CONTROL OF BANKS

Manawatu Standard, Volume LVII, Issue 211, 6 August 1937, Page 8

CONTROL OF BANKS

NEW BILL IN ALBERTA. FINANCIERS PROTESTING. Received August 6 a 12.40 p.m. EDMONTON, Aug. 5. A constitutional struggle has begun over the Aberhart Bill to control the banks, which provides for 500-dollar licenses for all financial institutions, with five dollars for all employees ; the Bank of Canada is excepted. A special Credit Board will control the licenses and have power to refuse or cancel them. Trust, loan and insurance companies are included. Licenses will be issued only after pledges are .given not to disturb the property rights of any citizen in Alberta. A supplementary Act closes the Alberta Courts to any action involving the constitutionality of the Alberta statutes. Financiers are considering making a demand to Ottawa to disallow the Act, and say they will appeal to the Supreme Court of Canada to declare it ultra vires and demand the Lieu-tenant-Governor to refuse to sign it under the British North America Act, which says that banking measures are reserved for the Dominion Government.

SOCIAL CREDIT EXPERIMENT

CALGARY (Alberta), July 28. Alberta’s Social Credit party has called a special session to give the Premier, Sir Aberhart, a last chance to enact the radical legislation which is expected to put the Social Credit doctrine into operation. Two representatives of Major Douglas. who arrived recently from England, have been advising the Government on how to proceed. Whether this is their own plan, or one approved by Major Douglas himself, has not been announced. The first public intimation came with a letter addressed to the managers of all banks by the Government, demanding that the banks assist the proposals by financing a monthly dividend of £5 sterling to every man and woman in Alberta. With these proposals a scheme for a lower cost of living will be joined. ‘‘Taxation will be quickly and drastically cut,” says a Government announcement, which demands public support for “the right ordering of money.” , The letters which have been sent to the banks conclude with the significant statement: “The sort of action which must be taken immediately is indicated by the definitely ascertained fact that for every shilling owned by the people of Alberta, only twopence with which to pay, it is at present available to them. The Government calls on the banks to declare whether they will conform with the new regulations which from time to time, will lie promulgated. The indications are that a Court battle will ensue. Banks and wealthy citizens have removed their cash holdto other provinces, and some curious and riotous scenes are expected.