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Re: MONETARY: Social Credit Experiments: Wally responds



Dear Alan,
 
The Government of Alberta was a nominal "Social Credit" Government from the landslide defeat of the Provincial United Farmers (U.F.A.) Administration in 1935 until its electoral defeat by the Conservative Party led by a Calgary lawyer, namely, Peter Lougheed in 1971.  William Aberhart, who let the Social Crediters to victory in 1935, died under somewhat unusual and suspect circumstances in 1943.  He was succeeded by the late Ernest C. Manning who held the Premiership until announcing his intention to resign in 1968.  The Manning era began with an almost immediate abandonment and degradation of  genuine Social Credit policy--a trend which continued until his departure.  His successor, Harry Strom, was a pleasant man but uninspiring and unknowledgable regarding Social Credit.  He fell easy victim to the Lougheed Conseratives.  Social Credit was never implemented during the reign of the Party--although for two or three years meagre Citizens' Dividends were paid from oil royalties ("Cinderella Alaska Dividends").  Being derived from money which had registered a cost by passing through the price-system, even these were not genuine Social Credit.  Alf Hooke who at one time or another held nearly every Ministerial portfolio in the Government outlines the story in his book "30 + 5:  I know, I was there."  He notes the surprise and shock of many when ex-Premier Manning accepted shortly after retiring a directorship with the Canadian Imperial Bank of Commerce!  This was no shock to those who had an inside knowledge of the circumstances as they existed from Aberhart's death in 1943.  Major (Clifford Hugh) Douglas, British founder of Social Credit, described the Alberta Provincial Government under Manning as little more than a form of state socialism.
 
No genuine Social Credit government has ever existed.  However, there are examples of a number of monetary experiments.  During the inter-War period the government of Austria issued credit by way of deficits to directly subsidize lower consumer prices, and I understand that during this period Austria experienced the most rapid economic growth in the world.  The League of Nations was not pleased and put an end to this policy, throwing the country into the throes of depression.  (See Gorham Munson's "Aladdins Lamp:  The Wealth of the American People," New York, Creative Age Press, 1945.)  Perhaps the most documented case is that of the Island of Guernsey which, under great economic duress, instituted in 1815 the judicious issue of Guernsey States notes, for financing of state projects, to emanicpate themselves from the bondage of bank debt and interest and has continued the practice with great success in promoting prosperity, eliminating state debt, achieving low levels of taxation and maintaining lower prices.  (See "The Guernsey Experiment" by Olive and Jan Grubiak, Omni Publications of California.)  This and monetary experiments in Bavaria and Austria, etc. are discussed in "Money:  The Decisive Factor" by Allhusen and Holloway with a foreword by Sir Arthur Bryant (London:  Christopher Johnson, 1961).  These monetary experiments, although educative, were not Social Credit, per se, and they had their inadequacies.  Guernsey seems to be the only one which has been permitted to continue, although their monetary policy did experience a brief interruption in the early years as a result of pressure brought to bear by the banks.
 
I recommend, especially to you as an American, in addition of course to the works of Douglas and his most qualified colleagues, Prof. Gorham Munson's book cited above.
 
I hope that these brief comments may be of some interest and assistance.
 
Sincerely
Wally Klinck
----- Original Message -----
Sent: Monday, April 05, 2004 10:46 AM
Subject: MONETARY: Social Credit Experiments

This is something I believe Dan Parker or Keith Wilde can help me with before I get too deeply into a Yahoo! search of unknown duration: Is there now, or has there ever been a national or regional government (other than Alberta) where the greater part of the Social Credit program has been adoped?
 
Alan Avans
Prairie Village KS