i'tt 
 
Cornell University Library 
 HG 2035.W5 
 
 Cooperative credit societies (credit uni 
 
 3 1924 013 776 079 
 
SrB| Cornell University 
 
 The original of tiiis book is in 
 tine Cornell University Library. 
 
 There are no known copyright restrictions in 
 the United States on the use of the text. 
 
 http://www.archive.org/details/cu31924013776079 
 
U. S. DEPARTMENT OF LABOR 
 
 JAMES J. DAVIS, Secretary 
 
 BUREAU OF LABOR STATISTICS 
 
 ETHELBERT STEWART, Commissioner 
 
 BULLETIN OF THE UNITED STATES 1 _ ( ^-^ '5 1 A 
 
 BUREAU OF LABOR STATISTICS/ ' 
 
 MISCELLANEOUS SERIES 
 
 COOPERATIVE CREDIT SOCIETIES 
 
 (CREDIT UNIONS) IN AMERICA AND 
 
 IN FOREIGN COUNTRIES 
 
 By EDSON L. WHITNEY 
 
 NOVEIUtBER, 1922 
 
 WASHINGTON, 
 
 GOVERNMENT PRINTING OFFICE 
 
 IMS 
 
IV CONTENXS. 
 
 Cooperative credit in America — Continued. 
 Legislative action — Continued. 
 
 Credit union legislation — Continued. I"*?^- 
 
 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 
 
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 encotLraging 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 different names^ — people's banks, 
 popular banks, rural banks, Savings and loan banks, loan associations, 
 credit associations, savings and loan fund associations, credit and 
 savings societies, cooperative credit societies, loan societies, loan and 
 credit unions, loan fund unions, and credit unions. It is the general 
 experience that wherever such societies have been introduced the 
 usurer has left, homes have become comfortable, and the poor man has 
 become a small capitalist. 
 
 These societies are not charitable institutions to care for the helpless 
 or assist the incompetent, nor are they reformatory institutions to 
 turn dishonest men into honest ones. They help only such able, 
 honest, and unfortunate persons as are capable of oeing helped and 
 are willing to try to help themselves. They are purely business 
 
 Eropositions. Their imderlying principle is cooperation, each society 
 eing organized for the furtherance of cooperative purposes and not 
 to enrich the members. They comprise two classes of members — 
 borrowers and lenders — both often merged in the same individual, and 
 both treated with equal justice in the distribution of the profits. Each 
 member must hold at least one share of stock in the association and 
 may hold more, the par value of shares being placed so low as to keep 
 out no one otherwise eligible for membership. Regular rates of inter- 
 est are paid on deposits and are charged on loans. Depositors do not 
 receive large rates of interest on their meney, and borrowers avoid 
 paying high rates to money lenders. 
 
 In many ways these societies resemble combined savings bank and 
 building, and loan associations but are engaged in other than building 
 operations. They differ from the regular commercial banks in four 
 important particulars: First, they are organized and managed pri- 
 marily in the interests of the borrowers; secondly, the par value of the 
 shares is small and may be paid for in weekly or monthly installments 
 of a few cents each; thirdly, small loans are preferred to large ones; 
 fourthly, other collateral bemg lacking, good character is occasionally 
 accepted as security for si, loan. 
 
i6 COOPERATIVE CREDIT ABROAD. 
 
 COOPERATIVE CREDIT ABROAD. 
 GERMANY. 
 
 SCHTTLZE-DELITZSCH SOCIETIES. 
 
 These societies for cooperative credit originated with ^Hermann 
 Schulze, a graduate of Leipsic University, and at the time a judge in a. 
 provincial court in his native town of Delitzsch, in Prussian Saxony. 
 He was an earnest student of cooperation as then taught in England 
 and France and adapted his idea of thrift from the English friendly 
 societies, with which he was acquainted. 
 
 Greatly affected by the deplorable condition and poverty of the 
 working classes in his Province following the famine of 1848, he or- 
 ganized an association of poor people for the purpose of buying raw 
 materials at wholesale and selling tnem to members at cost, and then 
 tried to evolve a plan to raise capital for persons without money or to 
 give them credit safely without security. Two years later he or- 
 ganized a second society composed of needy mechanics and a few 
 philanthropic members, the latter to loan money to the former, who 
 were to repay it with interest in monthly payments of small amounts 
 each. The profits were to form the basis of a fund to , be used in 
 making further loans to members at a low fixed rate of interest. 
 
 In 1853 he organized another similar society and provided for the 
 creation of a fund by the contribution of members alone. In the 
 following year he began a systematic agitation for the formation of 
 cooperative credit societies, or Creditvereine, as he called them in a 
 book issued in 1856, defining their scope and object. He issued a 
 series of brochures, corresponded with leading newspapers, and as a 
 member of the Prussian Parliament advocated his theories publicly. 
 In 1859 he opened a central bureau to promote the cause of coopera- 
 tion, to keep members informed of the condition and progress of the 
 societies, to promote closer relations between them by exchange of re- 
 ports, to obtain loans for societies from commercial banks, to- keep a 
 register of societies, and to publish yearly statistical reports. These 
 societies existed as voluntary associations until 1867, when the first 
 cooperative law in Prussia was passed. In 1868 this law was adopted 
 by the North German Confederation and in 1889 by the German 
 Empire; all cooperative societies in Germany are now organized under 
 the imperial act. 
 
 As a result of this active propaganda the number of societies rapidly 
 increased. They were at first intended for the jobbing artisan and 
 small tradesman in towns, but have been found useful by the man of 
 larger business. Members of all occupations are found in their ranks, 
 but though the largest occupational group (one-fourth of all members) 
 is composed of workers on farms, these societies seem better adapted 
 to the industrial and mercantile classes with small stores^ than to 
 small farmers and agricultural laborers, because of tjie lengtli of time 
 for which loans are granted. 
 
 BAIFEEISEN SOCIETIES. 
 
 An adaptation of the Schulze-Delitzsch societies for the benefit of the 
 farm classes was worked out by Frederick Wilhelm Raiifeisen, who, as 
 
GERMANY. 3 
 
 burgomaster of Weyerbusch, an inhospitable region of small farms in 
 the Ilhinelaiid, had noted the inability of the half-starved peasants 
 to make a Uving following the drouth of 1846 and 1847. 
 
 BeUeving that their suffering was largely due to the terrible usury 
 practiced by money lenders Raiffeisen organized at Flammersfeld, 
 to which he had been transferred in 1848, a cooperative society to sell 
 the peasants bread and cattle .at cost. In 1849, he orgaaized a credit 
 and loan society to loan money to the peasants at reasonable rates of 
 interest. Five years later at Heddesdorf, another town in which he 
 had become burgomaster, he persuaded certain philanthropists to 
 loan money on the security of the combined credit of the borrowers, and 
 thus to enable the latter to buy cattle, fertilizers, and other farm sup- 
 phes at wholesale and to sell them to members at cost, the loan to be 
 repaid in five annual installments at a low rate of interest. In 1862 he 
 oi^anized at Anhausen a society in which he united the cooperative 
 banking plan of Schulze with his own plan of distribution. Tjie next 
 society was opened in 1868. Since 1880 the idea has spread rapidly 
 imtil to-day societies on the Raiffeisen model, confined mainly to rural 
 districts, outnumber those on the Schulze model three or four to one. 
 
 COMPABISON OF SCHULZE-DELITZSCH AND BAIFFEISEN SOCIETIES. 
 
 Both of these types of societies, unsuccessful when run as charitable 
 organizations, but successful as business enterprises, were organized 
 for similar purposes — to obtain by combination credit that could not 
 be obtained individually, to combat usury, to encourage thrift, and to 
 change dependent into independent producers. Comparison between 
 them is rather difficult and the differences between them have been 
 sufficiently great to prevent their acting in harmony. 
 
 Schulze was materialistic and commercial, kept the financial aim 
 ever in view, avoided all connection with religion and charity, and 
 carried tbe doctrine of self-help to its limit, refusing outside aid of 
 any kind, whether State or local. Raiffeisen was humanitarian and 
 ethical, idealistic, intensely rehgious, preached educational and moral 
 reform, accepted outside ^id wherever proffered, tried to organize his 
 societies in connection with churches, enlisted the aid of parish 
 priestSj and though a Lutheran was supported by the clergy of all 
 denominations. 
 
 OrFICEKS AND BmLDINGS. 
 
 The Schulze societies, popularly known as people's banks, are gen- 
 erally housed in their own DuUding which is often the principal one 
 in the town. They have well appointed offices, paid clerks, and reg- 
 ular banking hours, and resemble small State or private banks in this 
 country. Many indeed have developed into regular commercial banks. 
 . The Raiffeisen societies, popularly known as village banks, or 
 savings and loan banks, have but one paid official — the accountant — 
 who is generally the village priest, school-teacher, or a local public 
 official, and in tne earlier days was often not a member of the society. 
 He receives a salary of from 300 to 800 marks ($71.40 to 1190.40, par) 
 a year for his services, and his office, which is frequently in a room in 
 his house or in the bam, is open for business only at stated times, as on 
 hohdays, Simdays after church services, and on two or three evenings 
 a week. 
 
COOPERATIVE CBEDIT ABROAD. 
 
 MEMBERSHIP. 
 
 The Scliulze societies are in the populous centers, and the aim is to 
 have one in each town, with a large membership, because of the safety 
 in numbers, the reduced cost of management, and the better security 
 offered. The societies have an average membership of about 625, 
 though there are societies in existence with a membership of more 
 than 10,000. Practically any respectable self-supporting person of 
 good moral characteris eugible to membership on assenting to the rules. 
 Membership is not limited to any class. The more varied the occu- 
 pations the steadier the foundation and the less the risk, but people of 
 thepoorest class are not welcome, nor are minors admitted. 
 
 The Raiffeisen societies exist where the population is sparse. They 
 aim to have one society in each parish or locality of 400 people, each 
 with a small membership now averaging less than 100, and some having 
 only about 15 or 20 members. They are composed mainly of one class, 
 farmers. Their object is not to secure a large membership but to 
 exclude those not eligible, and to benefit the very poor. The major- 
 ity of members come from the middle class. However, any person 
 may be admitted to membership after being recommended by a 
 member of the society and being found on investigation by the 
 trustees to be of orderly habits, good reputation, good moral charac- 
 ter, and able to support himself — ^if elected by the members. Few 
 worthy persons are debarred from membership, for nearly every 
 farmer has some equipment or Uve stock or a little property of some 
 kind that can be used for security if need be. 
 
 Both societies exclude drunkards, spendthrifts, profligates, and 
 those without means to maintain their membership. Neither society 
 advocates the formation of societies composed entirely of the poor, 
 though Raiffeisen never refused membership to a poor man if honest. 
 
 CAPITAL. 
 
 Schulze organized to obtain funds. Raiffeisen organized to create a 
 condition where outside credit could be obtained at a minimum of cost. 
 This credit is created out of the general knowledge of the character of 
 members and this is more easily attained in the small restricted area of 
 operations of the Raiffeisen society than in the large unrestricted area 
 of the Schulze organization. The Schulze societies borrow but little 
 money as they obtain nearly all they need in other ways. The 
 Raiffeisen banks borrow heavily, and generally for long periods of 
 time, from commercial banks willing to loan on the security of the 
 combined credit of the members. 
 
 The Schulze societies desire to have a large capital in order to give 
 standing to the organization. ) Therefore the par value of the stock 
 is made rather large, generally 300 to 500 marks ($71.40 to $119, par) , 
 and sometimes 1 ,000 marks ($238, par) . Each member is required to 
 own one share, being allowed to pay for it in monthly installments 
 small enough to admit the poorer classes, though the size of the share 
 undoubtedly prevents some desirable persons without property from 
 joining. In order that the poorest may be admitted, the Raiffeisen 
 societies organize without cash capital where the law so permits and 
 in States where a cash value of the stock is required, each share is put 
 at as low a value as possible, generally 4 marks (95.2 cents, par), or 
 even less, and the ownership of more than one share is generally for- 
 bidden. 
 
GERMANY. O 
 
 In the Schulze societies the reserve fund is formed from a non- 
 returnable entrance fee of 10 marks (S2.38, par) collected from each 
 member on joining, all the profits of the first year, 15 to 20 per cent 
 of those of the second and third years, and 5 to 10 per cent thereafter. 
 The reserve is intended to be kept at about 10 to 20 per cent of the 
 capital and 8 to 10 per cent of the liabilities, and is used to make 
 good any losses and to reduce the necessity of borrowing. 
 
 In the Raiffeisen societies all the profits, after paying losses and 
 running expenses, are carried to the reserve fund, which takes the 
 place of borrowed capital and reduces the cost of borrowing to 
 members. 
 
 In both systems deposits on which interest is paid are received 
 from anyone, child or adult, whether or not a member of the society. 
 The Raiffeisen society tries to become the savings bank of its district, 
 distributes savings boxes among the families in the community, 
 sells savings stamps and cards, and endeavors to get possession of 
 every spare coin in its vicinity. From 85 to 90 per cent of its work- 
 ing capital consists of deposits. The average working capital of a 
 Schulze society is about ten times that of a Raiffeisen society. 
 
 LIABILITY OF MEMBERS. 
 
 At the outset Schulze, in his effort to find a basis of credit for his 
 societies, adopted the system of unlimited liability of each member 
 for the debts of all as the one calculated to attract depositors and to 
 inspire confidence among persons with money, for the latter, though 
 unwilling to loan money to one person of good character, might be 
 willing to loan money to a group oi such persons without other security 
 than UiB individual promise of each to become responsible for the pay- 
 ment of the whole debt. This system causes caution to be exercised 
 in the selection of members, discourages any tendency toward specu- 
 lation, and makes each one feel his responsibihtyfor all. Besides, there 
 is little danger in the assumption of such liability, for in no case does 
 the personal liabihty begin until after the exhaustion of all the capital 
 and the reserve of the society. 
 
 Since 1889 the law of Germany has permitted limited liability 
 and most of the Schulze societies since organized have been organized 
 on the limited liability principle. To-day more than one-third of 
 these societies are limited and permit members to hold more than 
 one share. Experience has shown that -the principle of unlimited 
 liabihty is less essential as the capital of the society grows. Up to 
 the present time in Germany the debtor's estate or sureties or the 
 reserve have proved sufficient to take care of every case of failure by 
 borrowers to pay principal or interest and the necessity of unlimited 
 hability has never been put to the test. The Raiffeisen societies, 
 however, still hold to the original principle of unlimited liability. 
 
 METHOD OF MAKING LOANS. 
 
 Under both the Schulze and Raiffeisen systems bank accommo- 
 dation is given to members only. The Schulze banks confine 
 themselves to a banking business, discounting and accepting bills 
 of exchange, which are in general use in Germany in place of checks, 
 and grantmg advances oh the note of the borrower for small amounts 
 
6 COOPERATIVE CREDIT ABROAD. 
 
 and with one or two indorsements for larger amounts. All this 
 is done at practically the same rates charged by commercial banks, 
 but for short periods of time, not more than ninety days, with 
 renewals in case the borrower reduces the amount of the loan. 
 Each society fixes the maximum amount to be loaned a' member, 
 which is always small. No one is extended credit in an amd#nt 
 exceeding one-fifth of the property of the society, and the amoimt 
 of loans outstanding may not exceed twice the capital. An attempt 
 is made to keep the society's funds liquid. Adyances on realty are 
 discouraged. Shares of its capital stock are not taken as security. 
 Chattel mortgages are preferred. For failure of a borrower to meet 
 his payments his security is forfeited, then his shares are taken, and 
 lastly his indorsers are called upon to meet any deficiency. 
 
 The Raiffeisen societies confine themselves to the simplest kind of. 
 banking transactions, receive deposits, and borrow on the credit of 
 the society, neither giving nor cashing checks or commercial paper 
 of any character. Ml transactions are for cash, a small amount of 
 money— 800 to 1,200 marks ($190.40 to $285.60, par)— being kept on 
 hand for emergencies and the rest of the funds deposited in a com- 
 mercial bank without incurring risk. Most of the money loaned by 
 the society comes from deposits or is borrowed from commercial 
 banks. The loans are generally for less than 500 marks ($119, par) 
 each, and are most frequently made on the credit of the individual 
 member, or on a note, with one or two sureties, according to circum- 
 stances, but for a long period of time, three to five years or more, 
 repayment being made in installments or amortized. 
 
 Borrowing, however, is not encouraged, in fact it is made somewhat 
 difiicult, in spite of the current belief that cheap and easy credit is 
 obtained on character alone. By borrowing on "character" is 
 usually meant the borrowing by the society from a bank on the collec- 
 tive character of the members of the society, not primarily the bor- 
 rowing from the society by a member on the strength of his personal 
 character. Credit is not indiscriminately given. Every society 
 requires from its borrowers as safe a security as is exacted by any 
 bank. The apphcant must show his need for the money. The 
 improvident is refused a loan. A loan is never made to procure a 
 luxury, but is made for a specific .productive purpose or for some- 
 thing that will repay the loan out of savings, additional profits, 
 or the proceeds. Credit is refused small traders and workmen with- 
 out means, even if honest. Safety is the prime requisite, not business. 
 
 The Schulze banks, because of' their size, fluctuating membership, 
 and unrestricted area, do not watch to see whether the money is 
 used for the purpose for which borrowed, provided the security given 
 is sufficient. 
 
 The Raiffeisen sopieties, however, record the purpose for which the 
 loan is made and watch carefully to see that the money is used for 
 that purpose, and wiU call it in if misapplied or if the borrower is 
 careless m paying the interest thereon promptly when due or if he 
 lets his security deteriorate in value. Every three months the con- 
 dition of debtors and their securities is inspected and additional se- 
 curity demanded if circumstances require it. The close acquaintance 
 with borrowers due to the limitation of membership to a pursuit 
 or a neighborhood, the restricted area covered by the society, and 
 the common spirit in industrial and social relations make vigilance 
 
GERMANt. 
 
 possible. The caution in granting loans, the careful checking of 
 every act, the avoidance of aU risks, the cheapness of the service, the 
 small, modest and humble manner in which the business is carried 
 on, all tend to make the Raiffeisen societies successful. 
 
 nSTTEREST. 
 
 The rate of interest charged for accommodation by the Schulze 
 societies is the current rate charged by commercial banks in the 
 vicinity, the borrowers receiving part of it back at the end of the 
 year in the form of dividends. Large dividends, often as high as 
 12 per cent, are the rule in the first years of a society's existence in 
 order to attract capital and to cause members to pay up their shares 
 early, dividends being returned on paid-up shares only. Schulze 
 advocated the payment of high dividends in order to attract money 
 and secure the best managerial ability, and thus make possible 
 favorable terms to borrowers. 
 
 In order to attract members the Raiffeisen societies place the rate 
 of interest lower than that .charged by banks. In order to prevent 
 greediness, no dividends are paid; whatever profits remain at the 
 end of the year, after provisions for impairment of capital and deduc- 
 tions made for the reserve fund, are 'used to pay subscriptions to 
 periodicals or devoted to public or social welfare work in the com- 
 munity. Raiffeisen laid emphasis on the low rate of interest charged 
 borrowers. 
 
 Thus the systems of both encourage thrift — that of Schulze by 
 encouraging the creation and constant accumulation of capital, 
 requiring small weekly payments on a large share of capital and 
 encouraging members to become capitalists; and that of Raiffeisen 
 by reqiuring repayment of loans in small amounts extending over a 
 long period and encouragiug members thus to obtain property, on 
 the theory that periodical payments on long-time loans were as 
 effective to encourage thrift as periodical payments on shares. In 
 one case stock was obtained, in the other land or property. 
 
 In addition to their banking business, the Raiffeisen societies, 
 especially during the earher years of their existence, buy farm sup- 
 pUes, seed, fertuizer, coal, feed, and farm machinery — at wholesale 
 for cash — and distribute them among members, receiving pay therefor 
 when the crops are gathered. A society may buy a large farm and 
 allot it to members^who repay in installments and avoid ail brokerage 
 charges. 
 
 MAITAGEUENT. 
 
 The government of both societies rests in all the members at the 
 annual or semiannual general meeting, where the officers are elected, 
 important questions considered, the general policy of the bank shaped 
 and final appeals heard, no one having more than one vote or voting 
 by proxy, and no diflferehce being recognized between rich and poor. 
 
 Xbe manage'ment of the Schulze society is vested in an executive 
 committee of three — manager, cashier, and comptroller — forming a 
 board with general control of the bank, and selected purely for their 
 fitness. They; recommend persons for membership and carry out the 
 policy determined at the annual meeting. They themselves are not 
 allowed to borrow from the society and their acts are supervise^ and 
 examined quarterly by a supervisory committee of nine representing all 
 sections of membersmp, which checks everything that is done, audits 
 
8 COOPERATrrE CEEDlT ABROA©. 
 
 accounts, inquires whether proper security was taken in each case, 
 removes members of the executive committee for cause, appraises 
 the credit value of each member, and admits and expels members. 
 Both committees are generally paid, the former often on a commission 
 basis, which is apt to make them to be less careful of the security 
 offered and at times to embark on hazardous or speculative iinder- 
 takings. They serve three years, one-third' of each board retiring 
 y^early. The safety of the business depends on the carefulness with 
 which the supervisory committee does its work. Almost every case 
 of loss has been due to neghgence on the part of this committee. 
 A biennial inspection of every society is made by an inspector 
 appointed by a group of societies, compulsory since 1889, voluntary 
 before that time. 
 
 The Raiffeisen societies are managed by a committee of five elected 
 for four years, two or three retiring every two years. They mee'. 
 weekly and perform all the executive work. A council of supervision, 
 consisting of from three to nine members, is elected for thtee years, 
 one-third retiring yearly. They meet quarterly, supervise the com- 
 mittee, and under certain circumstances discharge members of the 
 committee. The duties of both boards are similar to those of. the 
 corresponding boards of the.Schulze societies, except that the man- 
 ager oversees the use of the loan and attends to any buying and 
 selliag in which the society may be engaged. The custom is to have 
 a majority of the committee composed of the wealthier members, 
 officials and landowners, often the most important men in the town- 
 ship, who do not need credit but who jom the society because of 
 their interest in its object, make deposits, and give it a visible sol- 
 vency. All serve gratuitously, except the accountant or cashier, 
 and he is merely an executive agent. Caution and safety are the 
 guiding motives in every act. Afl accounts are sent to headquarters 
 of the central office and there checked. Inspectors examine thor- 
 oughly each society every two years. 
 
 WITHDRAWALS AND DISSOLUTION. 
 
 Generally, on three months' notice, a member may withdraw from a 
 society and' receive the value of the shares bought, but he loses all 
 his right to the entrance fee and any share in the reserve fund. 
 
 Expulsion may follow immoral conduct, failure in business or in 
 meeting liabiUties, or joining another similar society organized on 
 the unlimited Habihty plan. 
 
 Heirs of a deceased member are not necessarily entitled to admission 
 to the society, but only to a settlement of accounts. 
 
 Whenever a Schulze society goes out of business, and many have 
 done so, the assets including the reserve are divided among the last 
 members. 
 
 If a Raiffeisen bank goes out of business the reserve fund is trans- 
 ferred to some public institution to^be used in organizing other similar 
 societies in the same district, and if none is organized withiu a rea- 
 sonable time, then to the commune for some local public benefit. 
 
 FEDESATIONS. 
 
 In Germany, the Schulze societies are independent but are affihated 
 to 32 provincial federations, each including cooperative, distrib- 
 utive, productive, and buUding, as well as credit (lepartments and 
 
GERMANY. 9 
 
 each having its periodic meetings. The provincial federations are in 
 turn affihated with a central organization known as the General 
 Federation of German Cooperative Societies, a volxmtary organization 
 governed by a general committee elected by the groups above men- 
 tioned, and holding- an annual' congress where pertinent questions of 
 interest to the members are discussed, views are interchanged^ reso- 
 lutions adopted, and cooperative conditions kept pure and uniform. 
 Since 1904, the Dresdner Bank, which in that year absorbed the 
 German Cooperative Bank that had been organized at Berlin as a 
 central bank for the Schulze societies, has acted as a central bank 
 for the federation. 
 
 The Raiffeisen societies are grouped into a more comprehensive 
 system than the Schulze, each part supporting the rest. They are 
 grouped into provincial federations and the latter in turn into national 
 bodies. The provincial federations are supervisory bodies, with the 
 right of inspection and audit of each local society, and carry on 
 organization and instruction. There are three central organizations: 
 (1) The- Central Agricultural Loan Bank, originally established at 
 Nfeuwied in 1877 but whose headquarters since 1910 have been in 
 Berlin, with branches in various parts of the country. Its function is 
 to act as an intermediary between the individual societies and to 
 equalize the money market. Each local society holds one share of 
 stock in the bank. (2) The General Federation of Rural Cooperative 
 Societies, a general supply agency of German agricultural cooperative 
 societies, estabhshed m 1877 but taking its present naime in 1899. 
 The federation extends and supervises the credit societies and repre- 
 sents their interests everywhere. Between 1905 and 1913 the 
 federation was affihated with the Imperial Federation of Agricultural 
 Cooperative Societies, which was an organization of provincial distrib- 
 utive agricultural cooperative societies formed in 1883. (3) The 
 firm of Raiffeisen & Co., established to raise funds, manage the print- 
 ing office of the societies, publish their paper, and be a savings bank, 
 usmg the profits for the benefit of the societies. Independent assem- 
 blies are held in the larger States of Germany. 
 
 FKOGB.ESS. 
 
 These societies have a limited field peculiarly their own. When 
 they started there were few banks which would receive small savings. 
 They have not displaced the savings banks nor are they competitors 
 of the commercial banks which are glad to be rid of smaU and vexa- 
 tious loans which return but little profit, and devote themselves to 
 larger and safer loans more easily handled. They give to the small 
 borrower the same banking facilities elsewhere reserved for capital. 
 Their value to the Government during the recent war was well shown 
 in that through them imperial bonds were floated to the. extent of 
 3,500,000,000 marks ($833,000,000, par) . They were heavy subscribers 
 to the second and third loans. 
 
