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UNITED STATES DEPARTMENT OF LABOR
L. B. Schwellenbach, Secretary
BUREAU OF LABOR STATISTICS
Ewan Clague, Commissioner

Activities o f Credit
Unions in 1945

Bulletin ?<Lo. 894

For sale by the Superintendent o f Documents, U. S. Governm ent Printing Office
Washington 25, D . C. - Price 5 cents




L etter o f T ransm ittal

U n it e d S t a t e s D e p a r t m e n t of L a b o r ,
B u r e a u of L a b o r S t a t ist ic s ,

Washington, D. C., January 17, 1947.
The S e c r e t a r y of L a b o r :
I have the honor to transmit herewith a report on the activities of credit unions
in 1945, prepared by Florence E. Parker of the Bureau’s Labor Economics Staff.
E w a n C l a g u e , Commissioner.
H o n . L. B. S c h w e l l e n b a c h ,
Secretary of Labor.

C ontents

Summary---------------------------------------------------------------------------------------Operations in 1944 and 1945_________________________________________
Trend in formation of associations in 1945____________________________
State legislation_____________________________________________________




<ii)

Page

1
1
6
6

Bulletin T^o. 894 of the
United States Bureau of Labor Statistics
[Reprinted from the M onthly L abor R eview, December 1946, with additional data.]

Activities of Credit Unions in 1945

THE slight upward trend in business done by credit unions in the
United States in 1944, after a serious decline during the war years,
was continued in 1945, although the total of loans made was still
more than 40- percent below the peak of 1941. This increase took
place in spite of a slight reduction in number of loans made, indicating
a rise in the average size of loan. Share capital and assets which
(notwithstanding the otherwise adverse business experience of the
credit unions during the war) have continued to rise steadily, main­
tained their upward pace in 1945, showing increases of 8.1 and 9.2
percent, respectively. Reserves fell somewhat, however, both in
amount and in relation to loans outstanding, declining as regards
the latter from 20.7 percent in 1944 to 19.4 percent in 1945.
Both net earnings and dividends paid on share capital increased as
compared with 1944. For 1945, credit union members received
nearly $5,900,000 in dividends on their shares.
Because 398 credit unions went out of existence (some of them
undoubtedly in war plants now closed) and only 239 were newly
chartered, the total number of associations fell from 9,041 at the end
of 1944 to 8,882 at the end of 1945. Partly as a result of this, the
total membership declined 3.3 percent.
The State-chartered credit unions fared better during the year than
the Federal associations.1 Their membership declined 0.5 percent, as
against 6.7 percent for the Federal associations; they increased their
business by 0.8 percent, whereas the loans made by the Federal credit
unions fell 0.1 percent. The increases in assets of the two groups of
associations were 11.0 and 6.1 percent, respectively.

Operations in 1944 and 1945

Data on membership and business of credit unions in 1944 and 1945
are given in table 1.
1 For the State-chartered associations the statistical data on which the present report is based were in most
cases furnished to the Bureau of Labor Statistics by the State official—usually the Superintendent of Bankscharged with supervision of these associations. Reports were received from all States except Iowa. For
that State and for certain items concerning which some States do not require the associations to report,
estimates were made, based on the trend in other States and on the trend of the other items in the same State.
All of the information for the Federal credit unions was supplied by the Credit Union Division of the Federal
Deposit Insurance Corporation.
(i)



2

.—Operations of credit unions in 1944 and 1945, by States

T able 1

[Some revisions in 1944 figures, on basis of later reports]
State, and type of
charter

Year

Number of
Amount of loans—
associations4 Number Number
of loans
of
made
members during Made dur­ Outstanding
Total Report­
year
ing
ing year end of year

All States..............................
State associations..........
Federal associations___

1945
* 1944
1945
8 1944
1945
1944
1945
8 1944
1945
1944
1945
1944
1945
1944
1945
1944
1945
1944
1945
1944
1945
1944
1945
1944
1945
1944
1945
1944
1945
1944
1945
1944
1945
81944
3 1945
1944
1945
8 1944
1945
1944
1945
2 1944
1945
1944
1945
1944
1945
1944
1945
2 1944
1945
2 1944
1945
1944
1945
1944
1945
1944
1945
1944
1945
1944
1945
1944
1945
1944
1945
1944
1945
1944
1945
1944

8,882
9,041
4,923
4,993
3,959
4,048
78
80
23
24
25
27
444
451
106
107
186
185
10
10
112
114
160
168
132
135
96
97
31
33
762
766
297
299
195
201
112
117
104
108
131
139
38
44
64
65
539
537
248
253
325
332
26
27
369
378
40
40
89
96
4
4
16
15
247
240
14
14
753
763
195
173

Alabama..............................
Arizona..................................
Arkansas................................
California..............................
Colorado................................
Connecticut4........................
Delaware4.............................
District of Columbia...........
Florida...................................
Georgia..................................
Hawaii4..................................
Idaho..____ ____________
Illinois....................................
Indiana..................................
Iowa.......................................
Kansas...................................
Kentucky..............................
Louisiana..............................
Maine....................................
Maryland..............................
Massachusetts......................
Michigan...............................
Minnesota.............................
Mississippi............................
Missouri................................
Montana................................
Nebraska...............................
Nevada4................................
New Hampshire...................
New Jersey...........................
New Mexico 6.....................
New York.............................
North Carolina.....................

See footnotes at end of table.



