1. A BRIEF HISTORY OF SLAVERY IN CANADA
By Thane Heins
The British North America Act 1867 (later renamed the Constitution of Canada) gave the Federal
Legislature certain duties for the governing of Canada. One of these duties was the power to coin
(print) the currency for Canada. With the passing of the Bank Act 1913 by Sir Robert Borden's
government, gave up the right over the issue of interest free currency for the people and handed
it over to the private corporations of banks. After this point, revenue was created by borrowing
from banks at compound interest. National Debt was thus created.
During the First World War the Federal Government needed money for the war effort. Now that
its money creation capacity was gone it needed other avenues of revenue generation. The Federal
Income Tax Act 1917 was born. Initially called the War Tax it was said to be only a temporary
measure. Although it was opposed by the provinces the War Measures Act gave the Federal
Government dictatorial powers and it was used to override and seize all provincial direct taxation
rights(specifically that of income tax).
Men and women who went to war to fight for the liberties of the people of Europe as free
citizens of a democratic country came home as slaves to Federal Income Tax and an artificially
created National Debt.
The costs of the First World War were paid off by 1921 but the Income War Tax remained. By
the time the Second World War rolled around the Federal Government was still charging Income
Tax. The BNA Act gave the provinces only two methods for the raising of revenue, Direct
Taxation (Income Tax, Sales Tax, Gas Tax, or any tax paid directly from a citizen to the
government) and borrowing. Direct Taxation is listed as an EXCLUSIVE RIGHT of the
Provincial Legislatures in the BNA Act. This right would be upheld by the Supreme Court of
Canada in 1950.
In an attempt to gain total control over the FIELD OF DIRECT TAXATION, Mackenzie
King tried to convince the Provincial Premiers that it was their patriotic duty to amend the
Constitution. King was aware that the Federal Government did not have the legal right in the
field of direct taxation except during the time of war. The Second World War was the perfect
opportunity to seize total financial control the First World War did not provide.
WHILE WOMEN AND MEN GAVE THEIR LIVES FIGHTING A DICTATOR IN EUROPE
A NEW ONE WAS BEING CREATED AT HOME IN CANADA
"The crux of the problem which faced the commission and which faces this conference is, of
course the financial relationship between the federal and provincial governments."
"These concerned, for example, provision of a systematic procedure for regular
dominion-provincial conferences. Provision for the delegation of powers by
the dominion to the provinces and vice versa."
Prime Minister Mackenzie King January 14, 1941
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2. Realizing they were being hoodwinked the premiers fought back.
"We should then have to go to the dominion authorities with a tin cup in our hands saying-either
contribute to the extent of our loss of revenue or pay for the SOCIAL SERVICES OF
ONTARIO."
"It has been admitted by former ministers of finance of Canada that for the dominion to levy an
income tax at all is to invade provincial fields of taxation."
The effect of these added imposts was to seriously reduce the revenues of the Province of
Ontario."
"I solemnly warn those who are obviously pressing for such action that they may aggravate the
suspicion and destroy public confidence in governments."
"Now I come to a subject of even greater importance- NATIONAL UNITY. By this deal,
according to the best Constitutional advice I can get, Quebec and the rest of us will have to agree
to surrender to a central authority of rights and privileges granted by the
British North America Act."
"So long as there is a British North America Act in its present form, which cannot be amended at
will by a mushroom government that may in future take office in Ottawa, we shall as a sister
Province stand solidly beside Quebec if at any time her minority rights are threatened. On this
sound foundation of NATIONAL UNITY we stand firm and resolute as the Rock of Gibraltar
itself."
"To lay hands on the life work of Sir Wilfred Laurier and Sir John A. MacDonald is nothing
short of NATIONAL VANDALISM."
Premier of Ontario, M. F. Hepburn
"Under the British North America Act, Manitoba was given, like the other provinces of Canada,
the Constitutional right to discharge certain governmental functions, but administrative and
legislative. To provide the province with the revenues with which to
pay the cost of discharging these functions the province was empowered to impose direct
taxation within the province."