 Their success has been marvelous. The percentage of losses has 
 been trifling and confined mainly to those on the Schulze model. 
 In the Raiffeisen societies no depositor or creditor has lost a cent, as 
 losses have been covered by raising the interest rates on loans or 
 slightly increasing the price of sup^es. The surplus earnings and 
 savings of the community are thus kept at home instead of being 
 sent to the city to be used elsewhere. 
 
10 COOPERATIVE CREDIT ABROAD. 
 
 ITALY. 
 
 From Germany the idea spread until at the present time one type 
 of society or the other, and generally both, is to be found in every 
 country in Exirope. Some are simply loan societies, charitable or 
 philanthropic. Others, though retammg the cooperative idea, have 
 departed so. far from the origiaal that the adapted form is hardly 
 recognizable. 
 
 The first form introduced into a country has generally been the 
 Schulze, though after the introduction of the Raiffeisen form the 
 latter has soon outdistanced its rival in the number and varieties of 
 societies. The latter is the prevailing form in Austria, Ttaly, Switzer- 
 land, and Russia. One noticeable ^feature in regard to the intro- 
 duction of these societies is that in no country have the Raiffeisen 
 societies been introduced by a farmer, or the Schxilze societies by 
 anyone needing their help. Both have invariably been iatroduced 
 by charitably disposed or public-spirited persons who after studying 
 them have been mipressed with their value and felt that they were 
 suited to the needs of their own country. 
 
 The credit society of Schulze was mtroduced into Milan, Italy, 
 May 25, 1866, by Luigi Luzzatti, then a young man, but later Minister 
 of Finance and Prime Minister of Italy. The form was somewhat 
 changed from the German model, and to-day people's banks, as they 
 are termed in Italy, are to be found in all the larger cities in the 
 northern portion of the peninsula. 
 
 The members of these societies are drawn mainly from small 
 tradesmen of the middle class but with several from the well-to-do 
 to give strength to the society in its earlier days, inasmuch as 
 limited habihty is the rule, the Italians being unacquainted with the 
 principle of unlimited liability. Admission to a society is a guaranty * 
 of good character, for character is as carefully scrutinized in Italy 
 as in Germany. The high par value of the Schulze shares is reduced 
 in amount. Shares vary in value from 5 to 100 lire ($0.97 to $19.30, 
 par), generally lying between 20 and 50 lire ($3.86 and $9.65, par). 
 A member is limited to one vote though he is allowed to hold stock 
 up to the value of 5,000 lire ($965, pa^, paying for it in 10 monthly 
 installments, thus early giving the society a definite capital. The 
 societies receive no assistance. State or charitable; give preference to 
 appHcants for small loans, accept and discount bills of exchange, 
 make loans on a member's character, pledge, or shares; limit loans 
 except those for agricultural purposes to three months, lend their 
 sxirplus to nonmembers, avoid all risk, pay dividends, and give a 
 percentage of the profits to charity and for civic betterment. Some 
 of the larger societies do every variety of hanking business. The* 
 societies do not borrow money. Their funds come from the sale of 
 shares, low entrance fees, a reserve fund created by carryii^ to it 
 20 to 25 per cent of the yearly profits, and by the issue, of interest- 
 bearing bonds, but mainly from deposits, as these societies are con- 
 sidered savings banks. 
 
 The final governing body is the general meeting. At the annual 
 meeting four unsalaried committees are elected: (1) A council or 
 board of management. The council has from 7 to 140 memters 
 
OTHER COUNTRIES. 11 
 
 representing all parts of the membersliip and all the various sections 
 and interests, has general administration of the society, elects new 
 members, and appoflkts,' inspects, and reviews the administrative 
 officers. It appoints from its own nmnber an executive board of 
 from three to five, to whom the general management of the society is 
 intrusted. (2) A committee of discounts of from 15 to 40 members 
 toieep records of the safe credit value of each member and his past 
 dealings with the society and to approve or reject applications for 
 loans or credits. (3) An appeal committee of three members to act 
 as arbitrators in all disagreements between members and the various 
 officers and committees relative to matters of administration. (4) A 
 committee of from three to five to approve and make or to refuse 
 (for good reason) loans and discoimts. The societies cover larger 
 districts than the Schulze in Germany and some of them have several 
 branches, often as many as 20, with a membership of 5,000 or more. 
 There is no central organization. Some of the societies are grouped 
 into district bodies, TOdch are without authority over the member 
 societies. Some of the larger societies act as central banks for the 
 smaller organizations in meir vicinity. No general directing or 
 inspecting body exists, and therefore uniformity is lacking. 
 
 Though one-fourth of their members are in agricultural pursuits 
 the people's banks do not reach small farmers and villagers. Notic- 
 ing tins, Leone Wollemborg, later Minister of Finance of Italy, in 
 June, 1883, established at Loreggia a rural society on the Raififeisen 
 principle, furnishing most of me initial capital himself. By 1912 
 the number of these societies had increased greatly, outstripping 
 the people's banks of Luzzatti, and all closely following their 
 Raififeisen model. The same care as in. Germany is observed in 
 electing members. The societies have only one salaried officer, no 
 shares, no dividends, turn all strrplus into the reserve, do a simple 
 banking business with a small membership, and require that loans 
 shall be used for the object stated in the application. General meet- 
 ings of all the members are held frequently, nonattendance being 
 Senalized by a fine. The organization is a little dififerent from the 
 iaiflfeisen model. An executive board of five, similar to that of the 
 Luzzatti- bstnks, administers the afifairs of the society. The council, 
 which meets fortnightly to examine accounts, receive deposits, and 
 consider applications for loans, is larger than in Germany. All loans 
 are for three months or less but are renewable. 
 
 One of the peculiarities of many of the Italian societies is the 
 "honor loan," which is a loan ranging from 50 to 100 lire ($9.65 
 to $19.30, par) made to honest nonmembers without security if 
 vouched for by a member, and repaid in installments, often without 
 interest. 
 
 OTHER COUNTRIES. 
 
 From Italy the Luzzatti system entered France. On April 9, 
 1883, a people's bank was organized at Mentone, and has been suc- 
 cessfully conducted ever since, though the artisans and working 
 classes generally form but a small part of its membership. A few 
 other societies on the same plan have been formed, but they are 
 outnumbered by the Raiffeisen societies which entered JVance 
 
12 COOPERATIVE CREDIT ABROAD. 
 
 direct from Germany in 1892 through the influence of Louis Durand, 
 a loyal follower of Raiffeisen. The original was followed except that 
 the societies are closely connected with the ehu*ch and have a strong 
 religious bent. A few imitations of both societies exist in Spain 
 and Portugal, but they differ widely from their models. The Luz- 
 zatti plan, considerably changed, has been adopted by societies 
 organized in Argentina, Uruguay^, Egypt, and Canada. 
 
 In Belgium the popular banks with but slight changes from the 
 Schulze system were mtroduced by a large landed proprietor, L6on 
 d'Andrimont, into Liege, in 1883. Limited liability, however, was 
 soon substituted for the unlimited liability of the Gerinan system. 
 The management is vested in an unpaid council of 15, which appoints 
 the manager, cashier, and executive committee. The value of the 
 shares is generally 200 francs ($38.60, par), and loans are made on 
 these shares up to one-half of their value. The reserve fund of 
 these societies is less than of those in Germany. There is no cen- 
 tral bank. 
 
 The Raiffeisen societies of Belgium are very similar to those in 
 Germany. They were introduced by Abb6 Melaerts and have ever 
 been closely under the control of the Catholic church. The parish 
 priest is a member of the managing committee, which decides upon the 
 eligibility of candidates for admission with the same care as m Gei*- 
 many. Meetings are regularly opened with prayer, and a gratuitous 
 funeral mass is said on the death of a member. No State aid has 
 jBver been received and unlimited liabiUty is the rule. The head- 
 quarters are at Louvain. 
 
 The Raiffeisen societies in Holland, where the first one was organ- 
 ized at Limberg, in 1895, are a close imitation of those in Belgium. 
 The few in Switzerland are largely denominational, and date from 
 1900, when the Vicar of Bichelsee formed a society in his parish. 
 
 In Austria, societies on the Schulze model were organized before 
 1859, and are similar to those in Germany. About two-thirds of 
 them are organized on the limited-liabUity plan. Many Raiffeisen 
 societies are also found in Austria. In Hungary, Czechoslovakia, 
 and Yugoslavia, societies on both models have been formed, but most 
 of them foUow the Raiffeisen model, though heavily subsidized by 
 the Government. In Serbia and Bulgaria the shares of the Raiffeisen 
 societies are paid for in annual installments and at the close of a 
 stated term the money is refimded. 
 
 In Russia an adaptation of the Schulze societies was introduced 
 in 1864 at Dorovatov by de Louguinine, a Russian landlord, the 
 credit feature being but one part of the business of the society. 
 Thirty years later the Raiffeisen societies were introduced, but 
 changed almost beyond recognition, unlimited liability being the" 
 principal feature retained. Each society is organized on the approval 
 of the Ministry of Finance, is located m a town, covers a large dis- 
 trict, and has a large membership, with paid officers. The Russian 
 credit society has no capital except what is loaned by the State, and 
 all profits go into the reserve. Both the Schulze and Raiffeisen 
 societies, as found in Russia, have departed so far from their originals 
 that it is generally difficult to distinguish between the two adapts- 
 
OTflEE COUNTRIES. 13 
 
 tions. Both receive State aid and are carefully supervised by the 
 State. Under the Soviet Government they have been encouraged as 
 a part of the cooperative system.. 
 
 In Prussian Poland, the Schulze societies are in the majority, and 
 closely follow their original. In Russian Poland, the Raiffeisen 
 type prevails, as is also true in Bohemia, Moravia, and Silesia. 
 
 England has not proved a fruitful field for cooperative credit 
 societies. The (few founded there have not increased in size or 
 attracted much attention. Those in Ireland, where they were intro- 
 duced in 1895, are rural and of the Raiffeisen type, and are success- 
 fully operated. 
 
 In India, a land teeming with usurers, a cooperative credit act was 
 
 {>assed in 1904, after consideration of the needs of the country and a 
 ong and careful governmental study of the societies of Europe. 
 This provided for the formation of societies on the Schultze plan 
 in cities where four-fifths of the membership was to be nonagricultural, 
 and on the Raiffeisen plan in the rural districts where four-fifths were 
 to be agriculturists. The rural societies were to have unlimited 
 liability, and with the urban societies the form of liability was to be 
 optional. According to this law, the profits of the former go into the 
 reserve, and three-fourths of the profits of the latter are divided 
 among the members. The societies may borrow from the Govern- 
 ment, which also controls their management. The ofiicers serve 
 without pay. Loans are for a specific purpose approved by the 
 proper committee, which is less severe th'ian that of the German 
 societies in the character examination of members and less sus- 
 picious over loans. 
 
 COMPARATIVE STATISTICS. 
 
 Correct statistics of these societies are practically unobtainable. 
 Umier the laws of the various European States all cooperative 
 societies are supposed to be registered and to make annual reports. 
 In most States statistical abstracts of these reports are prioted. In 
 some of these reports, however, no separation of the credit societies 
 from other types is made, and where a society conducts other opera- 
 tions besides credit it is generally impossible to separate the credit 
 statistics from the rest. In some of the less progressive countries 
 many societies fail to give reports and uniform data are unprocurable. 
 The following table based on statistics taken from various sources 
 and scattered reports will serve to give some idea of the work done 
 in the more important countries. 
 259°— 22 2 
 
14 
 
 COOPEKATIVB CREDIT ABROAD. 
 
 P4 
 
 
 t-i 
 
 
 Pi 
 
 
 g 
 
 
 o 
 
 
 u 
 
 
 R 
 
 
 
 
 R 
 
 1 
 
 m 
 
 
 Ph 
 
 
 Qi 
 
 H 
 
 S" 
 
 
 
 1 
 
 H 
 
 II 
 
 H 
 
 CQ 
 
 Q 
 O 
 
 a 
 
 a> 
 
 
 K 
 
 
 s 
 
 •a 
 
 P) 
 
 1', 
 
 O 
 
 « 
 
 
 ■H 
 
 e 
 
 
 -ai, 
 
 
 P5 
 
 ■H 
 
 H 
 
 b); 
 
 Ph 
 
 •JJ 
 
 o 
 
 N, 
 
 o 
 
 < 
 
 o 
 
 
 ^ 
 
 
 o 
 
 
 Eh 
 
 6H 
 
 i 
 
 Hi 
 
 O en 
 
 ^IP 
 
 |4i 
 
 11^ 
 
 I 
 
 o 
 O 
 
 
 hSS 
 
 «oo5 
 
 fiflS 
 
 
 T-4 Oa CD to U3 CO 
 
 00»0<M 
 
 ri S S --'.••iS ^^w ^ 
 
 
 CD CO 
 
 -11.3 00 t* O I— I 
 
 
 
 
 ss 
 
 
 n CO t» C3 c* t-i o 
 
 ■^t^n QU3 000 
 
 OD CO iH «0 ■« OD O 
 
 go rHgwS 
 
 
 
 :ȣ 
 
 
 KP3 
 
 
 P5« 
 
 (D ■*< oo> 
 
 i-iLnai^t«>nr.ci-^ocococoooQeoooomasoe>i'«ooc 
 coooeooaoow^tOTH GOmeo^09'<!C«e4«o^cpricQu 
 -*-^o »-< r- o) t^ f-t (M ^oiHrHweocii .-loSsi-nDe 
 
 >OCOt~OOOQOODr^QOO>-^;0(OOOOOOOOOaDt^OOOO3OWt^i-tO> 
 SfiHi-i^i-liHi-l>-lfHr-l<-1i-H<-4i-lrH^^<-trHC^i-Hi-4rHi-4<-lT-tt-t 
 
 A03a>oaAoo^C3000^aiaaoio>aao>o>caoma30io>a3a>o> 
 
 ^mmp3g«^oirt-<^-.ip5^«mpi5^^^p;MmM«p3 
 
 o >. 
 
 
 § iM PI ill! 11 
 
 bA 
 
 i 
 
 P3. 
 
 .■a 
 
 . n - - 
 o 
 
 it 
 
 I 
 
 a-s 
 s-g 
 
 OS 
 
 as 
 
 a WStit 
 
 SMSaiziiziK ss 
 
HISTORY OF MOVEMENT. 15 
 
 COOPERATIVE CREDIT IN AMERICA. 
 HISTORY OF MOVEMENT. 
 
 The first attempt to establish credit associations in the United 
 States was in 1870, when Josiah Quincy and other prominent men of 
 Boston petitioned the Legislature of Massachusetts for the passage 
 of a general law allowing the incorporation of cooperative banks on 
 the Schulze-Delitzsch plan, then attracting so much attention in 
 Europe. A translation of the act of 1868, passed by the North Ger- 
 man Confederation, was laid before the legislative committee on banks 
 and banking. At the session of the legislatui'e which met in January, 
 1871, favorable committee reports were made to both houses. A 
 bill to permit the organization of cooperative societies for distribu- 
 tion, manufacturing, wan, and credit, with the right to receive de- 
 posits of savings, was introduced but failed of passage. Subse- 
 quently, bills were passed providing for the incorporation of coop- 
 perative societies of the various kinds mentioned in thebUl of 1871, 
 except for cooperative credit. 
 
 In the meantime, articles were printed in the various economic 
 and banking journals and leading literary magazines describing the 
 system of cooperative credits in Europe. The United States De- 
 partment of Agriculture in 1892 issued a detailed description of the 
 workings of the Schulze and Raififeisen societies. The cooperative 
 journals contained frequent references to the system, and among 
 certain classes the working and the value of these associations were 
 well understood.' 
 
 QUEBEC. 
 
 The first general law in North America authorizing the organiza- 
 tion of cooperative credit associations was not passed, however, 
 until 1906. The passage of this bill was due to the efforts of Alphonse 
 Desjardins, who, December 6, 1900, had founded a cooperative 
 
 Eeople's bank at Levis, a city of 7,000 inhabitants on the St. 
 lawrence River opposite the city of Quebec. 
 
 Desjardins was a joumahst who had spent his life in that vicinity. 
 He was acquainted with the conditions of the people of the Province 
 of Quebec, who were popularly known as French Canadians. They 
 were descendants of settlers from France who passed under English 
 control in 1763, following the French and Indian War. They were 
 
 Eoor people, with no knowledge of banking and httle patronage for 
 anks. For years they had been victims of terrible usury^, fre- 
 quently paying 100 per cent interest on small loans. Desjardins 
 correspoaded with the leaders of the cooperative credit movement 
 in Eiirope, examiped the savings-bank system of New England, 
 and finally evolved a plan, based upon the Luzzatti system of co- 
 operative DankiuLg in Italy, combining with it the distinctive features 
 of the RaifFeisen societies, at that time spreading rapidly throughout 
 Europe, but modified by the needs of the people with whom he was 
 acquainted. He drafted a constitution, and with the help of the 
 Roman Catholic priest and the clergy of the locality, he organized 
 La Caisse Populaire de Levis, with 90 members and a capital of $28, 
 and opened for business January 23, 1901. 
 
16 COOPERATIVE CREDIT IN AMERICA. 
 
 In tlie following July, a similar association was formed in the rural 
 parish of St. Joseph de Levis. In January, 1905, a third society was 
 formed at St. Malo on the eastern outskn-ts of the city of Quebec. 
 The formation of other societies was discoiiraged during the ex- 
 perimental stage, which, however, by 1906, Desjardins felt had 
 passed. In that year, with the support of both political parties, 
 the Quebec Syndicates act, as drawn up by Ijesjardins, providing 
 for the formation of consiunption and credit associations of a cooper- 
 ative character, was passed without a dissenting vote, though six 
 years before the Quebec Parliament had refused to consider suph an 
 act. It followed the constitution and by-laws of the three societies 
 then existing in Quebec. . 
 
 The passage of the act awoke great interest in cooperation in the 
 Province of Quebec. UntU then, Desjardins had acted as president 
 and manager of the Levis society, serving without pay, the place 
 of business having been in his private office. He then ■ moved the 
 office of the society down town and h^ed a manager for it. Three 
 associations " were organized in 1907, 11 in 1908, and 15 in 1909. 
 In 1912, the number of such associations was 98; in 1913, 122, 
 besides 19 similar associations in the Province of Ontario, the latter 
 all voluntary. 
 
 An effort was made to have a bill passed by the Dominion Parlia- 
 ment. A bill modeled on th^ Quebec act of 1906 was introduced 
 into the Dominion House of Commons in 1907 and referred to a 
 committee which, after making an exhaustive inquiry into the 
 subject of cooperative credit, recommended its passage; but nothing 
 further was done. The Eetail Merchants' Association of Canada 
 disapproved the scheme because of its distributive feature and, in 
 the session of 1908, vigorously opposed it. However, it passed the 
 House of Commons unanimously and was lost in the Senate by only 
 one vote. In 1910 another effort was made to pass a similar bill 
 and was met by the same opposition. Then Desjardins divided his 
 bill into two parts, one for cooperative credit and the other for 
 cooperative production and distribution. The latter was defeated 
 and the former never reached a final reading, in spite of the fact that 
 the Governor General of Canada, the Lieutenant Governor of the 
 Province of Quebec, and the Archbishpp of Quebec were members 
 of the Levis bank. No further efforts have been made to secure 
 the passage of a cooperative law by the Dominion Parliament. 
 
 NEW HAMPSHIRE. 
 
 In the meantime the work attracted attention in this country^ 
 Large numbers of French, Canadians had emigrated to f^ factory 
 towns of northern New England. Among them in Manchester, 
 N. H., Desjardins on December 16, 1908, founded the first credit 
 association m the United States — La Caisse Populaire Ste. Marie— 99 
 per cent of whose depositors to-day are French. It is operating 
 under a special charter, , granted by the legislature April 6, 1909, 
 following closely the provisions of the Quebec act, and still remains 
 the only organization of its kind in the United States so organized 
 and operatiag. 
 
HISTORY OF MOVEMENT. 17 
 
 MASSACHUSETTS. 
 
 In Massachusetts, at the same time, several associations existed 
 bearing a striking resemblance to the Canadian societies. Hon. 
 Pierre J&j, bank commissioner of the Commonwealth of Massa- 
 chusetts, m his report dated February 11, 1907, made a brief review 
 of the various ageoties in Boston which, without legal authority, 
 received deposits for the encouragement of thrift. In his report 
 for the year 1908, he referred to five cases where employee? in busi- 
 ness houses had organized savings and loan associations, received 
 deposits from members and invested them or loaned them to members. 
 Such societies were operating contrary to law, yet the commissioner 
 recommended the passage of laws encouraging them and continuing 
 their existence. 
 
 The oldest of these societies was the Globe Savings and Loan 
 Association, organized in 1892, its membership being confined to 
 employees of the Boston Globe. It was a mutual cooperative and 
 loan society, organized and operated, absolutely uidependently of 
 the owners of the newspaper, by 444 of the 600 employees for their > 
 own benefit, and was organized for the purpose of borrowing small 
 amounts of money at reasonable rates and avoiding the then com- 
 mon practice of borrowing at high rates from one another or from 
 outsiders on assignment of wages. Only members were allowed to 
 make deposits and deposits were not allowed to be in excess of the 
 loans needed. On January 1, 1909, the loans outstanding were 
 $48,329; cash on hand, 15,209.64; deposits, $53,319; surplus, $219.64. 
 During the year 1908, of a total of 4,579 loans made, aggregating 
 $67,571, nearly 53 per cent were in amounts of $5 or less and 97 per 
 cent were in amounts of $50 or less. 
 
 The success of this association led the employees of other news- 
 papers and of large manufacturing plants and ' mercantile establish- 
 ments in Boston to organize similar societies. 
 
 The bank commissioner, in concluding this part of his report for 
 1908, called attention to the success of these societies, described the 
 credit associations organized by Desjardins in Canada and the 
 25,000 cooperative banks in Europe and India, with 3,000,000 mem- 
 bers, and $1,000,000,000 of assets, and their success among farmers, 
 small tradesmen,, and industrious workmen, and ended with a strong 
 recommendation to the legislature to pass a bill authorizing the 
 formation of credit associations for people in moderate circum- 
 stances, legalizing societies similar- to the Globe association, and 
 placing them under the direction of the bank commissioner. 
 
 Through the influence of the bank commissioner, Desjardins was 
 invited to give an address before the Twentieth Century Club of 
 Boston, describing the working of the credit associations of Quebec, 
 and to confer with the banfing committee of the Legislature of 
 Massachusetts, before which in February, 1909, he explained the 
 theory and practice of his system and aroused public interest in this 
 agency. On the basis of the committee's report, the legislature 
 passed an act similar to that of Quebec, embodying all the princi- 
 
 S'es Desjardins advocated, which was approved by the governor, 
 ay 21, 1909. Several applications for incorporation were received 
 but only one was granted during the year, ajid no organization was 
 
18 COOPERATIVE CREDIT IN AMERICA. 
 
 made under that approval. The first society opened for business 
 was the Mjrrick Credit Union, of Springfield, which was incorporated 
 April 5, 1910, and began business in a large manufacturing plant 
 on May 2 of the'same year. By the end of the year four more had 
 been Established — ^one of French Canadians in a Roman Catholic 
 parish in Lynn, one of Poles residing in the North End of Boston^ 
 and two others in the same city. 
 
 Literature was prepared to aid in the starting of credit associa- 
 tions and during the year 1911 determined efforts were made to bring 
 before the public the advantages of establishing credit unions in 
 communities that might be benefited by them. The Boston Chamber 
 of Coimnerce appointed a committee to aid in their establishment 
 and Desjardins made several addresses in various parts of the State 
 advocating their formation. Several societies were established as 
 a result. 
 
 JEWISH UNIONS. 
 
 The movement was also helped forward from another and unex- 
 pected source. The Jewish Agricultural and Industrial Aid Society 
 had been incorporated in New York City in 1900 to encourage the 
 removal of Jews from the cities to the country. To aid it in this work, 
 the society was given a part of the Baron de Hirsch fund of $2,500,000. 
 This was a fund established hj Baron Maurice de Hirsch in 1891, for 
 the amelioration of the condition of irnmigrant Jews who, beginning 
 with 1892, had come to the American shores in large numbers, mainly 
 from the agricultural districts of Russia, Rumania, and Gahcia, 
 and had remained in the large cities along the coast in spite of efforts 
 to settle them on the land farther west. The society granted loans 
 to mechanics, artisans, arid tradesmen to enable them to secure 
 larger earnings and to accumulate savings with which to buy homes 
 in the suburbs and rural districts. Many Jewish colonies were es- 
 tabhshed in the West, and several abandoned farms in New England, 
 New York, and New Jersey were bought, the society paying 5l the 
 expenses except transportation, whidi was paid by the Industrial 
 Removal Office, another Jewish society organized in February, 1901. 
 
 Where individuals had difficulty in borrowing money with which to 
 buy farms, the society granted them financial assistance, ta kin g a 
 second mortgage on the property and allowing repayment to be 
 made in installments, using a method adapted from the "cr6dit 
 foncier" system common in France. As time passed, many short- 
 term personal loflns were also made to those desiring to purchase 
 equipment for their farms. 
 
 In 1907 a study was made of the cooperative credit system in 
 general use in Europe, and in 1909 a form of credit union was de- 
 vised, slightly different from that established in Massachusetts, but, 
 like it, based on the Raiffeisen form of cooperative banks. It was, 
 however, modified by the society's experience with the Jewish 
 colonies planted in the West, and substituted for the State the Jewish 
 Agricultural and Aid Society, which loaned each union twice the 
 amount of its capitaUzation. The capital stock of each union was 
 placed at $500, and after the shares had been bought by members 
 the Aid Society loaned the union $ 1 ,000 at 2 per cent interest annually. 
 Membership was confined to Jews. Between the years 1911 and 
 1915, 19 Jewish credit unions, the first agricultural credit unions 
 
flIStORT OF MOVEMENT. 19 
 
 formed in the United States, were organized — 8 in New York, 5 in 
 New Jersey, 5 in Connecticut, and 1 in Massachusetts — the last one 
 being organized in 1914 under ih.e credit union law of that State, 
 and remaining to this day the only agricultural credit union in 
 Massachusetts. The others were voluntary organizations in States 
 where no credit union law existed at the time of their formation. 
 