8.615
8,702
4,858
4,907
3,757
3,795
76
77
22
24
25
26
432
442
102
100
180
179
9
9
108
106
156
162
128
131
95
96
31
31
758
756
295
294
195
196
110
111
103
107
125
132
35
35
60
60
535
532
240
241
324
329
23
24
340
359
37
37
87
88
4
4
14
14
237
233
13
14
721
729
168
151

2,838,034
2,933,507
1,621,409
1,629,706
1,216,625
1,303,801
28,258
26,806
3,285
3,419
3,059
2,862
3 171,391
*184,969
25,999
25,645
75,118
89,517
2,126
2,114
62,095
66,099
35,202
34,991
33,837
34,117
36,112
37,753
3 3,971
3,895
330,830
290,032
« 93,502
3 97,967
40,779
41,395
25,068
27,914
3 24,582
*26,649
3 32,405
8 32,241
9,273
9,080
25,109
26,748
255,007
257,260
108,633
114,320
65,734
66,696
» 5,553
6,640
88,761
90,834
7,175
6,382
19,381
20,595
584
562
5,698
6,151
99,042
114,225
1,304
1,324
258,397
279,116
35,471
29,387

1,511,851
1,591,132
909,922
926,518
601,929
664,614
34,261
*26,948
* 1,367
*1,350
1,824
1,685
3 78,839
3 89,047
* 17,312
* 18,259
41,755
47,962
1,003
1,148
«33,236
*38,052
22,659
25,251
*22,879
3 22,744
11,116
10,076
1,405
1,329
» 238,519
* 226,575
*44,616
3 51,326
18,446
18,921
13,056
3 14,423
* 16,209
3 15,214
3 17,008
3 17,270
3,672
3,987
*17,395
* 17,458
»122,570
3 122,591
50,172
*51,950
28,713
«33,389
*4,787
*5,784
*41,887
*44,328
*2,952
*2,284
8,795
9,882
108
104
*3,017
» 3,557
50,390
63,925
333
589
*127,090
*144,310
*17,801
17,822

$210,885,783 $126,277,698
209,955,479 120,955,395
132,616,939
91,122,284
131,621,582
86,551,928
78,268,844
35,155,414
78,333,897
34,403,467
4,147,161
1,929,705
3,155,213
1,534,975
3 339,842
135,613
547,043
117,812
194,567
113,615
163,980
86,860
*12,926,276
8,171,810
*13,481,423
7,761,778
* 2,247,274
1,349,980
3 2,105,359
1,151,187
4,821,201
1,744,467
5,742,389
1,963,648
132,166
71,371
139,085
67,574
3,825,016
1,976,325
3,881,868
2,065,336
3,683,161
2,099,007
3,248,585
1,774,033
*3,090,362
2,068,728
*2,886,066
1,896,131
2,155,997
930,429
1,941,163
1,001,467
185,467
102,729
173,653
87,049
28,929,683
14,011,222
25,698,370
13,135,592
*5,755,008
3,529,359
86,278,072
3,378,962
2,397,601
1,771,508
2,420,443
1,825,666
1,971,470
1,082,077
*1,952,696
1,071,793
*1,841,919 *1,366,101
*1,752,616
1,366,019
* 2,158,785
1,066,420
* 2,143,350 *1,037,703
450,641
261,743
441,178
237,840
*1,942,507
804,623
*1,883,517
784,897
22,917,547
16,436,055
22,654,669
15,466,050
8,683,432
6,389,549
*8,437,474
5,981,086
4,598,703
5,808,028
»3.662,418
5,451,077
*462,150
191,042
*530,087
226,352
*4,868,432
3,116,292
*5,432,884
3,185,792
* 440,493
261,103
*373,912
201,345
1,253,906
730,378
1,320,588
717,155
16,185
9,386
13,004
7,169
*760.720
640,080
*788,041
653,906
5,809,257
2,416,596
6,382,951
2,632,417
46,262
25,220
63,358
28,217
* 20,785,191
12,608,773
*23,601,108
12,898,928
*2,078,429
1,934,614
2,088,966
1,256,073

3

.—Operations of credit unions in 1944 and 1945, by Stalest-Continued

T able 1

State, and type of
charter
North Dakota......................
O hio.....................................
Oklahoma..............................
Oregon...................................
Pennsylvania......... .............
Rhode Island........................
South Carolina.....................
South Dakota 4....................
Tennessee..............................
Texas.....................................
Utah.......................................
Vermont.—...........................
Virginia— ............................
Washington.....................—
West Virginia—...................
Wisconsin..............................
Wyoming 4............................

Number of
Number
Amount of loans—
associations1 Number of loans
made
of
Year
during
members year Made dur­ Outstanding
Total Report­
ing
ing year end of year
1945
1944
1945
1944
1945
1944
1945
1944
1945
1944
1945
1944
1945
1944
1945
1944
1945
1944
1945
1944
1945
1944
1945
1944
1945
1944
1945
1944
1945
1944
1945
1944
1945
1944

93
97
583
589
71
75
71
75
586
587
36
37
35
39
32
32
117
127
334
350
64
66
10
9
86
91
178
188
63
67
534
551
18
19

87
80
567
575
66
72
68
71
571
560
35
34
29
31
32
32
115
124
319
328
62
65
9
9
83
86
174
180
59
60
534
548
17
18

11,766
10,689
188,522
214,099
* 16,225
16,513
12,491
13,053
213,503
224,151
26,648
25,792
6,922
7,688
4,818
5.176
33,903
34,567
76,217
77,952
11,375
11,577
1,692
1,562
23,391
25,396
35,404
37,739
15,318
15,857
144,594
151,509
2,504
2,582

