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Alberta Elections: 1940 Alberta Bankrupt, Press Act Scandal and Backbenchers Revolt As Aberhart Abandons Social Credit Tenets

Albertans were looking for radical change in 1935 when they voted out the ruling United Farmers in favour of the Social Credit Party. Like the rest of the world, Alberta was five years into a terrible economic depression. The party?s leader, William Aberhart, had promised to get rid of the banks and put the money back in the hands of the people. But as historian David Leonard points out, Aberhart soon learned this was easier said than done:

Virtually none of the Social Credit measures that he had promised in 1935 came to fruition. They introduced a lot of legislation that would have their own form of currency and other Social Credit measures. But these were declared ultra vires by the Supreme Court of Canada. And the Lieutenant Governor Bowen would not pass them. In fact, the only legislation with a Social Credit bent to it that did pass and was proclaimed law was the act establishing the Credit Houses in Alberta. These became the Treasury Branches, a form of provincial government-controlled banking.

In 1938, the Social Credit backbenchers revolted against Premier Aberhart. They were frustrated because he refused to advance the cause of Social Credit.

The year before, the government of Alberta had defaulted on its debt, and they were on the verge of going bankrupt. And so Aberhart and his colleagues went hat in hand to Ottawa to beg for federal funds to bail the provincial government out. Ottawa said, sure, we?ll help you out, but you?d better forget all idea of this Social Credit nonsense. And that?s what Aberhart proceeded to do in 1938.

During its first term in office, the Social Credit government also managed to offend Alberta?s newspapers. The resulting scandal again put Alberta in the spotlight.

In 1938, William Aberhart had introduced a Responsible Press Act, an accuracy of information piece of legislation by which all news and editorial comment would be vetted by the provincial government before it could be published. Well, their opposition won for the Alberta newspapers the Pulitzer Prize, the first time in history the Pulitzer Prize had been awarded to a party outside the United States.

The newspaper editors never forgot this heavy-handed attempt to stifle freedom of speech. And when the next election came in 1940, they made sure Albertans didn?t forget either.

On the Heritage Trail, I?m Cheryl Croucher.

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