 DEVELOPMENT OF AGBICULTUBAL CBEDIT. 
 
 Two other occurrences, apparently unrelated to the subject and 
 independent of each other, drew attention to the credit imion move- 
 ment. The first of these was the report, in 1908, of the Country 
 Life Commission appoiated by President Roosevelt, which found 
 a lack of agricultural credit facilities and recommended the adoption 
 of some method of cooperative credit and rural cooperative organi- 
 zation. The second was the report of the National Monetary Com- 
 mission to inquire into and report changes necessary or desirable 
 in the monetary system of the United States, appointed in accord- 
 ance with the provisions of sections 17 to 19 of the act to amend 
 the national banking laws, approved May 30, 1908, following the 
 commercial crisis of 1907. This report called attention to the 
 superior facilities for obtaining loans enjoyed vby farmers iu Europe. 
 
 The first of these reports diowed the need of cooperative credit 
 among farmers, and the second aroused interest in the possibilities of 
 cooperative credit in the United States in view of its wide.,and suc- 
 cessful use throughout Europe. Many articles on the subfect appeared 
 in the newspapers and magazines. The subject was discussed at a 
 meeting of the Bankers' Association of Ohio on October 26, 1910. A 
 year later, the American Banking Association at its annual meeting 
 m New Orleans created a committee on agricultural and financid 
 development and education, and caused the organization of sub- 
 sidiary agricultural epmmittees in 34 States to study the various 
 forms of agricultural credit in use in Europe. 
 
 In 1912, a series of events of interest in this connection occurred. 
 Early in the year, David Lubin, the American representative to the 
 International Institute of Agriculture at Rome, had sent broadcast 
 through this country copies of a collection of articles describing the 
 importance attached by the European Governments to the farmers 
 enrploying the best busiaess methods possible. One of these pam- 
 phlfits fell into the hands of Senator Fletcher, of Florida, at the time 
 
 President of the Southern Commercial Congress. At his invitation, 
 rubin came from Rome and attended the fourth annual meeting of 
 that congress at Nashville, Tenn., April 9, 1912, after gi"ving six days' 
 instruction iu rural cooperative credit to a conference on agricultural 
 finance, attended by representatives from 27 States. As a result, 
 the congress voted to appoint a committee on rural finance, consistuig 
 of two persons from each State to investigate the actual working of 
 the cooperative credit socities among the farming and iadustrial 
 classes in Europe. 
 
 In the summer of 1912, each of the leading poHtical parties at its 
 national convention adopted recommendations m its platform favor- 
 ing such an investigation. At the meeting of the American Bankers' 
 Association in Detroit, in September, several addresses were delivered 
 on rural credits in Europe. Later in the year, there was issued a Pre- 
 liminary Report on Land and Agricultural Credit, prepared by Hon. 
 
20 
 
 COOPEBATIVE CttiiOix ijn Aivii<niOA. 
 
 Myron T. Herrick, who had been the principal speaker before the 
 bankers of Ohio, in 1910, who had introduced, the resolution creating 
 the committee on agricultural development of the American Bankers 
 Association, in 1911, and who was at that time, and is at present, the 
 American ambassador to France. This report, prepared by direc- 
 tion of President Taft, was a summary of the system then existing 
 in the leading countries of Europe. In December, at the meetmg 
 of the house of governors, at Richmond, Governor O'Neal, of Ala- 
 bama, chairman of the committee on rural credits, addressed the 
 meeting on that subject. In the spring of 1913 the first National 
 Conference on Marketing and Farm Q-edits, called by the pub- 
 lishers of farm journals m the United States, was held in Chicago 
 and gave due consideration to the question of rural credits. 
 
 FEDERAL FAKM LOANS. 
 
 The commission assembled by the Southern Commercial Con- 
 gress, consisting of 2 from each of 29 States, 4 from Canada, and 5 
 appointed by President Wilson in accordance with a provision in the 
 agricultural appropriation act apnroved by President Taft on the 
 last day of his term of office, was absent from the country from April 
 26-to July25, 1913. Under the direction of David Lubin and the 
 International Institute of Agriculture, the members visited Egypt 
 and every European country, except Portugal and the Balkan States, 
 and made a detailed study of the finances, production, and organi- 
 zation in agricultural and rural life, including agricultural credits 
 and cooperative banks. On their return, the presidential appointees 
 on the commission submitted four successive reports to- the Senate 
 between October 20, 1913, and March 13, 1914, recommending that 
 incorporation of banks with small capital be left to the consideration 
 of the States, but that Congress by appropriate legislation establish 
 some system of agricultural credit. Eighty-six biUs relating to rural 
 credits were introduced by various members of both Houses of Con- 
 gress, and eventually, July 17, 1916, the Federal farm loan bill, 
 based on the Prussian landschaft, but with a mixture of cooperation 
 and Federal assistance, was enacted into law. 
 
 STATE CREDITS. 
 
 During the three years that the question of national legislation 
 was imder consideration, addresses were made, articles were printed 
 in the papers and magazines, pamphlets were written, and the State 
 members of the commission reported to their respective governors. 
 Nineteen States passed legislation relative to rural credits permitting 
 State loans to farmers imder certain conditions and the creation oL 
 rural savings associations or banks, all relating to farm mortgages 
 for long terms of years, and paralleling in a way the Federal act of 
 July 17, 1916. 
 
 LEGISLATIVE ACTION. 
 
 In nme States,* widely separated and representing different condi- 
 tions, acts sunilar to the credit union acts of Massadiusetts and New 
 Hampshire were passed, designed to aid small farmers and artisans. 
 
 1 Teras ULCts of 1913, ch. 87), New York (Acts ol 1913, ch. 582), Wisconsin f Acts of 19M ph ra\ ith»i. 
 Island(Afe of 1914, oh. 1103), Oregon (Acts of 1915, eh. 277)rNorth^^aTASs ^ lll's^ u«^ nJ?h 
 (Acts of 19l5,ch. 120), south 6arolSi» (lets of 1915,'no. IM), ^d NebSsta UotS Vw1»! AI). ^' ^'*^ 
 
LlfGISLATIVE ACTION. 21 
 
 In California, an act (ch. 279, Acts of 1915) was passed, providing 
 for the appointment of a commission to consider and report on the 
 advisability of the adoption of a sj^stem of rural credits. In New 
 Jersey a biU introduced in the legislature, March 4, 1919, giving 
 -bankmg powers to associations managed on cooperative principles 
 imder the department of banking and insurance, failed of passage. 
 
 The New York act was passed at the request of the Jewish Agri- 
 cultural and Industrial Aid Society, which desired incorporation for 
 its eight credit unions, and of certain benevolent institutions in New 
 York City. In the other States, the legislation seems to have been 
 the outgrowth of the current discussion on rural credits, and to have 
 been designed to enable sjnall farmers to obtain financial aid for short 
 periods of time at rates not prohibitive. The New York act was 
 replaced by a new act the next year,^ based on the experience abroad, 
 in Canada, and Massachusetts, and the savings bank and building 
 and loan experience in New York, and the Massachusetts act of 1909 
 was revised in 1915,^ the provisions varying from the earlier act 
 mainly in arrangement. In 1921, New Hampshire passed a general 
 act * providing for the incorporation of credit unions, following in 
 the main the provisions of the special act of 1909. 
 
 COOPERATIVE CBEDIT LEGISLATION. 
 
 The laws show by their fullness the ideals of the founders of the 
 plan. Whenever the details have been conscientiously followed, 
 credit unions have been generally successful. Failure in nearly 
 every case has been due to carelessness iu the observance of details.- 
 After the establishment of one society in a State, the rule has been 
 never to organize other societies in advance of the need for them nor 
 until those who enter them understand what they are doing. 
 - The main provisions of the various laws are summarized below. 
 
 Name of credit associations. — ^The names of these associations in 
 the different States vary somewhat. In Quebec they are incorpo- 
 rated as cooperative syndicates for consumption, production, and 
 credit, though popularly referred" to as cooperative people's banks. 
 In Massachusetts the name "cooperative banks" had already been 
 given by law to building and loan associations. To avoid confusion 
 between the two types of organiza,tion, it therefore seemed advisable 
 to coin a new name for the credit associations and, after consultation 
 with Degjardins, the term "credit union" was adopted. This is the 
 English equivalent of " creditverein, " the term used by Schulze in 
 his book written in 1856 and the name by which several of the 
 cooperative associa,tions founded by him were known. In New 
 Hampshire, New York, Rhode Island, Oregon,' and North Carolina 
 they are also called credit unions; in Texas rural credit unions; in 
 South Carolina' cooperative credit unions; in New Hampshire,' 
 Wisconsin, and Nebraska cooperative credit associations; and in 
 Utah cooperative banks for personal credits. 
 
 Coniroi.— iExcept for one in New Hampshire, credit unions are 
 incorporated under general laws and are generally under the 
 
 'Acts of 1914 cli. 369. 
 
 > Actsof 19is! cb. 268. General Laws of Massachusetts of 1921, ch. 171. 
 •Acts of 1921, ch. 40. 
 
 > In the title of the act they are called mral credit unions or cooperative associations. 
 ' In the title of the act they are called cooperative unions. 
 
 'In the act of 1909. 
 
22 COOPBKATrVB CEEDIT IN AMERICA. 
 
 direction of the banking department of the State. In North Carolina 
 credit unions are organized and controlled by the superintendent of 
 cooperative associations and credit unions, who is under the direction 
 of the joiat committee for agricultural work in the division of 
 markets and rural cooperation. 
 
 Articles of incorporation and by-laws. — Generally they are organized 
 by 7 or more' citizens' of a State, makiag, signing, and acknowledging 
 a certificate containing the name and location of the association with 
 the conditions of residence or occupation necessary to qualify for 
 membership, with number, names, and addresses of the first board 
 of directors and" subscribers and the number of shares each is to take. 
 The law of Utah requires that before the articles are approved 400 
 shares must have been subscribed for and haK their value paid in. 
 
 The certificate is then presented to the State banking Tjoard, or 
 superintendent of credit unions in North Carolina, for approval 
 which is generally granted as a matter of course. In Massachusetts, 
 New Hampshire, and South Carolina, consent may be given if the 
 board is satisfied that the proposed field of operation is favorable 
 to the success of the corporation, and in Nebraska, North Carolina, 
 South CaroUna, Utah, and Texas, when further satisfied that the 
 standing of the proposed members is such as to give assurance 
 that its affairs will be administered in accordance with the spirit of 
 the act. In South Carolina the charter is granted by the secretary 
 of state. In New York and Oregon an appeal to the supreme court 
 is allowed from an adverse decision of the banking department. 
 ^ After approval, a copy of the articles or certificate is filed with the 
 secretary of state or with the clerk of the coxmty court or muni- 
 cipahty in which the principal office of the society is located. 
 
 The certificate is then returned to the incorporators who come 
 together and draw up by-laws. In some States the by-laws are 
 drawn up at the outset .and presented to the board with the proposed 
 articles of incorporation. The required contents of the by-laws vaTy 
 somewhat in the several States. Usually, the name of the organiza- 
 tion must be given and must contain the words "credit union" or 
 similar words designated in the statute, and the use of these words 
 by any association not incorporated under the act is forbidden. 
 The by-laws must also state the purpose, location, conditions of 
 residence, or occupation necessary to quahfy for membership, the par 
 value of the shares, the conditions on which shares, are issued, trans- 
 ferred, and withdrawn, the conditions on which deposits are received 
 and withdrawn, loans made, and dividends declared, the method of 
 receipting for money paid in on account of shares or deposits, the 
 number of directors and officers, the number of members of the 
 credit committee, the duties of the several officers and coromittees, 
 the fines for failure to meet obligations to the corporation pimctuaUy, 
 the date of the annual meeting, the manner of notifying members 
 of meetings, the number of members necessary to constitute a 
 quorum, and such other matters as seem advisable. 
 
 The laws of several States have additional requirements; thus, the 
 act of New Hampshire requires the amount of the entrance fee to be 
 stated in the by-laws, and the date of the beginning of the fiscal 
 year. The acts of New York, Oregon, North Carolina, and Nebraska 
 
 • 5 in Rhode Island; 10 In Soufli Carolina, Texas, and trtah; 12 in-Qnebec: and IS in Nebraska. 
 
 • Persons employed or residing in, in Massachusetts, New York, North Carolina, and Oregon. 
 
LEGISLATIVE ACTION. 23 
 
 require that the manner in which the guaranty fund is to be accu- 
 mulated shall be specified, as well as the manner of conducting 
 meetings, the number of directors necessary for a quorum, the 
 compensation of officers, and the maximum rates charged on loans. 
 North Carolina requires that the method of investing fimds and 
 manner of dissolution be shown, "and with New Hampshire that the 
 number of members on the supervisory committee be stated. New 
 Hampshire requires the maximum amount of a loan to be indicated, 
 Massachusetts and New Hampshire the maximiun number of shares 
 one may hold, and Nebraska the manner in which funds are to be 
 employed. In Utah the names of associations in towns containing 
 more than 3,000 people must include the words "urban cooperative 
 bank" and those in smaller districts the words "farmers' cooperative 
 bank." In South Carolina and Utah, the by-laws must state the 
 system for encouraging members to increase their holdings. 'These 
 by-laws, after adoption by the association, must be approved by 
 the State banking department and are not to be changed except 
 with its approval. 
 
 Share capital. — Shares may be subscribed and paid for in such 
 manner as the by-laws prescribe and are to be issued only to persons 
 quahfied for membership. No limit, is set on the share capital of 
 the society, except in the first society formed in New Hampshire, 
 where it may not be less than $1,000 or more than $100,000. In 
 Quebec it may not fall below the amount mentioned in the articles of 
 association. All members of the association are required to be 
 shareholders. In no State is provision made for the organization of 
 credit unions on a mutual basis without capital stock. In Quebec, 
 the par value of each share must be at least $1; in New Hampshire 
 {the first society), $5, and in Nebraska $10; in South Carolina and 
 Utah it is fixed at $5, and in Texas at $25; in Massachusetts and 
 New Hampshire it is limited to $10; and in New York, North Carolina, 
 and Oregon, to $25. In South Carolina and Utah members may 
 purchase not more than 200 shares each; in the first society. New 
 Hampshire, the Rmit per member is $500, or one-sixth of the share 
 capital of the society. In New York, North Carolina, Oregon, and 
 Nebraska, the payment of commissions for securing members or for 
 selling stock is forbidden. The capital of such societies is exempt 
 from taxation in Wisconsin; in New Hampshire, New York, North 
 Carolina, Oregon, and Rhode Island the societies are considered as 
 savings banks for purp6ses of taxation. 
 
 In New York and Oregon shares in amoutrts of less than $600 are 
 not to be sold on execution. In New York, Oregon, North Carolina, 
 and Nebraska the society is allowed to impress a lien on shares and 
 dividends to the extent of, loans, dues, and fines outstanding. 
 
 In Quebec membership in the society is permitted to farmers' 
 clubs, agricultural societies, school districts, municipalities, parishes, 
 and townships. Membership is expressly permitted to cooperative 
 associations in Utah, and is impliedly so in other States, except 
 South Carolina, where it is confined to natural persons. 
 
 In all States shares may be issued to and deposits received in the 
 name of minors, and shares may be held and deposits made in trust, 
 provided the name and address of the beneficiary are disclosed. 
 
 Deposits. — Credit unions are permitted to receive deposits from 
 members in aU States, and in North Carolina, South Carolina, and 
 
24 COOPEEATrVE CREDIT IN AMERICA. 
 
 Utah from nonmembers. In South Carolina the payment of savings- 
 bank rates of interest on deposits is required. 
 
 Zoans. —Credit unions are permitted to loan their funds— share 
 capital, deposits, and surplus — to members only, at reasonable rates, 
 for such purposes and on such security and terms as the by-laws 
 permit or the credit committee determines. In Texas such loans are 
 allowed for productive purposes only or for urgent need and are 
 limited to $200 for a period of eight months, without renewal for 
 the amount of the original loan. In Massachusetts, under, certain 
 circumstances, loans may be made on the security of a first mortgage 
 on farm land for not more than 50 per cent of its value. Oregon, 
 New York, North Carolina, and Nebraska permit no loan for more 
 than S50 to be made without an indorsed note or other security. 
 New York, Oregon, and Nebraska require a pledgaof the shares held 
 by the member to whom a loan is made and permit additional 
 security to be demanded if, at any time, the loan is deemed unsafe. 
 New York, Oregon, and Utah limit the rate of interest on loans to 
 12 per cent. South Carolina to 7 per cent, Texas to 6 per cent, New 
 Hampshire and Noi-th Carohna to. the legal rate. In Utah not more 
 than 15 per cent of the capital and surplus may be loaned to one 
 person. 
 
 The loan may be repaid in whole or in part on any day when the 
 office is open for the transaction of business, the borrower to be fined 
 for failure to pay the interest or any installment required by the 
 terms of the loan as prescribed by the by-laws. Similarly, in New 
 York, North Carolina, and Oregon, a penalty may be levied for non- 
 payment on shares which, in the last-named State, is limited to 2 
 per cent a month, with 5 cents a month as a minimum. 
 
 Such surplus funds as are not loaned or needed for current use 
 may be deposited in banks or trust companies incorporated in, or 
 national banks located in, the same State as the credit union. In 
 New York and Oregon the surplus may be invested in shares of or 
 deposited with other credit unions. In Massachusetts and Utah the 
 surplus may be invested in the bonds of other credit imions or of 
 farm land banks incorporated in the State or in securities that are 
 legal for savings banks. Massachusetts further permits deposits, to 
 be made in other credit unions, or invested in shares of credit unions, 
 farm land banks, or local building and loan associations, up to 30 
 per cent of the share capital and surplus, subject to the approval of 
 the bank commissioner. In New Hampshire and Nebraska such 
 surplus funds may be invested in Federal, State, local, or farm loan 
 banks, or in other securities approved by the State banking board. 
 In Utah fimds in excess of 15 per cent of the reserve may be loaned, 
 to nonmembers on demand. 
 
 In North Carolina, all credit unions over 3 years old must keep on 
 deposit in regular banks an amount of the reserve fund equal to 20 
 per cent of the total liabilities. 
 
 OtTier activities.— K}i\. associations are permitted to borrow money 
 from nonmembers if needed to lend to members. In New York and 
 Oregon the amount so borrowed is limited to 40 per cent of the 
 share capital, or $2,000, if the capital is less than $5,000; in North 
 Carolina, to the capital, reserve, and surplus of the association; and 
 in' Quebec to twice that amount. 
 
LEGISIATTVB ACTION. 25 
 
 In all States credit unions are allowed to undertake such other 
 activities relating to the purposes of the association as their by-laws 
 authorize, subject, however, to the general banking laws of the State 
 in which located and to the general supervision of the banking 
 -department (or superintendent of credit unions in North Carolina), 
 the credit unions being in this respect on the same footing as the 
 savings banks. In Massachusetts, under certain circumstances, credit 
 unions are allowed to trade in their own collateral trust bonds secured 
 by first mortgage on farm lands. 
 
 Liability. — Limited liability is the rule, though the laws permit 
 any credit union to adopt the vmlimited system if its by-laws so pro- 
 vide. In South Carolina the liability of each member is to be the 
 same as in the case of other banks ; in Nebraska, twice the par value 
 ef the stock held. 
 
 Meetings. — The fiscal year corresponds with the calendar year, 
 except in Massachusetts and Wisconsin, where it ends October 31. 
 
 The annual meeting is held at such time as is prescribed by the 
 by-laws. The act of Massachusetts, however, specifies that this 
 meeting shall be held within 30 days after the close of the fiscal year, 
 and the statutes of New York, Nebraska, and Oregon that it shall 
 take place in January. 
 
 At these meetings the members receive the annual reports of the 
 ofl&cers, decide questions of interest to the corporation, fix the amount 
 of the entrance fee for the ensuing year, amend the by-laws (if the 
 notice of the meeting specified the changes suggested), elect the 
 members of the board of directors and various committees provided 
 lor by the laws of the State and the by-laws of the organization, and 
 may reverse decisions of the credit committee or board of directors. 
 
 Ill most of the credit union States, special meetings may be called 
 by order of the directors or supervisory committee or by the clerk 
 on request of 10 members. In North Carolina and Quebec a special 
 meeting may be called on request of 10 per cent of the members; in 
 Nebraska, of 15 per cent of the members. Notices of the meeting 
 are to be given as prescribed in the by-laws. Each member is entitled 
 to but one vote, irrespective of the number of shares he owns, and 
 no one may vote by proxy except in North Carolina, where proxy 
 voting is allowed in cases of sickness or unavoidable absence, but 
 no one is allowed to act as proxy for more than one person. In 
 several States no one is permitted to vote who has been a member 
 of the society less than three months. In Massachusetts and New 
 Hampshire members under 18 years of age have no vote. Where 
 the member is another society or organization it may designate some 
 one to cast its vote. At the special meetings usually no business is 
 to be considered except such as is indicated in the call for the meet- 
 
 Directors and officers. — The- board of directors consists of at least 
 five members elected by the society at its annual meeting. In New 
 Hampshire and Massachusetts, if the by-laws of the society so provide, 
 they may serve for three years, in which case one-third are elected 
 yearly. In Quebec, similarly, they may serve for either two or three 
 years. 
 
 The board has the general management of the affairs, funds, and 
 records of the corporation, and meets as often as may be necessary. 
 It admits and expels members, fixes the amount of the surety bond 
 
26 COOPEBATIVE CREDIT IN AMERICA. 
 
 required of officers having custody of funds, determines the rate of 
 interest to be allowed on deposits and paid on loans, directs the 
 deposit or investment of the funds, fills vacancies in its number and 
 (except iQ Massachusetts) in the credit committee until their successors 
 are elected. Where not otherwise fixed by the by-laws, the directors 
 recommend at the annual meeting the amount of the entrance fee, 
 the maximum number of shares to be held by members, the" maximum 
 amount to be loaned to members, amendments to the by-laws, and 
 the amount of dividends to be declared. In New York and Oregon, 
 however, the rate of dividend is decided upon by the directors. Tneir 
 decisions and acts are object to review at the annual meeting and 
 may be reversed generally on vote of three-fourths of the members 
 present, but in North Carolina, and Oregon by a majority vote of all 
 the members. 
 
 The directors elect from their own number, a president, vice presi- 
 dent, clerk, and treasurer, who constitute the executive officers of 
 the corporation. In Massachusetts, Nebraska, New' York, New 
 Hampshire, North Carolina, and Or^on one person is allowed to 
 act as secretary and treasurer. In Quebec any officer may be desig- 
 nated as manager, who acts also as treasurer. 
 
 AU officers and members of committees are sworn and hold office 
 tmtil their successors are elected and qualify, but their positions 
 become vacant on their ceasing to be members. Officers having 
 custody of funds must give bonds in the form prescribed by the bank 
 superintendent for the faithful performance of their duties, and a copy 
 is filed with the bank superintendent. 
 
 Credit committee. — ^A credit committee of at least three members 
 is elected at the annual meetiug in every State except Texas where 
 they are selected from among the directors. This committee serves 
 one year, except in Massachusetts and New Hampshire where the 
 members may serve for three years, in which case one-third of the 
 members are elected yearly. In New York, North Carolina, and 
 Oregon, if the by-laws so provide, the board of directors may serve 
 as a credit committee in associations located elsewhere than in a city. 
 
 It is the duty of the credit committee to meet as frequently as neces- 
 sary and to approve appUcations for loans. The applications are 
 made in writing and. the purpose for which the loans are desired and 
 the security offered are stated. The committee is forbidden to 
 approve a loan until satisfied that it gives promise of benefiting the 
 borrower and unless the loan was approved by all present when the 
 application was considered. Their decision is subject to appeal to 
 the board of directors. In North Carolina, a loan may be granted in 
 fixed monthly installments, if needed to buy necessary supplies foi 
 growing crops. The acts and decisions of the credit committee, 
 like those of the directors, are subject to review at the annual meeting 
 and to reversal there. 
 
 Supervisory committee. — A supervisory committee of three mem- 
 bers (or more, in the case of New York, North Carolina, and Nebraska) 
 is also elected at the annual meeting in every State except Utah' 
 No member of the board of directors is allowed to serve as a member 
 of either credit or supervisory committee except as before noted and 
 as a rule, no member of either committee is allowed to serve on the 
 other. 
 
LEGISLATIVE ACTION. 27 
 
 The supervisoiy committee meets periodically, keeps informed of 
 the financial condition of the society, oversees all the business of the 
 association, inspects its securities, cash, and accounts, and super- 
 vises the acts of the board of directors, officers, and credit committee. 
 It may call a meeting of the shareholders to consider any violation 
 of the State act or of the by-laws or 'any practice that is deemed 
 unsafe or xm'authorized, and may suspend the members of the credit 
 committee or any officers elected by tne directors — even the directors 
 themselves; in New Hampshire, New York, North Carolina, Oregon, 
 Massachusetts, and Nebraska. Within, seven days after such sus- 
 pension the committee must call a special meeting of the association 
 to take such action as may seem necessary. The committee fills 
 vacancies in its own number and appoints others (or acts itself in 
 Nebraska) to take the places of the suspended members until new 
 members are elected and qualify, and in Massachusetts and New 
 Hampshire, jointly with the board of directors, fills vacancies in the 
 credit committee. In Quebec each committee fills vacancies occur- 
 ring in its own body. 
 
