Social Credit Party of Ontario - 1963 Schism

1963 Schism

In 1963, the party split into two factions. "Social Credit Action" was established by Neil Carmichael, a stamp and coin dealer, who was chosen the group's leader, Carmichael's membership in the Ontario Social Credit Party had not been renewed after he made anti-Semitic statements. Other founders of the splinter group were James Audy, an accountant, who became party president, and David Hartman of Toronto. The group was formed when the official party refused to actively campaign in the 1963 provincial election. Audy had been the federal Social Credit Party's candidate in Spadina riding in the previous election.

Carmichael, 45, a five-time federal Socred candidate, had been the focus of controversy earlier that year when he was a federal Social Credit candidate in St. Paul's. He asserted at a public meeting that there was a Jewish conspiracy in which the Rothschilds were plotting to acquire all of Canada's mines through non-Jewish third party operatives, and that the family was part of an international Jewish conspiracy to take over all of Canada's businesses. Carmichael was cautioned by the Social Credit Party of Ontario that he was "skating on thin ice" and would not be permitted to stand as a candidate again. His promise that a Social Credit government would pay each Canadian $5,000 worth of goods and services was derided by the Ontario party as "irresponsible". David Lewis of the New Democratic Party accused Social Credit of "harbouring anti-Semites" and stated that "Carmichael is only a symptom. The disease goes much deeper." Carmichael denied he was anti-Semitic saying "I am not anti-Semitic.... I have many Jewish friends.... Many of my customers are Jewish." At a subsequent meeting, he said that his comments were "indiscreet", that had he known he was going to be quoted he would have "cloaked them in nice phrases", and accused the Jews of persecuting him for his remarks, blaming a reporter with a Jewish sounding name for quoting him. In the same meeting Carmichael, declared that Adolf Hitler's economic system was "a very good and sound system of money" and that the Nazis "had it all figured out so that there was no unemployment." Carmichael's Social Credit membership was not renewed prior to his formation of Social Credit Action.

Social Credit Action supported Réal Caouette when he took his Ralliement des creditistes out of the Social Credit Party of Canada in September 1963, while the official party remained loyal to federal party leader Robert N. Thompson. Audy accused the Ontario Social Credit Association of being dominated by Protestant clergyman who were prejudiced against Caouette because he was a Catholic. Richard Day, a spokesperson for the official Social Credit League of Ontario derided the views of Social Credit Action as being "anti-Semitic, economic trash and hypocritical".

See also: Social Credit Party of Canada split, 1963

Social Credit Action nominated six candidates in ridings in Toronto in the 1963 provincial election, while the official party nominated only three candidates in rural ridings. The Social Credit Action candidates included Carmichael, Audy, Hartman and fascist John Ross Taylor. However, when it was reported that "the former leader of the Canadian Union of Fascists was running", the splinter group disassociated itself from Taylor on the eve of the election and he instead ran as a "Natural Order of Social Credit Organization" candidate. Audy was announced by Caouette as his Ontario lieutenant but did not end up running in the 1965 federal election.

Subsequently, Carmichael was accused of allowing the Social Credit Action headquarters to become a meeting place and organizing centre for neo-Nazis disseminating anti-Semitic material, such as David Stanley and John Beattie. Carmichael denied the charge saying "we feel the Jews are trying to stir up hate this way to sell their Israel bonds." In October, the press reported that anti-Semitic leaflets were being distributed recruiting 14 to 21 year-olds to the right-wing "Canada Youth Corps" where they could be trained in explosives and weapons. The leaflets featured photographs of Carmichael and Stanley and promoted meetings at the Social Credit Action headquarters. Carmichael denied any knowledge of the leaflets or the Canada Youth Corps, and dissociated himself from Stanley. Carmichael and Beattie clashed in the press in April 1965 after Beattie announced the formation of the Canadian Nazi Party announcing that he intended to recruit the "snivelling cowards" in Carmichael's Social Credit movement. Carmichael accused Beattie of trying to discredit his party.

By the 1967 provincial election Social Credit Action had disappeared. The official Social Credit Party led by Harvey Lainson ran seven candidates.