SECURITY THROUGH CREDIT
UNIONS
EXISIT OF GROWTH
Credit unions ai*e not new. The credit un
ion movement in the United States is usual
ly dated from 1909, when Massachusetts pas
sed the first State credit union law. Since
then most of the States, as well as the
District of Columbia, have passed similar
laws. Cooperative credit societies have
been known in Europe and .^sia for more than
a century.
There are now more than 9,000-credit unions
in the United States, whose 4,000,000"mem
bers have accumulated nearly 0700,000,000.
In size and amount of business done, credit
unions show a steady growth which continues
year after year. Dearly half of the active
credit unions in the United States are op
erating under Federal charter and new char
ters are being granted each month.
FEDERAL ACT
The Federal Credit Union Act was passed in
1934. It provides for the chartering and
supervision of Federal credit unions. Its
general provisions are similar to those of
many State credit union laws and are based
on the best experience under the State laws
that preceded its passage by Congress.
CilTROL AMD UAHACSiliBff
Control and management are in the hands of
the members of the credit union, A board
of directors, a supervisory committee, and
a credit com ittee are elected at the an
nual meeting of members held in January,
The board selects the officers from its our
membership. The records show that credit
unions can manage their money affairs with
every essential of success.
Ho officer encept the treasurer nay receive
any compensation, and the treasurer very
often serves without pay, or for only a
roninal salary, especirlly in the first
,-ear or tiro of the credit union's life," :he
perience has shown that the credit union *
can depend upon this unselfish service of
officials.
It 'SSLo
-'-ctual statistics of Federal credit unions
show losses charged off because of bad
loans amounting to less than tiro-tenths of
1 percent of all loans made. The records
of State credit unions covering the First
World War and the postwar period of finan
cial. stress, as v/ell as the depression
yc-rs, show a similar loir rate of losses
from bad loans.
There are a number of provisions in the
Federal Credit Union --ct and the standard
bylaws that protect savings of members in
Federal credit unions, ooaio of these are?
I
POTTED PLANTS
£
C UT FLOWERS
J
Maud Hosier
» LOOK YOUR BEST
when School Opens
in CLOTHES all'FRESHLY
CLEANED & PRESSED
PICK-UP L DELIVERY
SERVICE
In Palricr Sc ’.'.'asilia
OPEN 5 DAYS A WEEK
Mondays thru Fridays
CALL 6-Y-3
Mary V.'itt
1. The limit;.tion of membership to fellow
employees, to members of the same church, ■
lodge, labor union, or other organization,
or to neighbors in a community group, end
the further limitation that loans may be
made only to members result in the establish
ment of social pressures, on borrowers who
otherwise might bo thoughtless or dilatory
in making payments,
!2, The treasurer must be bonded for faith
ful performance of his dptios, and all per
sons handling or having custody of credit
union finds must also be bonded,
3, The affairs of the credit union and the
records' of the‘treasurer are subject to fro
quent audits by the supervisory committee
which is responsible only to -the members,
4, The Act and the bylaws provide for the
sotting aside of a reserve for bad loans.
5, Adequate security is required on all loan:
in excess of @300*
6, Officers and directors of Federal credit
unions are not permitted to borrow from thei
associates in excess of thoip shareholdings
7, The surplus finds of the credit union may
be invested only in obligations of the Fed
eral. Government, in loans to other credit
unions, and in shares or accounts of Feder
al savings and loan associations.