3,300
3,241
84,927
97,508
* 7,760
*7,737
4,420
5,135
106,331
111,023
6,275
7,062
5,651
5,346
1,970
2,547
*26,412
*27,298
*44,953
*45,870
*10,152
*7,625
*1,108
1,265
16,519
14,366
*15,846
*18,999
9,839
*7,983
70,319
77,640
877
947

$1,115,835
738,280
11,896,005
12,317,470
*1,330,282
*1,238,328
749,837
811,167
13,435,747
13,406,338
2,445,642
2,023,922
416,753
427,749
236,954
273,901
*3,788,965
*3,581,047
*6,133,740
* 5,763,109
*1,328,692
*1,204,492
*76,395
74,947
1,619,262
1,462,221
*1,947,710
2,428,191
1,026,200
*764,907
7,265,449
7,885,115
155,504
168,766

$805,445
486,812
6,012,876
6,311,501
864,512
*710,019
531,506
544,424
6,326,211
6,296,028
4,510,639
3,781,404
204,162
190,507
99,457
119,880
1,578,663
1,428,126
3,229,896
3,063,612
637,293
567,092
27,389
27,554
843,257
901,198
1,234,717
*1,280,285
510,424
452,887
3,625,734
3,655,518
81,569
86,660

1 Most of the difference between the total number of associations and the number reporting is accounted
for by associations chartered but not in operation by the end of the year and associations in liquidation which
had not relinquished their charters.
* Revised.
* Partly estimated.
* Federal associations only; no State-chartered associations in this State.
* Federal associations only; although State permissive legislation was passed in 1945 no associations had
yet been formed under it.

Fifteen States (Alabama, Arkansas, Colorado, Delaware, Florida,
Idaho, Illinois, Louisiana, Maine, Montana, Nevada, North Carolina,
North Dakota, Rhode Island, and Vermont) showed a membership
increase. Their slight gains, however, were not sufficient to overcome
the losses in members in the other States.
The prewar level of business was reached or exceeded in 1945 by
both State and Federal associations in Alabama, Montana, and Ver­
mont, by the State-chartered associations in Rhode Island, and by
the Federal credit unions in Utah.
D ata on the financial status of credit unions, by States, is given in
table

2,




4
T a b le 2.

—Assets and earnings of credit unions, 1944 and 1945, by States

State, and type of Year
charter

Number of
associations1
Re­
Total port­
ing

1945 8,882
1944 9,041
1945 4,923
1944 4,993
1945 3,959
1944 4,048
Alabama...................... 1945
78
1944
80
Arizona........................ 1945
23
1944
24
Arkansas...................... 1945
24
1944
28
California.................... 1945 444
1944 451
Colorado.................. . 1945 106
1944 108
Connecticut3.............. 1945 186
1944 185
Delaware3................... 1945
10
1944
10
Dist. of Columbia.... 1945 112
1944 113
Florida......................... 1945 160
1944 170
Georgia......................... 1945 132
1944 138
Hawaii..................... . 1945
96
1944
97
Idaho............................ 1945
31
1944
33
Illinois.......................... 1945 762
1944 766
Indiana____________ 1945 297
1944 297
Iowa............................ *1945 195
1944 201
Kansas......................... 1945 112
1944
Kentucky.................... 1945 118
104
1944
Louisiana..................... 1945 108
131
1944 145
Maine.......................... 1945
381944
44
Maryland.................... 1945
64
1944
66
Massachusetts............ 1945 539
1944 537
Michigan..................... 1945 248
1944 253
Minnesota................... 1945 325
1944 365
Mississippi.................. 1945
26
1944
27
Missouri...................... 1945 369
1944 378
Montana...................... 1945
40
1944
42
Nebraska..................... 1945
89
1944
91
Nevada 3...................... 1945
4
1944
4
New Hampshire......... 1945
16
1944
15
New Jersey.................. 1945 247
1944 241
New Mexico •............. 1945
14
1944
14
New York________ 1945 753
1944 764
North Carolina........... 1945 195
1944 173
See footnotes at csnd of table.
All States....................
State associations.
Federal associations...................




8,615
8,702
4,858
4,907
3,757
3,795
76
77
22
24
24
26
432
442
102
100
180
179
9
9
108
106
156
162
128
131
95
96
31
31
758
756
295
294
195
196
110
111
103
107
125
132
35
35
60
60
535
532
240
241
324
329
23
24
340
359
37
37
87
88
4
4
14
14
237
233
13
14
721
729
168
151

Reserves
Paid-in (guaranty
earn­ Divi­
share
fund, gen­ Total assets Netings dends on
capital eral reserve,
shares
etc.)
$366,201,586 $24,506,019
338,713,383 25,081,703
225,587,624 19,595,211
205,127,236 17,023,389
140,613,962 4,910,808
133,586,147 8,058,314
3,490,315
331,965
2,753,163
275,891
340,278
16,331
318,418
24,464
280,647
19,108
219,261
17,720
23,072,165 1,192,163
22,313,274 1,487,572
3,534,312
193,990
2,898,805
229,402
10,886,299
323,390
12,849,767
548,399
177,527
9,824
161,965
13,305
5,851,332
500,025
5,472,271
527,168
5,742,807
228,720
4,629,791
278,735
1,599,847
475,877
1,425,875
396,375
9,920,711
245,751
8,785,479
399,350
362,180
12,587
292,498
17,595
47,144,644 2,931,533
42,522,556 2,924,278
12,893,396
605,425
12,106,052
869,698
5,278,339
282,273
5,172,242
281,504
3,104,637
125,397
2,805,222
143,798
1,603,451
237,313
2,865,077
215,170
3,135,173
229,695
2,775,840
281,554
905,029
80,954
735,914
82,502
2,143,396' 234,146
2,029,995
230,933
34,835,929 4,094,449
30,893,107 3,176,049
1,897,722
866,627
17,420,056
826,662
10,445,037
547,621
8,995,484
547,967
394,429
23,759
508,580
53,008
12,350,600 3554,521
10,490,289 2601,875
631,187
18,386
460,586
23,642
2,258,249
119,160
2,042,738
135,202
30,220
1,412
25,011
1,741
521,102
89,449
490,954
85,489
11,997,931
526,189
12,027,205
579,566
97,912
5,057
80,794
6,582
32,051,449 3,381,877
31,673,401 3,132,182
4,390,565
168,470
2,796,132
159,545

