ALBERTA WAITS FOR SOCIAL CREDIT

Hawke's Bay Herald-Tribune, Issue 172, 7 August 1937, Page 14

ALBERTA WAITS FOR SOCIAL CREDIT

Aberhart Makes Pact with Party EXPERTS AT WORK Tho Governmeut of Alberta is taking another step towards the initiatlon of a Social Credit system as promised in the elections of 1935. Experts have drawn up a programme, and before legislation is introduced the Premier, Mr Aberhart, and his Cabinet are demanding a pledge from Governmeut • Members that they accept this programme. Thus Mr Aberhart hopes to eseape the split in the ranks of his sup porters, the majority of whom, resenting his following a poliey of taxation and orthodox finance, were threatoning to vote him out of power. Mr Aberhart, having spent nearly two yOars with the devils, borrowing and taxing, is preparing to plunge into the deep blue sea of social credit. Following the close of the legislature last month, business conditions in Alberta have remained in a highly nn* settled condition owing to the uncertainty and lack of information that exists as to what the coming Social Credit plan may involve. The third legislature of the first Social Credit Government in the world prorogued after passing what may be regarded as a thoroughly "orthodox" budget of £4,400,000 and providing for an increase in taxation of £200,000, which is scarcoly in accord with tho tenets of the Social Credit platform. Oj; this increase £90,000 is to be made up by applying the 2 per cent Alberta saies tax to a wider range of articlcs, and £110,000 will be seeured by fresli taxation on corporatious. The financial statement showed that last year the provincial debt inereasc(l £400,000 and this year's estimates look for an increase in debt of £250, 0f0 to provide for highway constmction This proposed increase in debt will depend on whether the provinee is able to borrow this sum from the Federal Government, as no other source of bjOTrowing is now open to Alberta since its default on three major bond maturitiee. Two Factlons During the consideration of the estimates in Marck, the ranks of the 56 Social Credit members were split into iwo factions — the loyalist section suppurting Premier William Aberhart and his administration while the insurgents re/used to pass what they termed an orthodox budget involving heavy increases in taxation. The insurgents elaimed also that this budget made no piovision for the introduction of the Social Credit system, whieh the mem l ers 'had pledged themselves to establish when they had received a mandate from 63,000 voters to establish thie ecunomie plan. With the balance of power see-aaw-ing baclc and forth, the insurgents fmaliy agreed to pass an interim budget for three montlis' supply, to give the Government opportunity to prepare plans for' a Social Credit system without further delay, TI10 legislature then appointed B planning committee of five Social Credit back-benchers. This board lmmediately cabled Major C. H. Douglas of Eugland asking that he prepare a plan and again a-ct as adviser in putting Social Credit into operation. In reply, the Major sent as his emissaries G. F. Powell and L. D. Byrne, who wero instructed to report on conditions both political and eeonomic in Alberta. The split in the Government ranks continued to grow wider until the arri val in Edmonton of Mr Powell, the expert sent by Major Douglas. Mr Powell at once met with both groups and as a result of this caucus they were asked to sign a "pledge of unity" to support "forward steps for efficiency in further action toward Social Credit." Ninety per cent of the Social . Credit members signed this pledge to "bury the hatchet," while six members, though. affirming their faith in Major Douglas, yet reiused to sign the pledge to gag themselves and to reirain from all criticism, as it proposed. While no information has been given the public as to when a Social Crodit plan may be presented Major Douglas, the Premier has stated that with tbese two experts now in Alberta investigatmg conditions prior to establishing Social Credit, it might be necessary to kold another session of the legislature iu October to consider the proposals of Lhe Douglas experts. Dictator'al Power. The opposition is arguing that the Government has transterred its powei and. authority iroin the hands of the cabinet and legislators into the hands of a cofnmittee of five Social Creditors who, along with technical advisers, are given practicaliy the role of dictators with no responsibility to tho public at large. Insistent pressure exerted both by members of the legislature and by public opinion Jiterally forced the Go-1 vernment into calling for a Royal Commission to inquire into the costs oi highway construction on the Wetaskiwin and Jasper highways. Early 111 Mardli, J. J. Bowlen, Liberal member for Edmonton, requested figures on this road- work from the departmeiil of public works, which he was unable to secure untii June. On receipt of tliis information he requested air investigation into the figures be field before the public accounts committee but was unable to secure this inquiry. A. E. MacLellan, Social Credit member for lnnisfail, requested the appointment of a lloyal Commission to investigate the coniplaiuts legavding costs and other matters deaiing with this highway construction. Then another member asked the cabinet to introduce a motion calling for a judicia.1 inquiry. Premier Aberhart finally moved that a Royal Commission be appointed. The legislature decided to take ru 1 action on the Debt Rednotion ard Settlement Act introduced into the House in April which called for a 50 per cent slash in the principal of all debts eontracted prior to July 1 , 1932 Until- Major Douglas has given an opi nion as to what should be done in this matter and how it would fit in with tlie forthconiiug Social Credit plan, fhc Act will be held in abeyance. A bill was passed in. the closiug hours of tho session whieh entitled

members of the legfislature to draw advauces up to 450 dollars on aecount of their 1938 sessional indemnities. This piece of legislation has evoked much criticism.