 At the end of the year the committee makes a thorough audit of 
 the receipts, disbursements, income, assets, and liabiHties of the cor- 
 poration and makes a full report to the directors which is read at 
 the annual meeting and ffied with the records. 
 
 Committees in general. — ^All members of committees serve vsdthout 
 pay, but officers appointed by the directors receive such compensation 
 as is authorized by the board. In Massachusetts, New Hampshire, 
 Rhode Island, Utah, and Wisconsin, no member of either committee 
 is permitted either to borrow or to become surety for any loan or 
 advance to other members, but such members, in South Carolina and 
 Texas, and directors, officers, and committees, in other States, are 
 granted such permission on approval, at a regular meeting of the 
 association if the matter is mentioned in the call for the meetmg. 
 
 In South Carolina and Utah a special committee of two members 
 is elected at the annual meeting to make loans to members of com- 
 mittees and the directors, acting toward them as the credit committee 
 does to others. 
 
 Dividends.— In New York and in Oregon dividends are declared by 
 the board of directors, in one society in New Hampshire by the board 
 of directors with the approval of the supervisors, and elsewherfe by 
 the members at their annual meeting on recommendation of the board 
 of directors. Such dividends are to be paid from the net profits of 
 the year and only after any impairment of the capital has been made 
 good. In North Carolina dividends are limited to 6 per cent, in 
 Massachusetts to 20 per cent, in South Carolina to 1 per cent more 
 than the average rate of interest received from borrowers during the 
 year, and in Utah to 2 per cent more than that rate. Dividends are 
 paid only on capital stock fuUy paid up, such as becomes fully ipaid 
 up during the year being entitled only to a proportional part of the 
 dividend.. Dividends may be paid in cash, or credited on partially 
 paid shares. 
 
 Guaranty or reserve fund. — Before dividends are paid, a certain 
 part of the net income accumulated during the year is added to the 
 guaranty or reserve fund. This fund belongs to the association and 
 must be held to meet contingencies or losses in business. Cost of 
 organization may be charged against the reserve. The proportion 
 
28 COOPERATIVE CREDIT IN AMERICA. 
 
 of profits reserved yearly is as stated in the by-laws in Quebec, is 
 10 per cent in Utah, and New •Hampshire, 25 per cent in Nebraska, 
 New York, Oregon, and North Carolina, and 20 per cent elsewhere. 
 On recommendation of the directors, the society at its annual meeting 
 may vote to increase this percentage, and when the fund equals the 
 
 E aid-in share capital, the proportion of profits to be added to it maj 
 e decreased. In New York, North Carolina, and Oregon, the fund is 
 not to exceed the share capital plus 50 per cent of the other liabilities. 
 This reserve fund also mcludes all entrance fees in all States, and 
 fines 'm Nebraska, New York, North Carolina, and Oregon. The 
 amoimt of the entrance fee is determined by the society in annual 
 meeting, and in cases where not otherwise provided in the by-laws, 
 may be proportional to the number of shares bought; in South Caro- 
 lina and Utah, the amoimt of this fee is placed at a minimum of $1. 
 A member may sell any of his shares to any one elected a member, 
 upon such terms as the by-laws provide, but the purchaser may be 
 required to pay a reasonable transfer fee, which m North Carolina 
 must not exceed 25 cents a share. In New York, North Carolina, 
 and Oregon, this fee also is carried to the reserve. Stock transfers 
 are exempt from taxation in New York and North Carolina. 
 
 Withdrawal of members. — Members may withdraw at any time on 
 giving notice. The board of directors may expel any member who 
 has. not carried out his engagements with the society or has been 
 convicted of a criminal offense, or neglects or refuses to comply with 
 the provisions of the act or of the by-laws, or who habitually neglects 
 to pay his debts or has become insolvent or bankrupt, or (except 
 in New York, Nebraska, New Hampshire, North Carolina, Texas, 
 and Oregon where the right is reserved to the society) whose private 
 life is a source of scandal. In Quebec the board may expel a member 
 who is interdicted, in South Carolina and Utah, any member who 
 has deceived the committee with regard to his property, resources, 
 or credit, in Massachusetts, New Hampshire, South Carolina, Texas, 
 Utah, and Wisconsin, who has also Received the society in regard 
 to the use of borrowed money, and in North Carolina and Nebraska 
 one who is ha,bituaUy intemperate. However, final action may not 
 be taken until the member has been informed in writing of the 
 charges against hiin, and an opportunity given him to be heard. 
 
 Members who withdraw or are ex'pelled receive back, in the order 
 of withdrawal or expulsion, as funds become available, the amount 
 they have paid into the society for shares or in deposits, less the 
 amount necessary to liquidate any indebtedness to the society. 
 Their shares are then canceled. 
 
 Reports. — ^The board of directors is required to make a report to 
 the superintendent of banks '° on forms prescribed by him and signed 
 and verified by the officers of the credit imion and by the supervisory 
 committee. These reports are to be made within a month following 
 the close of the fiscal year, under penalty of $5 for each day of delay 
 In Massachusetts, the report shows the condition of the association 
 as of October 31 ; m New Hampshire and Rhode Island as of June 30- 
 elsewhere as of December 31. These reports are pubhshed by the 
 respective banking departments in connection with their regular 
 annual reports, except m North Caro lina. There the superintendent 
 
 M The superintendent of credit mtions in Nortli Carolina. 
 
ATTITUDE OF LABOR UNIONS. 29 
 
 of credit unions reports to the division of markets and rural coopera- 
 tion, and mails a copy to each credit union and to the clerk of the 
 superior court in whose jurisdiction the principal office is located. 
 Until November, 1920, he printed a monthly report showing the 
 condition of the credit unions. In Quebec the report is made by 
 the manager and filed with the secretary of the municipality. Since 
 1915 abstracts of these reports have been printed in the provincial 
 statistical yearbook. 
 
 Examination of accounts. — The State banking officials " exa,mine 
 the societies from time to time and may request special reports from 
 them. If examination shows a society to be insolvent, or to have 
 violated the law or its charter or if a society neglects to make reports, 
 correct wrong practice, or pay assessments or fines, the examining 
 official may n necessary request the attorney general to bring suit 
 for its dissolution. In that case the official takeSi«posscssion of the 
 property and administers or liquidates its affairs, as circumstances 
 require. Any officer embezzling or misapplying funds is to be 
 prosecuted. Failure to file annual reports or pay foes or fines within 
 a certain time after due may work forfeiture of the charter in North 
 Carolina. 
 
 Dissolution. — On unanimous recommendation of the directors " at 
 any meeting specially called to consider the subject, the membership 
 may vote to dissolve the society. The laws require generally that 
 two-thirds of the membership shall be present when this vote is taken. 
 New York and North Carolina require a four-fifths vote of the mem- . 
 bership, while in seven States and in Quebec the society may not be 
 dissolved if more than 10 members object. The vote being taken, 
 the State bank official is then notified, and after his consent has been 
 obtained, a committee of three is elected (except in New York and 
 North Carolina where the directors act) to liquidate the assets and 
 
 Eay each shareholder a proportion of the proceeds after all deposits 
 ave been returned and debts have been paid. 
 
 ATTITUDE OF LABOR UNIONS. 
 
 While it does not appear that labor unions as such abroad have 
 interested themselves to any extent in credit unions except inci- 
 dentally in connection with the cooperative movement in general, 
 it would seem that this is an activity that might well be undertaken 
 by them, especially in connection with other cooperative movements 
 they may be carrying on. That this question has been considered 
 by labor unions in America is evidenced by the fact that several of 
 the credit unions in New York and New England are composed 
 entirely of members of labor unions and that on the committee of 
 the National Association on Credit Union Banks are the president 
 and the secretary-treasurer of the Brotherhood of Locomotive 
 Engineers and others who have been closely connected with the 
 trade-union movement in this country. 
 
 One national union, at least, has considered the question fully. 
 At the annua] meeting of the Amalgamated Clothing Workers of 
 America in Boston, in May, 1920, the question of estaWishing credit 
 
 '• The superintendent of credit unions in North Carolina. 
 " Two-thuds in Massachusetts and New Hampshire. 
 
 259°— 22 3 
 
30 COOPEEATIVB CREDIT IN AMERICA. 
 
 unions was seriously considered. Numerous resolutions bearing 
 on the subject were submitted. Addresses were made b;^ leaders 
 in the movement, and after a lengthy and thorough consideration 
 of the question, it was voted that the new officers be directed to 
 formulate plans for the establishment of credit unions. At a meeting 
 of the general executive board, July 27 of the same year, in view of the 
 unsettled conditions in the clothing trade at that time it was voted to 
 leave the undertaking until a later date. The New York Clothing 
 Cutters' Union No. 4, however, applied for and received a charter 
 from the banking department at Albany, and has begim business. In 
 Boston another local is in process of organization. 
 
 PUBLIC EDUCATIONAL EFFORT. 
 
 .Little ofl&cial organized effort has been made to extend the cause 
 of credit unions, Except in North Carolina. There, as a part of the 
 work of the division of markets and rural cooperation, a superin- 
 tendent of cooperative associations and credit unions was authorized 
 to be appointed and paid by the State in 1915. His work was to 
 organize and conduct a bureau of information in regard to cooper- 
 ative associations and rural credits, to maintain an educational 
 campaign to promote and organize cooperative associations and 
 credit unions, and on the request of three persons to furnish printed 
 information and blank forms necessary for the formation and es- 
 tablishment of the same, and on the request of twelve residents of a 
 •particular locality expressing a desire to form such an organization 
 to proceed to that locality and advise and assist in estabhshing the 
 institution in question. Acting imder this authorization, the divi- 
 sion appointed an assistant in credit unions, and issued pamphlets 
 and cu-culars and reports; nearly all the credit unions formed in 
 North Carolina have oeen organized as a result of the activities of 
 this division. 
 
 In New York, the legislature, in 1914, appropriated $20,000 to 
 enable the commissioner of agriculture to dissemmate, through the 
 various communities of the State, literature and lectures relative to 
 the advantages of cooperative associations and credit unions and to 
 aid in their organization, but nothing seems to have been done under 
 that authorization. 
 
 In Massachusetts, on the passage of the act in 1909, a pamphlet 
 was issued relating to credit unions, and in December, 1914 the 
 bank commissioner of the State prepared a pamphlet describing 
 credit unions, their history, advantages, and organization, with a 
 copy of the credit union law, forms to be used by those wishing to 
 establish credit unions, sample records for the preliminary meetings of 
 a credit union, and recommended by-laws, but beyond sending copies 
 of this to inquirers, very little has been done by the State. 
 
 PRIVATE PLANS. 
 
 February 6, 1915, the Russell Sage Foundation and the mayor's 
 committee on unemployment m New York City formed a plan to 
 organize a credit union with a capital of $250,000. This was to be 
 an educational mstitution to encourage the foundation of other 
 credit unions among members of fraternal, labor, and rehgious 
 organizations m New York City, and to loan money to them secured 
 
PBOPOSED UNIFORM LAW. 31 
 
 by the joint liability of all members, on condition that the locals 
 accept as members only those out of employment. The directors 
 were to be men familiar with the principles of cooperative banking, 
 and it was hoped later to form a reserve bank to equalize the demand 
 and the supply as is done in several European countries. The 
 plan, however, was never carried out. 
 
 Somewhat over a year later, the Massachusetts Credit Union 
 Association was incorporated by chapter 281 of the Acts of 1917, 
 "to disseminate information in respect to the benefits of credit 
 unions * * * to organize and assist in the organizing of credit 
 unions; to make loans to credit unions at a rate not exceeding 6 
 per cent per annum; and generally to promote and assist credit 
 unions." This association has been quietly at work spreading 
 information through Massachusetts as best it could with the limited 
 means at its disposal. 
 
 On May 31, 1919, at a meeting at the City Club in New York City, 
 the Massachusetts and New York friends of credit unionism organized 
 the National Association on Credit Union Banks to urge Congress to 
 pass legislation authorizing the establishment of people's banks 
 imder national control, basing the national law on the experience in 
 Massachusetts, New York, and North Carolina. On July 22, the 
 Massachusetts Credit Union Association enlarged its board to aid 
 in the extension movement and made plans for a vigorous extension 
 of the work, but owing to a number of causes the movement has 
 not as yet gained the headway desired. 
 
 PROPOSED UNIFORM LAW. 
 
 The national association suggests that, imtil Congress passes 
 appropriate legislation, the laws of the States be made uniform. A 
 draft of a proposed uniform law creating credit union banks in each 
 State was issued by the national association June 1, 1920, which 
 differed but Uttle from the laws in the various States already described. 
 
 The principal deviations from those laws are as follows: The names 
 of these associations are to contain the words " credit iinion bank,"" 
 and the society is to be organized by eight residents of the State 
 in which it is to be located; the par value of the shares is to be 
 $10; and the annual meeting is to be held in January. The com- 
 pensation and duties of officers, the question of whether the cor- 
 poration shall borrow money, the manner in which the fimds of 
 the corporation are to be invested, the conditions on which loans 
 are to be made and repaid, the manner in which reserve funds 
 are to be accumulated, and the manner in which dividends are to 
 be determined and paid are aU to be stated in the by-laws. The 
 fiscal year is to correspond with the calendar year. The board of 
 directors is to be allowed to act as a credit committee where the 
 members so desire, and more power is to be given to the directors 
 and the two committees. Fines for failure to meet payments on 
 shares as due are not to exceed li per cent a month; the rate of 
 interest on loans is to be limited to the same amount; the society 
 is to have the right to rediscount or borrow up to the amount of 
 the capital, surplus, and reserve; to -deposit the surplus funds in 
 
 u The commlssioiier of banlo of Hassadiusetts, In bis report for the year 1920, objects to tb/g use of the 
 word "hank" by cMdit uoloiu, u "not in keeping vltb tlie policy of the Commonwealth," 
 
32 COOPEEATIVE CREDIT IN AMERICA. 
 
 credit union and other banks up to 10 per cent of the capital and 
 reserve fund; and to invest in first mortgages for not more than six 
 months at one-half their appraised value up to 20 per cent of the 
 capital and fimds. No society may be dissolved except on vote of four- 
 fifths of the membership. The credit imion is to be considered a 
 savings bank for purposes of taxation; no State tax is to be levied 
 on stock transfers, and no loans are to be made to nonmembers. 
 
 CHARACTERISTICS OF AMERICAN CREDIT UNIONS. 
 
 In Quebec, the rules governing credit imions are stricter and 
 more easily enforced than in the United States, since the population 
 there is more homogeneous. Credit unions there exist mainly among 
 people of one nationality, who have lived in the same place all their 
 lives, and who are thoroughly acquainted with one another, and are 
 generally found in places where the details of a man's character 
 and habits of life are well known to everyone in the community. 
 It is easy, therefore, for the officers of the societies to pick their mem- 
 bers more unerringly, and the proud boast that no one has lost any 
 money through the credit unions in Canada is easily believable. 
 
 In the United States, however, outside of North Carolina, where 
 many conditions exist similar to those in Canada, the societies are 
 differently circumstanced. Those, in New York and New England, 
 with the exception of the few Jewish societies, are located in cities 
 or villages where, because of the mobility of the population, the 
 members generally have not been known to one another for any con- 
 siderable length of time previous to their admission into the society. 
 Hence, it is not surprismg that in the United States there have 
 been cases where nonmembers (depositors or banks) have lost money 
 by the failure of a credit union. This rarely happens, however, with 
 credit unions that have existed two or three years, for by that 
 time they have accumulated enough reserve fund to offset losses 
 from bad loans. Therefore great care and prudence have to be 
 exercised in establishing a credit union, and also in granting credit 
 to new members. 
 
 MEMBERSHIP. 
 
 Not every applicant for admission is received. The directors, 
 acting as a committee on admission, carefully examine each candidate 
 from the standpoint of character, honesty, integrity, moral habits, 
 and his practice as to the payment of debts. One careless or slow 
 in the fulfillment of pecuniary obligations is admitted only with 
 reluctance, his social position or his peculiar relations to members 
 or his desirability in other respects notwithstanding. If admitted 
 he obtains a loan only with difficulty; and is summarily disciplined: 
 for any infraction of the by-laws of the association. 
 
 All members can not be borrowers, nor can all members be lenders 
 nor should any one jom expecting to obtain a high return of interest 
 on his deposits or to obtain loans at less than a fair rate of interest. 
 Some members join with no expectation of borrowing, but with the 
 sole mtention of aidmg the movement and are content to receive 
 savmgs-bank rates on their investment. Some join to receive re- 
 duced prices on articles bought "through the society. Those, however 
 who 30m with the mtention jof borrowing find that the requirements 
 of the credit umons are as stringent as those of the regular bank 
 
CHABACTEEISTICS OF AMERICAK CEEDIT UNIONS. 3S 
 
 Banks Ix^an on tangible collateral; credit unions loan on intangible 
 collateral — character — and the collateral in the second case is as 
 carefully scrutinized as in the first. In the former, the scrutiny is 
 generally conducted by one man; in the latter, by several — the 
 manager and the credit committee — and objection by any one of the 
 scrutinizers is sufficient to prevent the granting of the loan. Fur- 
 thermore, a subsequent review by a committee of three others may 
 result in the loan being called in. 
 
 A borrower may generally obtain a loan of $50 on his personal note, 
 one over that amount requires the indorsement of two other mem- 
 bers. This enables a man without ordinary bank credit to go to 
 some one who knows him and obtain at regular rates of interest a 
 sum of money so small that the ordinary bank would not care to 
 bother with it. In fact, the credit union is organized for the benefit 
 of the small borrower. Preference is always given to the one who 
 wants to borrow the smaller sum and repay in installments. Though 
 the loan is at regular rates, the dividends received by the borrower 
 on his capital invested help to reduce the rate he is paying on the loan. 
 Thus, the depositors receive larger dividends, and the borrowers 
 borrow at lower rates of iaterest. 
 
 Membership in a well-managed credit union is in itself a certificate 
 of good character. To avoid the possibility of admitting undesirable 
 members carefully followed rules are necessary. The membership is 
 confined to a small number of persons, one hundred or so, related to 
 one another by some . common bond — race, nationality, religion, 
 occupation, residence within a restricted area, membership in a 
 settlement house, village improvement association, church, club, 
 lodge, labor union, grange, fraternal organization, school district, or 
 employment in the same mercantile, manufacturing, or transporta- 
 tion company. 
 
 In Europe, the membership is generally composed of farmers, 
 artisans, and small traders hving in a parish, or members of the same 
 cooperative organization. In Canada, the membership is generally 
 resident ia the same parish or provincial electoral district, and the 
 
 Earish priest is frequently the manager. In North Carolina, the mem- 
 ers are usually farmers residing in a community or school district. 
 Below is shown for those societies in Massachusetts and New York 
 for which information was secured the distribution in 1920 as to 
 nationaUty and occupation of members. These figures are not 
 mutually exclusive; that is, the same society may be counted twice, 
 if information is available on both points. Thus, it may appear as 
 one of the societies whose membership was prevaihngly Italian and 
 also as one the majority of whose members were employed by a public- 
 service corporation. The figures do not include the credit unions of 
 the Jewish farmers. 
 
 Prevailing nationality of membership. 
 
 Massa- 
 New York. chusetts. 
 
 Jewish 1 18 
 
 French Canadian 2 15 
 
 Italian 3 3 
 
 Scandinavian 5 1 
 
 Finnish 4 1 
 
34 COOPERATIVE CREDIT IN AMERICA. 
 
 Prevmling employment of membership. 
 
 Members employed by— New York. chusetts. 
 
 Government. 6 j 
 
 City 7 4 « 
 
 Societies. ■'■^ ° 
 
 Banlffl - -11 1 : 
 
 Stores 8 11 
 
 Offices., 12 1 
 
 Factories ^ 8 
 
 Public-service corporations 10 3 
 
 Members of labor organizations 14 7 
 
 Thirteen of the New York societies and 23 of the Massachusetts 
 societies are town, city, or community organizations. 
 
 In 1921, 51 of the credit unions chartered in Massachusetts were 
 located in Boston, 30 were in the suburbs of Boston, and 34 were 
 more than 25 miles from that city. In New York no urban credit 
 unions are situated outside of Greater New York. 
 
 A limit is generally placed on the number of shares or amount of 
 deposits allowed each member in order that no. one may have a pre- 
 ponderating influence in the affairs of the society, or damage it by a 
 sudden withdrawal of funds. As the object df the credit union is to 
 stimulate saving, it accepts pennies from the poor and dollars from 
 the well-to-do. In Canada, deposits of as low as a nickel are received 
 and departments for school children are maintained. This is also 
 true in regard to North Carolina credit unions. 
 
 LOANS. " ■ 
 
 Loans are made for productive purposes alone and as emei^ency 
 arises, and never for frivolous or extravagant purposes. Therefore, 
 a borrower must disclose the purpose for which the loan is desired, 
 and this is probably the principal reason why credit unions are not 
 more popular in this country. The average American objects to 
 having others interfere with his private . affairs, and if he wants a 
 certain thing he feels capable of deciding for himself whether it is a 
 luxury or a necessity, and he objects to laying his personal matters 
 before intermeddling outsiders in order to borrow a little money. 
 On the other hand, it is essential for the safety of the society that such 
 facts be disclosed, that a severe penalty follow deceptions on the part 
 of the borrower, and that the committeB be held to strict accoimta- 
 bility for their actions ia loaning money contrary to the by-laws. 
 
 In Canada, most of the loans are made to enable the recipient to 
 buy a pig, cow, or tools, to pay off a mortgage, or to quiet a usurer. 
 Formerly, it was customary to buy farm animals and tools on the 
 iustallment plan. Now the purchasers pay cash, borrowing the money 
 for this purpose from the credit union and ending long shop credits. 
 Among the Massachusetts credit unions loans have been made 
 generally to pay the expenses of sickness, overdue taxes, bills for 
 house repairs, back rent, or tuition for children in business schools- 
 in North Carolma, they are almost entirely for purposes connecte(i 
 with the farm. 
 
 MANAGEMENT. 
 
 The real power of the credit union lies in the annual meeting for 
 there the committees and officers are chosen. The committees vary 
 in number with the size and business of the society. 
 
CEBDIT TJNION EXPERIENCE IN AMERICA. 35 
 
 The board of directors is generally composed of those knowing most 
 about business matters. On the credit committee are generally 
 placed such men as are not likely to need a loan, for law and prudence 
 forbid members of the credit committee to loan to themselves. Such 
 join the society because of their interest in its success, and they 
 realize the delicacy of the position they hold. They should be men 
 with experience, prudence, and a good acquaintance with the charac- 
 ter of the other members whose moral character is the guaranty for 
 the repaym.ent of the loan. The solyeney of the credit union depends 
 on the credit committee. The supervisory committee, which is 
 the most important committee, should actually supervise and care- 
 fully examine all acts of the directors, officers, and credit committee, 
 and not do it perfunctorily. It is, in effect, an auditing committee 
 which in addition watches aU transactions of the association and 
 inspects its property as the representatives of the general meetiug. 
 
 Generally the treasurer or the secretary is the manager of the 
 credit .union. 
 
 suEPLxrs. 
 
 Only enough cash is kept on hand to meet daily requirements, the 
 surplus, which protects the shares and savings against loss, being 
 deposited to the credit of the society in chartered banks. A certain 
 
 Percentage of the profits is transferred to the reserve fund each year, 
 'his fund protects the shares and savings against possible loss, 
 strengthens the system, is not to be drawn upon except according to 
 the by-laws, and is not to be distributed nor kept idle, but is to be 
 invested in sound enterprises, deposited ia banks, or loaned to 
 pubhc bodies. It benefits depositors by increasing the net profits 
 to be distributed on shares and benefits borrowers by reducing the 
 rate of interest on loans. Here. is the cooperative principle which is 
 new in banking: The borrowers benefit by increased dividends be- 
 cause they own the shares. The reserve fund insures the continuance 
 of the society. 
 
 On the other hand, a large reserve fund acts as a temptation to the 
 members to dissolve the society in order to distribute the surplus 
 among themselves as extra dividends and to reorganize. To pr-event 
 their- acting on this temptation thus to distribute the accumulation 
 of their predecessors made for the purpose of strengthening the credit 
 union and to insure the permanency of their society, the Quebec law 
 requires that, in the event of dissolution, the reserve ftmd of the 
 society shall not be distributed among the shareholders but given for 
 an object of public utility designated by the lieutenant governor in 
 council. 
 
 CREDIT UNION EXPERIENCE IN AMERICA. 
 
 As before stated, the acts authorizing the establishment of credit 
 unions have been passed in 11 States of this country, and in the 
 Province of Quebec in Canada. In Wisconsin, South Carolina, Utah, 
 and Nebraska no organizations have been formed under these acts. 
 In Texas, two rural credit unions have been organized under the law. 
 One of these dissolved before doing any business, and the other has 
 never done any business. In Oregon also, two credit unions have 
 been organized, both located in Portland. The first was suspended 
 by the banking department, within a month after it opened, for adopt- 
 ing methods not approved by the department, and was later dis- 
 
36 COOPERATIVE CREDIT IN AMERICA. 
 
 solved by action of the courts; the second never transacted any busi- 
 ness after receiving its certificate of authority. , . 
 
 According to most recent reports avajlablfe, in New Hampshire 
 and Rhode Island, 2 associations had been granted charters m each 
 State; in Massachusetts, 123 societies had been granted charters; 
 in New York, 84; and in North Carolina, 43; besides the unincorpo- 
 rated Jewish credit unions in Connecticut and in New Jersey, in wmch 
 States no legislation recognizing credit unions has as yet been passed. 
 
 QUEBEC. 
 
