A second effect of the introduction of benefits is the strengthening of the national treasury.  The ordinary trade unionist is not disposed to be liberal in voting supplies to his national officials for trade purposes.  A union without beneficiary functions usually has small reserve funds or none at all.  The effect of the introduction of beneficiary features is, in the first place, to increase the funds which may in an emergency be used for strike benefits, and more important, perhaps, the members, accustomed to paying a considerable sum weekly or monthly for benefits, are less reluctant to vote assessments adequate for carrying on vigorously the trade policies of the union.

Finally, certain trade-union benefits aid even more directly in accomplishing the trade purposes of the unions by tiding the members over illness or unemployment.  An unemployed journeyman, or one impoverished by illness, unless supported by his union is tempted to work below the union rate.  A starving man cannot higgle over the conditions of employment.  The unions recognize that in time of strike they must support the strikers.  The establishment of out-of-work benefits is urged on much the same ground.

While these considerations have been effectual in leading the great mass of American trade unionists to believe in the advisability of developing beneficiary systems in connection with their unions, the real reason for the rapid growth of benefits lies, of course, in the desire of the members to participate in such beneficiary systems.  The development of beneficiary systems has, therefore, not been guided chiefly or largely by the consideration as to what benefits would most aid the trade unions in enforcing their trade policies.  The unions have chosen rather to develop those benefits for which there was the greatest need.  Taking the Report of the American Federation of Labor as a convenient summary of the beneficiary activities of American trade unions, it appears that in 1907 of sixty-seven national unions paying benefits of all kinds, sixty-three paid death benefits, six paid benefits on the death of members’ wives, twenty-four paid sick benefits, eight paid travelling benefits and six paid out-of-work benefits.  The benefit which is most effective as an aid to the enforcement of collective bargaining is out-of-work relief.  This it will be noted has been adopted by very few unions.  On the contrary, the death or funeral benefit of small amount is far and away the predominant form of national trade-union benefit.  Probably no other benefit offers as little support to the militant side of trade unionism.  The reasons for the greater development of this benefit are, first, the great need among many trade unionists for benefits of this kind.  Only within recent years has the funeral benefit been widely obtainable from ordinary insurance companies.  Secondly, the administration of a small funeral benefit presents few difficulties as compared with the sick or out-of-work benefit.