A MODERN UTOPIA

King Country Chronicle, Volume XXIX, Issue 4747, 17 September 1935, Page 5

A MODERN UTOPIA

THE ALBERTA LANDSLIDE. SOCIAL CREDIT VISION. Vancouver, August 28. Canada's chief farming province, Alberta, has thrown into the discard the United Farmers' Government and Party, replacing it with a Social Credit Government, backed by a party that captured nearly all the seats in the Legislature at the elections last week. The Farmers' Government had been in power for fourteen years. Political commentators throughout the Dominion are nonplussed at the decision of the youngest province. True it has been given to experimenting in social projects. At the beginning of the depression one of its towns, in a rural district, established a system of token money, and carried on without a loss, due mainly to the demand elsewhere for the tokens as curios. In ' another town an experiment in State medicine was carried on with a measure of success. Three months ago Parliament passed legislation to introduce health insurance. But not even the most sanguine adherent of Social Credit anticipated such a "landslide" as occurred at the General Election. Its sponsors are equally nonplussed. 1 It must be assumed that the bait that attracted such an overwhelming vote was the promise of a social credit dividend of £1 10s per week to every adult citizen, with proportionate rates over sixteen years of age. This sum was suggested merely as an illustration by the Social Credit leader, Mr. Wil Aberhart, school teacher and leader of the Prophetic Bible Institute. It would not be less, he said; as Social Credit moved forward, it would be increased. 'A wife would receive the dividend as well as her husband.

A State Credit House.

Payment of the dividend would not be made in money, but in credit, he explained. A State Credit House would be created. Each citizen would be given a dividend book, also a book of blank, non-negotiable certificates. The book would be presented to the Credit House each month, and an entry of the dividend made. Non-negotiable securities would be used for the purchase of goods or services. No new money would be issued. Provision would be made against a "squanderer of dividends." Those who abused the privilege would be placed on what he termed an "Indian list." There would be no relief or dole. If a citizen refused to work when employment was obtainable, he would lose his dividend privileges. Mr. Aberhart describes his plan as "the scientific system of recovery through the cycle of credit." By its means, he says, he will reduce the price spread, and increase the producer's cost to maintain a fair turnover. The same procedure will be followed in the marketing and processing of goods. The producer and distributors, he believes, will be able to carry on business with a closer margin of profit or commission or turnover, and the province will then be able to collect a levy to provide the dividend. There will be no confiscation; bank deposits, insurance policies, and bonds will not be disturbed, he says. It will require an annual sum almost as great as the gross bonded debt of the province to pay the dividend, or eight times as much as the annual revenue now being collected. The plan, will run counter to the system of credit in force in the other provinces. Condemned as actuarially unsound by all the leading financial experts in the Dominion, it is a matter of mere what its effect will be on the present credit of the province, its relation with the Dominion, and its fiscal future generally.