Prosperity certificate
Encyclopedia
In 1936, the Alberta Social Credit Party
-led government of the Province of Alberta
, Canada
, introduced prosperity certificates in an attempt to alleviate the effects of the Great Depression
. Social Credit Premier
William Aberhart
's government had won power in the 1935 provincial election
partly on the scheme.
Although not technically money, each certificate was intended to circulate with a value of one dollar
. The intent of the program was to keep the certificates circulating and discourage hoarding. To achieve this, a holder had to affix to the back of a certificate a 1-cent stamp before the end of every week, for the certificate to maintain its validity. But the hassle and expense of the stamps made the certificates unpopular with the public. To make matters worse, the tiny stamps (smaller than 1 cm²) fell off. To avoid having to purchase and affix the stamps, holders would try to spend the certificates just before the week's validity expired. That left them in the hands of merchants, who would have to purchase and affix the stamps themselves to maintain the notes' validity.
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.
Social Credit Party of Alberta
The Alberta Social Credit Party is a provincial political party in Alberta, Canada, that was founded on the social credit monetary policy and conservative Christian social values....
-led government of the Province of Alberta
Alberta
Alberta is a province of Canada. It had an estimated population of 3.7 million in 2010 making it the most populous of Canada's three prairie provinces...
, Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
, introduced prosperity certificates in an attempt to alleviate the effects of the Great Depression
Great Depression in Canada
Canada was hit hard by the Great Depression. Between 1929 and 1939, the gross national product dropped 40% . Unemployment reached 27% at the depth of the Depression in 1933...
. Social Credit Premier
Premier of Alberta
The Premier of Alberta is the first minister for the Canadian province of Alberta. He or she is the province's head of government and de facto chief executive. The current Premier of Alberta is Alison Redford. She became Premier by winning the Progressive Conservative leadership elections on...
William Aberhart
William Aberhart
William Aberhart , also known as Bible Bill for his outspoken Baptist views, was a Canadian politician and the seventh Premier of Alberta between 1935 and 1943. The Social Credit party believed the reason for the depression was that people did not have enough money to spend, so the government...
's government had won power in the 1935 provincial election
Alberta general election, 1935
The Alberta general election of 1935 was the eighth general election for the Province of Alberta, Canada. It was held on August 22, 1935 to elect members of the Legislative Assembly of Alberta....
partly on the scheme.
Although not technically money, each certificate was intended to circulate with a value of one dollar
Canadian dollar
The Canadian dollar is the currency of Canada. As of 2007, the Canadian dollar is the 7th most traded currency in the world. It is abbreviated with the dollar sign $, or C$ to distinguish it from other dollar-denominated currencies...
. The intent of the program was to keep the certificates circulating and discourage hoarding. To achieve this, a holder had to affix to the back of a certificate a 1-cent stamp before the end of every week, for the certificate to maintain its validity. But the hassle and expense of the stamps made the certificates unpopular with the public. To make matters worse, the tiny stamps (smaller than 1 cm²) fell off. To avoid having to purchase and affix the stamps, holders would try to spend the certificates just before the week's validity expired. That left them in the hands of merchants, who would have to purchase and affix the stamps themselves to maintain the notes' validity.
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.
See also
- Demurrage (currency)Demurrage (currency)Demurrage is a cost associated with owning or holding currency over a given period of time. It is sometimes referred to as a carrying cost of money. For commodity money such as gold, demurrage is in practice nothing more than the cost of storing and securing the gold...
- Local currencyLocal currencyIn economics, a local currency, in its common usage, is a currency not backed by a national government , and intended to trade only in a small area. As a tool of fiscal localism, local moneys can raise awareness of the state of the local economy, especially among those who may be unfamiliar or...
- FreigeldFreigeldIn the theory of Freiwirtschaft, Freigeld is a monetary unit proposed by Silvio Gesell.- Properties :Freigeld has several special properties:...
- Silvio GesellSilvio GesellSilvio Gesell was a German merchant, theoretical economist, social activist, anarchist and founder of Freiwirtschaft.-Life:...
- Social creditSocial CreditSocial Credit is an economic philosophy developed by C. H. Douglas , a British engineer, who wrote a book by that name in 1924. Social Credit is described by Douglas as "the policy of a philosophy"; he called his philosophy "practical Christianity"...