$434,627,135
397,929,814
281,524,015
253,663,058
153,103,120
144,266,156
3,908,510
3,081,166
370,860
349,497
314,409
232,625
26,986,463
25,910,483
4,017,658
3,354,663
12,517,942
13,575.000
192,605
176,276
6,613,620
6,203,746
6,191,836
5,014,622
5,339,232
4,778,774
10,558,538
9,253,563
382,466
312,947
51,250,789
46,666,917
14,099,255
13,217,602
6,082,772
6,037,066
3,372,538
3,059,167
3,777,484
3,304,051
3,468,822
3,081,504
1,021,718
889,104
2,522,736
2,370,134
48,036,635
42,322,457
21,265,393
19,622,464
14,132,049
12,231,282
619,069
589,365
13,550,872
11,592,194
679,020
495,219
2,806,406
2,567,729
32,588
26,764
1,352,729
1,114,147
13,734,068
13,166,766
104,125
87,586
36,700,864
36,573,853
6,012,566
3,571,806

$7,839,810
5,716,736
5,278,300
3,507,152
2,561,510
2,209,584
94,715
82,859
7,580
24,908
6,194
4,932
2 408,543
2407,721
2 77,060
2 72,654
246,542
207,095
4,463
3,391
202,550
170,029
122,329
2 104,471
2 104,657
»100,237
173,028
158,711
5,009
3,709
938,364
322,849
2 173,438
3 161,751
70,904
88,595
2 45,765
2 48,959
2 43,203
2 42,401
»62,663
60,209
10,333
8,287
64,802
56,182
1,170,221
379,626
306,032
320,972
195,008
8 4,745
21,793
14,262
2162,124
2 160,978
14,370
8,565
39,891
44,475
487
119
32,026
28,528
268,184
202,493
623
872
770,253
682,279
32,680
82,861

$5,888,412
5,122,454
3,781,036
3,368,794
2,107,376
1,753,660
76,509
62,830
4,908
2 4,455
5,841
3,896
2 286,432
2 250,641
253,773
3 51,381
170,143
158,189
4,169
3,208
115,011
111, 651
89,530
73,180
2 70,387
2 63,359
136,026
112,905
4,152
3,824
778,743
645,723
2 134,715
2 114,888
45,410
93,051
2 31,846
3 31,585
2 28,979
2 28,474
2 49,444
40,808
12,092
10,526
47,013
40,431
8812,162
609,262
291,839
246,189
203,950
170,283
8,361
6,356
297,497
295,154
10,049
6,486
*29,888
24,207
456
287
9,896
9,966
196,245
171,265
816
862
558,692
542,878
*23,266
*37,909

5
T a b le 2.

—Assets and earnings of credit unions, 1944 and 1945, by States— Continued

State, and type of Year
charter
North Dakota______
Ohio........— ..............
Oklahoma....................
Oregon..................—
Pennsylvania..............
Rhode Island.............
South Carolina-------South Dakota8_____
Tennessee...............—
Texas...........................
U tah..........................
Vermont.....................
Virginia.......................
Washington................
West Virginia.............
Wisconsin...................
Wyoming 8._..............

1945
1944
1945
1944
1945
1944
1945
1944
1945
1944
1945
1944
1945
1944
1945
1944
1945
1944
1945
1944
1945
1944
1945
1944
1945
1944
1945
1944
1945
1944
1945
1944
1945
1944

Number of
associations12
4
*
Re­
Total port­
ing
93
95
583
589
71
75
71
75
586
587
36
37
35
39
32
32
117
127
334
354
64
66
10
9
86
91
178
200
63
67
534
551
18
19

87
80
567
575
66
72
68
71
571
560
35
34
29
31
32
32
115
124
319
328
62
65
9
9
83
86
174
180
59
60
534
548
17
18

Reserves
Paid-in (guaranty
earn­ Divi­
fund, gen­ Total assets Netings dends on
share
capital eral reserve,
shares
etc.)
$2,153,649
1,560,501
22,665,272
22,554,131
954,852
764,011
1,657,161
1,585,523
22,109,027
19,976,363
4,160,685
3,713,056
475,998
492,980
495,777
432,363
4,285,476
3,613,033
10,680,407
9,565,633
1,441,870
1,291,712
67,859
72,201
1,623,534
1,629,188
4,354,530
4,074,313
1,185,546
1,009,311
17,144,895
15,110,319
292,789
230,943

$38,597
29,867
788,602
1,009,014
79,711
86,153
91,957
99,714
831,494
1,255,130
430,473
369,780
30,274
44,716
19,794
34,466
509,368
367,724
705,052
839,769
72,840
80,718
2,250
2,584
213,237
316,819
348,999
371,762
109,095
129,608
1,546,123
1,453,581
9,141
15,375

