The Great Depression

The Great Depression lasted from 1929 until 1939. These severe economic conditions were brought about by the dramatic crash of the stock market in the United States on 24 October 1929. The crash triggered a series of events that brought about the collapse of many banks, rapid inflation, massive reduction of wages, and a high unemployment rate.

The Depression years continued in Alberta as prices for grain remained low, and an extreme drought took hold across the prairies.

When William Aberhart arrived in Calgary in 1932 to become a school principal he established the Bible Institute of Baptist Church and became a popular radio evangelist. After being moved by the desperate plight of his unemployed graduates he met Charles Scarborough, a high school teacher from Edmonton who told Aberhart about the ideas of Major C.H. Douglas. The theory of Douglas was called Social Credit and required the government to provide a dividend to citizens to fill the gap between what they earn and what was needed for the cost of the goods needed.

Aberhart took the theory of Social Credit to the listeners of his radio program, the Back to the Bible Hour broadcast on CFCN. He argued that the current situation was due to the "wicked" financiers of the east and that Social Credit was the solution.

A provincial Social Credit party prepared for the 1935 election. Few Albertans understood the details of Social Credit, but they all believed that a $25 dividend to be sent to each adult Albertan per month would make a difference.

The result was that the United Farmers of Alberta won no seats, while Social Credit took 53 seats in the 63-seat legislature. The Liberals won five seats to form the Opposition, with the Conservatives taking two seats.

Aberhart passed laws to control credit and bank taxes, but they were struck down by the Supreme Court of Canada as unconstitutional. Throughout the period that Social Credit was in office, no dividend was paid out. Social Credit evolved into a populist conservative party.

While Social Credit was in office prosperity returned to the province with the end to the drought, the increase in grain prices, and the arrival of the Second World War. Aberhart was re-elected in 1940 but died in office on 23 May 1943. Ernest C. Manning became premier. Social Credit remained in office until it was defeated in 1971 by the Conservative Party.