The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
U N IT E D S T A T E S D E P A R T M E N T O F L A B O R Frances Perkins, Secretary BUREAU OF LABOR STATISTICS Isador Lubin, Commissioner (on leave) A . F. H inrichs, Acting Commissioner + Activities o f Credit Unions in 1943 Bulletin T'Lo. 191 [Reprinted from th e M o n th ly Labor R ev ie w , October 1944 w ith additional data] For sale by the Superintendent o f Documents, U. S. Governm ent Printing Office Washington 25, D . Cm * Price 5 cents Letter o f Transmittal U n it e d S t a t e s D e p a r t m e n t o f L a b o r , B u r e a u o f L a b o r St a t is t ic s , Washington, D. C., October 19, 1944• T he Secretary of L a b o r : I have the honor to transmit herewith a report on the activities o f credit unions in 1943, prepared by Florence E. Parker of this Bureau. A. F. H i n r i c h s , Acting Commissioner. Hon. F r a n c e s P e r k i n s , Secretary of Labor. Contents eo P age Summary_______________________________________________ Operations in 1942 and 1943------------------------------------------Some developments in the credit union movement in 1943 Changes in credit union legislation__________________ Trend of development, 1936 to 1943_____________________ B ulletin 7^o. 797 o f the U n ited States Bureau o f Labor Statistics [Reprinted from the M onthly L abor R eview , October 1944, with additional data.] Activities o f Credit Unions in 1943 Summary The 9,000 active credit unions in the United States made more than iy2million loans to their 3 million members in 1943, amounting to con siderably over 211 million dollars. On this business, earnings were made exceeding 6% million dollars, from which dividends on share capital amounted to $5,335,891. Total assets of these cooperative credit associations amounted to over 362 million dollars. As a result of a combination of wartime factors (increased earnings o f workers, lessened need for credit, control of installment buying, dearth of certain high-cost consumer goods, etc.) this branch of the cooperative movement has been showing a downward trend since 1941, after a hitherto unbroken rise. As compared with 1942, all of the above totals except assets showed a decrease. The membership fell 3.3 percent, business (loans granted) 15.4 percent, and earnings 37.5 percent. On the other hand, share capital increased 6.9 percent and total assets 6.3 percent. Considering credit unions of all types combined, at the end of 1943 6 States (Illinois, Massachusetts, New York, Ohio, Pennsylvania, and Wisconsin) had over 500 active associations each; in only Illinois, however, did the credit-union membership exceed 300,000. Illinois and New York were the leading States as regards loans made during the year. Contrary to the general trend, substantial increases in membership were shown in nine States (Alabama, Georgia, Hawaii, Indiana, Kansas, Massachusetts, Michigan, North Dakota, Rhode Island, and South Carolina), and in loans made in 6 States (Alabama, Hawaii, Kansas, North Dakota, Rhode Island, and Vermont). The data on which the above findings are based were furnished to the Bureau of Labor Statistics for the State-chartered associations in most cases by the State officials— usually the Superintendent of Banks— charged with the supervision of these associations. For Alabama and South Carolina the data were supplied by the State Credit Union League. No report was received for Mississippi; for this State esti mates were made, based upon the trend in other States and in this State in previous years. The same was done also for certain items concerning which some States do not require reports. All of the data for the Federal associations were furnished by the Credit Union Divi sion of the Federal Deposit Insurance Corporation. The data shown for individual States include both the Federal and State credit unions, except in Delaware, Hawaii, Nevada, New Mexico, South Dakota, and Wyoming, which have no State credit (l) 2 union act. In Connecticut where credit union legislation was passed in 1939, no associations had been chartered by the State at the end of 1943. For all of these States the figures therefore cover Federal credit unions