$2,233,424 $29,759 $16,756
1,617,913
17,366
10,325
24,223,640 321,372 278,563
24.336,012 288,882 242,121
2,246,601 243,115 2 31,315
1,812,545
19,521
26,130
27,014
1,819,237
24,054
1,749,892
26,027
21,137
24,033,969 451,817 381,417
22,065,186 380,534 331,854
10,904,433 149,536
85,942
9,134,996 129,433
75,431
537,129
8,278
8,058
8,053
6,947
561,540
8,402
531,688
8,422
467,914
7,302
7,420
4,939,793 120,941
97,514
57,534
4,253,506
76,779
11,795,192 205,521 168,980
10,634,060 2 221,783 8160,116
1,612,069 2 34,015 223,674
1,444,259 232,706 221,081
81,164
1,019
448
735
75,826
398
2,082,280
39,775
36,130
41,094
2,159,086
31,496
80,769
95,303
4,776,410
44,981
4,467,146
56,318
25,913
1,413,816
22,998
1,201,774
24,446
22,913
19,065,759 395,744 229,798
16,871,283 361,551 219,135
5,334
6,428
309,246
5,489
246,337
4808

1 Most of the difference between the total number of associations and the number reporting is accounted
for by associations chartered but not in operation by the end of the year and associations in process of liqui­
dation which had not relinquished their charters.
2 Partly estimated.
8 Federal associations only; no State-chartered associations in this State.
4 Includes interest paid on deposits by State-chartered associations.
4Loss.
8 Federal associations only; although State permissive legislation was passed in 1945, no associations had
yet been formed under it.




6

Trend in Formation of Associations in 1945
Table 3 shows, by States, the number of associations formed and
dissolved in 1945, and the total and number reporting at the end of
the year.
T able 3.— Trend of formation and dissolution of credit unions in 1945
Number of credit unions
State and type
of association End of Char­
tered
1944 in
1945

End of 1945
Canceled
in
Re1945 Total porting

9,041 239 398 8,882 8,615
All States
State assns___ 14,993 143 213 4,923 4,858
Federal assns. _ 4,048 96 185 3,959 3,757
2
4 78
76
Alabama..
80
1 23
22
24
Arizona_______
24
Arkansas.___
3 24
27
7 14 444 432
California* ___ 451
3
4 106
59
Colorado______ 107
7
6 186 180
Connecticut........ 185
9
Delaware____
10
10
District of Co­
lumbia............. 114
2
4 112 108
3 11 160 156
Florida_
168
6 132 128
Georgia................ 135
3
Hawaii
1
95
2 96
97
Tdahn _
2 31
31
33
Illinois................. 766 27 31 762 758
Indiana_______ 299
6 297 295
4
Tnwa *
6 195 195
201
Kansas
4
9 112 110
117
Kentucky
108
3
7 104 103
2 10 131 125
Louisiana______
TWaina................. 139
35
44
2
8 38
2 64
60
Maryland........... 65
1
Massachusetts__ 537 12 10 539 535
Michigan
253
6 11 248 240
1
8 325 324
Minnesota_____ 332
i Some revisions, on basis of later information.
* Partly estimated.

1

Number of credit unions
State and type
of association End of Char­
tered
1944 in
1945
Mississippi.........
Missouri. ...........
Montana______
Nebraska
Nevada..............
New Hampshire.
New Jersey.........
New Mexico.......
New York...........
North Carolina*.
North Dakota...
Ohio..................
Oklahoma...........
Oregon________
Pennsylvania__
Rhode Island__
South Carolina. .
South Dakota...
Tennessee...........
Texas. ................
Utah....................
Vermont—..........
Virginia...............
Washington____
West Virginia. _.
Wisconsin_____
Wyoming______

State Legislation

27
378
40
96
4
15
240
14
763
173
97
589
75
75
587
37
39
32
127
350
66
9
91
188
67
551
19

End of 1945
Can­
celed
in
Re­
1945 Total port­
ing

3
4 26
8 17 369
40
3 10 89
4
1
16
11
4 247
14
14 24 753
29
7 195
4
8 93
15 21 583
4 71
1
5 71
15 16 586
1 36
1 . 5 35
1
1 32
2 12 117
8 24 334
1
3 64
1
10
1
6 86
26 36 178
1
5 63
3 20 534
1 18

23
340
37
87
4
14
237
13
721
168
87
567
66
68
571
35
29
32
115
319
62
9
83
174
59
534
17

California.—Several measures were enacted affecting the credit
unions. Chapter 1262 eliminated the requirement that the number
of persons in the field of membership be specified when a credit union
is organized, and limited votes to one per member in all associations
organized on or after September 15, 1945. Chapter 651 raised the
maximum amount permissible for a secured loan to $3,000 or 10 per­
cent of the credit union’s capital, whichever is greater (but in no
case to exceed $10,000); and provided that on loans over $3,000 the
excess must be secured by real and/or personal property. No loans
may be made to directors or committee members in excess of their
investment; henceforth a borrower may be elected as director or
committee member, but will forfeit his office in case of default on
repayment of his loan. Under chapter 438, formal meetings of the
credit committee are apparently no longer required, the former pro­
vision being amended to require only that loans be approved in
writing by a majority of the committee.