 In the Province of Quebec the reports of the cooperative people's 
 banks were not printed until 1915, and no ofl&cial figures are obtain- 
 able before that date. According to a statement made by Desjardins 
 three banks had been organized by 1906; three more were organized 
 in 1907; 11 in 1908; and 15 in 1909. The total number in existence in 
 1912 was 98, and in 1913, 122. In 1913 also, there were 19 such 
 societies in the Province of Ontario. The following figures, taken from 
 the Statistical Year Book of the Province of Quebec, show the number 
 of societies in operation on December 31 of each year: 
 
 1915 : 91 
 
 1916 97 
 
 1917 95 
 
 1918 102 
 
 1919 103 
 
 1920 102 
 
 Of the 102 societies reporting in 1920, 1 was organized in 1901, 
 
 1 in 1903, 2 were organized in 1908, 15 in 1909, 6 in 1910, 6 in 1911, 
 11 in 1912, 20 in 1913, 17 in 1914, 2 in 1915, 12 in 1916, 4 ia 1917, 
 
 2 in 1918, 3 in 1919, and 2 in 1920. 
 
 In the table below are shown the number of stockholders, depositors, 
 and borrowers in those unions which furnished reports for the years 
 1916 to 1920. These figures do not include the unincorporated 
 banks. 
 
 COOPBEATrVE PEOPLE'S BANKS IN QUEBEC, CLASSIFIED BY NUMBER OE SHARE- 
 HOLDERS, DEPOSITORS, AND BORROWERS, ON DECEMBER 31 OF EACH YEAR, 1916 
 TO 1920. 
 
 [Canada. Province of Quebec. Statistical year-books, 1917 to 1921.] , 
 
 Class of member, and year. 
 
 Number of banks having dassifled number of 
 members of each class. 
 
 Total. 
 
 60 or 
 under. 
 
 61 to 
 100. 
 
 101 to 
 250. 
 
 251 to 
 600. 
 
 601 to 
 1,000. 
 
 Over 
 1,000. 
 
 Shareholders: 
 
 2 
 2 
 2 
 3 
 3 
 
 19 
 13 
 
 12 
 9 
 9 
 
 44 
 40 
 41 
 42 
 35 
 
 12 
 8 
 8 
 7 
 6 
 
 16 
 19 
 17 
 18 
 17 
 
 24 
 25 
 24 
 24 
 29 
 
 47 
 46 
 45 
 39 
 41 
 
 39 
 33 
 40 
 38 
 32 
 
 20 
 21 
 26 
 28 
 29 
 
 20 
 23 
 28 
 37 
 33 
 
 15 
 20 
 21 
 26 
 28 
 
 3 
 
 4 
 5 
 5 
 6 
 
 10 
 10 
 13 
 12 
 14 
 
 S 
 3 
 6 
 
 7 
 11 
 
 1 
 
 1 
 1 
 1 
 
 1 
 
 1 
 2 
 1 
 1 
 1 
 
 w 
 
 1917 
 
 90 
 ff7 
 
 1918 
 
 1919 
 
 99 
 98 
 
 92 
 90 
 97 
 99 
 98 
 
 91 
 
 
 Depositors; 
 
 1917 
 
 igig 
 
 1919 
 
 
 Borrowers; 
 
 1916 
 
 1917 
 
 
 
 90 
 96 
 99 
 98 
 
 1918 
 
 
 
 1919 
 
 
 
 1920 
 
 
 
 
 
 
CEBDIT UNION EXPERIENCE IN AMERICA. 
 
 37 
 
 In these credit unions the entrance fee is generally 10 cents, and 
 shares are paid for at the rate of 10 cents a week. The table follow- 
 ing gives the number of societies which paid specified rates of divi- 
 dend on capital stock and of interest on deposits for each of the 
 years 1916 to 1920: 
 
 COOPERATIVE PEOPLE'S BANKS IN QUEBEC, CLASSIFIED BY BATE OF DIVIDEND ON 
 SHARE CAPITAL AND RATE OF INTEREST ON DEPOSITS PAID EACH YEAR, 1916 TO 
 1920. 
 
 [Oaoada. Province of Quebec. Statistical year-books, 1917 to 1921.] 
 
 
 Number ol banks paying specified rate. 
 
 
 Item and year. 
 
 Less 
 than 
 3 per 
 cent. 
 
 3 
 
 per 
 cent. 
 
 3i 
 per 
 cent. 
 
 i 
 
 per 
 cent. 
 
 per 
 cent. 
 
 5 
 
 per 
 cent. 
 
 per 
 cent. 
 
 6 
 per 
 cent. 
 
 7 to 
 7iper 
 cent. 
 
 8 
 
 per 
 cent. 
 
 10 
 
 per 
 cent. 
 
 Total. 
 
 Dividend on capital: 
 
 1916 
 
 
 1 
 1 
 
 1 
 
 22 
 23 
 -25 
 16 
 12 
 
 10 
 
 18 
 20 
 24 
 
 6 
 
 7 
 8 
 7 
 9 
 
 30 
 35 
 37 
 43 
 39 
 
 4 
 2 
 2 
 4 
 6 
 
 12 
 14 
 20 
 21 
 26 
 
 3 
 
 5 
 3 
 4 
 4 
 
 
 
 79 
 
 1917 
 
 i 
 
 1 
 
 
 1 
 
 89 
 
 1918 
 
 1919 
 
 
 1 
 
 
 
 
 1920. 
 
 
 
 1 
 
 
 97 
 81 
 
 Interest on deposits: 
 
 1916 
 
 
 54 
 59 
 60 
 57 
 53 
 
 17 
 
 18 
 
 18 
 
 '20 
 
 2 21 
 
 1917 
 
 
 
 
 
 
 
 
 
 
 1918 
 
 
 
 
 
 
 
 
 
 
 1919 
 
 
 i 
 
 1 
 
 
 
 
 
 
 
 98 
 
 1920 
 
 
 
 
 
 
 
 
 99 
 
 
 
 
 
 
 
 
 
 
 1 Including 2 banks wliicli paid 3i per cent. 
 
 * Including 1 bank which paid 3i per cent. 
 
 The number of loans of each specified amount granted by the 
 societies reporting are shown below: 
 
 NUMBER OF LOANS OF COOPERATIVE PEOPLE'S BANKS IN QUEBEC, CLASSIFIED 
 BY AMOUNTS GRANTED EACH YEAR, 1916 TO 1920. 
 
 [Canada. Province of Quebec. Statlsticalyear-books, 1917 to 1921. 
 
 
 Number of loans of classified amounts. 
 
 
 Year. 
 
 Under 
 »1. 
 
 $land 
 
 under 
 
 $10. 
 
 $10 
 
 and 
 
 under 
 
 $25. 
 
 $25 
 
 and 
 
 under 
 
 $50. 
 
 $50 
 
 and 
 
 under 
 
 $100. 
 
 $100 
 and 
 under 
 
 $500. 
 
 $500 
 
 and 
 
 under 
 
 $1,000. 
 
 $1,000 
 and 
 over. 
 
 Total. 
 
 1916 
 
 82 
 83 
 122 
 101 
 156 
 
 806 
 816 
 869 
 895 
 915 
 
 1,883 
 1,856 
 1,934 
 1,714 
 1,822 
 
 2,417 
 2,436 
 2,883 
 2,629 
 2,601 
 
 2 
 2 
 3 
 3 
 
 676 
 900 
 763 
 222 
 551 
 
 2,972 
 3,734 
 3,744 
 4,611 
 4,680 
 
 313 
 
 625 
 612 
 767 
 894 
 
 163 
 391 
 366 
 567 
 678 
 
 11,201 
 12 741 
 
 1917 
 
 1918 
 
 14,'293 
 14,386 
 16,297 
 
 1919 
 
 1920 
 
 
 
 
38 
 
 COOPERATIVE CEEDIT IN AMERICA. 
 
 In the two tables following are shown the number of banks having , 
 classified amounts of assets, deposits, and reserves on December 31, 
 and their expenses for each year, 1916 to 1920: 
 
 COOPEEATPVE PEOPLE'S BANES IN QUEBEC, CLASSiriED BY AMOUNT OF ASSETS 
 AND DEPOSITS ON DECEMBER 31 O^ EACH YEAK, 1916 TO 1920. 
 
 
 [Canada. Province of Quebec. Statistioalyear-books, 1917 to 1921.] 
 
 
 
 
 Item and year. 
 
 Number ofbanks having classified amounts. 
 
 
 
 Under 
 $500. 
 
 $500 
 
 and 
 
 under 
 
 $1,000. 
 
 $1,000 
 
 and 
 
 under 
 
 $10,000. 
 
 $10,000 
 
 and 
 under 
 $50,000. 
 
 $50,000 
 
 and 
 
 under 
 
 $100,000. 
 
 $100,000 
 and 
 over. 
 
 Total. 
 
 Assets: 
 
 1916 
 
 
 1 
 
 1 
 1 
 1 
 1 
 
 4 
 6 
 1 
 3 
 3 
 
 32 
 24 
 20 
 10 
 10 
 
 23 
 16 
 IS 
 15 
 
 17 
 
 51 
 50 
 59 
 57 
 52 
 
 44 
 40 
 44 
 61 
 S2 
 
 9 
 12 
 10 
 20 
 20 
 
 12 
 13 
 16 
 10 
 15 
 
 1 
 4 
 6 
 10 
 16 
 
 8 
 12 
 IS 
 
 6 
 10 
 
 94 
 
 1917 
 
 1 
 1 
 
 1 
 
 92 
 
 1918 
 
 97 
 
 1919. 
 
 99 
 
 1920 .... 
 
 99 
 
 Deposits: 
 
 1916 
 
 3 
 S 
 4 
 3 
 2 
 
 94 
 
 1917 
 
 92 
 
 1918 , 
 
 96 
 
 1919 
 
 98 
 
 1920 
 
 99 
 
 
 
 COOPBEATIVE PEOPLE'S BANKS IN QUEBEC, CLASSIFIED BY AMOUNT OF RESERVE 
 ON DECEMBER 31 AND OF EXPENSES EACH YEAR, ENDING DECEMBER 31, BY 
 YEARS, 1916 TO 1920. 
 
 [Canada. Pro"vlnce of Quebec. Statistical year-books, 1917 to 1921.] 
 
 
 Number of banks with classified amoun.ts. 
 
 
 Item and year. 
 
 Under 
 $160. 
 
 $100 
 
 and 
 
 under 
 
 $500. 
 
 $500 
 
 and 
 
 under 
 
 $1,690. 
 
 $1,000 
 
 and 
 
 under 
 
 $10,000. 
 
 $10,000 
 
 and 
 
 under 
 
 $50,000. 
 
 $50,000 
 and 
 over. 
 
 Total. 
 
 Reserve: 
 
 1916 
 
 6 
 14 
 10 
 6 
 3 
 
 46 
 41 
 40 
 28 
 29 
 
 33 
 28 
 31 
 30 
 28 
 
 37 
 40 
 39 
 36 
 29 
 
 26 
 14 
 29 
 22 
 22 
 
 5 
 7 
 
 11 
 9 
 
 10 
 
 22 
 31 
 33 
 41 
 50 
 
 4 
 1 
 2 
 4 
 9 
 
 
 
 
 1917 
 
 
 
 87 
 
 1918 
 
 1 
 1 
 2 
 
 i' 
 
 95 
 
 1919 
 
 99 
 
 1920 
 
 98 
 92 
 
 Expenses: 
 
 1916 
 
 1917 
 
 
 
 
 1918 
 
 
 
 92 
 77 
 
 1919 
 
 
 
 1920 
 
 
 
 77 
 
 
 
 
 The general statistics of operation for the Quebec cooperative 
 banks reporting are shown in the table below. Thesa figures and 
 similar figures for credit unions in the United States can not be 
 checked from year to year, since old unions having dissolved and 
 others having been formed, the data do not cover indentical societies. 
 
 STATISTICS OF OPERATIONS OF COOPERATIVE PEOPLE'S BANKS IN QUEBEC, 1915 
 [Canada. Province of Quebec. Statistical year-books, 1917 to 1921.] 
 
 1915.. 
 1916.. 
 1917.. 
 1918. 
 1919. 
 1920.. 
 
 Num- 
 ber of 
 banks 
 report- 
 ing. 
 
 100 
 100 
 
 Num- 
 ber of 
 mem- 
 bers. 
 
 23,614 
 25,028 
 25,669 
 27,593 
 29,79$ 
 31,029 
 
 Num- 
 ber of 
 deposi- 
 tors. 
 
 13,696 
 15,613 
 18,997 
 20,672 
 23,451 
 26,238 
 
 Num- 
 ber of 
 bar- 
 rowers. 
 
 6,728 
 6,696 
 7,458 
 8,056 
 9,14$ 
 9,213 
 
 Num- 
 ber of 
 loans 
 granted. 
 
 8,983 
 11,201 
 12,741 
 14,293 
 14,316 
 15,297 
 
 Share capital- 
 
 Paid in 
 during 
 year. 
 
 $132,222 
 118,196 
 146,507 
 132,006 
 18$, 236 
 239, at 
 
 Repaid 
 during 
 year. 
 
 $63,088 
 61,733 
 72,220 
 86,405 
 74,863 
 75,998 
 
 As of 
 Dec. 31. 
 
 $715,336 
 
 770,944 
 
 237,592 
 
 907,857 
 
 1,034,392 
 
 1, 199, 170 
 
CREDIT UNION EXPERIENCE IN AMERICA. 
 
 39 
 
 STATISTICS OF OPERATIONS OF OOOPEHATIVE PEOPLE'S BANKS IN QUEBEC, 1915 
 
 TO 1920— Concluded. 
 
 Year. 
 
 Deposits— 
 
 Eeoeived 
 during 
 year. 
 
 Repaid 
 during 
 year. 
 
 As of 
 Dec. 31. 
 
 Loans- 
 
 Made 
 during 
 year. 
 
 Repaid 
 during 
 year. 
 
 Outstand- 
 ing, Dec. 31. 
 
 1915. 
 1916 
 1917. 
 191S. 
 1919 
 1920 
 
 t2, 706, 304 
 3,543,463 
 4, 751, SIS 
 6,763,881 
 8,453,537 
 
 10,529,629 
 
 $2,496,407 
 3,142,982 
 4, 147, 160 
 5,382,652 
 7,297,027 
 9,667,921 
 
 $1,141,528 
 1,552,390 
 2,116,055' 
 2,513,406 
 3,682,051 
 4, 558, 053 
 
 $1,549,760 
 1,771,247 
 2,328,940 
 2,646,741 
 3,643,169 
 4,265,367 
 
 $1,270,848 
 1,423,445 
 1,796,574 
 2, 195, 190 
 2,690,283 
 3,071,339 
 
 $1,684,651 
 2, 039, 179 
 2,534,136 
 2,901,618 
 3,976,941 
 5,181,392 
 
 Year. 
 
 Entrance 
 fees re- 
 ceived 
 during 
 year. 
 
 Reserve 
 
 fund, 
 
 Dec. 31. 
 
 Divi- 
 dends 
 paid. 
 
 General 
 expen- 
 ses for 
 year. 
 
 Total 
 receipts 
 for year. 
 
 Assets, 
 Dec 31. 
 
 Balance 
 on hand, 
 Dec. 31. 
 
 1915 
 1916 
 1917 
 1918 
 1919. 
 1920. 
 
 $3,332 
 3,089 
 3,769 
 3,948 
 6,884 
 6,642 
 
 $68,337 
 94,920 
 119,436 
 163,685 
 200,365 
 252,627 
 
 $27,593 
 31,563 
 35,206 
 38,124 
 64,702 
 56,661 
 
 $11,994 
 16,230 
 17^589 
 22,489 
 27,867 
 45,106 
 
 $4,490,953 
 5,634,246 
 7,316,298 
 8,956,729 
 12,319,235 
 15,280,726 
 
 $2,027,728 
 2,540,880 
 3,227,579 
 3,765,144 
 6,114,380 
 6,306,965 
 
 $318,444 
 
 478,464 
 
 672,365 
 
 839,843 
 
 1,107,345 
 
 1,034,910 
 
 MASSACHITSETTS. 
 
 In Massachusetts credit unions from the beginning have reported 
 to the bank commissioner of the State, and the following statistics are 
 based on the reports of that official. Altogether 123 different credit 
 unions have been chartered in Massachusetts, of which 81 were in 
 operation on October 31, 1921; 19 had not begun to do business; 5 
 were in the possession of the bank commissioner, awaiting- final 
 liquidation; 2 had been liquidated by the bank commissioner; and 16 
 had been dissolved in conformity with the laws, of which number 2 
 had transacted business for but a short time and had closed without 
 ever reporting to the .commissioner. The following table shows the 
 number of credit unions reporting each year: 
 
 1910 2 
 
 1911 17 
 
 1912 26 
 
 lfll3 34 
 
 1914 45 
 
 1915 47 
 
 1916 53 
 
 1917 56 
 
 1918 59 
 
 1919 60 
 
 1920 64 
 
 1921 81 
 
 Of the 81 credit unions reporting in 1921, 2 were organized in 1910, 
 6 in 1911, 7 in 1912, 6 in 1913, 12 in 1914, 11 m 1915, 4 in 1916, 7 in 
 1917, 5 in 1918, 2 in 1919, 4 in 1920 and 15 in 1921. Of the 18 that 
 were organized and have since dissolved, 2 were operated for less than 
 one year, 3 for one year, 1 for two years, 5 for three years, 4 for four 
 years, 2 for five years, and 1 for seven years. 
 
 The largest number of credit unions chartered and opened in any 
 one year was in 1921, and the largest number of dissolutions occurred 
 in 1915. The years 1914, 1915, and 1921 were the only years in 
 
40 
 
 COOPEBATIVE CREDIT IN AMERICA. 
 
 which any unions were taken over by the bank commissioner. A 
 greater number of societies were organized and opened prior to 1915 
 than smce, and the net increase in the number of such organizations 
 was slow from 1915 to 1921. 
 
 The entrance fees charged in the societies reportmg range from 
 nothing to $5. 
 
 The most common par value of shares is $5, though the value 
 ranges, in the societies .reporting, from $2 to $5. In all but three 
 societies these shares may be paid for in installments. The maximum 
 number of shares that one member may hold ranges in the different 
 credit unions from 2 to 1,000, though in 20 societies the number is 
 unlimited. ' i j-n. 
 
 A member may borrow a sum varying, among the different socie- 
 ties, from $50 to $8,000. In 17 societies there is no fixed limit. If 
 the amount of the loan is less than the share capital owned, generally 
 no collateral is required. Acceptable collateral consists of paid-up 
 life insurance, the deposit of a savings-bank book or a note indorsed 
 by one or two members, according to the circumstances. Stock- 
 market securities or real-estate mortgages are generaUv accepted as 
 security on loans up to 60 per cent of tbeir market value. For the 
 loan the member pays a maximum rate of interest of from 6 to 12 
 per cent, the latter being the rate charged by 30 societies. In Boston, 
 two- thirds of the societies charge 10 or 12 per cent; outside of Boston, 
 two- thirds charge less than 10 per cent. 
 
 The table below shows the number of credit unions having each 
 classified number of shareholders and of borrowers on October 31 of 
 each year, 1910 to 1921: 
 
 CREDIT UNIONS IN MASSACHUSETTS, CLASSIFIED BY NUMBER OF SHAREHOLDERS 
 AND BORROWERS ON OCTOBER 31 OF EACH YEAR, 1910 TO 1921. 
 
 [Massachusetts commissioner of banJcs. Part II of annual reports, 1910 to 1921.] 
 
 
 Number of credit unions having classified 
 number of members of each class. 
 
 
 Class of member, and year. 
 
 Less 
 than 50. 
 
 61 to 
 100. 
 
 101 to 
 250. 
 
 251 to 
 500. 
 
 501 to 
 1,000. 
 
 1,000 
 and 
 over. 
 
 Total. 
 
 Shareholders: 
 
 
 1 
 
 10 
 12 
 10 
 12 
 13 
 10 
 
 S 
 
 s 
 
 8 
 9 
 12 
 
 1 
 2 
 6 
 6 
 6 
 11 
 13 
 16 
 17 
 16 
 14 
 12 
 
 
 
 
 
 1 
 
 1911 
 
 2 
 3 
 9 
 14 
 11 
 15 
 11 
 H 
 10 
 9 
 14 
 
 
 
 8 
 11 
 13 
 13 
 13 
 24 
 22 
 16 
 15 
 22 
 
 
 
 
 17 
 
 1912 
 
 3 
 4 
 5 
 6 
 8 
 10 
 13 
 9 
 12 
 11 
 
 
 
 26 
 
 
 
 
 34 
 
 
 1 
 4 
 6 
 4 
 4 
 13 
 12 
 14 
 
 i 
 
 2 
 4 
 4 
 7 
 8 
 
 45 
 
 1915 
 
 47 
 
 1916 
 
 53 
 
 1917 
 
 5S 
 
 1918 
 
 59 
 
 
 
 
 
 
 81 
 
 1 
 
 13 
 25 
 30 
 40 
 45 
 52 
 54 
 SB 
 58 
 64 
 81 
 
 Borrowers: 
 
 l^Q 
 
 
 ii 
 
 17 
 20 
 29 
 28 
 29 
 25 
 20 
 21 
 24 
 37 
 
 
 
 
 
 1912 
 
 o 
 
 
 ■'! 
 
 
 4 
 5 
 3 
 8 
 9 
 11 
 10 
 16 
 20 
 
 
 
 
 
 ' 
 
 
 
 1915 
 
 3 
 2 
 4 
 5 
 8 
 7 
 7 
 
 
 
 
 
 
 
 
 
 
 
 2 
 3 
 2 
 4 
 
 i' 
 
 1 
 
 
 1920 
 
 
 
 
 
CREDIT UNION BXPERIENCB IN AMEKIOA. 
 
 41 
 
 Deposits are generally received in amountB from 10 cents up. 
 The maximiun amount that may be deposited by any one member 
 varies from $100 (in one society) to an unlimited amount (in 36 
 societies). The credit union in New Bedford accepts deposits from 
 school children. These deposits draw interest from the first of each 
 month. Five credit unions do not receive deposits. Interest is paid 
 semiannually. The table below shows the number of credit unions 
 which paid each specified rate of dividend on share capital and of 
 interest on deposits in each of the years, 1910 to 1921 : 
 
 CREDIT TJNI0N8 IN MASSACHUSETTS. CLASSIFIED BY BATE OF DIVIDEND ON SHARE 
 CAPITAL AND OF INTEREST ®N DEPOSITS PAID BACH YEAR, 1910 TO 1921. 
 
 [If assMihusstts eomminioner of banks. 
 
 Fart n of annual reports, 1910 to 1921.] 
 
 
 
 Nnmber of credit unions paying specified rat*. 
 
 
 Item and year. 
 
 Under 
 3 per 
 cent. 
 
 Sand 
 under 
 4 per 
 cent. 
 
 4 and 
 
 under 
 6 per 
 cent. 
 
 Sand 
 
 under 
 7 per 
 cent. 
 
 7 and 
 
 under 
 10 per 
 cent. 
 
 10 and 
 under 
 15 per 
 cent. 
 
 15 per 
 cent 
 and 
 over. 
 
 None. 
 
 Total. 
 
 Dividends on share capital: 
 
 1910 
 
 
 
 
 
 
 
 
 2 
 15 
 19 
 17 
 27 
 21 
 19 
 16 
 17 
 13 
 12 
 30 
 
 1 
 
 11 
 11 
 12 
 15 
 13 
 17 
 12 
 15 
 14 
 16 
 30 
 
 2 
 
 1911 
 
 
 1 
 
 1 
 2 
 3 
 4 
 4 
 4 
 9 
 6 
 3 
 2 
 2 
 
 
 
 
 
 17 
 
 1912 
 
 
 1 
 3 
 6 
 9 
 14 
 16 
 22 
 25 
 25 
 20 
 
 1 
 
 1 
 4 
 8 
 12 
 13 
 15 
 19 
 25 
 27 
 30 
 32 
 
 2 
 
 4 
 2 
 4 
 9 
 11 
 11 
 16 
 21 
 18 
 
 1 
 3 
 3 
 7 
 5 
 4 
 2 
 1 
 
 1 
 2 
 3 
 
 1 
 
 26 
 
 1913 
 
 1 
 
 1 
 
 34 
 
 1914 
 
 45 
 
 1915 .. . . 
 
 
 i 
 
 2 
 
 47 
 
 1916 
 
 
 53 
 
 1917 
 
 
 56 
 
 1918 
 
 
 1 
 2 
 
 59 
 
 1919 
 
 
 60 
 
 1920 . . . ' 
 
 
 i 
 
 €4 
 
 1921 
 
 2 
 
 2 
 
 7 
 
 
 81 
 
 Interest on deposits: 
 
 1910 
 
 2 
 
 1911 
 
 
 4 
 
 i 
 
 7 
 6 
 2 
 6 
 4 
 3 
 3 
 1 
 
 1 
 S 
 
 7 
 11 
 11 
 16 
 20 
 15 
 15 
 15 
 14 
 
 
 
 
 
 1912 '. 
 
 
 
 
 
 26 
 
 1913 . . . 
 
 
 1 
 
 
 
 34 
 
 1914 
 
 
 
 
 
 1915 
 
 
 2 
 2 
 
 2 
 
 
 
 1916 
 
 1 
 
 
 1917 
 
 
 
 56 
 
 1918 . . 
 
 
 
 
 
 59 
 
 1919 
 
 
 1 
 
 
 
 60 
 
 1920 
 
 
 
 
 
 1921 
 
 1 
 
 3 
 
 
 
 81 
 
 
 
 
 
 Each credit union prints its own literature, and many of them have 
 issued literature explaining the work of the credit unions in general 
 and of themselves in particular. The Progressive Workman's Credit 
 Union of Maiden supplies its members with coal at a reduction of 
 50 cents a ton, and with furniture, rugs, and carpets at reduced 
 rates. The Revere Credit Union furnishes coal at a reduction 
 of 25 cents a ton and has made arrangements with several reliable 
 firms to sell clothing, furniture, and household commodities to its 
 members at reduced rates. The Beverly Credit Union loans on 
 second mortgages to help members buy homes. The Industrial 
 Credit Union of Boston makes loans to buy furniture, get discounts 
 on biUs, and to buy coal, flour, and sugar in quantities. 
 