only. Operations in 1942 and 1943 The membership and business operations of credit unions are shown, by States, for 1942 and 1943, in the accompanying table. Data are for the calendar year in all States except for the State-chartered asso ciations in Arizona, Kentucky, New Hampshire, and Vermont where they are for years ending June 30, and Georgia where they are for the years ending November 30. In Nebraska, only part of the “ cooperative credit associations” formed under the 1929 law were operating in well-defined groups of persons having a common bond of interest (the usual requirement for issuance of a credit union charter). The others were rural organiza tions, each operating throughout an entire community—usually one which was without banking facilities— and had become in actuality commercial banks. A credit union law became effective August 29, 1943. B y the end of the year, 32 of the former cooperative credit associations of the credit-union type had applied for and been granted charters under the new law (see table 3). The data shown in table 1, however, cover both types of credit associations. T a b l e 1.— Operations o f Credit Unions in 1942 and 1943, by States Number of associations4 Number of Number of loans made during members year State and type of charter Year All States.......................... 1943 * 1942 1943 2 1942 1943 1942 10,470 10,602 5,382 5,622 5,088 4,980 9,079 9,470 5,220 5,400 3,859 4,070 3,040,682 3,144,603 1,738,319 1,797,084 1,302,363 1,347,519 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 *1942 1943 *1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 *1942 1943 1942 1943 1942 1943 1942 83 95 26 25 35 37 523 508 119 118 215 214 13 13 130 129 192 204 155 146 102 100 44 46 811 849 343 337 240 243 77 87 24 22 28 29 453 457 102 109 170 179 10 11 104 109 163 171 140 112 94 93 34 34 782 836 302 299 212 214 25,967 23,658 *3,504 *3,802 3,282 3,682 191,773 199,172 23,852 24,879 92,775 96,931 2,291 2,811 67,148 70,803 34,431 36,066 34,164 30,939 38,291 37,499 4,199 4,324 334,346 349,936 * 107,736 *101,673 41,690 44,037 Char Re tered porting State associations___ Federal associations.. Alabama........................... Arizona............................. Arkansas........................... California...................... . Colorado........................... Connecticut4................... Delaware4........................ District of Columbia....... Florida.............................. Georgia........................ ..... Hawaii4.............. ............. Idaho................................ TTIinnis ____ _ Indiana............................. Iowa.................................. See footnotes at end o f table. Amount of loans— Made dur ing year Outstanding, end of year 1,656,358 1,945,413 968,216 1,129,902 688,142 815,511 $211,469,725 250,000.284 134,204,343 158,463,317 77,265,382 91,536,967 $123,479,595 148,771,572 88,251,442 105,884,822 35,228,153 42,886,750 * 20,425 21,864 *1,454 *2,608 2,034 3,869 * 97,665 * 130,237 * 13,385 *17,056 47,812 46,729 1,252 1,889 *36,200 *43,507 23,687 25,875 * 25,108 25,102 14,393 13,670 1,655 2,103 * 223,257 *231,730 *63,814 *64,453 22,112 *25,465 2,681,446 2,575,065 * 200,728 *348,878 197,956 254,407 *13,044,088 *18,037,253 *1,939,659 * 2,571,389 5,760,962 5,884,490 143,923 176,638 3,861,540 4,740,720 2,960,969 3,012,198 *2,620,957 2,779,071 2,419,304 2,359,964 210,154 259,110 24,978,297 27,765,716 * 6, 111, 586 *8,531,891 2,626,549 3,173,641 1,251,656 1,272,249 112,421 180,107 103,315 132,043 7,818,505 10,233,838 933,037 1,120,222 2,198,752 2,472,209 62,775 89,739 2,166,807 2,880,680 1,559,768 1,732,640 1,800,283 1,622,294 1,295,258 1,613,557 98,672 133,085 13,209,074 17,038,979 3,234,452 3,423,880 2,005,400 2,498,219 3 T a b l e 1.— O perations o f C redit U nions in 1942 and 1943, b y States— Continued State and type of charter Kansas.............................. Kentucky......................... Louisiana......................... Maine............................... Maryland............ ^........... Massachusetts.................. Michigan.......................... Minnesota........................ Mississippi»...................... Missouri........................... Montana........................... Nebraska................ . ........ Nevada *........................... New Hampshire.............. New Jersey....................... New M exico*_............... New York........................ North Carolina............... North Dakota8................ Ohio.................................. Oklahoma..................... Oregon.......................... . Pennsylvania_________— Rhode Island................... South Carolina................. South Dakota *_............... Tennessee...................... . Texas................................ Utah................................. Vermont........................... Virginia-........................... Washington...................... West Virginia.................. Wisconsin-........................ Wyoming A...................... Number of associations1* Year Char Re tered porting 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 3 1943 *1942 1943 1942 3 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 133 145 117 125 175 166 54 54 75 76 563 568 278 282 381 394 30 28 391 395 45 45 206 212 6 6 16 17 282 280 19 19 933 928 188 187 115 114 680 718 89 87 92 92 702 694 40 40 62 61 37 37 165 160 447 456 73 72 11 10 126 127 229 248 82 75 572 597 25 22 121 133 112 115 134 138 39 44 67 68 532 544 243 249 343 362 26 24 381 382 37 39 192 208 4 5 15 17 232 245 15 14 737 799 154 173 87 65 597 642 75 77 77 81 573 598 33 34 32 36 32 32 126 132 352 391 67 66 9 8 86 97 200 220 64 56 571 596 19 18 Number of Number of loans made during members year 38,162 28,889 *27,498 *27,461 *31,603 *32,922 9,726 9,817 27,984 29,353 256,302 255,836 106,136 101,136 68,487 73,092 11,450 11,021 96,623 98,343 5,868 5,862 34,122 35,803 635 675 5,948 5,923 104,500 113,361 1,476 1,485 286,851 300,050 28,581 32,232 9,887 8,602 216,627 224,545 * 18,873 19,447 14,025 16,382 219,647 241,814 24,553 23,814 8,168 7,825 6,165 5,191 35,216 39,065 80,773 89,496 11,327 12,007 1,390 1,108 26,243 28,854 39,852 44,614 16,269 17,151 162,615 168,614 2,661 2,601 *21,665 *18,003 * 16,524 »18,455 *18,220 *30,381 4,061 5,267 *15,924 * 18,758 *120,978 *158,057 49,636 *59,415 *41,535 46,308 5,700 5,402 *50,342 *64,492 2,176 *2,581 19,234 26,296 137 185 * 3,135 *3,470 62,353 79,370 542 798 * 153,746 *193,080 19,950 *27,763 3,569 * 5,178 103,264 114,374 *8,764 11,720 5,850 9,210 113,012 134,965 7,232 7,980 *5,547 *9,624 3,050 3,655 *30,037 *31,778 *50,934 * 64,545 * 5,566 *6,862 *1,117 *1,059 17,201 19,241 17,276 22,585 *8,639 11,808 *74,023 *75,034 1,166 1,557 Amount of loans— Made dur ing year $2,291,252 2,134,745 *2,247,978 *3,379,342 *1,936,933 * 3,130,165 434,584 558,045 *1,343,063 *1,894,590 22,168,017 24,629,075 7,722,250 *10,564,345 *3,625,376 4,876,474 651,057 719,131 *5,740,274 *6,686,808 277,280 » 269,673 3,871,903 3,885,935 17,644 21,687 *656,434 *908,052 6,417,190 6,905,554 54,043 88,636 *25,246,435 *31,538,905 2,231,635 *2,695,972 558,339 *•458,744 13,258,049 13,902,793 *1,174,373 1,397,850 879,082 1,096,449 13,120,655 15,435,936 1,574,520 1,486,372 *448,872 *623,099 296,487 378,327 *3,579,940 * 4,135,787 *5,805,904 *7,282,265 *763,993 * 906,272 * 75,456 *60,483 1,862,480 2,061,500 2,328,995 2,765,767 *806,435 1,060,274 8,081,679 9,428,179 162,000 162,622 Outstanding, end of year $1,092,536 1,319,197 1,405,106 2,201,233 952,416 1,196,904 261,046 356,755 804,408 945,858 15,211,316 16,132,974 5,497,141 6,155,480 5,420,834 6,273,488 404,542 263,064 3,520,332 *4,810,631 142,740 155,209 1,560,038 1,834,326 7,242 12,299 606,649 662,337 2,666,516 3,267,671 28,538 45,751 14,056,090 17,196,206 1,215,305 1,556,658 335,791 239,481 6,665,583 7,850,789 677,717 744,911 569,731 772,255 6,667,170 8,164,499 3,331,938 3,343,196 *199,940 *293,487 126,812 176,704 1,413,518 1,680,836 3,314,809 4,307,161 515,792 593,058 24,971 22,180 1,020,981 1,081,232 1,298,075 1,870,228 *485,553 605,213 4,050,187 6,221,555 78,057 75,005 1Most' 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 m liquidation which had not relinquished their charters. * Revised. *Partly estimated. * Federal associations only; no State-chartered associations in this State. 8 Preliminary; subject to revision. 