His father, the Emperor Frederick, during his brief reign had not favoured the principles of State Socialism; but the young Emperor William in November 1888 announced that he would further the work begun by _his grandfather_, and though the difficulties of insurance for old age were very great, yet, with God's help, they would prove not to be insuperable.
Certainly the effort was by far the greatest that had yet been made by any State.

The young Emperor and his Chancellor sought to build up a fund whereby 12,000,000 of work-people might be guarded against the ills of a penniless old age.

Their law provided for all workmen (even men in domestic service) whose yearly income did not exceed 2000 marks (L100).
Like the preceding laws, it was compulsory.

Every youth who is physically and mentally sound, and who earns more than a minimum wage, must begin to put by a fixed proportion of that wage as soon as he completes his sixteenth year.

His employer is also compelled to contribute the same amount for him.