ALBERTA DEFAULTS

Te Awamutu Courier, Volume 53, Issue 3842, 4 December 1936, Page 11

ALBERTA DEFAULTS

CABINET CRISIS PROBABLE. London, November 2. Premier Aberhart’s Social Credit Government of Alberta has defaulted on the bond issue of £250,000, which was due for redemption today, says the Montreal correspondent of the Daily Herald. This is Alberta’s second default in nine months, and people are wondering here whether it means the failure of Mr. Aberiiart’s Social Credit experiment. Liberal circles believe that the Government-controlled Bank of Canada’s refusal to advance Mr. Aberhart the money he needed was a deliberate step to curb the Social Credit movement in Alberta. The immediate outcome may be a Cabinet crisis in Alberta, and possibly even new elections. Followers Split. There is already a division between followers of Mr. Aberhart and those of Major Douglas, who do not like Mr. Aberhart’s variations on the Social Credit theory. If th® two camps stand together, they may possibly work out their own salvation. But non-co-operation may produce a grave financial crisis, which would certainly ruin all chance of the experiment succeeding. The general belief, at all events, is that this new default closes all outside credit sources.