4 In table 2 are shown share capital, total assets, and earnings of the credit unions in 1943, by States. Total dividends paid (not shown in the table) aggregated $5,335,891, of which the State-chartered associ ations accounted for $3,616,991 and the Federal associations for $1,718,900. The comparable figures for 1942 were $7,410,956 ($5,176,376 and $2,234,580). T a b l e 2. — Assets and Earnings o f Credit Unions, 1942 and 1943, by States State, and type of charter Year All States. ....................................... Number of share associations Paid-in capital reporting Total assets Net earnings 1943 U942 1943 U942 Federal associations.................. 1943 1942 9,079 9,470 5,220 5,400 3,859 4,070 $309,122,657 288,998,709 192,133,683 179,499,908 116,988,974 109,498,801 $362,066,401 340,347,742 235,118,316 221,114,849 126,948,085 119,232,893 $6,682,465 10,701,805 4,629,148 7,429,969 2,053,317 3,271,836 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 U942 1943 1942 *1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 77 87 24 22 28 29 453 457 102 109 170 179 10 11 104 109 163 171 140 112 94 93 34 34 782 836 302 299 212 214 121 133 112 115 134 138 39 44 67 68 532 544 243 249 343 362 2 26 24 381 382 37 39 192 208 4 5 15 17 232 245 2,227,345 2,051,535 315,230 328,169 228,509 316,167 20,418,860 19,913,588 2,437,851 2,342,299 12,066,230 10,993,157 174,942 174,991 5,578,453 5,647,030 3,846,725 3,326,868 1,513,058 2,702,178 7,249,305 5,753,100 265,087 233,032 37,459,420 35,923,618 10,063,904 8,501,601 4,580,440 4,257,433 2,533,557 2,218,741 2,717,304 2,928,117 2,528,651 2,492,332 707,177 581,195 2,003,147 1,985,122 33,669,668 26,245,640 15,138,030 13,293,564 7,948,880 7,579,564 2 481,619 435,549 9,562,869 9,217,964 319,116 275,020 2,706,564 1,899,086 25,967 27,883 456,783 438,575 9,608,620 10,019,623 2 2,643,057 1,642,365 346,669 366,012 265,661 295,160 23,769,529 23,434,151 2,859,206 2,786,506 12,814,434 11,502,563 189,575 192,971 6,208,343 6,359,314 4,288,275 3,702,059 4,274,015 3,229,500 7,722,958 6,288,585 282,502 254,098 40,530,988 38,962,147 11,240,183 9,271,218 5,399,954 5,038,269 2, 774,196 2,449,985 3,142,293 3,391,000 2,854,399 2,823,718 837,191 854,201 2,308,565 2,282,714 37,708,886 35,149,715 17,119,270 15,108,271 10,854,485 10,342,219 2 573,433 524,505 10,754,830 10,438,349 342,968 301,675 9,140,793 6,861,883 27,731 30,181 961,923 864,341 10,427,122 10,778,428 73,975 105,747 4,539 14,616 6,267 18,399 401,137 2 763,777 2 88,401 a 118,262 196,884 213,048 3,836 8,675 208,317 305,817 2 101,022 2121,211 3 95,347 2 138,622 140,234 147,327 3,832 8,791 870,016 1,398,263 3 155,398 2 268,486 105,871 163,846 41,855 2 67,461 2 64,187 2 159,135 a 51,129 2 92,396 7,769 21,419 57,055 77,679 404,781 2 787,069 299,676 720,374 191,824 287,468 a 36,135 40,771 *211,052 *372,696 7,235 10,222 60,440 97,045 162 1.061 27,009 29,963 167,724 246,322 State associations...................... Alabama.......................................... Arizona. ........................................ . Arkansas.......................................... California......................................... Colorado. ........................................ Connecticut3. .................................. Delaware3....................................... Dist. of Columbia........................... Florida............................................. Georgia............................................ Hawaii3........................................... Idaho.............................................. Illinois.............................................. . Indiana........................................... Iowa................................................. Kansas............................................. Kentucky......................................... Louisiana- ....................................... Maine...................... ........................ Maryland......................................... Massachusetts................................. Michigan.......................................... Minnesota-....................................... Mississippi....................................... Missouri. ........................................ Montana.......................................... Nebraska......................................... N evada3.......................................... New Hampshire.............................. New Jersey...................................... See footnotes at end of table. 5 T a b l e 2.— A ssets and Earnings o f Credit Unions, 1942 and 1943 , by States— Continued State, and type of charter Year New M exico3........................ ......... 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 2 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 1943 1942 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......................................... Number of share associations Paid-in capital reporting 15 14 737 799 154 173 87 65 597 642 75 77 77 81 573 598 33 34 32 36 32 32 126 132 352 391 67 66 9 8 86 97 200 220 64 56 571 596 19 18 Total assets $81,277 88,568 30,059,947 29,714,999 2,157,698 1,912,108 1,026,949 562,725 20,088,728 18,494,009 629,381 585,320 1,529,369 1,559,762 17,882,515 17,525,002 3,285,301 3,153,452 496,615 748,486 377,361 313,410 3,251,685 3,158,532 8,515,702 8,744,179 1,121,876 1,002,184 65,313 50,341 1,538,842 1,726,798 3,943,244 4,103,579 931,295 960,262 13.141,188 12,364,551 165,060 127,701 Net earnings $1,073 3,583 750,686 a 980,620 2 38,576 293,103 13,128 14,701 279,800 592,528 22,398 53,378 27,993 54,244 374,554 581,846 127,834 114,082 11,232 21,999 6,889 13,049 153,332 158,903 232,703 362,981 2 20,373 2 30,490 1,705 1,130 42,510 2 59,528 98,525 189,404 18,631 33,846 373,076 528,928 4,338 6,294 $88,406 97,505 34,571,925 34,544,948 2,654,012 2,429,129 1,070,403 608,988 21,667,171 20,291,518 1,550,882 1,455,254 1,706,777 1,755,322 19,9u8,133 19,517,605 7,336,394 6,288.949 569,395 806,121 411,333 350,600 3,888, 765 3,820,841 10,175,024 9,741,357 1,266,393 1,133,228 67,835 52,823 2,001,184 2,208,639 4,376,328 4,546,881 1,131,652 1,153,576 14,782,317 13,876,922 178,638 141,433 1 Revised figures. 2 Data partly estimated. * Federal associations only; no State-chartered associations in this State. In order that a comparable record may be maintained for Nebraska, detailed data for the various types of associations in operation in that State for 1943 are shown in table 3. T a b l e 3. — Operations o f Credit Associations in Nebraska, 1943, by Type o f Association and Charter Type of association and charter Num Amount of loans— Num ber of ber loans Paid-in of made share mem Made Outstand capital Re bers dur during ing, end ing Total port ing year of year year Number of asso ciations Total assets Net earn ings All associations...................... 206 192 34*122 19,234 $3,871,903 $1,560,038 $2,706,564 $9,140,793 $60,440 State-chartered....................... Credit unions....... ........... Cooperative credit asso ciations: Occupational and associational_______ Residential-.............. Federal-chartered.................. 170 32 161 25,077 15,042 3,381,791 1,313,970 1,883,940 8,251,032 48,584 506,802 32 6,920 3,974 786,852 288,659 873,975 11,241 41 97 36 33 4,068 2,077 313,152 96 14,089 8,991 2,561,837 31 9,045 4,192 490,112 188,846 836,465 246,068 219,256 573,464 4,205 877,832 6,803,593 33,138 822,624 889,761 11,856 6 A comparison of operating experience in 1942 and 1943, for the State and Federal credit unions, all States combined, is given in table 4. T a b l e 4.— Com parison o f Federal and State Credit U nions, 1942 and 1943 Percent of change, 1942 to 1943 Item Total number of associations chartered, end of year................. Number of members............................................................... Number of loans made.............................. ................. ................ Amount of loans granted during year.... ................................... Amount of loans outstanding, end of year................................ Paid-in share capital_____________________________________ Total assets Net earnings _ . _ ...... . . . _ _ ____ _ State-char tered asso ciations Federal associ ations - 4 .4 —3.3 —14.3 —15.3 —16.7 +7.0 +6.3 -37.7 + 2.2 —3.4 —15.6 —15.6 —17.8 +6.8 + 6.5 -3 7 .2 Total —1.3 -3 .3 —14.8 —15.4 —16.5 + 6.9 + 6.3 -3 7 .5 Some Developments in the Credit Union Movement in 1943 Closer relationships between the consumers’ cooperative and the credit union movements were the purpose of a joint meeting of executives of the Cooperative League of the U. S. A. and the Credit Union National Association in March 1943. The meeting recom mended the formation of a credit union in every local cooperative, the extension of cooperative auditing services to credit unions, and the exchange of motion-picture films, transcriptions, and literature be tween the two movements. The need for a Ranking structure to serve both consumers’ and credit cooperatives was emphasized. In the same month the consumers’ cooperatives formed the National Cooperative Finance Association authorized by the Cooperative Congress of 1940, and later in the year the credit unions, in annual meeting, authorized the formation of a national credit union bank. CHANGES IN CREDIT UNION LEGISLATION A number of States made minor amendments in the credit union laws and several States amended the law in important respects. In one State (Nebraska) an entirely new act was passed. Supervision of Alabama credit unions was transferred from the Superintendent of Insurance to the Superintendent of Banks (Act No. 95) and regular State audits were provided for, with a scale of fees varying according to the credit union’s assets (Act No. 94). In Georgia credit unions will hereafter be taxed on shares outstand ing instead of on total assets; examination fees were increased (Act No. 419). In Illinois the maximum amount of loan permitted on the appli cant’s own signature was raised to $300. On secured loans the maxi mum was raised from $1,000 to $1,600, with the proviso that no loan above $1,000 shall bear interest of over one-half of 1 percent per month. Credit unions were forbidden to make loans on the security of real estate, but lending by one credit union to another was author ized. Hereafter, credit unions of public employees may be given free office space in public buildings. (Acts of 1943, p. 477.) The Maryland Legislature exempted the income of credit unions from taxation and substituted for the previous share-capital tax one on tangible personal property (ch. 785). 7 B y Chapter 647 any Minnesota credit union is permitted to transfer to another credit union not to exceed 22 percent of the unimpaired assets and to borrow an amount not exceeding 35%percent of its unim paired assets; the amendment also permits loans to credit union officers and committee members under certain conditions, with the combined membership of board of directors, supervisory committee, and credit committee (excluding the borrower) acting as a special credit committee. Another amendment (ch. 20) required that no member shall be allowed to vote at meetings who does not own at least one fully paid share; the voluntary-dissolution provisions were also amended. In Nebraska credit unions had operated Under the so-called ‘ Cooper ative credit associations” law of 1929. As that law did not contain the usual requirement of credit union acts— that members must have a common bond of association, in order to be chartered—many organizations had been incorporated under it that dealt with all comers throughout a whole community and had become for all practi cal purposes commercial banks. A new law was passed in 1943 (ch. 17) that established the usual credit union standards. It prohibits proxy voting, allows acceptance of deposits, permits unsecured loans up to $300 (but not in excess of 20 times the amount of the borrower’s paid-in shares), authorizes the return of patronage refunds on interest paid by borrowers at the option of the association, and permits the establishment of a central credit union for the use of the credit union officers and committee members of a locality. Taxation is imposed at the rate of 4 mills per dollar of gross interest income. The act provides that associations now operating under the 1929 law may convert into credit unions under the present law. Extensive revisions were made in the Washington act (by chapter 131, Acts of 1943). The provision directing the Supervisor of Savings and Loan Associations to examine the applications for charter to determine whether the association is organized for purposes consistent with the act and the