) married men with dependents who nevertheless waived exemption, either because of patriotism or a desire to escape from their families; (e) single men who did not have dependents at the time of their entrance into service, but who, because of the death or disability of some other source of support have since become the sole or chief support of parents, sisters, etc.

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Furthermore, it is doubtful if the government can maintain its policy of exempting men with dependents throughout the war. The war, if long continued, will make tremendous demands upon the man power of the country, and those at present listed under the draft in Classes II, III, and possibly IV may be drawn upon. Some system of relief is therefore necessary.

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The bill provides for a system of "allotments" and "allowances," the former from the men's pay, the latter from government funds. The allowance is paid only if a previous allotment has been made.

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The dependents are grouped for the purpose of the act into two classes: Class A, wives or children. The term "wife" includes a divorced wife who has not remarried and to whom alimony has been decreed, and a common-law wife with whom the man has been openly living for two years prior to the declaration of war. (11) All the following who are under eighteen or, if over, who are helpless, are regarded as children: legitimate children, stepchildren, children legally adopted either six months before the passage of the act or a similar time before entrance into service, and illegitimate children whom the father has acknowledged in writing, or toward whose support he has been ordered by the courts to contribute.


(11) In England the question whether the de facto or dejure wife should be recognized in the payment of separation allowances was most troubling. Indeed the conditions disclosed led to the introduction of the new separation bill and a further attempt at divorce-law reform. See E. S. P. Haynes, Fortnightly Review (January, 1918), pp. 107-12.

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Class B, all others.

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All men who have dependents in Class A are compelled to allot a minimum of $15.00 a month and not more than one-half his monthly pay. Within this maximum, the man must allot an equal amount to that given outright by the government in the form of allowances. This allotment cannot be waived by the man himself, and it can be waived by the wife only when she produces evidence to prove that she is able to support herself and the children without assistance from the government. After the allotment has been made the government adds an allowance graduated according to the number of dependents. The amounts of the monthly allowances are as follows:

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a) Wife, but no children $15.00
b) Wife and one child 25.00
c) Wife and two children 32.50
d) For each additional child above two 5.00
e) If there be no wife, but one child 5.00
f) If there be no wife, but two children 12.50
g) If there be no wife, but three children 20.00
h) If there be no wife, but four children 30.00
i) For each additional child over four 5.00

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Men are not compelled to make allotments of their pay to dependents in Class B, but if they do so the government will, under certain conditions, add an allowance to the allotment.

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The scale of monthly allowances for dependents in Class B follows:

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a) For one parent $10.00
b) For two parents 20.00
c) For every grandchild, brother, sister, or additional parent 5.00

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These allowances, however, will be paid only if members of Class B are dependent either in whole or in part upon the enlisted man, and if he makes an allotment of pay equal in amount to the allowance given. The enlisted man, however, is not required to allot more than one-half of his pay. If he is making no allotment to dependents in Class A, he must assign a minimum of $15.00 monthly, but if he is making such allotment he need only assign one-seventh of his pay, or a minimum of $5.00 monthly, in order that such dependents in Class B may then receive the regular government allowance. The sum of the allotments and allowances to dependents in Class B must not, however, exceed the total amount habitually contributed by the enlisted man to their support.

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