7

The duties of the supervisory committee now include the mandatory
requirement that the committee make an annual audit of the books
and records (ch. 1262).
A range of examination charges is established, varying according to
assets of the credit union (ch. 1318), the Commissioner of Corporations
being authorized to make certain adjustments in these, to suspend or
revoke the licenses of associations failing to pay such charges before
the end of the year, and to make extra charges for special services
rendered by his office. Chapter 475 gives him certain powers over
credit unions operating on an unsound basis or with impaired capital;
provides that if three-fourths of the directors vote to recommend the
dissolution of an association, liquidation may be carried out on vote
of a majority of members; and specifies procedures for liquidation.
It likewise provides for mergers of credit unions with “ like com­
munity interests,” upon majority affirmative vote of the directors
and a three-fourths vote of the members.
Annual reports must be made to the commissioner within 90 days
of the close of the calendar year, failing which an association may
have its charter suspended (ch. 437). Chapter 467 permits any
credit union to take out group life insurance for its members.
Colorado.—An amendment (ch. 113) permits members of the im­
mediate family of a credit-union member to join the association and
to have joint accounts with him; permits members withdrawing from
the field of membership to leave in their shares and deposits, if so
provided by the bylaws, but they are prohibited thereafter from
borrowing from the credit union amounts in excess of their holdings;
requires that 20 percent of annual earnings shall be set aside in the
reserve fund until the latter equals 15 percent of loans outstanding,
and thereafter 15 percent until the reserve equals 20 percent of out­
standing loans; authorizes the directors (instead of membership
meeting) to declare dividends; and authorizes the formation of a
central credit union.
Connecticut—This State passed a credit-union law in 1939, but no
association was ever formed under it. The 1945 legislature made
several liberalizing amendments to the act. By chapter 192b the
previous license fee of $50 was reduced to $20 and the filing fee was
set at $10. Associations formed under the act may use either the
name “ credit union” or “mutual benefit association,” but must specify
“ in detail” in their articles of incorporation the proposed field of
membership. Shares may be $5 or a multiple thereof. Copies of
the bylaws must be supplied to members on request. The amend­
ment permits credit associations to take out insurance on the lives of
borrowers (to safeguard their loans) and to invest in bonds legal for
savings banks and (not to exceed 10 percent of assets) in building and
loan associations in the State. Annual meetings may vote to pay the
729944—47-----2




8

officers compensation for their services. A new provision prohibits
proxy voting at meetings.
The limit on unsecured loans was raised from $100 to $300 and on
the individual member’s shareholdings from $1,000 to $3,000 (but no
more than $1,000 of this to be added in any calendar year).
Officers other than president, vice president, treasurer, and secretary
may be provided for in the bylaws, and the manner of their election
(whether by members or directors) may also be specified. The
directors must meet at least once a month. A fidelity bond must be
provided by the treasurer before entering upon his duties.
Florida.—Act No. 499 (ch. 23013) reduced the voting requirement
for dissolution of an association from four-fifths of the members to a
majority.
Indiana.—The 1945 amendment (ch. 198) reduces the total reserves
required from 20 to 10 percent of the paid-in capital (after this
amount is reached no further set-asides are required), permits credit
unions to carry an undivided profits account, sets January 31 and
July 31 as the dates for reports to the State Department of Financial
Institutions, and provides that credit unions shall be subject to the
same taxes as savings banks.
Maryland.—Chapter 409 authorizes credit unions to make firstmortgage loans up to $1,500 (but not exceeding 50 percent of the
appraised value of the property), at a rate of interest not over 6 per­
cent, amortized over a period not greater than 20 years; all such loans
must have the approval of the Bank Commissioner. The proportion
of annual earnings to be set aside in reserves was reduced from 25
to 20 percent (ch. 665); after the reserves are equal to 20 percent of
the paid-in share capital, only such sums shall be required to be set
aside as are necessary to keep the reserve fund at that level.
Credit unions may hereafter borrow from any source (including
other credit unions) amounts not exceeding 25 percent of their assets
for not longer than 90 days, but this may be extended for a like
period on approval of the commissioner. A credit union may also
make loans to another credit union (ch. 315). It may also, upon
approval, invest its surplus capital in insured building and loan
associations (ch. 666). Chapter 515 imposes a $10 franchise fee.
Massachusetts.—Chapter 37 authorizes savings banks, cooperative
banks (building and loan associations), trust companies, and credit
unions holding a first mortgage on real estate to take, in substitution
therefore from a bona fide purchaser, a first mortgage in an amount
not exceeding that due on the existing first mortgage and accumulated
interest, taxes, municipal liens, and other proper charges due thereon.
The same organizations are authorized (1) by chapter 46 for a period
of 5 years after the termination of the war to make loans to veterans,
and all limitations on the loans of such organizations are suspended as



9

regards veterans’ loans, and (2) by chapter 66 to make housing loans.
Chapter 81 authorizes and prescribes conditions for trustee accounts
in credit unions.
Chapter 82 amends chapter 102 of 1941 to provide that credit
unions with assets of not more than $75,000 may invest not over 50
percent and those with assets of over that amount 70 percent of their
shares, deposits, and guaranty fund in real-estate mortgages; however,
the total liability of any member upon loans so secured shall not
exceed 5 percent of the credit union assets nor $8,000. The terms
upon which such loans may be made are also prescribed.
Minnesota.—By the terms of chapter 540, credit unions in Min­
nesota, chartered by either the State or the Federal Government,
are permitted to become members of other credit unions. Annual
reports are required to be filed with the Commissioner of Banks on
or before January 15 of each year. The aggregate amount of bor­
rowings of any credit union may not exceed 35 percent of its unim­
paired assets. In the case of a loan to a director or committee member
which exceeds the amount of his investment in the credit union, the
loan must be approved by a joint meeting of the board and both
committees.
Nebraska.—Extensive revisions of the credit-union law by chapter
41 require a member to own a fully paid share in order to be eligible
for a loan or to vote at meetings, remove the previous limit on the
maximum loan to any member and authorize the board of directors
to fix the limit, permit loans to directors and committee members in
excess of their holdings if approved by the credit committee and a
majority of the supervisory committee in the absence of the borrower
concerned, authorize the credit committee to require a borrower to
pledge his shares as security, and permit the application of the shares
of a defaulting borrower or withdrawing member toward payment
of his loan. The directors are authorized to determine (instead of
recommend, as previously) the rate of dividend on shares; this may
be done on the basis of the share and loan balances as of December
15, instead of the end of the association’s fiscal year, if the board
chooses. It may also fix the treasurer’s compensation (previously
done by membership meeting). The payment of patronage refunds
to borrowers is hereafter permitted, as is also the verification of pass­
books by mailed notice to the member, confirmed by the member
himself.
New M exico.— A. new credit-union law (ch. 129) was enacted in
this State. It places the credit unions under the supervision of the
State Bank Examiner, provides a filing fee of $5 for articles of incor­
poration and bylaws, and reserves the name “ credit union” to associa­
tions formed under the act. Such an association is authorized to
accept savings either as shares or as deposits, to make loans to mem­



