Editing ATB Financial (section)

=== Formation ===

Aberhart sought to create a State Credit House which facilitated some banking services in small communities where larger banks had previously closed. Subsequently, the Aberhart government created the Alberta Treasury Branches through a series of Orders in Council in late-August and early-September 1938,{{sfn|Powe|1951|p=73}} following the judicial defeat of the Social Credit monetary reforms at the Supreme Court. The Aberhart government authorized the Treasury Department to establish "branches of the provincial treasury" and with $200,000 of provincial funds as capital the first Alberta Treasury Branch was opened in [[Rocky Mountain House]] on September 29, 1938, followed by branches in [[Edmonton]], [[Andrew, Alberta|Andrew]], [[Grande Prairie]], [[Killam, Alberta|Killam]], and [[St. Paul, Alberta|St. Paul]] which opened the next day.{{sfn|Alberta Treasury Branches|1999|p=12}}{{sfn|Ascah|Anielski|2018|p=9}}{{sfn|Powe|1951|p=81}} The first employees of the Treasury Branches were provincial civil servants with previous banking experience, many of whom were transferred from the Treasury Department's Sales Tax Branch following the abolishment of the [[Sales taxes in Canada|provincial sales tax]].{{sfn|Powe|1951|p=82}} Besides banking, the Treasury Branches served as government offices and propaganda centres.{{sfn|Elliott|2004|p=141}}

The Aberhart government was able to utilize the Treasury Branches to operate the "Interim Program", which was an attempt to provide the [[citizen's dividend]] promised by the Social Credit government in 1935. The Interim Program's name indicated the temporary nature of the program, which would remain in place until a complete system of Social Credit could be established in Alberta.{{sfn|Powe|1951|p=68}} Under the interim program, the Treasury Branches issued non-negotiable transfer vouchers in place of regular [[Canadian dollar|currency]] that could be redeemed at participating merchants in the province. Consumers who purchased goods from participating merchants that were partially produced in Alberta would earn a "bonus" in their account of up to three per cent, the full bonus (in the form of transfer vouchers) being earned if one-third of a consumers aggregate monthly purchases were "Alberta-made".{{sfn|Ascah|Anielski|2018|p=9}}{{sfn|Powe|1951|p=79}}{{sfn|Powe|1951|p=72}} The one-third Alberta-made program was generally ineffective in increasing domestic market demand as it was easy for consumers to meet the low threshold over the period of one month. {{sfn|Powe|1951|p=107}} In response, the threshold on Alberta-made products was raised to one-half in February 1941.{{sfn|Powe|1951|p=108}}

Transfer vouchers could also be used for payments to the provincial government, including taxes, licence fees, and other provincial debts.{{sfn|Powe|1951|p=75}} The transfer voucher system worked considerably better than the previous attempt to issue a citizen's dividend in the form of [[prosperity certificate]]s in 1936.{{sfn|Powe|1951|p=71}}

The Treasury Branches proved popular amongst Albertans, resulting in the government establishing 22 branches and 270 branch agencies by June 1939.{{sfn|Alberta Treasury Branches|1999|p=15}} The Treasury Branches were first authorized to provide loans in 1941 to be approved under a centralized "loan committee" overseen by the Treasury Branches Superintendent.{{sfn|Ascah|Anielski|2018|p=10}} Expanding into lending services was necessary to gain a stronger presence in retail areas, as many merchants who operate with the Treasury Branches also maintained a separate account at another bank to ensure access to credit.{{sfn|Powe|1951|p=124}}

The only services provided up to 1943 were term [[savings account]]s at 1.5 to 3 per cent interest, and the sale of automobile, hunting and fishing licences. Furthermore, the government charged consumers a two per cent penalty on cash withdrawals to continue to incentivize Albertans to use non-negotiable transfer vouchers to ensure capital did not flow out of the branches.{{sfn|Powe|1951|p=91}} Merchants were provided a means to withdraw a certain amount of cash without being charged a penalty in order to replace goods sold for vouchers. A formula was developed to determine the "basic rate", the amount of cash the merchant could withdraw without penalty by taking the merchant's annual profit margin as a percentage and subtracting it from 100 per cent (i.e. 10% margin less 100% means 90% of the balance is available to be withdrawn without penalty).{{sfn|Powe|1951|pp=92–93}} The calculation basic rate system was deemed cumbersome and replaced in February 1941 with a centralized list compiled by the Department of Industries and Labour, based on the type of products and services sold and the location of the business.{{sfn|Powe|1951|p=94}} By early 1942 there were over 7,125 merchants enrolled under the interim program.{{sfn|Powe|1951|p=123}}

Government employees were partially paid with Treasury Branch vouchers, with single employees, widows and widowers receiving 15 per cent of their salary in voucher form. Married employees were paid between 15 and 25 per cent of their salary in vouchers, and the calculation was made after all deductions. This policy encouraged employees to use the service instead of other banks.{{sfn|Powe|1951|p=98}}{{sfn|Alberta Treasury Branches|1999|p=16}} The bonus system ceased in April 1945 and a contingency of $480,738 was paid out of the province's general revenue fund to a reserve fund for the purpose of covering the cumulative earned bonuses during the program.{{sfn|Powe|1951|p=106}}

The Treasury Branches proved to be successful as deposits grew to $24-million by 1946,{{sfn|Alberta Treasury Branches|1999|p=17}} and by 1950 there were 45 Treasury Branches, six sub-branches, and 110 agencies employing 331 staff.{{sfn|Powe|1951|pp=82–83}}