Major Douglas countered the false argument that Social Credit had been 
tried and failed in the Canadian Province of Alberta by stating the 
obvious:  Social Credit had never failed in Alberta because it had never 
been tried.

Dating back to the nineteen-twenties, Social Credit had been a subject 
of intellectual debate in Eastern Canada for some years, especially in 
the Province of Ontario.  During the Great Depression of the 
nineteen-thirties, the Agricultural Committee of the then governing 
United Farmers Government of Alberta questioned Douglas about Social 
Credit financial policies inasmuch that his ideas had gained some 
support in the Government Party and elsewhere in Canada, the English 
speaking world and even beyond.

In 1935, in the context of a Province especially striken by the Great 
Depression, a "Social Credit" Government replaced the UFA in a massive 
electoral sweep. William Aberhart, a high school mathematics teacher 
from the City of Calgary, became Premier of Alberta and retained this 
position until his suspicious death in 1943.  At this time Ernest 
Manning assumed position of Premier, a position which he held for many 
years until his resignation in late 1969.  The Manning period featured a 
great reversal of progress for the Social Credit cause.  

In 1971, under the leadership of a pleasant but ill-informed leader, 
Harry Strom, the Party finally suffered defeat to the Progressive 
Conservatives under the leadership of Peter Lougheed, a Harvard educated 
lawyer.  By this time the Provincial "Social Credit" Party had been 
entirely subverted, primarily from within, and bore no relationship to 
the Aberhart time or to anything whatever of a Social Credit nature.  

The early "Social Credit" Government of Alberta attempted to pass a 
number of legislative acts designed to facilitate the introduction of 
Social Credit policies--but all were declared "ultra vires" by the 
Supreme Court of Canada.  Aberhart was a man of good will, conviction 
and genuine intent and his death was probably a decisive factor in 
limiting the advance of Social Credit.

Under the Manning leadership, the Province elevated itself out of debt 
and through admittedly careful adminstration dedicated to "good 
government", the Province moved from being a "have not" jurisdiction to 
a quite prosperous one.  This, however, had nothing to do with 
application of any genuine, specific Social Credit policies.  Indeed, 
Manning eventually revealed, to many thousands of long-time, misled and 
trusting supporters, his real position by issuing a public statement 
saying that Social Credit was no longer relevant to modern conditions.  
When he retired, he became a Director of the Canadian Imperial Bank of 
Commerce.

Preparation for the War had already through increased spending begun to 
restore more prosperous conditions in the country and the discovery of 
oil in Alberta began a continuous and large inflow of royalties to the 
Alberta Government.  Further exploration revealed enormous reserves of 
oil and natural gas and much foreign investment money flowed into the 
Province. Government revenues were greatly increased over the years--as 
they continue to be under the current Progressive Conservatives led by 
Premier Ralph Klein. 

Only a relatively incompetent Government would have been unable to 
administer the Province with such large export income flowing into it 
from outside its borders.  Today, the economy of Alberta has become more 
diversified and is now based on a larger industrial, commercial, 
educational and research activity. The Province has minimal debt which 
could easily be eliminated.  

However, the Provincial Conservative Government has followed the 
restrictive policies of a balanced budget (the nature and consequences 
of which under the existing faulty financial system, they appear to have 
no understanding), and eliminated many programs for a numerically 
significant and restive electoral body of seniors.  Funds for medical 
care and education have become increasingly inadequate.  While 
attempting to moderate taxes, the Government has added many new fees, 
fee increases, increased medical premiums and other charges accompanied 
by rising insurance costs-- while general inflation continues to take 
its toll, especially upon those depending upon fixed incomes.  
Privatization has resulted in massive price increases in natural gas and 
electrical utilities which have created hardship for many citizens and 
businesses. 

The general trend has been for the Federal Liberal Government, also in 
obeisance to the false tenets of a "balanced budget" under orthodox 
finance, to download financial costs to the Provinces while they in turn 
download costs upon the general citizenry.  There will have to be a 
breaking point somewhere down the line.

Athough rather insignificant from a political party standpoint there 
still exists in Alberta a persistent residue of Social Credit supporters 
who might yet play a future role in promotion of Douglas's ideas.  

None of Albera's "prosperity" had anything to do with genuine Social 
Credit policy.  Indeed, Douglas described the administration of the 
Province under the Mannning Government as being more nearly a form of 
state socialism.

A nominal "Social Credit" Government was also elected in the westcoast 
Province of British Columbia.  Some prosperity came to this Province 
during which, among other things, large roadbuilding projects were 
accomplished which helped to open up the Province.  But no specific 
Social Credit financial policies were ever attempted.

During the earlier historical period considerable spread of "Social 
Credit" polical activity occurred due to the efforts of a Federal Social 
Credit Party, branches having been established in a number of Provinces, 
such as Alberta, British Columbia, Manitoba, Ontario, Quebec, etc.  
Electoral success reached its zenith in 1962 when the Federal Party, 
under the joint leadership of Dr. Robert Thompson from the West and the 
irrepressible orator Real Caouette from the French Canadian Province of 
Quebec managed to elect, I believe, four candidates from the West and 
twenty-six from Quebec to the Federal House of Commons--a total of 30.  
These Federal representatives held a balance of power under the 
short-lived Federal Government of the Prime Minister John Diefenbaker 
from the Province of Saskatchewan.

The Federal "Social Credit" representation rapidly declined and 
eventually ceased to exist after the Liberal defeat of the Diefenbaker 
Government.  I personally knew both Dr. Thompson and M. Caouette and I 
believe that they were, for better or worse, genuinely dedicated to the 
Social Credit cause.  Tension existed between the Alberta Social Credit 
party machine and the more militant Federal Party.  Again, the political 
party approach ended in disaster.

In both the Provincial and Federal "Social Credit" Parties there existed 
a considerable number of well-informed and well-intentioned people but 
they were not able to prevail in the policial party power arena which 
inexorably tends to place power above principle.  Douglas had said that 
attempts to promote Social Credit via the political party avenue would, 
in his view, prove to be disastrous.

So, in answer to a questioner who was under the impression that Social 
Credit had been experimented with in "Canada" and had resulted in 
bankruptcy, one can say that this rather bizzare notion has no basis in 
fact whatsoever.  Social Credit has never been implemented in 
Canada--depite various political party electoral successes and partial 
successes over many years.

Due to the defective orthodox financial system under which it operates, 
the world as a whole, of course, is in a continuous state of ever 
extending financial bankruptcy.  This is the situation which genuine 
Social Credit seeks to rectify by fundamental changes to the existing 
defective financial system.

Sincerely
Wally



  

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