incorporators are persons of good character is amended by the insertion of the clause: “ and he shall further deter mine the economic advisability for such credit union, taking into consideration all surrounding facts and circumstances pertaining to a successful operation of said credit union.” Credit unions are forbid den to acquire or own real estate, except through foreclosure of loans secured by real estate. Joint accounts are specifically permitted. Credit-union borrowings are limited to not over 10 percent of the assets. The right to make loans to directors, secured by negotiable paper of the kinds permitted as investments by mutual savings banks, was repealed. No borrower may hereafter have an aggregate liability to the association exceeding $100 or 10 percent of the credit-union assets, whichever is greater. The maximum dividend on shares is reduced from 8 to 6 percent, unless the sum of guaranty fund and undivided earnings exceeds 15 percent of the assets, but surplus earn ings may be distributed to borrowers as patronage refunds on interest paid by them. The Supervisor of Savings and Loan Associations is given authority to suspend the operations of any credit union if its capital is impaired or it violates the law. Other amendments decrease from three-fourths to two-thirds the membership vote required for a change in bylaws, increase the maximum member’s holdings (shares 8 and deposits) from $2,000 to $2,500, reduce the maximum interest on deposits from 6 to 4 percent, require borrowers to have at least 1 fullypaid share, exempt from taxation the shares and deposits of credit unions but provide for taxes on their personal and real property, and specify procedure for transforming a State-chartered association into a Federal credit union. , Trend o f Development 1936 to 1943 The trend of credit union development as a whole as well as for the two types of organizations is shown in table 5. T a b l e 5. — Relative Development o f State and Federal Credit Unions, 1936 to 1948 [Revised figures for State associations for 1942] Total associa tions Item and year Number of credit unions: 1936............................................................................... 1937............................................................................... 1938............................................................................... 1939.................. ............................................................ 1940............................................................................... 1941............................................................................... 1942............................................................................... 1943......................... ..................................................... Membership: 1936............................................................................... 1937....................................................................... ........ 1938.............................................................................. 1939................................................................ .............. 1940................................................................ .............. 1941.............................................................................. 1942.......... .................................................. .................. 1943.......... ..................................................................... Amount of loans during year: 1936............................................................................... 1937............................................................................... 1938.................. .............................. .................... ........ 1939............................................................................... 1940............................................................................... 1941............................................................................... 1942............................................................................... 1943............................................................................... Total assets: 1936................................................................................ 