NOVA SeOnA SDmAL CROlT lEACUE: 'lOX 266

NOVA SCQTIA

SOCIAL CREDIT

ASSOCIATiON

OF CANADA

CANADA'S CHARTER of FREEDOM

This Manifesto was drafted at aSocial Credit Conference held inWinnipeg in 'April, 1950, andrecommended for adoption at theNationa I Convention. The draft wasmimeographed and distributed tomembers 0 f the organizationthroughout Canada.

On October 18th, 1950 and 20th,1950, in Regina, it was finalized andadopted by the Nat,ional Conventionof the Social Credit Association ofCanada,

Additional copies of this Manifestomay be obtained from the HeadOffice of the

SOCIAL CREDIT ASSOCIATION OF CANADA9974 Jasper Avenue

EDMONTON ALBERTA

For further information about theSocial Credit Movement and howyou may assist in putting the prin-ciples and objectives outlined in thisbook into practise,

What is Social Credit'!Social Credit consists of three things:

(a) A Philosophy or set of beliefs: Social Creditersbelieve in the sanctity of human personality; that everyperson should enjoy freedom to develop'his personalityin accordance with his own desires, provided that hedoes not interfere with the similar rights of others;that the organizations of society should be subordin-ated to the end of insuring to every individual theutmost of personal freedom. Social Crediters believethat a genuine democracy must recognize the sover-eignty of God from which springs the brotherhood ofman. A Christian democracy so organized that theState and its institutions and functions are designedto serve the requirements of its individual citizens isthe only social system that will ensure individual free-dom. Social Crediters further believe that the peopleshould be given every opportunity to obtain the resultsthey want from the management of their affairs .

. . (b) A Policy, the immediate aims of which are:the scientific distribution of sufficient consumer pur-chasing power to establish ...and maintain a balancedeconomy; and to ensure fair prices to both producersand consumers.

(c) A Mecluwism, through the use of which thepeople can develop their resources to the optimumdegree, and which enables all the people to share equit-ably in the abundance of good things the nation canproduce.

To make this more clear, remember that. RealWeelth is the nation's ability to produce and deliver

. goods and services as, when or where required. The1

Real Credit of a nation is 8. correct estimate of suchreal wealth-the combined goods and services thathave been produced. Financial Credit is the monetiza-tion of the real credit of the nation. In normal timesthe financial credit issued in the process of financingproduction is never sufficient to distribute the wholeof the real wealth of the country. It is therefore thefunction of Social Credit to distribute that portion ofthe real wealth which financial credit issued in theprocess of financing production fails to distribute, andwhich otherwise would be wasted. In other words,Social Credit must be used to make the financial creditequal to the country's real credit.

1. The Social Credit Association of Canada is areform movement. Its efforts are designed to elim-inate the abuses of capitalism and to give to all peoplegreater individual freedom and a higher standard ofliving. Its main objectives are:

(a) To establish in Canada a national economybased on individual enterprise and in which:

(1) Abundant produetion of all wanted goods andservices is obtained by inducement.

(2) Provision is made for efficient and equitabledistribution of our total production.

(3) Cycles of booms and depressions are elimin-ated.

(4) A maximum of opportunity is afforded everyindividual to engage in gainful employment.

(5) Each individual is assured an equitable shareof the agg:Tegatefinancial credit of the nation.

(b) The adoption of a sound and scientific basisfor international good will and world peace.

2. In order Vl achieve these main objectives, theSocial Credit Association of Canada believes the fol-lowing policies to be essential:

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These two main flaws in the Canadian money sys-tem make intelligent monetary reform an urgent neces~sity:

(i) All our money, with but one or two minor ex-ceptions, comes into existence in the form ofdebt. Hence, there is a steady increase in thegross debt of the Nation, public and private,requiring an ever-increasing portion of theNational production. to meet the interest pay-ments.

(ii) No provision is made to ensure that the moneysupply is at all times adequate to meet theneeds of both the producers and the consum-ers.

Most undesirable results accrue from our presentCanadia.n Monetary system. The following cycle indi-cates the need of reform:

(a) Periodical lack of purchasing power results inla.ckof markets for our production, causing

(b) Unemployment, that brings on( c) Depression, from which(d) International friction arises, leading to(e) War, that inevitably causes(I) Increased borrowing, debt, and inflation, to

meet which requires(g) Pyramiding taxation.

