ALBERTA'S LAWS

New Zealand Herald, Volume LXXIII, Issue 22540, 3 October 1936, Page 16

ALBERTA'S LAWS

SOCIAL CKEMT SCHEME MORE ECONOMIC ACROBATICS BANK CREDIT REDUCED PROBLEMATICAL " DIVIDEND " [ritHM OUll OWN CI)IU!i:srONI)KNTI VANCOUVER, Kept, !• A picture of social credit, ;is' visioued bv Mr. William Aberhart, Premier of Alberta, and his followers, may Do gathered from a recital of the legislation passed at the special session of the Provincial Assembly, just hold for the purpose of establishing the new principle. The major legislation passed includes the following: The Albert Credit House 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 lix fjust" prices, manufacturing, wholesale and retail. The Reduction and Settlement of Debts Act, which provides that all private debts, contracted prior to July 1, 1932, are reduced by payments since that time, whether made 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 scrip 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 Hank, 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 the Hours of Labour Act, which prescribed a working week of 54 hours for males and -IS hours for females. A clause in the Provincial Securities Act ratifies the Ordor-in-Council, reducing by half the interest paid on Alberta's bonded debt of £32,000,000. The Liberal Leader, in a three-hour speech, condemned the new law as an infringement of the British North America Act. 'The sdcial credit law predicates its dependence on unearned increment taxation, "a just price" and "basic dividends." It does not specify a fixed rate of dividend, such as the 2-5 dollars a month promised during the election campaign. On the other hand, Air. Aberhart, in one of his multiple policy statements, which he does not amplify, said the dividend would be "graduated." Different amounts would, he said, bo paid to different classifications of people. Banks Refuse to Operate Plan The Act, which sets up a Social Credit House, replaces Mr. Abcrhart's original plan of having its functions performed by the chartered banks, which gently but firmly demurred. The Credit House will "facilitate the 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 the condition that any Alberta credit received by him for any commodities or services may, upon being transferred in the Credit House, fie subject to a levy at such rate as may from time to time bo prescribed by the Lieutenant-Governor in council as representing the unearned increment in the price paid for any such commodities or services 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 is required to sign. This agreement calls for so many pledges of support to the 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. No 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 each 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 the Minister of Social Credit. Mr. Lucion Mnynnrd, that the Government considered it had power to wipe out debts, principal and interest, altoget her. 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, he promised, should be paid by Christmas. No one can see where the money—equal to the combined revenue of the other eight Provinces —is 1:o he found. Drought has considerably reduced the estimate of the wheat harvest. The Dominion Government is moving hundreds of thousands of cattle to fresh pastures. Winter, with its abnormal relief demands, is near. One foresees a rude awakening for the people of the youngest of the Provinces.