42 
 
 COOPEEATIVB CKEDIT IN AMEKICA. 
 
 During the war, the credit unions were used to aid in the floating 
 of Liberty bonds. To-day tiiey own in their corporate capacity 
 nearly $100,000 worth of tnese bonds, besides having made loans to 
 members up to the face value of their individual holdings in order 
 to prevent their selling their bonds at a loss. 
 
 Id. the table below is shown the number of credit imions having 
 each classified amount of assets and deposits on October 31 of the 
 years 1910 to 1921: 
 
 CREDIT UNIONS IN MASSACHUSETTS, CLASSIFIED BY AMOUNT QP ASSETS AND 
 DEPOSITS ON OCTOBER 31 OF EACH YEAR, 1910 TO 1921. 
 
 [Massachusetts commissioner of banlQ. Fart n of annual reports, 1910 to 1921.] 
 
 
 Number of credit unions having classified amount. 
 
 
 Item and year. 
 
 Less 
 than 
 $500. 
 
 $500 and 
 under 
 $1,000. 
 
 $1,000 
 
 and 
 
 under 
 
 $10,000. 
 
 $10,000 
 
 and 
 
 under 
 
 $50,000. 
 
 $50,000 
 
 and 
 
 under 
 
 $100,000. 
 
 $100,000 
 and 
 over. 
 
 TotaL 
 
 Assets: 
 
 1910 
 
 
 
 1 
 8 
 17 
 19 
 21 
 25 
 24 
 27 
 25 
 24 
 16 
 30 
 
 
 
 
 1 
 
 1911 
 
 2 
 5 
 
 5 
 8 
 
 4 
 4 
 5 
 4 
 4 
 4 
 5 
 
 7 
 2 
 
 1 
 S 
 4 
 S 
 3 
 5 
 1 
 3 
 4 
 
 1 
 3 
 3 
 7 
 3 
 8 
 7 
 9 
 S 
 6 
 4 
 6 
 
 
 
 
 17 
 
 1912 
 
 2 
 9 
 11 
 13 
 18 
 13 
 16 
 18 
 26 
 27 
 
 
 
 26 
 
 1913 
 
 
 
 34 
 
 1914 
 
 
 
 45 
 
 1915 
 
 1 
 1 
 6 
 5 
 7 
 5 
 5 
 
 
 47 
 
 1916 
 
 1 
 2 
 4 
 « 
 10 
 10 
 
 S3 
 
 1917 
 
 56 
 
 1918 
 
 59 
 
 1919 
 
 60 
 
 1920 
 
 64 
 
 1921 
 
 
 Deposits: 
 
 1910 
 
 
 1911 
 
 10 
 10 
 11 
 16 
 13 
 14 
 15 
 14 
 9 
 8 
 11 
 
 1 
 8 
 10 
 11 
 7 
 14 
 11 
 IS 
 15 
 23 
 22 
 
 
 
 
 14 
 
 1912 
 
 
 
 
 21 
 
 1913 
 
 
 
 
 
 1914 
 
 2 
 4 
 5 
 3 
 S 
 6 
 6 
 10 
 
 
 
 
 1915 
 
 1 
 
 
 33 
 
 1916 
 
 1 
 1 
 3 
 5 
 8 
 7 
 
 41 
 43 
 44 
 42 
 50 
 57 
 
 1917 
 
 4 
 2 
 
 1 
 1 
 1 
 
 1918 
 
 1919 
 
 1920 
 
 1921 
 
 
CREDIT UNION EXPERIENCE IN AMERICA. 
 
 43 
 
 The table following shows the niunber of credit unions which had 
 jach classified amount of reserve on October 31 and of expenses of 
 jperation for the year ending on that date, during the years 1910 to 
 
 Li7^ J. I 
 
 DBEDIT TJNIONS IN MASSAOrtTSETTS CLASSIFIED BY AMOUNT OF RESERVE ON 
 OCTOBER 31 AND OF EXPENSES FOR EACH YEAR ENDING OCTOBER 31, BY 
 YEARS, 1910 TO 1921. 
 
 [Massachusetts commissioner of banlts. Part II of annual reports, 1910 to 1921.] 
 
 
 Number of credit unions with classified 
 amounts. 
 
 
 Item and year. 
 
 Less 
 than 
 $100. 
 
 $100 and 
 under 
 $500. 
 
 $500 and 
 under 
 $1,000. 
 
 $1,000 
 
 and 
 
 under 
 
 $10,000. 
 
 $10,000 
 
 and 
 
 under 
 
 $50,000. 
 
 Total. 
 
 Reserve: 
 
 1911 
 
 2 
 6 
 12 
 11 
 14 
 19 
 19 
 13 
 7 
 5 
 17 
 
 1 
 
 13 
 18, 
 19 
 21 
 23 
 25 
 22 
 20 
 22 
 20 
 29 
 
 1 
 4 
 
 4 
 8 
 10 
 15 
 18 
 20 
 20 
 23 
 16 
 
 
 
 
 3 
 10 
 19 
 25 
 
 1912 
 
 
 
 
 1913 
 
 3 
 6 
 4 
 4 
 5 
 5 
 4 
 8 
 10 
 
 
 
 1914 
 
 
 
 1915 
 
 3 
 6 
 10 
 15 
 17 
 15 
 21 
 
 
 1916 : 
 
 
 44 
 
 52 
 53 
 49 
 63 
 67 
 
 1 
 
 1917 
 
 
 1918 
 
 
 1919 
 
 1 
 2 
 3 
 
 1920 
 
 1921 
 
 Expenses: 
 
 1910 
 
 1911 
 
 4 
 9 
 9 
 14 
 17 
 20 
 22 
 23 
 21 
 19 
 16 
 
 
 
 
 17 
 
 1912 
 
 
 
 
 1913 
 
 2 
 4 
 3 
 3 
 6 
 8 
 7 
 7 
 12 
 
 2 
 2 
 2 
 3 
 4 
 6 
 8 
 16 
 21 
 
 
 
 1914 
 
 
 
 1915 
 
 
 
 1916 
 
 
 
 1917 
 
 
 64 
 
 1918 
 
 
 1919 
 
 
 58 
 
 1920 
 
 
 62 
 
 1921 
 
 
 
 
 
 
44 
 
 COOPERATIVB CREDIT IN AMERICA. 
 
 The growth of the credit-union movement in Massachusetts since 
 1910 is shown in the table below, which gives miscellaneous statistics 
 of operation of these societies: 
 
 STATISTICS OF OPEEATION OF CREDIT UNIONS IN MASSACHUSETTS, 1910 TO 1921 
 [Massachusetts commissioner of banks. Part n ol annual reports, 1910 to 1921.] 
 
 
 Number 
 reporting. 
 
 Number 
 
 of 
 members. 
 
 Number 
 
 of shares 
 
 held. 
 
 Number 
 
 of 
 
 borro wers 
 
 Share capital- 
 
 Year. 
 
 Paid in 
 
 during 
 year. 
 
 Repaid 
 during 
 year. 
 
 As of 
 Oct. 31. 
 
 1910 . .- 
 
 1 
 
 17 
 26 
 34 
 45 
 47 
 63 
 56 
 59 
 60 
 64 
 81 
 
 105 
 
 1,623 
 
 2,862 
 
 4,577 
 
 6,149 
 
 7,846 
 
 11,418 
 
 14, 821 
 
 17,636 
 
 22,987 
 
 29,494 
 
 32,226 
 
 984 
 
 4,789 
 
 14,983 
 
 . 21,872 
 
 31,963 
 
 47, 131 
 
 93,042 
 
 126,143 
 
 153,033 
 
 251,366 
 
 348,206 
 
 373,656 
 
 64 
 
 348 
 
 752 
 
 1,660 
 
 2,109 
 
 2,887 
 
 3,623 
 
 4,583 
 
 5,897 
 
 7,872 
 
 9,621 
 
 12,1S« 
 
 $1,745 
 
 19,074 
 
 £4,820 
 
 92,392 
 
 126,879 
 
 154,664 
 
 283,270 
 
 303,940 
 
 446,220 
 
 831,761 
 
 1,100,758 
 
 1,808,168 
 
 $75 
 
 1,648 
 
 10,830 
 
 37,018 
 
 69,603 
 
 69,373 
 
 97,201 
 
 147,085 
 
 165,809 
 
 339,399 
 
 538,557 
 
 $65,636 
 
 $1,670 
 19,623 
 64,910 
 
 1911 
 
 1912 
 
 1913. ... 
 
 120,284 
 177,667 
 252,218 
 436,164 
 SSg 020 
 
 1914 
 
 1915 
 
 1916 
 
 1917. 
 
 1918 
 
 STisti 
 
 1,37X322 
 
 1,938,844 
 
 .2,132,289 
 
 1919 
 
 1920 
 
 1921 
 
 
 
 Deposits- 
 
 Loans- 
 
 Entrance 
 
 Year. 
 
 Received 
 during 
 
 year. 
 
 Repaid 
 during 
 year. 
 
 As of 
 Oct. 31. 
 
 Made 
 during 
 year. 
 
 Repaid 
 during 
 year. 
 
 Outstand- 
 Oct. 31. 
 
 received 
 during 
 
 year. 
 
 1910 
 
 $798 
 
 7,007 
 
 32,425 
 
 76,856 
 
 91,540 
 
 148,429 
 
 338,741 
 
 519,945 
 
 837,360 
 
 1,116,962 
 
 1,770,971 
 
 1,616,892 
 
 $193 
 
 3,812 
 
 16,659 
 
 47,496 
 
 62,956 
 
 81,762 
 
 153,116 
 
 286,085 
 
 421,774 
 
 853,366 
 
 1,229,217 
 
 1,645,740 
 
 $606 
 
 6,156 
 
 21,948 
 
 50,308 
 
 78,892 
 
 143,592 
 
 328,103 
 
 561, 962 
 
 978,495 
 
 1,239,616 
 
 1,784,681 
 
 1,586,873 
 
 $4,889 
 
 30,293 
 
 134,771 
 
 287,762 
 
 371,353 
 
 601,349 
 
 831,644 
 
 1,096,778 
 
 1,477,215 
 
 2,153,842 
 
 3,311,699 
 
 3,003,766 
 
 $3,146 
 
 14,063 
 
 84, 762 
 
 209,497 
 
 293,591 
 
 340,817 
 
 540,645 
 
 764,818 
 
 913,562 
 
 1,413,878 
 
 2,284,918 
 
 3,042,699 
 
 $1,743 
 
 19,036 
 
 68,332 
 
 146,598 
 
 224,360 
 
 362,430 
 
 652,386 
 
 993,346 
 
 1,555,088 
 
 2,295,832 
 
 3,323,410 
 
 3,314,370 
 
 $99 
 
 448 
 
 683 
 
 1,088 
 
 867 
 
 1,366 
 
 1,391 
 
 2,819 
 
 3,255 
 
 4,339 
 
 7,402 
 
 8,006 
 
 1911 
 
 1912 . . 
 
 1913 
 
 1914 
 
 
 1916 
 
 
 1918 
 
 
 1920 
 
 
 
 Year. 
 
 Reserve 
 
 fund, 
 
 Oct. 31. 
 
 Dividends 
 paid. 
 
 General 
 expenses 
 for year. 
 
 Total 
 receipts 
 for year. 
 
 Total 
 resources 
 Oct. 31. 
 
 Cash on 
 hand 
 Oct. 31. 
 
 Invest- 
 ments.! 
 
 1910 
 
 
 
 $62 
 
 1,247 
 
 2,678 
 
 5,692 
 
 10,582 
 
 11,994 
 
 13,441 
 
 16,959 
 
 21,795 
 
 29,862 
 
 49, 473 
 
 61,826 
 
 $5,923 
 
 43,122 
 
 187,607 
 
 417, 980 
 
 571, 059 
 
 726,608 
 
 1,267,093 
 
 1,792,283 
 
 2,498,096 
 
 3,862,948 
 
 6,729,109 
 
 6,396,949 
 
 $2,449 
 
 26,942 
 
 91,510 
 
 180,923 
 
 269,431 
 
 418,026 
 
 808,350 
 
 1,235,766 
 
 1,962,556 
 
 2,769,948 
 
 3,966,278 
 
 4,047^173 
 
 $705 
 
 6,037 
 
 23,139 
 
 34,130 
 
 44,337 
 
 49,103 
 
 124,311 
 
 161,017 
 
 276,726 
 
 260,258 
 
 323,717 
 
 276,699 
 
 
 1911 
 
 $24S 
 
 1,150 
 
 3,495 
 
 6,147 
 
 7;768 
 
 15,395 
 
 27,330 
 
 42,407 
 
 64,335 
 
 97,91« 
 
 140,482 
 
 
 
 1912 
 
 
 
 1913 
 
 
 
 1914 
 
 $8,336 
 13,383 
 13,242 
 19,697 
 25,164 
 29,666 
 60,745 
 83,507 
 
 
 1915 
 
 ••••■- 
 
 
 
 1917 
 
 73,98r 
 
 1918 
 
 1919 
 
 
 1920 - 
 
 
 1921 
 
 294,794 
 
 
 438,372 
 
 1 Mainlv Liberty bonds. Federal certificates of indebtedness .and ancentan 
 
CREDIT UNION EXPERIENCE IN AMERICA. 
 
 45 
 
 BTEW TOBK. 
 
 In New York the development has been slightly different from that 
 in Massachusetts. In the latter State credit unions have been organ- 
 ized along racial and trade-union lines in factories, towns, and villages, 
 while in New York they have developed mainly in stores and offices 
 in New York City. The following statement shows the number of 
 credit unions reporting each year: 
 
 1914. 2 
 
 1915 14 
 
 1916 29 
 
 1917 39 
 
 1918 41 
 
 1919 49 
 
 1920 68 
 
 Of the unions furnishing reports in 1920, 3 were organized in 1914, 
 8 in 1915, 10 in L916, 6 in 1917, 7 in 1918, 15 in 1919, and 19 in 1920. 
 
 Entrance fees range from 5 cents to $7.50, 10 cents, 50 cents, and 
 $1 being the more common rates. 
 
 The par value of the shares of the societies reporting varies from 
 50 cents to $25, the most common value being $5. 
 
 The maximum rate of interest charged ranges from 6 to 12 per 
 cent, the latter being the most common rate. 
 
 The number of credit unions having each classified number of 
 shareholders, depositors, and borrowers is shown below: 
 
 CREDIT UNIONS IN NEW YORK, CLASSIFIED BY NUMBER OF SHAREHOLDERS, 
 DEPOSITORS, AND BORROWERS, ON DECEMBER 31 OF EACH YEAR, 1914 TO 1920. 
 
 [New York superintendent of banks. Annual reports, 1914 to 1920.] 
 
 Class of members, and year. 
 
 Number of credit unions having classified ntim- 
 ber of members of each class. 
 
 Total. 
 
 50 or 
 less. 
 
 51 to 
 100., 
 
 101 to 
 
 250. 
 
 251 to 
 500. 
 
 501 to 
 1,000. 
 
 Over 
 1,000. 
 
 Shareholders: 
 1914 
 
 
 1 
 - 3 
 5 
 2 
 8 
 6 
 14 
 
 1 
 5 
 7 
 14 
 14 
 19 
 20 
 
 
 
 
 2 
 
 1916 
 
 3 
 8 
 11 
 6 
 5 
 6 
 
 2 
 
 6 
 10 
 14 
 11 
 19 
 19 
 
 2 
 8 
 14 
 14 
 12 
 13 
 20 
 
 2 
 5 
 6 
 10 
 15 
 15 
 
 1 
 
 2 
 
 4 
 1 
 1 
 10 
 
 i' 
 
 2 
 
 2 
 3 
 
 14 
 
 1916.. . 
 
 28 
 
 1917 . . 
 
 39 
 
 1918 
 
 41 
 
 1919 
 
 48 
 
 1920 
 
 68 
 
 Depositors; 
 
 1914 . . .. 
 
 2 
 
 1915 
 
 
 
 
 
 
 6 
 
 1916 
 
 ¥ 
 
 1 
 1 
 2 
 
 2 
 3 
 2 
 2 
 3 
 
 1 
 1 
 2 
 2 
 1 
 
 
 
 13 
 
 1917 
 
 
 
 20 
 
 
 
 
 16 
 
 1919 . .. 
 
 
 
 24 
 
 1920 
 
 3 
 
 
 28 
 
 Borrowers: 
 1914 
 
 2 
 
 1915 
 
 2 
 5 
 9 
 10 
 14 
 12 
 
 2 
 8 
 8 
 10 
 13 
 19 
 
 1 
 
 i 
 
 4 
 6 
 10 
 
 
 
 13 
 
 1916 
 
 i 
 
 2 
 2 
 1 
 2 
 
 i' 
 
 28 
 
 1917 
 
 37 
 
 1918 . 
 
 38 
 
 1919 
 
 47 
 
 1920 
 
 64 
 
 
 
 259°— 22- 
 
46 
 
 COOPERATIVB CREDIT IN AMERICA. 
 
 The table following shows the rate of dividend paid on share 
 capital and of interest paid on deposits by the societies during the 
 years 1915 to 1920: 
 
 CREDIT UNIONS IN NEW YOEK, CLASSIFIED BY KATE OF DIVIDEND ON CAPITAL 
 STOCK AND OF INTEEEST ON DEPOSITS PAID EACH YEAR, 1916 TO 1920. 
 
 [New York superintendent of banks. Annual reports, 1916 to 1920.] 
 
 
 Number of credit unions paying classified rate. 
 
 
 Item and year. 
 
 Less 
 than 
 3 per 
 cent. 
 
 Sand 
 under 
 5 per 
 cent. 
 
 5 and 
 imder 
 7 per 
 cent. 
 
 7 and 
 under 
 10 per 
 cent. 
 
 10 and 
 under 
 12 per 
 
 cent. 
 
 12 per 
 cent 
 and 
 
 over. 
 
 Total. 
 
 Dividend on share capital: 
 
 1916 
 
 
 1 
 
 1 
 2 
 3 
 2 
 6 
 
 9 
 7 
 9 
 11 
 
 3' 
 
 3 
 8 
 3 
 14 
 
 1 
 4 
 5 
 
 10 
 5 
 
 13 
 
 i' 
 
 3 
 2 
 3 
 3 
 
 1 
 
 i' 
 
 i' 
 
 4 
 
 3 
 
 t 1916 '. 
 
 
 9 
 
 1917.. 
 
 * 
 
 14 
 
 1918 
 
 1 
 
 24 
 
 1919 
 
 14 
 
 1920. . . . 
 
 2 
 
 42 
 
 Interest on deposits: 
 1915 
 
 3 
 
 1916 
 
 
 3' 
 
 2 
 3 
 8 
 
 1 
 
 
 
 7 
 
 1917 
 
 
 
 
 12 
 
 1918 
 
 
 
 
 
 9 
 
 1919 
 
 
 
 
 
 12 
 
 1920 
 
 
 
 2 
 
 
 21 
 
 
 
 
 The classification of the societies according to the amount of assets 
 and deposits on December 31 of the years 1914 to 1920 is given below: 
 
 CREDIT UNIONS IN NEW YORK, CLASSIFIED BY AMOUNT OF ASSETS AND DEPOSITS 
 ON DECEMBER 31 OF EACH YEAR, 1914 TO 1920. 
 
 [New York superintendent of banks. 
 
 Annual reports, 1914 to 1920. 
 
 
 
 
 Number of credit unions having classified amount. 
 
 
 Item and year. 
 
 Less 
 than 
 $500. 
 
 $500 
 
 and 
 
 under 
 
 $1,000. 
 
 $1,000 
 
 and 
 
 under 
 
 $10,000. 
 
 $10,000 
 
 and 
 
 under 
 
 $50,000. 
 
 $60,000 
 
 and 
 
 under 
 
 $100,000. 
 
 uf 
 
 Total. 
 
 Assets: 
 
 1914 
 
 
 
 2 
 
 11 
 19 
 22 
 17 
 13 
 16 
 
 1 
 2 
 3 
 6 
 7 
 8 
 10 
 
 
 
 
 2 
 14 
 29 
 39 
 41 
 
 1915 
 
 
 2 
 3 
 
 1 
 3 
 1 
 
 1 
 
 2 
 
 4 
 3 
 1 
 2 
 2 
 
 1 
 
 7 
 14 
 16 
 26 
 32 
 
 
 
 1916 J 
 
 
 
 
 1917 
 
 1 
 2 
 2 
 4 
 
 1 
 2 
 3 
 9 
 6 
 9 
 8 
 
 1 
 3 
 5 
 12 
 
 
 1918 
 
 
 1919 
 
 2 
 3 
 
 1920 
 
 49 
 
 Deposits: 
 
 1914 
 
 2 
 
 1916 
 
 
 
 
 1916 
 
 1 
 
 2 
 2 
 2 
 6 
 
 
 
 11 
 
 20 
 
 1917 
 
 
 
 1918 
 
 
 
 1919 
 
 
 
 
 1920 
 
 
 1 
 
 
 
 
 
 The distribution of the credit unions of New York according to the 
 amount of reserve on December 31 and the expense of operation for 
 
CKEDIT UNION EXPERIENCE IN AMERICA. 
 
 47 
 
 the year ending with that date for the years 1914 to 1920 is shown in 
 the table following: 
 
 CEEDIT UNIONS IN NEW YOEK CLASSIFIED BY AMOUNT OF RESEEVE ON DECEM- 
 BEE 31 AND OF EXPENSES DUEING EACH YEAE ENDING DECEMBEE 31, BY YEAES, 
 1914 TO 1920. 
 
 [New York superintendent of banks. Annual reports, 1914 to 1920.] 
 
 
 Credit trnions haTing classi- 
 fied amount. 
 
 Total. 
 
 Item and year. 
 
 Credit unions having classi- 
 fied amount. 
 
 
 Item and year. 
 
 Less 
 
 than 
 
 tioo. 
 
 tioo 
 
 and 
 under 
 MOO. 
 
 J500 
 
 and 
 
 under 
 
 a.ooo. 
 
 $1,000 
 
 and 
 
 under 
 
 »10,000. 
 
 Less 
 than 
 JIOO. 
 
 JIOO 
 
 and 
 
 under 
 
 J500. 
 
 J500 
 
 and 
 
 under 
 
 $1,000. 
 
 $1,000 
 
 and 
 
 under 
 
 $10,000. 
 
 Total. 
 
 Reserve: 
 1914 
 
 1 
 5 
 10 
 11 
 7 
 S 
 5 
 
 
 
 
 1 
 
 10 
 26 
 36 
 34 
 44 
 58 
 
 Expenses: 
 19H 
 
 2 
 3 
 13 
 14 
 11 
 "10 
 10 
 
 6 
 6 
 10 
 20 
 21 
 21 
 23 
 
 
 
 2 
 
 
 4 
 12 
 14 
 16 
 21 
 21 
 
 1 
 3 
 8 
 6 
 6 
 10 
 
 i' 
 
 3 
 S 
 12 
 22 
 
 1918 
 
 1 
 3 
 
 2 
 4 
 9 
 11 
 
 i 
 
 2 
 
 4 
 8 
 21 
 
 11 
 
 
 1916 
 
 26 
 
 
 1917 
 
 38 
 
 1918 
 
 1918 
 
 40 
 
 1919 
 
 1919... 
 
 48 
 
 1920 
 
 1920 
 
 65 
 
 
 
 
 General statistics of operation for the years 1914 to 1920 are shown 
 below: 
 
 STATISTICS OF OPEEATION OF CREDIT UNIONS IN NEW YOEK, 1914 TO 1920. 
 [New York superintendent of banks. Annual reports, 1914 to 1920.] 
 
 
 Num- 
 ber re- 
 
 Num- 
 
 
 Num 
 
 
 Num- 
 ber of 
 de- 
 posi- 
 tors. 
 
 " 
 
 Sum 
 
 
 Num- 
 ber of 
 
 Share capital- 
 
 Year. 
 
 ber of 
 mem- 
 bers. 
 
 ber of 
 shares 
 held. 
 
 ber of 
 bor- 
 rowers. 
 
 fe- 
 male 
 mem- 
 bers. 
 
 Paid in 
 during 
 year. 
 
 Repaid 1 
 during 
 year. 
 
 As of 
 Dec. 31. 
 
 1914 
 
 2 
 
 14 
 29 
 39 
 41 
 49 
 68 
 
 193 
 2,404 
 5,930 
 9,614 
 9,060 
 11,799 
 22,490 
 
 4,562 
 25,643 
 58,494 
 101,442 
 108,414 
 161,274 
 312,938 
 
 34 
 101 
 808 
 1,436 
 1,162 
 1,267 
 3,619 
 
 57 
 1,142 
 2,818 
 5,103 
 5,125 
 5,891 
 11,637 
 
 41 
 356 
 796 
 1,466 
 1,491 
 1,706 
 3,442 
 
 $6,031 
 54,034 
 125,521 
 252,436 
 225,009 
 662,205 
 1,074,121 
 
 $673 
 6,040 
 26,668 
 84,020 
 104,653 
 118,956 
 245; 661 
 
 $5,36S 
 
 1915 
 
 53,314 
 
 1916 
 
 152,405 
 
 1917 
 
 332,509 
 
 1918 
 
 447,332 
 
 1919 . 
 
 925,742 
 1,773,315 
 
 1920 
 
 
 
 Deposits— 
 
 Loans- 
 
 En- 
 
 Year. 
 
 Beoeived 
 during 
 year. 
 
 Repaid 
 during 
 year. 
 
 As of 
 Deo. 31. 
 
 Made 
 during 
 year. 
 
 Repaid 
 during 
 year. 
 
 Outstand- 
 ing, 
 Dec. 31. 
 
 trance 
 fees re- 
 ceived. 
 