Then peace, and a recurrence of the abovecycle.

Canadians are justified in expecting their monetarysystem to discharge the following functions :

(1) To provide adequate credit facilities to in-dustry to encourage the highest level of pro-duction desired by the ~ple.

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(2) To mainLin the volume of money in activecirculation at a level which will make it pos-sible for he people to buy, at a fair price, thegoods the:, desire and that are for sale withinthe country.

(3) To provide the Canadian Government withmoney frc~ of debt, sufficient to meet any un-forseen (J;ficiency of revenue, provided cur-rent prod;:ction and consumption will justify.

(4) To provi,"~ the Bank of Canada with moneyto be loa:iild to. the Provincial and MunicipalGovernmt nts at cost, for the purpose of de-veloping 1he resources of the country; saidloans to bi; repaid at the rate the asset depre-ciates.

(5) To provide for the reduction and eventualliquidation of public debt.

(6) To maint;,in the value of the dollar, internally,at a unifnl'"mlevel.

For removing ,~heflaws in the Canadian MonetarySystem and to ma-l,eit possible for the Canadian Mone-tary System to (L;charge its proper functions in theinterests of the pl'"ple, Social Crediters propose settingup a Monetary Commission responsible to the peoplethrough ParHam'. nt, to administer financial policy.The Commission'}' duties would be to maintain a scien-tific balance behv'!.en purchasing power in the handsof the people and the wanted surplus goods and servicesavailable for salc. The arrwunt of money and creditsin existence would be scientifically regulated by theamount of the l'l'oduction of the people and theirdemands for goods and services.

The Monetary Commission would operate in con-junction with the Bank of Canada. It would establisha National accounting system usiIig the DominionBureau of Statistics and other agencies to find out, atstated intervals, the net increase in Canada's Real

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Wealth, for which additional purchasing power mightbe created, debt free and interest free. Such additionalpurchasing power would be distributed to all of theCanadian people in two ways:

(1) Through discount or adjusted prices on wantedgoods available for sale ; and

(2) Through a National Dividend, when furtheramounts ne.ed to be issued to maintain thebalance, paid at regular intervals, beginning inthe initial stages with the aged, the physicallyincapacitated, and other unemployables.

The Chartered Banks would be required to main-tain a 100% cash reserve behind their demand depositsto insure that they would no longer have the power toe!q1andcredit as- in the past. The 100% cash reservewould be provided to the Chartered Banks by theMonetary Commission in exchange for, or as a loanagainst Dominion Bonds held by them. When theBanks required additional money to loan to industriesthey would obtain this from the Monetary Commission.

The C-ommission would be responsible to Parlia-ment:

(1) In maintaining a proper balance between theproduction of capital and consumer goods.

In determining the exact amount of money tobe created and in deciding the exact employ-ment of such money. All details concerningsuch amount and employment would be printedin the estimates for every session. of Parlia-ment and thus would be under the rigid imme-diate scrutiny and control of Parliament justas present revenues and expenditures are.

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Much of Canada's heavy taxation results from theuse of a financial system under which practically allmoney comes into existence as a debt.

A .Canadian Social Credit Government would:(4) Reform Canada's financial policy to ensure

the Canadian people always a realistic supplyof interest-free money., so that much of thetaxation as we now know it can be abolished.

(b) Undertake a thorough revision of the wholeCanadian taxation system. Those taxes thatare found to be restrictive in their effects uponproductive enterprise will either be a~lishedor reduced in rate aB a stimulus to greaterproductive effort.

(c) l;'rogressi vely abolish all hidden taxes, whichhave the effect of inflating prices and pushingup the cost of living.

(d) Simplify all necessary taxes, and so applythem that they may be collected efficiently andcheaply.

The Social Credit Association of Canada advocatesthe following measures to stabilize agriculture:

1. A home ma.rket constantly supplied with effec-tive purchasing power.

2. A price discount technique for insuring a fairprice to producers without causing inflation.

s. Produce to be sold under a two-price system,(a) Internal, based upon parity,

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,. (b) External, based upon what can be obtained incompetitive markets or through internationalagreements,

to work in conjunction with an International Com-modity Clearing House. In th0 event of the price beingbelow parity the Social Credit Canadian Governmentto make up the difference.

