SOCIAL CREDIT

Nelson Evening Mail, Volume LXX, 17 June 1936, Page 4

SOCIAL CREDIT

ALBERTA’S PROBLEMS “UTMOST CONFUSION” MR ABERHART’S LEADERSHIP VANCOUVER, 20th May. The social credit Premier of Alberta Mr William Aberhart, has stated that he will retire after one term in Parliament and return to his teaching at the girls’ high school in Calgary, the committee of which has retained him on its staff as on leave of absence (writes the “N.Z. Herald” correspondent). Mr Aberhart does not indicate how long his own term of ■office will last. The state of public feeling in Alberta would suggest that it will last not more than a year. Mr Aberhart and the province of Alberta are getting more publicity than any other public man or province in Canada. His unorthodox methods and bitterness toward the. Dominion Government have made him very difficult to approach. The authorities at Ottawa have been extraordinarily patient. Any other provincial Premier would have been sharply disciplined if he indulged in the abuse that has become the daily routine of Mr Aberhart. The whole of Canada feels sorry for Alberta, which alone, under its quaint Government, is holding itself outside the communion of the provinces. BURDEN OF SALES TAX The utmost confusion prevails. Hastily-conceived legislation was “steam rollered” through the Legislature by the unwieldly majority at Edmonton. These laws are now in force, as instalments of social credit. A sales tax of 2 per cent, was imposed a fortnight before the Federal Budget increased the sales tax from 6 to 8 per cent. Alberta residents are now paying 10 per cent, on their purchases. In addition, they are subject to further increases on the cost of retail goods, due to the “just price” legislation, which fixes the price of all goods, with exemptions. Retailers say this fantastic piece of- legislation adds 10 to 15 per cent, to the price of goods. Mr Aberhart and his Ministers are opposing the Dominion at every turn of its administrative functions, while other provinces are co-operating, with the reservation of spasmodic outbursts against the higher sales tax. For example, the Alberta Premier says the allotment of relief subsidy and of public works subvention, made at Ottawa, is not nearly sufficent, although it is on the same basis as was made to other provinces, which have accepted it. PUBLIC DEBT CONVERSION The relations between the province and the Dominion are threatened by Mr Aberhart’s determination, next month, to attempt to convert the public debt of his province, £32,000,000, to lower interest, with the Dominion .guarantee that is to be accorded the general conversion of provincial debt, under the aegis of the new Federal Loan Council, which Mr Aberhart alone refuses to accept. There is evidence of a split in the social credit Cabinet. How serious, it is difficult to judge, apart from the rare public pronouncements Ministers are permitted to make. One member of the Aberhart Cabinet; on a visit to the United States, in a public address, said his Government intended to use scrip in paying workers in its road construction programme. Mr Aberhart promptly denied that this had been decided. In spite of his demurrer, the Minister concerned repeated the statement in Canada when he learned of the amount allotted to Alberta for public works. In addition to this, a new member of the Cabinet, just sworn in, has been instructed to report on the question of scrip for wages, in connection with his commission to advise on the best means of introducing social credit. “TAX ON INTEREST” When Mr Aberhart announced his intention to retire, he coupled it with a threat to dispose of what he termed “the interest racket.” Next day, one of his Ministers stated it was intended, by Order-in-Council, to put a tax of 50 per cent, oh interest, to produce £5,000,000 a year, to pay an instalment of the social credit dividend. This also was denied by Mr Aberhart, who said it had not been discussed by the Cabinet. The Minister countered with the statement that it had been informally discussed and approved by the party, and was obviously the surest means of producing the nucleus of the dividend.

A movement is already on foot in Alberta to establish a nationalist party. At its head is the Conservative leader, who realises that only by a coalition of the United Farmers’, Liberal and his own pgrty would it be possible lo disturb the hold, already weakening, which the fanatical social credit doctrines have on the people. The approach of next winter will see Mr Aberhart and his followers face the crucial test. Civil servants are already disgruntled at the decline of provincial bonds, which they are obliged to accept in part-payment of their salary. One or two more defaults by the Government on its loans will throw this and other semi-public bodies into the arms of the Opposition. In the meantime, every Canadian is genuinely sorry for the impasse in which Alberta finds itself.