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Tom Monto

Provinces can issue money, grow banks despite constitutional experts' opinion

Many historical reference books state that when it came to reforming the financial system, there was virtually nothing a provincial government could do, since credit, banking and currency were all quite clearly matters under federal jurisdiction.

I don’t know how they can state that as the Alberta Social Credit government led by Bill Aberhart (1935-1943) proved quite the opposite.

His Alberta government issued its own currency -- Alberta Prosperity Certificates. As one person put it (in an old document in the “Alberta Prosperity Certificate” file at the Provincial Archives of Alberta) the provincial government-issued money put much needed spending power in the hands of struggling farmers and small shopkeepers during the Great Depression as well as showing to those interested the benefits of enlarging the money supply during tight economic times.

I mean if the town of Vermilion could issue its own money which it did, and Canadian Tire can issue its own money, which it does, how can you prevent a province from issuing its own currency?

The Army Navy stores famously posted signs that they gladly accepted the certificates.

The right of Alberta to issue its own currency was proven in a 1938 book by R. Rogers Smith, "Alberta has the sovereign right to issue and use its own credit - a factual examination of the constitutional problem." [Copies available through Abebooks.]

His Alberta government created its own banks as branches of the Alberta Treasury department. These Treasury Branches survive today as ATB. They are the only publicly owned banks in North America that serve the public. As well the government encouraged the development of credit unions.

His government’s treasury branch banks issued credit - loans - so a provincial government can in fact influence the system of credit.

Funny how some people don’t see the evidence right in front of their faces.

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