"The tendency of the course recommended by the commission would be to lower the general
standard of development rather than to raise it. It would be a backward step instead of a forward
one."
Premier of Nova Scotia, A.S. MacMillan
"We are here honorable chairman and gentlemen, I take it to make it possible at some near future
date to formulate for Canadians a series of decisions which will give them security in old age and
the right to enjoy, according to their needs, the abundance of food
and clothing and the comforts of adequate and sanitary shelter which the limitless resources of
this great Dominion can provide."
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3. "We are here, I assert to establish a heritage of EDUCATION for those who wish to learn; of
HEALTH for those who suffer pain or disease; of SECURITY and DELIVERANCE FROM
DEBT for those who have builded homes in their prime of life and who may face eviction and
the loss of their sacred firesides when the lean years descend."
"We are here, I believe to draft a scheme of things for the CANADA OF THE FUTURE, a
scheme of things which will bring to Canada a standard of JUSTICE which shall place HUMAN
VALUES ABOVE DOLLAR VALUES."
"The statement that the acceptance of these proposals is an evidence of good faith and loyalty in
this titanic struggle against the forces of TOTALITARIANISM is in my estimation so evidently
misleading and far-fetched that it should be looked upon as DANGEROUS, DECEPTIVE AND
DIABOLICAL PROPAGANDA. Both these proposals involve a centralization of power in
direct opposition to the PRINCIPLES OF DEMOCRACY, for which we are fighting today and
the British traditions which we cherish."
"Never in the history of Canada has the need for complete national unity of purpose and of effort
been more essential than it is at this time; I urge with all the sincerity of my soul, that we do
nothing which will an any way jeopardize that essential unity."
"IF IT IS NECESSARY, IN ORDER TO PAY THE INTEREST ON BONDS, TO DEPRIVE
SCHOOL CHILDREN OF EDUCATION AND PEOPLE OF HEALTH, YOU CAN COUNT
ME OUT."
"It is hardly the kind of thing that responsible-minded leaders of democratic thought would allow
themselves to be stampeded into doing."
"How will the adoption of these recommendations benefit the individual citizen? When they
found out that the full burden of existing debts would still be upon them in no less degree, and
that any control they have over these debts would be one step further removed from them; when
they discovered that their taxes would be just as great or perhaps greater and that, with the
reduction of provincial taxation powers, the only ones that could possibly benefit would be the
LARGE CORPORATIONS and THE FINANCIAL INSTITUTIONS; when it became known to
them that the standard of SOCIAL SERVICES WOULD BE VIRTUALLY REMOVED from
the full autonomy of the provinces and placed largely under control of a semi-independent
financial commission, many of our hard thinking and realistic minded citizens demanded to
know in their vernacular, ‘what is all this row about at a time like this?' and ‘who is responsible
for it?'"
"AND THE WHISPER HAS GONE AROUND, ‘IT IS THE MONEY POWERS.'"
" I maintain that it would be most unfortunate if the idea gains popular credence that there is a
concerted and deliberate attempt being made by the MONEY POWERS to increase
CENTRALIZED CONTROL of our national life while our attention is fully occupied with the
prosecution of our war effort, and that thereby there is developing an endeavor to obtain an
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4. unfair advantage over the people by means of imposing upon them a CRUSHING DEBT
STRUCTURE under which they will be further ENSLAVED."
"Surely it must be evident to any loyal British subject that to sit calmly and indifferently by
while we are being hoodwinked and inveigled into FINANCIAL DICTATORSHIP or FASCIST
STATE, at a time when we are giving the best of our manhood to the empire and are sacrificing
our all to overcome that foul thing which has raised its head in the world in many guises; - A
TOTALITARIAN ORDER OF CENTRALIZED CONTROL AND REGIMENTATION-IS
NOT ONLY RIDICULOUS BUT DANGEROUSLY
CRIMINAL. Words almost fail me to convey to you the warning which must be voiced before it
is too late."
"Do not let us shut our eyes to those matters for we have been warned, EVIL is abroad in the
world and we are fighting EVIL THINGS."
