MAJORITY REPORT. 
Ly; 
CHAPTER VI. 
THE FINANCIAL BURDEN OF THE EXISTING SOCIAL 
SERVICES. 
139. In the preceding Chapters we have described in a general 
way the various health activities of the Central Departments and 
the Local Authorities, their relations to each other, and the lines 
along which, as we think, development should take place. But 
we have hinted that, in connexion with the various proposals 
for the extension of the Health Insurance Scheme which have 
been brought to our notice, serious regard should, in our opinion, 
now and for some time to come, be given to the present financial 
and industrial position of the country. Our proposals, because 
they are thus conditioned, may appear to be of a restricted 
nature to the numerous advocates of substantial development. 
We therefore, at this point, think it desirable to make a brief 
reference to these conditions and to indicate why in our opinion 
they necessarily limit present progress. 
THE BURDEN oF UNEMPLOYMENT. 
140. The serious conditions prevailing in many of our indus- 
tries and the grave embarrassments under which the central and 
local finances of the country are alike labouring, are too well 
known to call for elaboration here. But lest we should be thought 
wanting in a proper appreciation of the value of a large advance 
in the public arrangements for promoting the health of the com- 
munity, we think it desirable to emphasise the factors which on 
any statesmanlike review of the problem before us point to the 
expediency of a policy of caution. In the foreground there 
obviously stands out the question of unemployment, which for a 
period of almost five years has doubtless been the gravest feature 
in the life of the community. The number of the unemployed 
is now about 1,200,000 and for the past two years has varied very 
little. The figure has been as high as 2,000,000. Even at 
1,200,000 it is 11 per cent. of the working population registered 
at the Employment Exchanges. The maintenance of this huge 
number of workers and their dependants is a national burden, the 
responsibility for which has been accepted by the State and it is 
being borne at a cost of about £50 millions a year to the com- 
munity (of which £18 millions is paid from the Exchequer). 
In 1913, the corresponding figure was only £2 millions and in 
1920-1 £14 millions. Even though the contributions of 
employed and employers to the Unemployment Fund make up 
a large part of the sum required, it is nevertheless true that the