In 1936, the

Alberta Social Credit Party Alberta Social Credit was a provincial political party in Alberta, Canada, that was founded on social credit monetary policy put forward by C.H. Douglas, Clifford Hugh Douglas and on conservative Christian social values. The Canadian social credi ...

-led government of the Province of

Alberta Alberta is a Provinces and territories of Canada, province in Canada. It is a part of Western Canada and is one of the three Canadian Prairies, prairie provinces. Alberta is bordered by British Columbia to its west, Saskatchewan to its east, t ...

, Canada, introduced prosperity certificates (also known as velocity dollars) in an attempt to alleviate the effects of the

Great Depression The Great Depression was a severe global economic downturn from 1929 to 1939. The period was characterized by high rates of unemployment and poverty, drastic reductions in industrial production and international trade, and widespread bank and ...

Premier Premier is a title for the head of government in central governments, state governments and local governments of some countries. A second in command to a premier is designated as a deputy premier. A premier will normally be a head of govern ...

William Aberhart William Aberhart (December 30, 1878 – May 23, 1943), also known as "Bible Bill" for his radio sermons about the Bible, was a Canadian politician and the seventh premier of Alberta from 1935 to his death in 1943. He was the founder and first le ...

's government had won power in the 1935 provincial election partly on the scheme. The certificates were not issued to the general public as Aberhart had promised in his election platform but instead were used to pay relief workers on provincial public works projects and were put into circulation via special agreements with municipalities. Although not technically money, each certificate was marked with a value of one

dollar Dollar is the name of more than 25 currencies. The United States dollar, named after the international currency known as the Spanish dollar, was established in 1792 and is the first so named that still survives. Others include the Australian d ...

, and redeemable for $1 Canadian at the end of its life or on certain dates during the course of the program. Other certificates were in the amount of $5. $239,000 worth of scrip was issued in August 1936. A goal of the program was to encourage spending and circulation of the spending power. To achieve this, hoarding of the certificates was discouraged by requiring the holder to affix to the back of a certificate a 1¢ stamp every week for the certificate to maintain its validity. Thus people were encouraged to spend whatever certificates they had each week, to avoid having to make too many payments of the one-percent tax. As the program intended, possessors of the certificates tried to avoid having to purchase and affix the stamps, by spending the certificates before the week's validity expired. This stamp scrip, innovated by

Silvio Gesell Johann Silvio Gesell (; 17 March 1862 – 11 March 1930) was a German-Argentine economist, entrepreneur, and social reformer. He was the founder of (German language, German for "free economy"), an economic model for market socialism. In 1900, ...

, was not part of the theories of Aberhart's mentor,

social credit Social credit is a distributive philosophy of political economy developed in the 1920s and 1930s by C. H. Douglas. Douglas attributed economic downturns to discrepancies between the cost of goods and the compensation of the workers who made t ...

founder Major

C. H. Douglas Major (rank), Major Clifford Hugh Douglas, Institution of Mechanical Engineers, MIMechE, Institution of Electrical Engineers, MIEE (20 January 1879 – 29 September 1952), was a British engineer, economist and pioneer of the social credit economi ...

. The hassle and expense of the stamps made the certificates unpopular with the public. The tiny gummed postage-style stamps (smaller than ) were prone to falling off. Another issue was finding a seller who would accept the unusual currency. The Army & Navy Stores, a chain of department stores, accepted the currency when some other merchants would not. Oddly, the currency was not accepted by the government itself for payment of taxes. The notes were intended to be redeemed after two years of issue, when 104 stamps would have been affixed. But the program was cancelled after only about one year. The notes could be returned to the government for redeeming in Canadian currency.Bruce Allen Powe, The Social Credit Program and the Alberta Treasury Branches, MA thesis, UofA, 1951 Alberta's prosperity certificates have never been listed in the

Standard Catalog of World Paper Money The ''Standard Catalog of World Paper Money'' was a well-known catalogue of banknote A banknote or bank notealso called a bill (North American English) or simply a noteis a type of paper money that is made and distributed ("issued") by a b ...

References

{{Social Credit Local currencies of Canada Currencies of Canada Economy of Alberta Canadian social credit movement History of Alberta 1936 in Canada Alberta Social Credit Party

See also

References