 1914 
 
 $2,111 
 13,356 
 75,685 
 125,396 
 93,255 
 144,901 
 451,988 
 
 $1,286 
 9,701 
 
 61,322 
 100,937 
 
 96,327 
 121,464 
 256,369 
 
 • 
 
 $825 
 4,479 
 28,843 
 63,633 
 60,390 
 73,846 
 271,003 
 
 $2,183 
 
 ■ 106,096 
 
 303,798 
 
 823,716 
 
 1,032,678 
 
 2,239,540 
 
 4,511,798 
 
 $748 
 
 58,304 
 
 202,403 
 
 644,797 
 
 929,796 
 
 1,735,388 
 
 3,594,679 
 
 $1,434 
 
 49,768 
 150,623 
 319, 869 
 424, 170 
 994, 968 
 1,960,735 
 
 $26 
 
 1915 
 
 1,080 
 
 1916 
 
 1,993 
 
 1917 
 
 4; 205 
 
 1918 
 
 2,208 
 
 1919 
 
 4,956 
 
 1920 
 
 12,242 
 
 
 
 Year. 
 
 Eeserve 
 
 fund, 
 
 Dec. 31 
 
 Divi- 
 dends 
 paid. 
 
 General 
 expenses 
 for year. 
 
 Total 
 receipts 
 for year. 
 
 Total 
 assets, 
 Dec. 31. 
 
 Balance 
 on hand, 
 Dec. 31. 
 
 Invest- 
 ments in 
 bonds. 
 
 Bor- 
 rowed, 
 money. 
 
 1914 
 
 $28 
 1,087 
 6,779 
 13,286 
 19,968 
 36,822 
 74,623 
 
 
 $96 
 2,799 
 5,108 
 9,753 
 18,282 
 27,570 
 66,629 
 
 $9,009 
 
 143,606 
 
 458,866 
 
 465,367 
 
 . 668,034 
 
 1,163,505 
 
 5,796,152 
 
 $«.,297 
 68,758 
 196,981 
 465,367 
 568, 054 
 1,153,506 
 2,203,871 
 
 $3,755 
 16,119 
 29,834 
 74,205 
 84,232 
 88,688 
 155,078 
 
 $1,016 
 
 
 1915 
 
 $845 
 2,219 
 6,867 
 14,736 
 25 266 
 49.770 
 
 $3,000 
 
 1916 
 
 29,890 
 68,428 
 52,874 
 60,003 
 163,312 
 
 12,395 
 
 1917 
 
 16,610 
 
 1918 
 
 21,608 
 
 1819 
 
 56,486 
 
 1920 
 
 50,786 
 
 
 
 
 
 
 
 _ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
48 COOPEBATIVE GEEDIT IN AMERICA. 
 
 In New York, as in Massachusetts, the complaint is that it is very 
 difficult to find efficient persons who are willing to serve as officers. 
 Few are willing to keep the books in the manner prescribed by the 
 bank officials, who are often too rigid in their requirements and look 
 at all questions from the standpoint of the banking department. 
 The department does not have sufficient funds to warrant a separate 
 supervision of the credit unions. On the other hand, large corpora- 
 tions often furnish accommodations for the credit unions organized 
 in their establishments and frequently provide the help needed to 
 manage them. As an illustration of the number of applications for 
 credit union charters refused, the banking department of New York 
 states that in 1918 the number of such charters granted was 7; 
 the number refused, 11. 
 
 NORTH CABOLINA. 
 
 The situation in North Carohna is different from that in New York 
 or Massachusetts. In the two Northern States the credit unions are 
 in cities and villages, grouped by communities, nationalities, churches, 
 societies, races, and industries, and have a large membership. In 
 North Carolina, with one possible exception, the credit unions are 
 composed almost entirely of farmers. In Massachusetts and New 
 York the credit imions are considered a form of banking institution 
 and are placed under the supervision of the banking department of 
 the State in which they are located. In North Carolina the credit 
 unions are considered agricultural cooperative credit associations and 
 are placed under the cooperative care and direction of the agricultural 
 interests of the State — the North Carolina State College of Agricul- - 
 ture, the North Carolina State Department of Agriculture, and the 
 Bureau of Markets and States Relations Service of the United States 
 Department of Agriculture, under the title of "State Cooperation in 
 Marketing Work m North Carolina." 
 
 In New York and Massachusetts the banking departments have 
 done little to encourage the formation of credit unions beyond send- 
 ing literature to inquirers. In North Carolina, most of the time, a 
 superintendent of cooperative associations and credit unions in the 
 Division of Markets and Rm-al Organization has been supported at 
 State expense to care for the credit unions. In the two Northern States 
 the estabhshment and general direction of credit unions has been left 
 largely to private initiative. In North Carolina the superintendent 
 has been alert to organize a credit imion wherever in his opinion its 
 presence was advisable. In the Northern States the banking depart- 
 ment explains what is necessary to form a credit union, sends the 
 proper blanks and on their return approves or disapproves the acts 
 of the formers of the credit union. In North Carohna the superin- 
 tendent sends blanks, and when the community is ready to organ- 
 ize the credit union he is present in person or by deputy with blank 
 forms and suggested by-laws, and sees that the papers are prop- 
 erly prepared at the tune. In New York and Massachusetts the 
 banking department makes annual examination of the books of each 
 credit union and receives an annual report which is printed as a part 
 of the annual report of the department. In North Carolina each credit 
 imion makes a monthly report to the superintendent, and if an official 
 
CEEDIT UNION EXPERIElirCE IN AMERICA. 49 
 
 has difficiilty in preparing his report the superintendent goes or 
 sends a deputy to clear up the difficulties. 
 
 In Massachusetts and New York the superintendent of the banking 
 department is concerned mainly in seeing that the statutes relating 
 to credit unions axe properly observed. In North Carohna the super- 
 intendent suggests to the credit unions what to do. In the Northern 
 States copies of the annual report of the banking department are 
 printed and circulated, anywhere from a few months to a year after 
 the individual reports are made, with a short general resum^ of the 
 work done by the credit unions during the year, closing with recom- 
 mendations to the legislature of additional legislation desired to be 
 gassed, which is almost always in the line of regulation. In North 
 arolina prior to November, 1920, copies of these monthly reports 
 were sent to each credit union within a month after they were made, 
 with words of commendation to those that made the best record, 
 words of encouragement to those needing it, advice to the newly 
 organized, and an account of any new work undertaken, planned, or 
 completed. 
 
 A strong argument used to increase membership in the credit imions 
 in Massachusetts and New York is that they are organized to enable 
 their members to avoid the loan sharks, in North Carolina to avoid 
 merchant credits. In the Northern States loaning money to members 
 for individual spending is the principal business of the credit imion. 
 In North Carohna the cooperative buying of farm supplies in large 
 quantities at wholesale prices and the distribution of them among the 
 members at cost, allowing them time in which to make payment, con- 
 stitutes an important part of the society's activities. Members often 
 save 50 per cent on such purchases. Fertilizers and seeds are the 
 articles commonly handled, but hay, cotton seed, meal, tin cans for 
 canning, and sugar, when selling for a high price, have been so bought. 
 The Valdese credit union, two-thirds of whose members are employed 
 in the cotton mills, loans money to members to enable them to buy for 
 cash at the cooperative store in the village. One union one year 
 operated a Christmas savings fund. Junior savings clubs composed 
 entirely of children are connected with several credit unions . Deposits 
 are received from nonmembers. 
 
 Several of these credit unions are composed of negroes. By the 
 end of 1919 there were 13 such located in two adjacent counties. 
 
 Three meetings are generally required to form a credit union in 
 North Carolina. At the first interest is aroused and information 
 spread, the superintendent of cooperative associations or a deputy 
 generally being present and -acting as the prime mover. At the 
 second an organization committee is appointed, directors and credit 
 and supervisory committees are elected, care being taken to have the 
 directors represent the various neighborhoods of the district to be 
 covered by the credit union, to have every iuterest in the section 
 represented, to select as members of the credit committee persons 
 acquainted with each neighborhood, and to include in the membership 
 of the society at least one person well known to the regular bank in the 
 community and in good standing with it. At the third meeting the 
 by-laws are adopted and forms and books arranged for. A local bank 
 is selected as depository. Farmers are organized by school districts. 
 
50 
 
 COOPEEATlVE CREDIT IN AMERICA, 
 
 and all the earlier credit unions in North Carolina were organized by a 
 few fanners and the school-teacher of the district. The organization 
 meetings were held in the schoolhouse and stock was liberally sub- 
 scribed for by the teachers and school children. The teacner is 
 generally elected treasurer and devotes a few hours one day a week to 
 the work of the credit union, receiving therefor $50 a year. 
 
 The following table shows the number of societies reporting each 
 year: 
 
 1916 • 8 
 
 1917 14 
 
 1918 17 
 
 1919 31 
 
 1920 33 
 
 1921 22 
 
 Of the unions reporting in 1921, 4 were organized in 1916; 2 in 
 1917; 2 in 1918; 10 in 1919; and 4 in 1920. Of the 21 that were organ- 
 ized and have since been dissolved, 2 were operated less than one 
 year; 5 for one year; 7 for two years, 4 for 3 years, and 3 for five 
 years. 
 
 The par value of the shares is generally $10. Deposits left for a 
 year generally draw interest at the rate of 4 per cent. Dividends 
 are usually limited to 6 per cent, and the rate charged on loans is 
 generally 6 per cent. 
 
 The table below shows the number of credit unions in North 
 Carolina having each classified number of shareholders, depositors, 
 and borrowers on December 31 of the years 1916 to 1921: 
 
 CEEDIT UNIONS IN NORTH CAROLINA. CLASSIFIED BY NUMBER OF SHAREHOLDERS. 
 DEPOSITORS, AND BORROWERS, IJECEMBER 31 1 OF EACH YEAR, 1916 TO 1921. 
 
 [North Carolina superintendent of credit unions. Monthly reports, 1916 to 1920.1 
 
 Class of 
 members, 
 
 Number of credit 
 unions having 
 classified num- 
 ber of members 
 of each class. 
 
 To- 
 tal. 
 
 Class of 
 members, 
 and year. 
 
 Number of credit 
 unions having 
 classified num- 
 ber of members 
 of each class. 
 
 To- 
 tal. 
 
 Class of 
 members, 
 and year. 
 
 Number of credit 
 unions having 
 classified num- 
 ber of members 
 of each class. 
 
 To. 
 
 and year. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 lal. 
 
 
 or 
 un- 
 der. 
 
 26 
 to 
 50. 
 
 51 
 to 
 100. 
 
 101 
 to 
 130. 
 
 
 
 or 
 
 im- 
 
 der. 
 
 26 
 to 
 50. 
 
 51 
 to 
 100. 
 
 101 
 to 
 130. 
 
 
 
 25 
 or 
 un- 
 der. 
 
 26 
 to 
 50. 
 
 51 
 to 
 
 loa 
 
 to 
 130. 
 
 
 Share- 
 holders: 
 1916 
 
 1 
 7 
 6 
 12 
 7 
 2 
 
 5 
 4 
 5 
 13 
 19 
 9 
 
 2 
 3 
 S 
 6 
 6 
 7 
 
 .... 
 
 1 
 
 1 
 2 
 
 8 
 14 
 17 
 31 
 33 
 20 
 
 Deposi- 
 tors: 
 1916... 
 1917... 
 1918... 
 1919... 
 1920... 
 1921 '.. 
 
 7 
 7 
 11 
 15 
 17 
 8 
 
 
 
 
 7 
 10 
 15 
 20 
 23 
 12 
 
 Borrow- 
 ers: 
 1916... 
 1917... 
 1918... 
 1919... 
 1920... 
 1921 ».. 
 
 7 
 12 
 11 
 18 
 20 
 15 
 
 
 
 
 7 
 
 1917.... 
 
 2 
 2 
 2 
 3 
 2 
 
 1 
 
 # 
 
 2 
 
 1 
 
 .... 
 
 1 
 1 
 
 1 
 2 
 1 
 2 
 3 
 
 
 *" • 
 
 1918 
 
 
 
 11 
 
 1919 
 
 
 
 w 
 
 1920 
 
 
 
 n 
 
 1921 »... 
 
 
 '^ 
 
 
 
 
 
 ■Oct. 31, of 1920., 
 
 'Annual report. 
 
CREDIT triTIOBr EXPEKEENGE IN AMERICA. 
 
 51 
 
 The distribution of the credit unions with regard to the amourit of 
 assets and deposits on the last day of each year, 1916 to 1921, is 
 given below: 
 
 CREDIT UNIONS IN NORTH CAROLINA CLASSIFIED BY AMOUNT OF ASSETS AND 
 DEPOSITS, DECEMBER 31 ' OF EACH YEAR, 1916 TO 1921. 
 
 [North Carolina superintendent of credit anions. Monthly reports, 1916 to 1920. 
 
 
 Nmnber of credit unions 
 having classified amount. 
 
 Total. 
 
 Item and 
 year. 
 
 Number of credit unions 
 having dassified amount. 
 
 
 Item and 
 year. 
 
 Less 
 than 
 $500. 
 
 $500 
 
 and 
 
 under 
 
 $1,000. 
 
 {W 
 
 $10,000 
 
 and 
 
 under 
 
 $30,000. 
 
 Less 
 than 
 $500. 
 
 $500 $1,000 
 
 and and 
 
 under under 
 
 $1,000. $10,000. 
 
 1 
 
 $10,000 
 and 
 
 under 
 
 $3o,eea. 
 
 Tot»l. 
 
 Assets: 
 
 1916 
 
 2 
 
 6i 
 
 9 
 12 
 13 
 
 4 
 
 3 
 
 » I 
 
 7 
 5 
 6 
 
 3 
 
 6 
 5 
 10 
 13 
 10 
 
 2' 
 
 2 
 2 
 
 8 
 14 
 17 
 31 
 .33 
 22 
 
 Deposits- 
 
 1917.".;;" 
 
 1918 
 
 1919 
 
 1920 
 
 1921 » 
 
 • 6 
 6 
 10 
 12 
 15 
 7 
 
 
 
 
 7 
 
 1917 
 
 1918 
 
 1919 
 
 1920 
 
 1921! 
 
 
 4 
 4 
 6 
 5 
 3 
 
 '2 
 
 2 
 2 
 
 11 
 15 
 20 
 23 
 12 
 
 'Oct. 31, of 1920. 
 
 2 Annual report. 
 
 The meager general statistics of operation available are given in 
 the table below: 
 
 STATISTICS OF OPERATION OF CREDIT UNIONS IN NORTH CAROLINA 
 DECEMBER 31,' 1916 TO 1921. 
 
 [North CaroUna superintendent of credit unions. Monthly reports, 1916 to 1920. 
 
 Year. 
 
 Num- 
 ber re- 
 port- 
 ing. 
 
 Num- 
 ber of 
 mem- 
 bers. 
 
 Num- 
 ber of 
 depos- 
 itors. 
 
 Num- 
 ber of 
 bor- 
 rowers. 
 
 Share 
 capital 
 
 De- 
 posits. 
 
 Loans. 
 
 Bor- 
 rowed 
 money. 
 
 Cash 
 
 in 
 banks. 
 
 Assets. 
 
 1916... . 
 
 8 
 14 
 17 
 31 
 33 
 22 
 
 322 
 539 
 783 
 
 1,171 
 937 
 
 1,002 
 
 100 
 187 
 299 
 383 
 367 
 302 
 
 45 
 119 
 144 
 139 
 ■ 129 
 290 
 
 $2,172 
 4,907 
 7,978 
 15,964 
 12,520 
 18,675 
 
 $3,771 
 9,324 
 14,175 
 53,288 
 35,368 
 45,758 
 
 $4,031 
 10,217 
 17,779 
 39,479 
 45,757 
 84,153 
 
 $700 
 1,978 
 3,200 
 4,294 
 7,247 
 19,488 
 
 $3,018 
 6,312 
 7,630 
 32,064 
 10,312 
 3,511 
 
 $7,224 
 
 1917 
 
 17,174 
 
 1918 
 
 27,465 
 
 1919 
 
 79,707 
 
 1920S. 
 
 58, 101 
 
 1921 ». 
 
 90,819 
 
 
 
 "Oct. 31, of 1920. 
 
 >10 months only. 
 
 •Annual report. 
 
 The question is asked : Why have the North Carolina credit unions 
 attained success while rural credit unions elsewhere do not seem to 
 flourish ? There are several reasons. The foremost is the care and 
 direction that have been given to societies in that State, the 
 oversight by the superintendent of credit tmions, the caution with 
 which he has established them. The Jewish agricultural credit 
 unions in the North have been composed entirely of farmers, with the 
 secretary-treasurer too often living in a part of the district incon- 
 venient of access to the other members. Purely agricultural unions 
 with no member resident in a village find it difficult to obtain a sec- 
 retaiy-treasurer who can afford during the busy season to give even 
 a few hours one day a week to the interests of the credit union. In 
 North ^Carolina, the secretary-treasurer is generally resident in the 
 village or in a central portion of the district and therefore conven- 
 iently located. Again, m North Carolina, credit unions have devoted 
 most of their energies to buying cooperatively for their members, who 
 
52 
 
 COOPERATIVE CREDIT lU AMERICA. 
 
 are given time in wliicli to pay for the articles which they have bought. 
 The Jewish credit unions loan money to members to spend for various 
 purposes, and too often the latter find it difficult to repay the amount 
 when due. In other words, short-term loans are apt to develop in.to 
 long-term loans, to the detriment of new would-be borrowers. Finally 
 the North Carolina credit unions have featured their savings depart- 
 ments. 
 
 NEW HAMPSHIBE. 
 
 Under the New Hampshire credit imion act of 1921," one society 
 has been organized in Manchester, but no report in regard to it has 
 as yet been printed. 
 
 The credit union chartered by special act in 1909 as the St. Mary's 
 Cooperative Credit Association became, by chapter 339 of the Acts 
 of 1917, La Caisse Populaire Ste. Marie. By the terms of the charter, 
 membership is confined to residents of Manchester, an4 the members 
 are French-Canadian workers in the cotton mills. There has been 
 very little change in the officers and membership of committees from 
 the date of the organization. The capital stock is limited to $100,000; 
 this is the only credit union in the United States whose capital is so 
 limited. 
 
 The table below shows, as far as the information is available, the 
 growth of this society since 1910: 
 
 STATISTICS OF OPERATION OF THE CREDIT UNION IN NEW HAMPSHIRE, 1910 
 
 TO 1921. 
 
 [New Hampshire bank cammissianers. Annual reports, 1910 to 1921.] 
 
 Year. 
 
 Niim- 
 ber of 
 mem- 
 bers. 
 
 Num- 
 ber of 
 shares 
 held. 
 
 Share capital- 
 
 Paid in 
 during 
 year. 
 
 Repaid 
 during 
 year. 
 
 Out- 
 standing 
 June 30. 
 
 Deposits- 
 
 Received 
 during 
 year. 
 
 Repaid 
 during 
 year. 
 
 As of 
 June 30. 
 
 En- 
 trance 
 
 re- 
 ceived. 
 
 Reserve 
 fund, 
 out- 
 stand- 
 ing 
 June 30. 
 
 -•1914.. 
 1915., 
 1916., 
 1917.. 
 1918., 
 1919.. 
 1920.. 
 1921 . 
 
 1,182 
 1,409 
 1,616 
 1,880 
 2,349 
 2,938 
 
 2,982 
 3,677 
 4,205 
 4,693 
 5,035 
 5,745 
 6,495 
 6,658 
 
 S3, 954 
 5,402 
 6,417 
 
 4,585 
 
 $2,229 
 1,912 
 2,620 
 3,770 
 
 J25, 191 
 28,681 
 32, 478 
 33,293 
 
 $198,707 
 331, 178 
 659,267 
 679,034 
 
 $130, 807 
 205,341 
 459,415 
 549,320 
 
 $216, 217 
 342,053 
 541,905 
 671,618 
 
 $191 
 258 
 311 
 226 
 
 $2,926 
 3,804 
 4,926 
 6,413 
 
 Year. 
 
 1910. 
 1911. 
 1912. 
 1913. 
 1914. 
 1915. 
 1916. 
 1917. 
 1918. 
 1919., 
 1920. 
 1921. 
 
 Divi- 
 dends 
 paid. 
 
 $1,113 
 1,202 
 1,372 
 1,4S4 
 
 Loans- 
 
 Made 
 during 
 year. 
 
 $23,306 
 143,342 
 205, 110 
 156,036 
 
 Repaid 
 during 
 year. 
 
 As of 
 June 30. 
 
 $20,747 
 67,217 
 85,639 
 87,006 
 
 $211,683 
 297,708 
 417,280 
 486,310 
 
 General 
 expenses 
 for year. 
 
 Total re 
 
 oeipts for 
 
 year. 
 
 $1, 495 
 2,017 
 3,903 
 5,718 
 
 $25, 
 25, 
 74, 
 132, 
 175, 
 202, 
 243, 
 422 
 803, 
 861, 
 
 Total 
 assets, 
 June 30. 
 
 Balance 
 on hand, 
 June 30. 
 
 $12, 
 15, 
 23, 
 
 100, 
 137, 
 180, 
 251 
 383, 
 693, 
 736, 
 
 Invest- 
 ments in 
 bonds. 
 
 19, 794 
 11, 198 
 12,648 
 23,884 
 
 $29,000 
 74,000 
 162,700 
 223,700 
 
 u Acts of 1921, ch. 40. 
 
CREDIT UNION EXPEEIEITCE IK AMERICA. 
 
 53 
 
 BHODE ISLAND. 
 
 The first credit union in Rhode Island was incorporated under 
 the general law of the State on March 9, 1915, and began business 
 April 1, of that year. There has been practically no change in the 
 officers and membership of the committees since the organization of 
 the society. The membership is composed mainly of the French 
 Canadians in the mills at Central Falls. A second credit union com- 
 posed of telephone workers in Providence was incorporated March 30, 
 1920. 
 
 The maximimi number of shares any member may hold is 200 
 in the first society and unlimited in the second ; the maximum amount 
 anyone may deposit is $5,000 and $250, respectively, and the interest 
 on deposits, 4 and 5 per cent, respectively. 
 
 The foHj3wing table gives statistics of the first society in Rhode 
 Island 1915 to 1919, and of both in 1920, similar to those already 
 given in other States: 
 
 STATISTICS or OPERATION OF CREDIT UNIONS IN RHODE ISLAND, 
 [Rhode Island bank commissioner. Annual reports, 1915 to 1920.] 
 
 1915 TO 1920. 
 
 
 Num- 
 ber of 
 mem- 
 bers. 
 
 Ntua- 
 
 beroj 
 shares 
 held. 
 
 Num- 
 ber of 
 borrow- 
 ers. 
 
 Share capital- 
 
 Deposits- 
 
 Reserve 
 
 fund. 
 
 Dee. 31. 
 
 Year. 
 
 Paid in 
 during 
 year.' 
 
 Repaid 
 
 As of 
 Dec. 31.1 
 
 Received 
 during 
 year.i 
 
 Repaid 
 during 
 
 year.' 
 
 As of 
 Dec. 31.1 
 
 1015 
 
 212 
 
 384 
 
 1,033 
 
 1,354 
 
 1,605 
 
 2,016 
 
 435' 
 1,043 
 2,804 
 5,045 
 7,526 
 
 12,796 
 
 28 
 68 
 117 
 158 
 189 
 
 363 
 
 
 
 
 
 
 
 
 1916 
 
 $5,503 
 11,566 
 17,501 
 25,447 
 
 90,539 
 
 $407 
 2,749 
 6,049 
 13,447 
 
 25,850 
 
 $5,096 
 13,903 
 25,355 
 37,355 
 
 64,689 
 
 $155,065 
 256,975 
 534,085 
 887,092 
 
 1,949,787 
 
 $71,020 
 206,157 
 402,703 
 782,948 
 
 1,402,793 
 
 $84, M5 
 134,864 
 266,246 
 370, 390 
 
 546,993 
 
 $63 
 
 1917 
 
 616 
 
 1918 
 
 1,411 
 
 1919 
 
 2,900 
 
 1920 
 
 1,001 
 
 -^ 
 
 
 Divi- 
 dends 
 paid. 
 
 Loans- 
 
 En- 
 trance 
 fees re- 
 ceived 
 
 Genera 
 
 ex- 
 penses 
 tor 
 year. 
 
 Total re- 
 ceipts for 
 year. 
 
 Total 
 
 assets, 
 Dec. 31. 
 
 Balance 
 on hand 
 Dec. 31. 
 
 • 
 
 Year. 
 
 Made 
 dming 
 year.i 
 
 Repaid 
 during 
 year.' 
 
 Out- 
 standing 
 Deo. 31.1 
 
 Liberty 
 bonds. 
 
 1915 
 
 
 
 
 
 
 
 
 $22,110 
 90,469 
 151,992 
 296,849 
 439,225 
 
 807,441 
 
 
 
 1916 
 
 $127 
 
 730 
 
 1,383 
 
 2,180 
 
 3,080 
 
 $75,034 
 103,012 
 191,366 
 256,394 
 
 en. Oil 
 
 $12,735 
 31,028 
 99,686 
 
 157,638 
 
 242,586 
 
 $62,299 
 134,283 
 225,963 
 324,719 
 
 428,425 
 
 $116 
 299 
 
 "247 
 
 $1,613 
 4,629 
 7,487 
 4,844 
 
 $177,603 
 
 400,912 
 
 858,310 
 
 1,390,160 
 
 2,301,347 
 
 $26,716 
 16,399 
 53,039 
 
 107,360 
 
 114,199 
 
 
 1917 
 
 
 1918 
 
 $16,706 
 
 1919 
 
 1920 
 
 17,250 
 
 
 
 
 
 
 
 
 ^Information furnished direct to the Bureau of Labor Statistics by the societies. 
 JEWISH CEEDIT UNIONS. 
 