10

bers (who may be other credit unions as well as individual persons),
to invest in any investment legal for savings or trust funds and not
over 25 percent of its capital in paid-up shares of building and loan
associations and in other credit unions, to borrow money aggregating
not over 25 percent of its assets, and to become a member of a central
credit union.
Individual membership in any credit union is limited to persons with a
common bond or occupation or association or to groups within a welldefined neighborhood, community or rural district, and the members
of their immediate family (but special limitations on the rights and
privileges may be imposed on this latter group). Organizations of
substantially the same group as the credit union membership may
also be admitted, as well as other credit unions and their officers and
committee members. Members leaving the sphere of operation of
the association may leave in their shares and deposits if permitted by
the bylaws, but may not thereafter borrow from it in amounts exceed­
ing these holdings. Joint accounts are permitted.
The fiscal year shall end December 31 and the annual meeting must
be held within the next 45 days. Special meetings may be called and
held as specified in the bylaws. At all meetings each member shall
have only one vote; proxy voting is prohibited except that member
associations may cast their vote through a delegate.
The board of directors (not less than 5 members), the credit com­
mittee (not less than 3), and the supervisory committee (3) are to be
elected at the annual meeting for such terms as the bylaws provide.
Officers—president, vice president, treasurer, and clerk (secre­
tary)—are to be elected by the directors from their own number.
The board is authorized to act upon membership applications, fix
bonds for all persons handling money, determine rates of interest on
loans and deposits, declare dividends, fill vacancies in the board and
credit committee, set maximum shares and loans allowed per member,
and have charge of all investments other than loans.
The treasurer is designated as the general manager of the associa­
tion. This office may be combined with that of the clerk. No
director or committee member shall be compensated as such.
The credit committee has supervision of all loans and it is to prepare
the application form for loans, which must set forth the purpose for
which the loan is desired, the security (if any) offered, and any other
information required by the committee. For the granting of a loan,
the unanimous approval of the committee members present (who
must constitute a majority of the total committee) is required.
Assignment of shares or deposits or the endorsement of a comaker
may be regarded as security.
The supervisory committee is required to examine the books at
least quarterly, as well as annually, and submit a report to the annual



11

meeting and to such other meetings as it may regard as necessary.
By unanimous vote it may suspend any director, officer, or committee
member and call a membership meeting to take such action upon the
suspension as the meeting may see fit.
Loans may be made only for provident or productive purposes.
No director, officer, or committee member may borrow in excess of
his investment in the credit union nor act as endorser for any bor­
rower. Interest on loans is set at not over 1 percent per month on
unpaid balances. No credit union may lend an amount exceeding
10 percent of its assets to another credit union.
At the end of the fiscal year, 20 percent of net earnings, plus all
entrance fees (25 cents each) and fines, are required to be set aside in
a reserve fund until such fund equals 10 percent of the total out­
standing loans. Thereafter, only such amounts shall be set aside as
are required to keep the fund at the 10-percent level. The reserve is
to be used as a reserve against bad debts and losses. It may not be
distributed except in case of liquidation of the association. From
the net earnings remaining after appropriation for reserve the direc­
tors may declare a dividend, not to exceed 6 percent, on all shares
outstanding at the end of the year, with proportional payments on
shares which became paid up during the year.
A member may withdraw from membership at any time, but notice
may be required. A member may be expelled by two-thirds vote of
a special meeting of members. Upon withdrawal or expulsion, the
holdings of such persons plus any dividend or interest due, minus
any amounts owed to the association, shall be paid as funds become
available. For withdrawal of funds, notice of 60 days in case of
shares and of 30 days in case of deposits may be required.
Procedure for voluntary dissolution is specified, but requires that
dissolution can take place only upon a four-fifths vote of the entire
membership at a special meeting the purpose of which is set forth in
the notice of the meeting.
Credit unions formed under the act are exempt (as institutions
for savings) from all taxation except on property owned and from any
stock-transfer tax.
Associations are required to file annual reports with the State Bank
Examiner on or before January 20 of each year, upon penalty of fine
of $5 for each day of delinquency. Their accounts are subject to
audit by him (except that for associations with assets of less than
$25,000 he may accept the audit of a certified accountant), at fees
ranging from $25 upward.
New York.—Chapter 145 codifies previous enactments, with a con­
siderable number of amendments. These amendments place a maxi­
mum of 15 upon the number of directors, permit the election of more
than one vice president, and prohibit a member of the supervisory



