Prosperity certificate facts for kids
In 1936, the government of Alberta, Canada, tried something new. They introduced special prosperity certificates to help people during the Great Depression. This was a very tough time when many people lost their jobs and money.
Premier William Aberhart and his Alberta Social Credit Party had promised these certificates. They won the election in 1935 partly because of this idea.
These certificates were not regular money. They were given to people working on government projects. They also helped pay for things in towns and cities. Each certificate was worth one dollar or five dollars. About $239,000 worth of these certificates were given out in August 1936.
Contents
Why Prosperity Certificates Were Created
The main goal of the prosperity certificates was to encourage people to spend money. During the Great Depression, many people held onto their cash. This made the economy worse. The government wanted to make sure money kept moving around.
How the Certificates Worked
To make people spend, the certificates had a special rule. Every week, the person holding a certificate had to stick a 1¢ stamp on its back. If you didn't add the stamp, the certificate would lose its value. This rule was meant to stop people from saving the certificates. Instead, it pushed them to spend the certificates quickly. This way, they would avoid buying too many stamps. This idea of "stamp scrip" came from Silvio Gesell. It was not part of the original ideas of Major C. H. Douglas, who started the social credit movement.
Challenges with Prosperity Certificates
The certificates faced several problems. People found them annoying and costly to use.
Stamps Were a Hassle
The weekly stamps were a big part of the problem. They were very small, less than one square centimeter. This made them hard to handle. They also often fell off the certificates. This made the certificates even less popular.
Not All Stores Accepted Them
Another issue was finding places that would take the certificates. Many stores did not want to accept this unusual form of payment. However, a department store chain called Army & Navy Stores did accept them. Oddly, the government itself would not take the certificates for tax payments.
The End of the Program
The plan was for the certificates to last for two years. By then, 104 stamps would have been added to each one. But the program ended much sooner, after only about one year. People could return their certificates to the government. In return, they would get regular Canadian money.
Alberta's prosperity certificates are not listed in the official book of world paper money.
See also
- Demurrage (currency)
- Local currency
- Freigeld
- Silvio Gesell
- Social credit
- Prosperity Bonus, also called Ralph bucks
