Credit Union Times - Centennial Edition - (Page I22) CeLeBrAtiNg 100 YeArS , SPeCiAL CeNteNNiAL editioN roosevelt Signs Federal Credit Union Act WASHINGTON, June 26, 1934 — President Franklin D. Roosevelt today signed the Federal Credit Union Act into law. The act establishes the ways and means for the federal government to allow and approve the chartering of credit unions and also provides for federal regulation of such nonprofit, cooperative financial institutions. The legislation leading up to the new law was sponsored in Congress by two powerful lawmakers from Texas: Sen. Morris Sheppard (D) and Rep. Wright Patman (D). Sheppard had drafted several pieces of credit union legislation during the decade, but it wasn’t until this year that passage of a federal bill supporting the movement seemed likely to pass. In the current congressional session, the Sheppard bill was introduced last May 4. It called for the establishment of a national system of cooperative credit for people of small means. It also provided for a central depository system, with a federal central credit union in each state. During Senate consideration of the bill, national magazines published articles that cited cases of how credit unions had rescued people from financial ruin. Boston businessman Edward Filene had noted that during these years of depression, as the economy had ground to a halt and hundreds of banks had voluntarily liquidated, state-chartered credit unions continued to make loans to help individuals. He said that credit unions did everything they could to enable borrowers to repay their loans by charging low interest rates and by relying on character and cooperation. “Credit unions had found a better security by simply helping people,” Filene said, “and making them part of an organization where the aim of the lenders and borrowers is mutual.” The Senate approved the bill on May 10. But the bill stalled in the House of Representatives. Finally, in the early evening of the last day of the session, the bill, loaded with House amendments, was approved by the lower chamber. Sen. Sheppard had two alternatives at that point: refer the bill to a conference committee or ask the Senate for unanimous approval of the Wright Patman amended bill without a reading or debate. The powerful Texas senator chose the latter. He assured his Senate colleagues that the House changes were simply perfecting amendments. The bill passed by unanimous consent and was sent to the White House, where it was signed by the president. New Credit Union group Formed: CUNA replaces extension Bureau ESTES PARK, Colo., 1934-1935 — Credit union movement supporters from 21 states meet here for four days in August 1934 to establish a constitution and bylaws for a new national trade group. At the meeting there were 52 delegates from 21 states and the District of Columbia. Ten delegates represented state leagues. Edward Filene, considered the father of the credit union movement and a major financial backer, also attended. The Estes Park gathering followed a March resolution by the Illinois Credit Union League for a “meeting called for the purpose of enjoying a vacation and incidentally there will be discussion and meeting of minds and an exchange of ideas on whether or not there shall be a national association and other questions necessarily involved.” Credit union leagues in several other states passed similar resolutions. The meeting was organized and invitations sent out in April 1934 by Roy Bergengren, executive secretary of the CU National Extension Bureau. The August meeting considered five drafts of a constitution and bylaws. After some heated debate, revised and final drafts were completed on Aug. 10. All 52 delegates in attendance signed the documents on Aug. 11, taking the first step in establishing the Credit Union National Association, which would replace the Extension Bureau. One of the new group’s bylaws states: “In grateful recognition of the fact that Edward A. Filene…first brought cooperative credit to the United States–that he created in 1921 and financed from 1921 to 1934 the Credit Union National Extension Bureau in order that there might be a sustained development of cooperative credit in our country–in free acknowledgement of the unique debt which we and succeeding generations of credit union members owe and will always owe him–we create the office of founder of this association and name Edward A. Filene to that office for life. Thereafter said office shall be abolished.” By Oct. 20, 1934, all five organized state leagues in the nation, except Massachusetts, had ratified the constitution, and new leagues had been organized in Colorado, Tennessee, Mississippi, Louisiana, Texas, Arkansas, Georgia, North Carolina, Kentucky, Ohio, Michigan, New Jersey, and Wisconsin. Eleven of the leagues promised to support the national association by contributing annually one-half of 1% of their assets. In a letter to Filene dated Nov. 30, 1934, Bergengren wrote: “When someone writes the history of the credit union movement a hundred years from now, the fact that Tom [Doig] and I have induced 33 new states to ratify the national constitution and bylaws, in the process organizing over 20 new state leagues, between the last week of September and Thanksgiving week, will be–I think–rated as possibly the major achievement of the Credit Union National Extension Bureau.” Early in January 1935, Bergengren issued the call for the first meeting of CUNA’s board. Meeting on Jan. 27 in Kansas City, Filene was unanimously selected president. CU day Celebrations turn From Sparse to Worldwide WASHINGTON — By 1927, those in the credit union movement wanted to establish an annual occasion to acknowledge both the important role credit unions played in creating opportunity for their members and communities and the achievements of the pioneers who laid the foundation for the movement. On Jan. 17, 1927, the Credit Union League of Massachusetts celebrated the first official holiday for credit union members and workers. Jan. 17 was chosen because it was the birthday of America’s “Apostle of Thrift,” Benjamin Franklin, who early credit union founders believed symbolized “the life and teaching embodied in the spirit and purpose of credit unions.” Ironically, rapid growth within the North American credit union movement meant that people were either too busy to celebrate or too new to the movement to recognize the significance of the celebration. After a brief trial period, Credit Union Day quietly disappeared. But in 1948, the Credit Union National Association decided to initiate a new national Credit Union Day celebration. CUNA and CUNA Mutual set aside the third Thursday of October as the national day of observance. By then, many more of America’s credit union leaders believed there was a need for an occasion that would bring people together to reflect upon their credit unions’ history and achievements and to promote the credit union idea across the country. Credit unions and state leagues were encouraged to celebrate the new holiday in some way. It was to be a time for raising funds for movement causes and to pay homage to the men and women who had dedicated their lives to credit union development. By 1964 so many countries outside of the U.S. had established credit union movements that CUNA’s mission was formally expanded and CUNA International was launched. Each year, new movements joined the credit union family and an increasing number of people were interested in celebrating their uniqueness and unity with a special holiday that could be enjoyed worldwide. Many bol, “Little Man.” A new logo shows the Little Man, giving up his umbrella, and donning an army uniform and sporting a rifle over his shoulder. This new logo along with new credit union posters supporting the war were unveiled today by CUNA. “Credit unions have enlisted for the duration of the war,” said Roy F. Bergengren, head of the trade organization, in announcing the new campaign. Bergengren emphasized that CUNA would aid credit unions in concredit unions and leagues began to distribute publications, banners, slogans and kits, and the day of honor and recognition became an international celebration. By 1971, substantial worldwide credit union progress led to the creation of the World Council of Credit Unions to assist others in establishing and maintaining viable credit union movements in countries across the globe. In Canada, Australia, Latin America, the Caribbean, Africa, Asia, New Zealand, Great Britain and the South Pacific, national and regional credit union federations and confederations were established to support and endorse credit union development. To aid in the process, WOCCU created the first International Credit Union The 2008 Day and distributed materials sup- International CU porting the celebration around the Day logo. world. tinuing “every possible service to our members consistent with the national program.” He added that CUs would help “members accumulate savings, that they may have vitally needed financial resources when the war is over.” He also said the nation’s credit unions were cooperating in “the sale and purchase of war fund securities.” The Treasury Department in September authorized credit unions to sell U.S. Savings Bonds. www.cutimes.com ‘Little Man’ enlists in War effort MADISON, Wis., Dec. 22, 1941 — The credit union movement, like all of America, is enlisting in the war effort, and that includes the movement’s graphic sym- Credit Union Times, December 2008 http://www.cutimes.com
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