The prohibition movement swept across Canada during the years of the First World War; but while the war effort would help to unite us as a country, nothing polarized the electorate quite like prohibition.
Prohibition was introduced to Ontario in 1916 with the passing of the Ontario Temperance Act (OTA), which made it illegal to “have, keep, give or consume liquor except in a private dwelling house”. Despite the fact that it was illegal to sell or purchase alcohol, it was readily available to those who wanted it through local speakeasies and through certain loopholes in the legislation.
One of the more amusing loopholes allowed doctors and veterinarians to write prescriptions for alcohol, a practice that became quite profitable for many physicians. In 1924, Ontario doctors wrote 724,920 prescriptions for alcohol, worth a total value of more than $5 million. And that’s when the most expensive scotch went for a mere $3.75 per quart.
The man in charge of Ontario when the prohibition debate came to a head was Conservative Premier George Howard Ferguson. When Ferguson was elected Premier in 1923, expectations were high that he would either reform the OTA or abolish it.
However, due to the strong feelings on both sides of the issue, Ferguson first asked the Ontario public for their direct input in the form of a referendum. Unfortunately for Ferguson, the vote only confirmed that voters were divided on the issue, almost right down the middle.
Those in favour of maintaining prohibition won a slim 51.5 per cent majority over those who wished to see the OTA reformed or repealed. The underwhelming result was hardly a victory for supporters of prohibition, and it actually proved to be the beginning of the end of the temperance movement in Ontario.
In an effort to appease both sides, Ferguson first worked to simply reform the OTA in 1925, permitting sale of beer with an alcoholic content of no more than 4.4 per cent. Ferguson contested that scientific experiments had proven the 4.4 per cent beer was non-intoxicating. This brew would come to be known as Fergie’s Foam, named after the Premier himself.
Ferguson navigated through the prohibition issue so well that the people of Ontario re-elected him to a second straight majority in 1926. Ferguson used his high standing with voters to repeal the OTA and create the Liquor Control Board of Ontario the following year. The new venture proved to be an attractive source of new tax revenue for the Province, taking in more than $2 million in its first six months of operation in 1927.
Over time, the LCBO’s initial mandate has dramatically shifted from controlling access to alcohol to aggressive marketing to maximize revenue to the provincial treasury. The LCBO now spends more than $12 million annually on advertising, flyers, reward programs and its own free magazine to promote what it calls “responsible drinking.”
The result: $1.2 billion in net revenue to the Province but an entity far different than originally envisioned.