1937 Social Credit backbenchers' revolt
In 1937, Alberta’s Premier William Aberhart and his Social Credit government faced a revolt from some backbench MLAs who were angry that Aberhart did not deliver the promised monthly dividends of $25 to Albertans. The 1937 budget did not include the dividends, and many rebel MLAs threatened to bring down the government in a confidence vote. The turmoil was part of a wider strain on Aberhart’s government, which had already seen several cabinet members resign or be dismissed.
The revolt intensified in March. Besides the dissent in the legislature, Aberhart was criticized for plans to attend the coronation of King George VI in London and for a recall attempt against him in his own riding. After a tense debate, the rebels demanded a change in how the government was run. A compromise was reached: the cabinet would give up some power to a committee of backbenchers, dominated by insurgents, who would hire two British social credit experts to help implement Social Credit in Alberta. The rebels also pushed for a loyalty pledge from Social Credit MLAs to support the committee.
Two experts, L. D. Byrne and George Powell, were brought in to lead the work. The board they created could appoint a small expert commission to turn Social Credit into policy. The first acts drafted by the experts were to set up an Alberta credit system and regulate banks, but the plans would prove controversial and legally troubled.
In the meantime, the rebels pushed a loyalty pledge that shifted loyalty from the Social Credit Board to the cabinet. Six MLAs who refused to sign were expelled from the caucus. Aberhart tried to keep the peace, but the new board and the loyalty tests led to more tension. By April, the government introduced a bill package based on the board’s ideas, but the federal government later disallowed the main measures.
Powell and the experts also proposed three new acts. These included controls on banks, limits on bank actions in court, and a rule about challenging laws in court without federal approval. Alberta’s Lieutenant Governor Bowen questioned the constitutionality of the bills, and the federal government eventually struck them down. The fall brought new battles: a Bank Tax Act and an Accurate News and Information Act, aimed at banks and the press, were introduced but also declared unconstitutional by the courts.
Although the immediate crisis subsided, the dispute reshaped Alberta politics. Aberhart’s government was re-elected in 1940 with a smaller majority, but several insurgent leaders and some disciplinary cases left the Social Credit fold. The Social Credit Board continued to exist for a time, carrying on with the idea of implementing social credit, but it eventually dissolved in 1948 after it drew criticism for anti-Semitic statements and moves that undermined political rights.
Overall, the 1937 revolt showed a government trying to carry out a controversial economic plan, while backbenchers and even some cabinet members pressed for a more direct path to social credit—leading to a rare instance of a party using a backbench board to steer policy, with mixed success and lasting political consequences.
This page was last edited on 3 February 2026, at 05:52 (CET).