Alberta's Social Credit Scheme

Manawatu Times, Volume 61, Issue 236, 6 October 1936, Page 5

Alberta's Social Credit Scheme

PROBLEMATICAL “DIVIDEND”

VANCOUVER, Sept. 9,

A picture of social credit, as visioned by Mr. William Aberhart, Premier of Alberta, and liis followers, may bo gathered from a recital of the legislation passed at the special session of the Provincial Assembly, just held for the purpose of establishing the new principle. The major legislation passed includes the following:—

The Albert Credit Houso Act, which provides for implementation of the whole social credit plan. The Trade and Industry Act amendment, which provides for the establishment of a board to fix “just’’ prices, manufacturing, wholesale and retail.

The Reduction and Settlement ot Debts Act, which provides that all private debts, contracted prior to July 1, 1932, arc reduced by payments since that time, whether mado on principal or interest, the balance then remaining to be paid in ten annual instalments, three at 5 per cent, of the principal, four at 10 per cent, and three at 15 per cent.

The Provincial Certificates Act, which validates the issue of Alberta script or “velocity dollars/' and authorises cities and municipalities to accept them from the Government.

The Municipalities Securities Interest Act, which provides that municipalities may not collect taxes to pay more than 3 per cent, interest on bonded debt.

The Judicature Act Amendment Act, which prevents legal action against the Government or any of its members.

Savings Bank Deposits Held,

A bill, submitted by the Opposition, providing for the payment to depositors of nine million dollars in the Savings Rank, suspended since the election of the Social Credit Government, was defeated.

No appeal is allowed against the decision of any of the boards set up under the Acts passed at the recent session. The Licensing of Trades and Business Act was amended to provide that penalties, such as cancellation of licences, may be imposed on firms convicted of violating'tho Hours of Labour Act, which prescribed a working week of 54 hours for males and 48 hours for females.

A clause in the Provincial Securities Act ratifies the Order-in-Council, reducing by half the interest paid on AL berta’s bonded debt of £32,000,000. Tho Liberal Leader, in a three-hour speech, condemned the new law as aa infringement of the British North America Act.

The social credit law predicates its dependence on unearned increment taxation, “a just price” and “basic dividends.” It docs not specify a fixed rate of dividend, such as the 25 dollars a month promised during the election campaign. On ' the other hand, Mr. Aberhart, in one of his multiple policy statements, which he does not amplify, said the dividend would bo “graduated.” Different amounts would, ho said, be paid to different classifications of people. Banks Refuse to Operate Plan The Act, which sets up a Social Credit House, replaces Mr. Aberhart 's original plan of having its functions performed by the chartered banks, which gently but firmly demurred. Tho Credit House will “facilitate tho exchange of goods and services within the Province. ’ ’

The unearned increment tax is provided for in a clause that speaks eloquently for itself:—‘‘The right to receive any benefit under the Act of any person who produces, manufactures or deals in any commodity or renders any service shall be subject to tho condition that any Alberta credit received by him for any commodities or services may, upon being transferred in the Credit House, bo subject to a levy at such rate as may from time to time bo prescribed by tho Lieutenant-Governor in council as representing the unearned increment in the price paid for any such, commodities or service for the purpose of preventing redundant credit and maintaining the proper equation between consumption and production.” The purpose of the Judicature Amendment Act is to protect the Government against any action connected with the terms of the agreement each applicant for the social credit dividend for so many pledges of support to tho Government that persons who own their homes have deferred signing it, fearing their property may be regarded as collateral, or security for their adherence to the agreement. Go hint was given the electors that such an agreement would be demanded before payment of the dividend. Mr. Aberhart decided that members of the Legislature would not receive any payment for their services in attending the special session, which lasted only a week, but, on their earnest plea, he agreed to advance them £SO eaeit against next year’s indemnity, of £350. Power to Wipe Out Debts.

On the closing day of the session, the banks issued a warning to Mr. Aberhart that his debt legislation would have the effect of curtailing bank loans in Alberta, because of conditions, such as reduced income, which the legislation would cause. It was met by a retort by tho Minister of Social Credit, Mr. Lucien Maynard, that the Government considered it had power to wipo out debts, principal and interest, altogether. Public opinion in Alberta is thus stalled off for another spell, while Mr. Aberhart builds his Credit House. But his time draws near. The dividend, ha promised, should be paid by Christmas. No one can see where the money—equal to the combined revenue of the other eight Provinces —is to be found. Drought has considerably reduced the estimate of the wheat harvest. The Dominion Government is moving hundreds of thousands of cattle to fresh pas' res. Winter, with its abnormal relief ‘demands, is near.' One foresees a rude awakening for the people of the youngest of the Provinces.