Bankers' Toadies incident

After David Duggan, leader of the Conservative Party and one of the men named, raised his concern over the pamphlet in the Legislative Assembly of Alberta, police raided the Social Credit League's Edmonton headquarters.

This belief, combined with a suspicion that he did not properly understand Douglas's theories, led to the 1937 Social Credit backbenchers' revolt.

[7] In response to what they saw as the radically anti-business views of the Aberhart government and the Social Credit Board, Alberta's mainstream opposition parties—chiefly the Liberals and the Conservatives—began to cooperate under the auspices of the newly formed People's League.

[8] In October 1937, Conservative leader David Duggan rose in the Legislative Assembly of Alberta to draw its attention to a pamphlet distributed in and around the legislature building that called for his "extermination".

Either trial judge William Carlos Ives[13] or a justice of the peace[14] countered by appointing a private prosecutor so the case could go ahead.

[11] He testified that he had ordered the pamphlets, which were paid for by the government, and then circulated them as a publication of the "United Democrats", a fictitious organization that listed its address as that of Unwin's home.

[16] Ives found Unwin's testimony more credible, convicted Powell on November 15, and sentenced him to six months hard labour.

[17] A Toronto spokesman for the Communist Party of Canada protested the arrests and called for a "united front" against the People's League.

[11] Aberhart maintained that the men had been jailed on the basis of some harmless political humour, and encouraged the federal government to grant them clemency; Prime Minister of Canada William Lyon Mackenzie King responded that to do so would be to engage in "direct interference by the federal executive with the free and proper functioning of our courts".

[19] Douglas reacted to his deputy's arrest with anger, telling reporters that "whoever is instigating the proceedings is asking for a great deal of trouble, and is likely to get it.

"[19] On December 10, 1937, he wrote King to tell him that he had been invited to come to Alberta to provide advice, and asked if he would be risking arrest and deportation if he did so.

Once again, the Communists expressed solidarity with the Social Crediters, with Jan Lakeman thanking the voters for giving "an overwhelming defeat to the forces of reaction".