12

committee from also servirg as a member of the board of directors.
New members of a credit union which has been in existence for more
than a year may nob vote until they have been shareholders for at
least 90 days. Credit unions may no longer accept deposits. Divi­
dends from the previous year’s earnings may be declared by the board
during the first 3 months of the year, but the directors are held jointly
and severally liable for any amount of dividend voted which exceeds
the amount available for dividend. Changes in loan procedure
require endorsed notes when a mortgage on real estate is taken, pre­
vent the withdrawal of any shares pledged as security for loans
(except those in excess of the amount of loan) unless approved by a
majority of the credit committee, prohibit loans to another credit
union in excess of 15 percent of the capital of either association, and
limit the association’s total investment in shares of other credit
unions to 25 percent of its capital. Credit unions, however, may
not hereafter invest in obligations of certain school districts or rail­
roads, nor (except associations with assets of more than $3,000,000)
in bonds of public utilities.
The term “ surplus account” is to be used hereafter instead of
“ guaranty fund.” Amounts in this account which exceed 20 percent
of total liabilities may be transferred to undivided profits upon
approval by the Superintendent of Banks. Associations are given
permission to act as agents in selling money orders and travel checks.
North Dakota.—Chapter 143 creates a State Credit Union Board,
consisting of the Bank Examiner and two members with at least 3
years’ experience, chosen by the Governor from a list of 5 persons
submitted by the State Credit Union League.
South Carolina.—Act No. 134 exempts from annual license fees
all credit unions of State or Federal employees and building and loan
associations doing a “ strictly mutual business.”
Texas.—Chapter 282 of the Acts of 1945 modifies the previous
hmitation (15 percent of capital and surplus) on borrowings of credit
unions by providing that such associations may borrow up to 50
percent of their combined capital and surplus if such loans are secured
by Government securities owned by the association. The 2-year
hmitation on credit-union loans was removed as regards those made
under the Servicemen’s Readjustment Act of 1944. The annual
required set-aside for the guaranty fund was reduced from 20 to 10
percent of net income. The annual meeting may increase this pro­
portion on recommendation of the directors or may decrease it when­
ever the fund equals or exceeds 10 percent of paid-in share capital.
Dividends on shares are limited to 6 percent.
Utah.—Chapter 15 codifies, under the title “ cooperative banks for
personal credits,” the previous enactments which had consisted of
scattered provisions in the corporation, banking, and small-loan laws



13

of the State. Only a few minor changes were obtained, but it was
the opinion of a Utah Credit Union League official that desirable
amendments would be facilitated in the future by having all the
credit union provisions in one chapter.
Wisconsin .—By chapter 58 the annual set-aside for the guaranty
fund was changed from 20 percent of net income to 15 percent of
gross income and the previous limitation on expenses (50 percent of
income) was removed; the name of the auditing committee was
changed to “ examining committee” and its required examinations
reduced from once every 2 months to twice a year. Articles of in­
corporation may be amended, at a meeting called for the purpose, by
a two-thirds vote of those present (instead of two-thirds of all mem­
bers). Voluntary dissolution is permitted upon unanimous vote of
directors and two-thirds membership vote by ballot (previously,
approval by two-thirds of entire membership present at meeting),
provided not more than 10 members object.
Yearly examinations are required to be made by the State Banking
Commission. The examination fees charged by the commission,
which had previously ranged from $5 to $50 or more were lowered
to 25 cents per $100 of assets or the actual hourly cost of examination,
whichever is less.
New provisions added by chapter 58 require detailed annual reports
to the Banking Commission by February 1, on penalty of fine of $1
to $10 per day of default; authorize the commission to prescribe
bookkeeping and accounting methods, which must be followed by
the credit unions on pain of fine not to exceed $10 per day; empower
the commission to take over (subject to appeal) for liquidation any
credit union violating the law, having its capital impaired, or operating
in an unsound manner, and to prescribe the procedure in such cases;
and specify procedures for the consolidation or merger of credit unions.
Other enactments regulate the manner of termination of bonds of
officers or employees of credit unions (ch. 228) and permit the destruc­
tion of obsolete records, upon written consent of the Banking Com­
mission (ch. 315).




14
Bureau o f L abor Statistics R eports on C ooperatives

BULLETINS *
No. 896. Nonprofit housing projects in the United States. (In press.)
No. 890. Operation of consumers' cooperatives in 1945. Price 10 cents.
No. 859. Developments in consumers' cooperative movement in 1945. Price 10
cents.
No. 858. Organization and management of cooperative and mutual housing asso­
ciations. Price 20 cents.
No. 850. Activities of credit unions in 1944. Price 5 cents.
No. 843. Operations of consumers' cooperatives in 1944. Price 10 cents.
No. 821. Developments in the consumers' cooperative movement in 1944. Price
10 cents.
No. 770. Cooperative association in Europe and their possibilities for postwar
reconstruction. Price 35 cents.
No. 750. Directory of consumers' cooperatives in the United States, as of January
1, 1943. Price 15 cents.
No. 740. Student cooperatives in the United States, 1941. Price 10 cents.
No. 665. Organization and management of consumers' cooperatives and buying
clubs. Price 15 cents.
No. 606. Organization and management of cooperative oil associations. Price
5 cents.
REPRINT PAMPHLETS 2
Serial No. R. 1483. The cooperative movement and the war.
Serial No. R. 1660. International aspects of the cooperative movement. (Reprint
* of a section of Part 1 of Bulletin No. 770.)
Serial No. R. 1216. Operations of cooperative burial associations, 1939.
Serial No. R. 671. Cooperative telephone associations. (Reprint from Bulletin
No. 659.)
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