"I repeat that the dominating difficulty out of which ALL OUR PROBLEMS ARISE is mainly
economic, and not political, and the focus of that economic problem is financial. If we become
sidetracked, down political or constitutional bypaths that have no ending WE SHALL LAND IN
A WILDERNESS OF FAILURE."
"In conclusion may I say that we in Alberta stand ready to allow our province to become the
experimental ground to demonstrate scientifically the rich and glorious possibilities for living in
contentment and security based on the principles of DEMOCRACY, not
only in the political but economic sphere as well."
Premier of Alberta, William Aberhart
"As my friend from Alberta said, the SOCIAL SERVICES OF CANADA IN THE FUTURE
MUST BE KEPT IN MIND. But we are doing something from which we may not be able to
retrace our steps, and we shall be left in the hands of a BUREAUCRACY to be established in
Ottawa, a bureaucracy which is criticized from one end of the country to the other. I myself will
not SELL MY PROVINCE DOWN THE RIVER FOR ALL TIME TO COME, AND ALLOW
OUR SOCIAL SERVICES TO REMAIN A VICTIM OF THE DICTATORIAL METHODS OF
A BUREAUCRACY TO BE SET UP IN
OTTAWA."
"We leave it to the rest of the members to continue their efforts to do what we are bound to say
would result in WRECKING CONFEDERATION, as we understand it, and in DESTROYING
PROVINCIAL AUTONOMY RIGHTS."
"If the Prime Minister insists that everything has to be predicated upon the principles of a report
to which we object, then there is no alternative open to my colleagues and myself but to
withdraw and leave these WRECKERS OF CONFEDERATION under the guise of
patriotism, to continue to carry on their NEFARIOUS WORK."
Province of Ontario, Honorable Mr. McQuesten
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5. "Where are you going to get the money? I am asking this statement to the dominion government
for the province of British Columbia. If the dominion government had not ENTERED OUR
FIELD OF TAXATION, BRITISH COLUMBIA WOULD NEVER HAVE HAD TO BORROW
ONE DOLLAR. British Columbia entered the income tax field in 1876. The dominion
government did not enter this field until 1918, when Sir Thomas White, then Minister of
Finance, stood on the floor of this chamber and said that he regretted very much the necessity of
taking such action. He said it was intended as a
TEMPORARY MEASURE. I am sure that Sir Thomas White will not mind my saying that when
I was talking to him on one occasion he told me he was afraid it would be a
FEDERAL TAX FOR GOOD. Those of us who have been trying to protect provincial rights and
trying build up a strong province so that we may have a strong dominion
of Canada have actually been accused of being unpatriotic and insolent because we dared to say
that the INCOME TAX SHOULD BE MAINTAINED AS A PROVINCIAL
TAX."
"I DO NOT FEEL WE CAME HERE AS BEGGARS. We should not be tied down in perpetuity;
we should not be circumscribed in our future development. We have been asked to come here on
this very occasion to change our constitution for no purpose whatever."
"AS I SAID YESTERDAY, I WOULD RATHER SEE OUR BOYS AND GIRLS HAVE AN
EDUCATION, I WOULD RATHER SEE OUR PEOPLE RAISED IN HEALTH THAN HAVE
BONDHOLDERS PAID INTEREST ON THEIR BONDS."
"WE ARE THE TRUSTEES OF THE PEOPLE, NOT ONLY FOR OUR OWN DAY AND
GENERATION, BUT FOR THE DAYS OF OTHERS, AND FOR GENERATIONS TO
COME."
Premier of British Columbia, T. D. Plattullo
From problems in Heath Care, Education, and Social Spending to National Unity, all may
be traced back to 1913. Twenty years after the signing of the Bank Act Mackenzie King was
starting to see the light and he made this radio address;
"Once a nation parts with control of its currency and credit, it matters not who makes that
nation's law. Until the control of the issue of currency and credit is restored to
government and recognized as it's most conspicuous and sacred responsibility, all talk of
the sovereignty of parliament and of democracy is idle and futile."
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