4. Extension of export markets and acceptance ofnon-convertible Sterling, as a means of recapturing andretaining external markets.

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5. A permanent Agricultural Prices Support Actto insure parity.

6. An early re-allocation of Dominion and Provin-cial responsibilities and authorities to remove disa-bilities arising out of over-lap'ping fields and confusedinterpretations.

The Social Credit Association of Canada believesin, and will champion the cause of individual enter-prise.

We recognize that certain abuses have crept intoour present private enterprise system and a SocialCredit Government would take active steps to havethese eliminated.

The Social Credit Association of Canada declaresthat government regulation of enterprise ehould belimited to removal of those a.buses or exploitationswhich might remain or re-appear after the introduc-tion of a Social Credit financial policy shall haveremoved barriers and restrictions which prevent thefree functioning of the law of supply and demand.

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The Social Credit Association of Canada believes:1. The Government should be prepared to establish

a public utility or ly where individual enterprise hasfailed to provide, or from the circumstances cannotprovide, adequate services at reasonable cost, theutility or service to remain a government enterpriseonly until the changed situation warrants private de-velopment.

2. In other than the field of public utilities, wher-ever a virtual or rea.lmonopoly exists or threatens, andit appears impos;:ible to. induce effective individualcompetition, we favor government enterprise strictlyon a competitive basis, only'when necessary in thepublic interest for the purpose of breaking anti-social monopoly control.

3. We advocate the rigid enforcement by the Cana-dian Government ()f an effective Combines Investiga-tion Act; and thn 1; the Commissioner be responsiblejointly to the HOllse of Commons and the Minister ofJustice.

4. Adequate Hnti-trust legislation to prevent mon-opolies should be enacted by the Can:;l.dianGovern-ment.

The Social Credit Association of Canada declaresthat the natural resources of Canada must be admin-istered so that an the people can benefit from theirdevelopment.

1. A Social Credit Canadian Government would eo-operate with the Provincial Governments in stimulat-ing the opening up of new areas and fields for. dis-covery and development of natural resources, with aview to establishing national policies of self-sufficiency

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ni the essentials' of living. Their general policy wouldbe to encourage the development of all those resourceswhich can contribute to the economical production ofgoods within the country.

2. A Social Credit Canadian Government wouldassist the Provinces in projects of reforestation/waterconservation, flood control, drainage, dyking and irri-gation, control of insect pests and diseases, forest fireprotection and the preservatio:a of wild life.

INDUSTRIALIZATIONAll wealth whether it be real as goods and services

or whether it be financial, comes from production and

..To achieve these objectives a Social Credit Cana-dian Government would:

1. Conduct the administration of tr-e Co.untry'saffairs, so that no artificial barriers or restrictionsshan prevent any individual from achieving for him-self and his family economic security and freedom.

2. Provide price discounts and consumer dividendsto supplement earned incomes sufficiently to maintainfull distribution of all wanted production.

3. Pay Family Allowances adequate to ease theburden upon those who accept the re:;ponsibility ofmaintaining the birth rate.

4. Pay pensions sufficient to guar~mtee a decentstandard of living to all those whoseincouies are lessthan the amount of incomes exempte

~pita grants-in-aid to the provinces, which grantsmust not carry with them any right whatsoever for theCanadian Government to interfere in the Provincialadministration of education.

The Social Credit Association of Canada recognizesthat the real strength of any nation stems from com-fortable, happy homes and well-ordered family life."Every Canadian a homeowner" is an objective to-wards which our organization continues to strive.

As one means of reaching that happy condition, theCanadian Government should assist the financing, atcost, of municipal home-building and low-rental hous-ing programs, with loans to be repaid in small monthlypayments; the administration to be under the jurisdic-tion of the municipal governments.

The Social Credit Association of Canada proposesthat a specific and long-range programme of selectiveimmigration is essential for the general welfare ofCanada.

1. Immigrants should be carefully screened for thepurpose of admitting only those who are able to meethigh physical, mental and moral standards, and areready and willing to accept the full financial responsi-bility of Canadian citizenship and the Canadian way oflife.

