The Social Credit Movement in Quebec is probably the strongest Social Credit movement in the world. The circulation of its militant semimonthly publication, “Vers Demain", is now approaching 100,000. Last month, during just one week over 4,000 subscriptions were taken for this journal by a veritable army of volunteer "missionaries”.
This Social Credit Movement, centred in Quebec but now expanding across the whole country, is usually referred to as the Union of Electors. It is educational and non-party. Without itself contesting the election, the Union of Electors played a substantial role last year in turning out the former Montreal municipal administration and electing one pledged to clean out crime and corruption.
Likewise, last month the Union of Electors played a decisive role in defeating the mayor of Hull, Alexis Caron, who is also a federal M.P., because of his opposition to Social Credit.
Social Credit is a growing force in Quebec, as Social Crediters watch their public officials and members of parliament closely, and demand results in accordance with their will. The following exchange of correspondence between one Quebec elector and his Member is typical, and significant:
Jan. 27, 1955
M. Jules Gallant 52 Jogues Street Hull, P.Q.
Dear Sir,
I have received your letter of December 21st, 1954, giving me the news on a subject of great importance, namely: the Social Credit theories, which I cannot accept because the one way it could be applied would be by establishing a dictatorship in Canada.
The whole problem deals with production and distribution and Major C. H. Douglas himself in his book "'Warning Democracy', first edition 1931, states at page 42
"that the distribution of cash credits to individuals shall be progressively less dependent upon employment; that is to say that the dividend shall progressively displace the wage and salary."
As you can see, the intention was to replace salaries by dividends. It is exactly what is being practiced at the present time behind the Iron Curtain, especially in Soviet Russia and, with men created with a great desire of possession, the said theories would be impossible, except under dictatorship.
As I am very fond of liberty, as it is practiced in democracy enjoyed in Canada, I will have to oppose those views on account of the dangers it may create for the welfare of our people. Unless I can be convinced to the contrary, I shall oppose the views of Social Credit for as long as I am in politics.
Sincerely yours,
ALEXIS CARON, Member for Hull
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Alexis Caron, M.P.
Member for Hull
House of Commons
Ottawa, Ont.
Dear sir,
I have read and re-read your lettre of January 27th, answering mine of December 21st. May I say that I was very much astounded at its contents — not so much to learn of your opposition to Social Credit, as the ground on which you base your opposition.
You faithfully quote C. H. Douglas (Warning Democracy, 1931 edition, page 42):
"That the distribution of cash Credits to individuals shall be progressively less dependent upon employment; that is to say that the dividend shall progressively displace the wage and salary."
But how can you infer from this that it is akin to communism? How can you write:
"It is exactly what is being practised at the present time behind the Iron Curtain, especially in Soviet Russia."
You know perfectly well that dividends are a return on capital, and that communism, rejecting the reward to capital, does not distribute dividends. When Russia eliminates wages and salaries, it is to introduce slave labour, not to make people live on dividends.
Would you suggest to our capitalists that they are communists because they receive dividends on their investments?
The above quotation from Douglas is the best proof that Social Credit is the very opposite to communism. Dividends to all implies considering everyone as a capitalist it is only an extension, a broadening of capitalism.
Douglas writes that the dividend would progressively displace the wage and salary. This cannot be done in a day. Wage and salary must remain the reward of employment. But, with technical improvements, production requires less employment. The distribution of goods should follow the same curve and depend progressively less upon the reward of employment.
You rightly state that you are very fond of liberty. And so am I. And so is every Canadian. And so is every human being, even those who are deprived of liberty, as are the people subjected to tyrannical powers.
But don't you think that the man drawing his income from dividends — not tied to his being employed — has more freedom of choice in the organisation of his life, than the man who can get his income only on terms, on condition that he spends a prescribed number of hours in a certain place at the bid of an employer?
A man may also derive his income partly from wage or salary attached to his employment, and partly from a periodic dividend, as would be the case with the people still required by production in a Social Credit economy. The larger the part of his income accruing from the dividend, the more he is freed from anxiety for his living. Should not this be the first fruit of the introduction of laboursaving machinery in production?
You may not be convinced of the soundness or of the possibilities of application of the Social Credit theories, Mr. Member. But you surely go amiss when you liken Social Credit to communism, and quote a statement which demonstrates exactly the contrary of your assertion. With best regards, dear Sir, I remain
Sincerely yours,
JULES GALLANT