1937............................................................................... 1938............................................................................... 1939............, ................................................................. 1940............................................................................... 1941................................................................................ 1942............................................................. - ............. 1943................................................................................ State-char ! Federal-char tered associa tered associa tions tions 5,352 6,292 7,314 8,326 9,479 10,456 10,602 10,470 3,490 3,792 4,299 4,782 5,269 5,663 5,622 5,382 1,862 2,500 3,015 3,544 4.210 4,793 4,980 5,088 1,170,445 1,588,236 1,927,226 2,405,377 2,815,558 3,529,097 3,144,603 3,040,682 854,475 1,055,736 1,236,826 1,459,377 1,695,358 2,132,401 1,797,084 1,738,319 315,970 532,500 690,400 946,000 1,120,200 1,396,696 1,347,519 1,302,363 $100,199,695 147,210,321 180,847,548 238,903,457 306,092,625 362,291,005 250,000,284 211,469,725 $84,541,635 110,625,321 129,058,548 159,403,457 201,105,625 227,959,046 158,463,317 134,204,343 $15,658,060 36,585,000 51,789,000 79,500,000 104,987,000 134,331,959 91,536,967 77,265,382 83,070,952 115,399,287 147,156,416 192,723,812 252,293,141 322,214,816 340,347,742 362,066,401 73,659,146 97,087,995 117,672,392 145,226,718 180,198,260 216,557,977 221,114,849 235,118,316 9,411,806 18,311,292 29,484,024 47,497,094 72,094,881 105,656,839 119,232,893 126,948,085 PERCENTAGE DISTRIBUTION Total number of associations Membership Amount of loans during year Total assets Year State 65.2 60.3 58.8 57.4 55.6 54.0 53.0 51.4 1936 ............................................. 1937...................................................... 1938....... .............................................. 1939 .................................................... 1940 ............ ................................ 1941 ................................................ 1942 .................................................... 1943 ___ __ 1 Federal State 34.8 39.7 41.2 42.6 44.4 46.0 47.0 48.6 73.0 66.5 64.2 60.7 60.2 60.5 57.1 57.2 Federal State 27.0 33.5 35.8 39.3 39.8 39.5 42.9 42.8 84.4 75.1 71.4 66.7 65.7 . 63.0 63.4 63.4 Federal 15.6 24.9 28.6 33.3 34.3 37.0 36.6 36.5 State Federal 88.7 84.1 80.0 75.4 71.4 67.2 65.0 64.9 11.3 15.9 20.0 24.6 28.6 32.8 35.0 35.1 Bureau of Labor Statistics Reports on Cooperatives Bulletins1 No. 796. No. 770. No. 750. No. 740. No. 665. No. 659. No. 608. No. 606. Operations of consumers’ cooperatives in 1943. Price 10 cents. Cooperative associations in Europe and their possibilities for post-war reconstruction. Price 35 cents. D irectory of consumers’ cooperatives in the United States, as of January 1, 1943. Price 15 cents. Student cooperatives in the United States, 1941. Price 10 cents. Organization and management of consumers’ cooperatives and buying clubs. Price 15 cents. Consumers’ cooperation in the United States, 1936. Price 25 cents. Organization and management of cooperative housing associations. Price 10 cents. Organization and management of cooperative oil associations. Price 5 cents. Reprint pamphlets2 Serial N o. R . 1483. Serial No. R. 1660. Serial N o. R. 1453. Serial No. R . 1216. Serial No. R . 671. The cooperative movement and the war. International aspects of the cooperative movement. (Re print of a section of Part 1 of Bulletin N o. 770.) Taxation of consumers’ cooperatives, 1940. Operations of cooperative burial associations, 1939. Cooperative telephone associations. (Reprint from Bul letin No. 659.) i For sale by Superintendent of Documents at prices indicated. How to order publications: Address order to Superintendent of Documents, Government Printing Office, Washington 25, D. C., with remit tance in check or money order; currency is sent at sender’s risk; postage stamps not acceptable. * Copies free on application to Bureau of Labor Statistics, Washington 25, D . C., as long as supply lasts. U. S . GOVERNMENT PRINTING OFFICE : 19 44
@FedFRASER