2. The Social Credit Canadian Government wouldaccept full responsibility for the care of all immigrantswho are unable to provide for themselves until theyhave become Canadian citizens.

3. Provision for consultation with the provincialgovernments in the formulation of ImmigJ:'l~tio:qPolicy.

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The Social Credit Association of Canada believesthat a comprehensive conference of representatives ofthe Dominion and all the Provinces should be held forthe purpose of c()nsidering:

1. The existing legislative and administrative or-ganization in the Provincial and Federal spheres.

2. A more equitable allocation of powers. and fin-ancial responsibility as between the Provincial andCanadian authorities.

3. Ways and means of facilitating the drafting,adoption and the implementation of a Canadian Consti-tution that will place in the hands of the people moreeffective control over matters of policy.

4. The establishment of a continuing committee orpermanent secretariat to strengthen the relationshipbetween Provinces and between the Dominion and theProvinces.

INTERNATIONAL PEACEANDSECURITY

1. Industrial rivalry amongst nations is the great-est single factor leading to international conflict. Theestablishment therefore, of sound international tradepolicies such' as those outlined in the InternationalTrade section of this manifesto is Canada's first andbest assurance of international peace and security.

2. The conflict of ideologies is a constant threatto peace and national security. Recognition of this factrenders necessary:

(a) The orgt:nization of our national economy toprovide 0 )portunity for economic security withfreedom, for all citizens.

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Recognition. of the sovereign integrity of allother nations and a clear cut :indication thatCanada has no desire to interfere in the inter-nal affairs of any other country.

3. Demonstrated aggressive tendencies on the partof certain non-democratic nations and' the consequent$ubjugation of peace-loving democracies make neces-sary:

of goods for money. Hence, Creditor Nations must beprepared to accept settlement of their credits in goodsand services.

2. Nations must have the right to determine theirsource of supply of imports, in order to protect theirbalance of payments_

The establishment of Canadian defence forcesto be maintained at a. strength adequate fornational defence and retained under the com-plete sovereign control of Canada.

The exercise and maintenance unimpaired ofour membership in the British Commonwealthwith the retention of our sovereign authorityto order our own affairs in accordance withthe will of Canadians.

Voluntary participation in zonal pacts whereco-operative effort amongst nations offersreasonable assurance that the aggressive actsof any other nation can be effectively cbal-lenged.

3. We should oppose any attempt to limit trade byrestricting it to the confines (use) of convertibility ofcurrencies, or of the gold standard.

4. To achieve a balance of payments in interna-tional trade,-

. (a) An exporting country must accept paymentdirectly or indirectly in goods and services ofthe importing country, failing which, after aspecified period, it must agree to cancel anycredits still outstanding.

(b) Trading could be placed upon a multilateralbasis only by setting up an international ex-.change on which credits held in one countrycould be traded for credits in another;

This trading to be executed at a rate ofexchange, based upon the relative values ofthe currencies as determined by their pur-chasing power internally.

4. Canada must strIve consIstently with other na-tions for the establishment of goodwill amongst thepeoples of the world.

The Social Credit Association of Canada believes:

1. International trading should represent the reci-procal and mutually beneficial exchange of goods andservices between nations, and not merely the exchange

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5. The control of all foreign credits and monetarybalances; including transfer of credi~s in Canada'sfavour from one country to another, shall be exercisedby a Canadian montaryauthority responsible to Par-liament.

The Social Credit Association of Canada believesthe essential requirements of an adequate defence pro-gram for Canada consist of:

1. A united and loyal people.2. Efficient military personnel and equipment.3. Decentralized, widely dispersed and widely

varied industrial strength.4. Effective co-operation with other democratic na-

tions,including possible co-ordination of military p'er-sonnel and adoption of uniform equipment.

5. An efficient civilian home guard would be readilyavailable for defence purposes in case of an emergency.

For timely, honest, straight-from-the-shoulder information on currentevents in the political and economicsphere

E~LECTORAL REFORMThe Social Credit Association of Canada proposes

as a necessary electoral reform, the introduction ofthe single transferable ballot in order that the willof the majority may be reflected in Canadian elections.

Published by the

SOCIAL CREDIT ASSOCIATION OF CANADA9974 Jasper Avenue

EDMONTON ALBERTA