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Cooperative Credit Societies (Credit Unions) in America and in Foreign Countries

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Cooperative Credit Societies (Credit Unions) in America and in Foreign Countries U. S. DEPARTMENT OF LABOR JAMES J. DAVIS, Secretary BUREAU OF LABOR STATISTICS ETHELBERT STEWART, Commissioner BULLETIN OF THE UNITED STATES \ BUREAU OF LABOR STATISTICS/ ’ • • ■ {No. 314 MISCELLANEOUS SERIES COOPERATIVE CREDIT SOCIETIES (CREDIT UNIONS) IN AMERICA AND IN FOREIGN COUNTRIES By EDSON L. WHITNEY NOVEMBER, 1922 WASHINGTON, GOVERNMENT PRINTING OFFICE 1922 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis CONTENTS, Pago. Introduction—Description of the credit union................................. 1 Cooperative credit abroad..................................................................... 2-14 Germany......................................................................................... 2- 9 Schulze-Delitzsch societies.................................................... 2 Raiffeisen societies.........................................................:**.-* 2,3 Comparison of Schulze-Delitzsch and Raiffeisen societies 3- 9 Officers and buildings..................................................... 3 Membership.................................................................... 4 Capital............................................................................... 4,5 Liability of members....................................................... 5 Method of making loans................................................ 5-7 Interest............................................................................. 7 Management..................................................................... 7.8 Withdrawals and dissolution.......................................... 8 Federations...................................................................... 8.9 Progress............................................................................. 9 Italy.................................................................................................. 10,11 Other countries............................................................................... 11-13 ' France....................................................................................... 11,12 Argentina, Uraguay, Egypt, and Canada............................ 12 Belgium.................................................................................... 12 Holland..................................................................................... 12 Switzerland.............................................................................. 12 Austria...................................................................................... 12 Hungary, Czechoslovakia, and Yugoslavia......................... 12 Serbia and Bulgaria................................................................ 12 Russia........................................................................................ 12.13 Prussian Poland...................................................................... 13 Russian Poland, Bohemia, Moravia, and Silesia................ 13 England................................................................................... 13 Ireland...................................................................................... 13 India............... ......................................................................... 13 Comparative statistics.................................................................... 13.14 Cooperative credit in America............................................................. 15-56 History of movement..................................................................... 15-20 Quebec...................................................................................... 15,16 New Hampshire....................................................................... 16 Massachusetts........................................................................... 17.18 Jewish unions.......................................................................... 18.19 Development of agricultural credit...................................... 19.20 Feaeral farm loans........................................................... 20 State credits........................;......................................... 20 Legislative action........................................................................... 20- 29 Credit union legislation.......................................................... 21- 29 Name of credit associations............................................ 21 Control........................1.................................................... 21,22 Articles of incorporation and by-laws........................... 22, 23 Share capital................................................................... 23 Deposits............................................................................. 23.24 Loans................................................................................. 24 Other activities................................................................ 24.25 Liability................... ............................... ..................... 25 Meetings................... ....................................................... 25 Directors and officers....................................................... 25, 26 Credit committee............................................................. 26 Supervisory committee................................................... 26,27 Committees in general................ ................................ 27 ill Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis IV CONTENTS Cooperative credit in America—Continued. Legislative action—Continued. Credit union legislation—Continued. Page- Dividends........................................................................................................ 27 Guaranty or reserve fund............................................................................ 27,28 Withdrawal of members.............................................................................. 28 Reports...........................:............................................................................... 28,29 Examination of accounts............................................................................ 29 Dissolution...................................................................................................... 29 Attitude of labor unions.............................................................................................. 29, 30 Public educational effort........................................................................................... 30 Private plans.................................................................................................................. 30, 31 Proposed uniform law.................................................................................................. 31, 32 Characteristics of American credit unions............................................................. 32-35 Membership............................................................................................................ 32-34 Borrowing on character............................................................................... 33 Loans........................................................................................................................ 34 Management........................................................................................................... 34, 35 Surplus....................... 35 Credit union experience in America....................................................................... 35-55 Quebec.................................................................................................................. 36-39 Massachusetts.................................................................. 39-44 New York........................................................................................................:... 45-48 North Carolina........................................................................................ 48-52 New Hampshire..................................................................................... 52 Rhode Island.......................................................................................................... 53 Jewish credit unions............................................................................................. 53, 54 Comparative statistics.......................................................................................... 55 Conclusions................................................................................................................... 56, 56 Appendix—Bibliography................................................................................................... 57-60 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis BULLETIN OF THE U. S. BUREAU OF LABOR STATISTICS NO. 314 WASHINGTON NOVEMBER, 1922 COOPERATIVE CREDIT SOCIETIES (CREDIT UNIONS) IN AMERICA AND IN FOREIGN COUNTRIES. INTRODUCTION. Cooperative credit societies have been established for the purpose of encouraging thrift among and extending credit at low cost to honest, frugal, industrious workers of the agricultural and mechanical classes with slender means, and thus preventing their falling into the hands of “loan sharks” in time of unemployment, sickness, or need. Communities without local banks, or where existing banks do not loan money in small amounts, are a fertile field for credit societies. These organizations are known under
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