 The credit unions established by the Jevnsh Agricultural and 
 Industrial Aid Society, following the year 1911, remain to be con- 
 sidered. These were 19 in number and were established as follows: 
 Massachusetts, 1; Connecticut, 5; New York, 8; and New Jersey, 5. 
 Three of them were organized in 1911, 5 in 1912, 9 in 1913, 1 in 1914, 
 and 1 in 1915. These were all farmers' organizations, the only Ameri- 
 can agricultural credit unions outside of North Carolina. Except the 
 one in Massachusetts, all these credit unions were organized as vol- 
 untary associations. Four of those in New York were later (1916) 
 incorporated under the New York law which was passed after their 
 
54 
 
 COOPEBATIVB CREDIT OT AMERICA. 
 
 organization. No Jewish credit unions haye been established since 
 1915, though several requests for assistance have been received. 
 Though the Jewish Agricultural and Industrial Aid Society has lost 
 no money through its credit unions it can not be said that the experi- 
 ment has been an unqualified success. In 1915, the membership of 
 one of the credit unions of New Jersey decreased so greatly that it 
 seemed advisable that the indebtedness to the parent society should 
 be reduced. Seven of the societies have declared a dividend: One of 
 4 per cent a year for 2 years, 1 of li per cent; 1 of 5^ per cent, 1 of 6 J 
 per cent, 1 of 7J per cent a year for 4 years, 1 of 8 per cent, and 1 
 of 8.4 per cent a year for 5 years, each society repaying to the parent 
 society an amount equaling that paid to its members in dividends. 
 
 The society in its annual reports issued statistics showing the 
 progress of its credit unions, 1911 up to 1916, but has issued none 
 since then. Three of the Jewish credit unions in New^ork that 
 were incorporated in 1916 failed, within two years, to live up to 
 the laws of the State, and were closed up; 2 of the unincorporated 
 credit unions also went into liquidation. All of them paid their 
 obligations in full and left a dividend to the stockholdeis. It is 
 hard for farmers to observe all the rigid regulations required of banks. 
 
 The form of these organizations is that of the Raiffeisen societies in 
 Germany. Membership is open only to members in good standing 
 in the local Jewish Farmers Association. The board of directors 
 consists of seven elected members, of whom four — president, vice 
 president, secretary, and treasurer — constitute a credit committee, 
 m complete charge of granting loans, and the remaining three mem- 
 bers constitute a supervisory committee, to audit the books and 
 supervise the acts of the credit committee. Appeals from either 
 committee lie to the membership in general assembly. No loan is 
 granted for longer than six months nor for more than $100. Interest 
 is paid at the rate of 6 per cent. Each credit union raises $500 
 through the sale of shares to members and the Jewish Agricultural 
 and Aid Society loans it $1,000 at 2 per cent. The last one organized 
 however, received a loan of only $500, as the parent society desired 
 the organizations to become more seK-reliant. 
 
 The membership in each credit union is less-than 50. The yearly 
 expenses of the credit unions have been small, more than 50 per cent 
 having spent less than $100 for operation during each of the years 
 1913 to 1915. 
 
 The following table shows for those years for which figures are 
 available the statistics of operation of the Jewish credit unions : 
 
 STATISTICS OF OPEKATION OF JEWISH CREDIT UNIONS, 1911 TO 191S. 
 [Jewisb Agricultural and Industrial Aid Society. Annual reports, 1911 to 1918.1 
 
 
 Num- 
 ber 
 
 report- 
 ing. 
 
 Num- 
 ber of 
 mem- 
 bers. 
 
 Num- 
 ber of 
 shares 
 beld. 
 
 Num- 
 ber of 
 loans, 
 made. 
 
 Loans. 
 
 Reserve 
 fund, 
 
 'It 
 
 General 
 
 ex- 
 penses 
 
 lor 
 year. 
 
 Total 
 
 assets. 
 
 Sept. 30. 
 
 Total 
 liabili- 
 
 Septk. 
 
 Year. 
 
 Made 
 
 during. 
 
 year. 
 
 Repaid 
 
 during. 
 
 year. 
 
 Out- 
 standing, 
 Sept. 30. 
 
 1911 
 
 3 
 
 8 
 17 
 18 
 19 
 19 
 
 84 
 240 
 517 
 .«6 
 673 
 664 
 
 308 
 844 
 1,833 
 1,864 
 1,983 
 1,932 
 
 66 
 276 
 661 
 
 $4,460 
 18, 915 
 50,250 
 
 $1,179 
 11,131 
 38,506 
 
 $3,281 
 11,065 
 22,809 
 26,154 
 28,681 
 27,236 
 
 
 
 
 
 1912 
 
 1913 
 
 $426 
 
 '""249' 
 3U» 
 380 
 
 "'$727' 
 1,468 
 2,003 
 2,886 
 
 $12,649 
 27,488 
 29,579 
 31,853 
 31,493 
 
 $12,223 
 26,170 
 
 1916 
 
 
 
 
 27,403 
 
 
 
 
 28,612 
 
 
 
 
 
 27,659 
 
CONCLUSIONS. 
 
 55 
 
 COMPABATIVE STATISTICS. 
 
 Although the laws of eleven States and the Province of Quebec 
 which have legislated with regard to credit unions are similar, com- 
 parison of the associations o^anized under them is not altogether 
 satisfactory because of the diflterence in methods of organization and 
 reporting. In order, however, to give some idea of the development 
 of the credit-union movement in the various States, the following 
 table showing averages for the latest year reported based on the 
 detailed figures already given has been computed. 
 
 COMPARATIVE AVEBAGE STATISTICS OF CREDIT UNIONS IN AMERICA. 
 
 Item. 
 
 Province of 
 
 Quebec 
 
 (Deo. 31, 
 
 1920). 
 
 Massachu- 
 setts (Oct. 
 31, 1921). 
 
 New York 
 
 (Deo. 31, 
 
 1920). 
 
 North 
 Carolina 
 (Dec. 31, 
 
 1921). 
 
 Nomber of credit unions 
 
 Average number of members per society 
 
 Average increase in memberslilp per society during year 
 
 Average number of depositors per society 
 
 Average number of borrowers per society 
 
 Paid in share capital: 
 
 Average per society 
 
 Average per member 
 
 Dep<sits: 
 
 Average per society 
 
 Average per member 
 
 Average per depositor 
 
 Loans outstanding: 
 
 Average per society 
 
 Average per member 
 
 Average per borrower 
 
 Average amount of entrance fees received during year. 
 
 per society 
 
 Average amount of reserve per society 
 
 Average yearly expense per society 
 
 Average yearly receipts per society 
 
 Average assets per society 
 
 100 
 
 310 
 
 12 
 
 262 
 
 111,991.70 
 30.86 
 
 4S,S80.53 
 146.89 
 173.72 
 
 £1,813.92 
 166.99 
 197.48 
 
 66.42 
 
 2,526,27 
 
 451. OS 
 
 152, 607. 26 
 
 63,069.65 
 
 81 
 398 
 34 
 
 S26,324.31 
 
 66.17 
 
 19,591.02 
 49.24 
 
 40,918.15 
 102. 85 
 272.12 
 
 98.84 
 
 1,734.35 
 
 763.28 
 
 78,974.68 
 
 49,940.41 
 
 68 
 331 
 90 
 63 
 170 
 
 J26,078.21 
 78.85 
 
 3,985.43 
 12.05 
 74.89 
 
 28,834.34 
 87.18 
 169.09 
 
 180.03 
 1,097.40 
 
 979.84 
 85,237.53 
 32,409.87 
 
 22 
 46 
 3 
 14 
 13 
 
 $848.86 
 18.63 
 
 20,807.18 
 45.67 
 151.53 
 
 3,825.14 
 
 83.98 
 
 290. 17 
 
 4, 128. 14 
 
 It appears from the above table that in none of the States has the 
 credit-union movement, as indicated by number of societies, devel^ 
 oped to the extent that it has in Quebec. The smallest number of so- 
 cieties is found in North Carolina, as would be expected from the fact 
 that the movement is newest there. Massachusetts has the largest 
 societies, averaging 398 persons, but the greatest growth per society 
 is found among the credit unions of New York. 
 
 The Massachusetts societies are the most heavily capitalized and 
 have also the largest average amounts of loans outstandmg while the 
 Quebec societies lead in deposits. The average expense of the 
 Massachusetts societies is smaller than those of New York. In 
 Massachusetts about two-thirds of the credit unions receive deposits, 
 in New York less than half, and in North Carolina three-fourths. 
 
 CONCLUSIONS. 
 
 Experience has shown that the passage of enabling acts is not 
 enough to promote the growth of credit unions, that general educa- 
 tion m cooperation is needed, and that all ideas of the credit-union 
 movement based on philanthropy should be dismissed from mind 
 and the credit imions operated on a strictly business basis. 
 
 So long as the members of committees are chosen carefully and 
 without sentiment and the rules laid down in the statutes are strictly 
 
56 COOPEEATIVE CREDIT IN AMERICA. 
 
 observed by the leaders of the societies the latter can hardly 
 be otherwise than successful. One weakness that has appeared in 
 many unions is a tendency to allow their control to pass into the 
 hand.s of one or two members. 
 
 The following points are given as embodying the practice found 
 by experience to be desirable. While they may seem to be minor 
 matters, it should be borne in mind that in a society operating on 
 such a small scale as the credit union, too much attention can not 
 be given to details. 
 
 'file qualifications of the manager are of prime importance, since 
 all the business of the credit union" is to pass through his hands. 
 Essential characteristics of the manager are competence, caution, 
 rigidity in the observance of the details of the by-laws, and firm- 
 ness in refusal to depart from the rules, for such departure will 
 lead to abuses and to the ultimate failure of the credit union. His 
 function is also to point out abuses and negligence with courtesy 
 and firmness. It is essential that he know the character, reputajaon, 
 and solvency of members. 
 
 It has been shown that allowing any borrower to be in default for 
 even a single day invites carelessness, and sooner or later leads the 
 credit union to financial embarrassment. Because of the small 
 amount of the funds and the many requests for loans the credit 
 committee must rely on rigid regularity in reimbursement. Punctual- 
 ity in payment at maturity is necessary in order that others may be 
 accommodated and the credit union insured a constant inflow of 
 funds. 
 
 It has been found desirable that members should not be allowed 
 to withdraw while they are borrowers, indorsers, or guarantors, and 
 that forfeiture of membership should follow failure to pay fines or 
 dues for more than three months. , The indorser should invariably 
 be held liable in default of the maker of the note. 
 
 Safety is insured by the transference to the reserve fund of 10 
 per cent of the .profits, or better, 20 per cent for the first year or 
 two, until an amount double the maximum liabilities represented 
 by the shares is accumulated. 
 
 The determination of the rate of interest to be paid on deposits 
 is important, for if the rate paid by the society is more than i per 
 cent in excess of the rate paid by the savings banks in that localfty, 
 the credit union may find itself in possession of more deposits than 
 it can use advantageously and there wUl be a surplus on hand not 
 drawing interest and inviting speculation. 
 
 Central agencies to diffuse information, to point out the benefits 
 of the plan, and to assist in the formation and supervision of credit 
 unions nave been found helpful to the movement in other countries 
 and might be so here. 
 
APPENDIX— BIBLIOGRAPHY. 
 
 The following is a list ot books and leading magazine articles printed in Englisli containing matter relat- 
 ing to credit unions In America and cooperative credit associations elsewhere. Most of the references 
 to agricultural credit relate to the cooperative credit associations in Europe.] 
 
 A.U8tin,. Charles B., and Wehrweier, George S. Cooperation in agriculture, marketing, 
 and rural credit. Austin, Tex., 1914. Bulletin of the University of Texas, No. 
 355; extension series. No. 60. 
 "Banks of continental Europe, Popular." In Bankers Magazine and Statistical 
 
 Register, July, 1875, pp. 7-9. 
 Barker, D. A. "Cooperative credit in India." In Economic Review, July, 1909, 
 
 pp. 282-292. 
 Bamett, R. W. "Review of Wolff's People's Banks. In Economic Journal, March, 
 
 1894, pp. 72-75. 
 Branson, E. C. "Cooperative credit unions in North Carolina." In Southern Work- 
 
 man, October, 1920, pp. 468-473. 
 Bullock, Edna D. Agricultural Credit. New York, 1915. 
 
 Cahill, J. R. An enquiry into agricultural credit and agricultural cooperation in 
 Germany. Report to the Board of Agriculture and Fisheries. London, 1913. 
 Reprinted as S. Doc. No. 17, 63d Cong., let sess. Washington, 1913. 
 Camp, William R.: 
 
 "A southern experiment in rural credit." In Survey, January 10, 1920, pp. 
 
 293-295. 
 "Credit unions and national farm loan association's." In Marketing and Farm 
 Credits, Madison, Wis., 1917, pp. 50-58. Read at the fourth annual session of 
 the National Conference on Marketing and Farm Credits, Chicago, Dec. 4-7, 
 1916. 
 Markets and rural organization. Reports to the Director, Division of Markets and 
 
 Rural Organizations, North Carolina, 1916-1920. 
 "The movement to organize credit in North Carolina." In International Review 
 
 of Agricultural Economics, May, 1916, pp. 16-20. 
 " The North Carolina credit union. ' ' In American Economic Review, September, 
 1916, pp. 689-693. 
 Dance, Alexander E. "A credit union in Massachusetts." Jn American Economic 
 
 Review, March, 1913, pp. 198-200. 
 Chapman, Edward M. "Rural cooperation." In Yale Review, April, 1914, pp. 520- 
 
 535. 
 "Cooperation in India, First fruits of." In Economic Review, April, 1908, pp. 154- 
 
 174. 
 "Cooperative credit. The problem of." In Economic Review, October, 1914, pp. 
 
 420-424. 
 'Credit associations in Germany.'' In Gunton's Magazine, May, 1896, pp. 323- 
 
 332 
 "Credit banks in India." In Worlds' Work, June, 1910, pp. 12989-12990. 
 "Credit banks of the world. Agricultural." New York, 1913. 
 "Credit unions for relief and thrift." In Survey, February 6, 1915, pp. 475-476. 
 "Credit unions, Formation of." In Bankers Magazine, November, 1914, pp. 517- 
 
 518. 
 Cunningham, John, and Brown, William M. Report on Rural Credits and Coopera- 
 tion. Columbus, Ohio, 1914. 
 Dawson, William H. "Agricultural cooperative credit associations." In Economic 
 
 Journal, September, 1902, pp. 327-333. 
 Desjardins, Alphonse: 
 
 "Rural cooperative credit." In Marketing and Farm Credits, 1916, pp. 78-98. 
 The Cooperative People's Bank. New York, 1914. Division of Remedial 
 
 Loans, Russell Sage Foundation, R. L. No. 16. 
 "The cooperative people's bank." In Bankers Magazine, June, 1909, pp. 922-932. 
 Address before file Twentieth Century Club, Boston. 
 Doherty, T. K. " Cooperative credit associations m Canada." In Monthly Bulletin 
 of Economic and Social Intelligence, June, 1913, pp. 16-22. 
 
 57 
 
58 COOPEEATIVE CREDIT IN AMEKICA. 
 
 Ely, Richard T. "Gennan cooperative credit xmions." In Harper's Ifagazine, 
 
 February, 1881, pp. 207-223. 
 Fay, p. R. Cooperation at Home and Abroad. London, 1919. 1st edit., 1908. 
 Fiamingo, Giuseppe. "Cooperative banking in Italy." In Economic Journal, June, 
 
 1896, pp. 278-283. 
 Flyn, George A. "Credit unions, an experiment in democracy." In Proceedings of 
 
 National Conference of Charities and Corrections. Chicago, 1916, pp. 430-433. 
 Prangois, G. "People's banks in Italy." In Journal of Political Econony, Sep- 
 tember, 1899, pp. 456-467. 
 Frankel, Lee K. "Self-respect fund." In Jewish Charities, August, 1914, pp. 19-23. 
 Address delivered at the eighth biennial session of the National Conference of Jew- 
 ish Charities, May 6-8, 1914. 
 Grabein, Dr. "Causes and effects of the recent want of success in the department 
 of cooperative agricultural creditin Germany, and the lessons to be learned from it." 
 In Monthly Bulletin of Economic and Social Intelligence, December, 1913, pp 
 1-17. 
 de Haas, Jacob. "Credit unions." In Jewish Charities, August, 1914, pp. 17-19. 
 Speech delivered at eighth biennial session, National Conference of Jewish Chari- 
 ties, Memphis, May 6-8, 1914. 
 Hake, R. Egmont. "People's banks." In Journal of the Institute of Bankers, 
 
 June, 1889, pp. 309-330. 
 Hale, R. S. Determining Credit. A Su|;gestive Method for Credit Committees of 
 Credit Unions. New York, 1916. Division Of Remedial Loans, Russell Sage Foim- 
 dation, R. L. No. 22. 
 Ham, Arthur H.: 
 
 "Credit unions and their relation to savings and loan associations." Jto Economic 
 World, Aug. 21, 1915, pp. 235-238. Address before Savings and Loan Associ- 
 ation, Port Jervis. 
 "People's banks." In Proceedings of the National Conference of Charities and 
 Corrections. Chicago, 1916, jjp. 420-430. Reprinted by Division of Remedial 
 Loans, Russell Sage Foundation, as R. L. No. 24. 
 The Credit Union and the Cooperative Store. New York, 1917. Division of 
 Remedial Loans, Russell Sage Foundation, R. L. No. 31. Address delivered 
 at the Conference of Eastern Cooperative Societies, New York City, Nov. 25, 
 1917. 
 The Object of the Credit Union. New York, 1916. Division of Remedial Loans, 
 Russell Sage Foundation, R. L. No. 23. 
 Ham, Arthur H., and Robinson, Leonard G. A Credit Union Primer. New York, 
 
 1914. Division of Remedial Loans, Russell Sage Foundation, R. L. No. 15. 
 Haney, Lewis H. "Farm credit condition in the cotton States." In American 
 
 Economic Review, March, 1914, pp. 47-67. 
 Herrick, Myron T. Rural credits. Boston, 1916. Circular No. 59, in 63d annual 
 
 report of the Massachusetts State Board of Agriculture. 
 Herrick, Myron T., and Ingalls, R.: 
 
 "How to finance the farmer." In Report of the Ohio State Committee on Rural 
 Credits and Cooperation, Cleveland, 1915. Reprinted as S. Doc. No. 396, 
 64th Cong., 1st sess. Washington, 1916. 
 Rural Credits, Land and Cooperative. New York, 1914. 
 Hobson, O. R. "Agricultural credit banks." In Journal of the Institute of Bankers. 
 
 June, 1912, pp. 329-354. 
 Hodges, Le Roy: 
 
 Notes on agricultural credit systems abroad. H. Doc. No. 1435, 62d Cone 3d sess 
 
 Washington, 1913. ' 
 
 "The agricultural credit system of Germany." In Texas Magazine, April 8, 1913, 
 pp. 493-500. 
 International Institute of Amculture, Bureau of Economic and Social Intelligence: 
 Agricultural Credit and Cooperation in Italy. Rome, 1913. 
 International Review of Agricultural Economics, 1910 to 1922. Contains frequent 
 
 short articles and items relative p> cooperative credit the world over. 
 
 Monographs on Agricultural Cooperation in Various Countries Rome vol 1 
 
 1911; vol. 2, 1915. ' " ' 
 
 "Rural banks and loans on honor in Japan." /n Monthly Bulletin October 1914 
 
 pp. 26-45. ' ' ' 
 
 The Way out of the Rut. European Cooperative Rural Credit Systems Rome 
 
 1912. Reprinted as S. Doc. 966, 63d Cong., 3d sess. Washington 1915 ' 
 
APPENDIX ^BIBLIOGBAPHT. 59 
 
 Jay, Pieire. "Cooperative credit." In Proceedings of the National Federation of 
 
 Remedial Loan Aesocxatians, 1910. Philadelphia, 1910, pp. 3-12. AUo in Pro- 
 
 ceedingB of the Nataonal Conference of Charfeea and Corrections. Fort Wayne, 
 
 Ind., 1910, pp. 494-501. ■' 
 
 Jewish Agricultural and Industrial Aid Society. Annual renorfB. New York 1911- 
 
 1918. *^ 
 
 "Jewish Agricultural and Industrial Aid Society, The Work of the." In International 
 
 Review of Agricultural Economics, September, 1916, pp. 1-14. 
 Kemmerer, E. W. "Agricultural credit in the United States." In American 
 
 Economic Review, December, 1912, pp. 852-872. 
 Keys, 0. M. "Banks for all the people." In World's Work, October, 1909 pp. 
 
 12134-12138. 
 Macpherson, Hector. Cooperative Credit Associations in the Province of Quebec. 
 
 Kuigston, 1910. 
 Massachusetts: 
 
 Commissioner of Banks. Annual reports. Boston, 1908-1921, Pt. II. 
 
 Statement and suggestions in regard to organizing and managing a credit 
 
 union in Massachusetts. Boston, 1915. 
 Massachusetts Credit Union Association. You should know about credit unions. 
 
 Boston, 1917. Second edition, 1918. 
 Mathews, John L. "People's banks of Italy." In Harper's Magazine, October, 1913, 
 
 pp. 724r-734. 
 
 McCaleb, W. F. "Peoples Banks." In Review of Reviews, January, 1920, pp. 69-72. 
 
 Metcalf, Ralph. "Rural credits in Germany." Address delivered before the sixth 
 
 annual convention of the Farmers' Educational and Cooperative Union of America, 
 
 May 26, 1914. S. Doc. No. 571, 63d Con§., 2d sess., Washington, 1914. 
 
 Michell, H. "People's banks in the Province of Quebec." In Economic Review, 
 
 July, 1914, pp. 259-272. 
 National Association on Credit Union Banks. Draft of a proposed uniform law 
 
 creating credit imion banks. Boston, 1920. 
 NewHampshire. Board of Bank Commissioners. Annual reports. Concord, 1910-1921. 
 New York. Superintendent of Banks. Annual report on savings and loan associa- 
 tions, land banks and credit unions. Albany, 1915-1920. The reports of the 
 credit unions for 1914 are given in the volume entitled Annual report of the super- 
 intendent of banks. 
 North Carolina: 
 
 Agricultural Extension Service. Ralei^. Circular no. 13, The North Carolina 
 - Credit Union, August, 1916; no. 39, How to organize a credit union, March, 
 1917; no. 41, Developing credit in the country, April, 1917; no. 60, What is 
 a credit union, January, 1918. 
 Division of Markets and Rural Organization. Annual Reports, 1916-1919. 
 State Cooperation in Marketing Work, Division of Markets and Rural Organiza- 
 tion, Superintendent of Credit Unions. Monthly reports. Raleigh, N. C, 
 1916-1920, and January 1, 1922. Montgomery, Ala., 1913. 
 O'Neal, Gov. Emmet. " Rural credits, cooperative finance. " Address delivered at 
 
 the governors' conference, Richmond, Dec. 6, 1912. 
 Oregon: 
 
 Rural Credits Commission. Report to the 28th Legislative Assembly. Salem, . 
 1915. J>^ 
 
 State Banking Department. Ninth annual report, 1916. Salem, 1917. 
 Patterson, Thomas B. "Negro credit unions of North Carolina." In Southern 
 
 Workman, April 1920, pp. 180-183. 
 Perrott, H. R. "Voices from the Indian up-coimtry." In Economic Joiu^al, 
 
 September, 1909, pp. 450-463. 
 Peters, Edward T. Cooperative credit associations in certain European countries 
 and their relation to agricultural interests. U. S. Department of Agriculture, 
 Division of Statistics, Miscellaneous series, report no. 3. Washington, 1892. 
 Price, Homer C. Rural credit in Germany. Columbus, Ohio, 1913. 
 Putnam, George E.: 
 
 "Agricultural credit legislation." In American Economic Review, December, 
 
 1915, pp. 805-815. 
 "Federal farm loan act." In American Economic Review, December, 1916, 
 pp. 770-789. 
 Quebec, Canada. Bureau of Statistics. Statistical Year Book. Quebec, 1917-1921. 
 Quincy, S. M. : 
 
 "People's banks." In Old and New, May, 1870, pp. 704-706. 
 The People's Banks of Germany; their Organization under the Recent Law. 
 Boston, 1870. 
 
60 COOPEKATIVE CREDIT IN . AMERICA. 
 
 Kao, C. R. "Agricultiual credit in India." In Economic Review, April, 1911, 
 
 pp. 199-202. 
 Raper, Charles Lee. "The use of credit by the North Carolina farmers." In South 
 
 Atlantic Quarterly, April, 1914, pp. 118-128. 
 Rhode Island and Providence Plantations. Bank Commissioner. Reports. Paw- 
 tucket and Providence, 1915-1921. 
 Robinson, Leonard G.: 
 
 "Cooperation as a training school in business methods." in Addresses * * » 
 before the Conference for Education in the South, April 16, 1913. Richmond, 
 1913, pp. 8-12. 
 " The pioneer cooperative credit associations in the United States. " In Addresses 
 * * * before the Conference for Education in the SouUi, April 16, 1913. 
 Richmond, 1913, pp. 4-7. 
 Simon, George W. : 
 
 "Cooperation among Jewish American farmers." In Marketing and Farm 
 Credits. Proceedings of the first National Conference on Marketing and Farm 
 Credits, Chicago, 1913, pp. 198-201. 
 "The work of the Jewish Agricultural and Industrial Aid Society . " In Marketing 
 and Farm Credits, Nashville, 1916, pp. 63-70. Read at the third annual session 
 of the National Conference on Marketing and Farm Credits in joint program with 
 the National Council of Farmers' Cooperative Association, in Chicago, Novem- 
 ber 28, 1915. 
 Starkweather, H. G., and Macpherson, Hector. Report of the rural credits commis- 
 sion, Oregon. Salem, 1915. 
 United States: 
 
 American Commission. Agricultural cooperation and rural credits in Europe. 
 Information and evidence secured. S. Doc. 214, 63d Cong., 1st sess., Washing- 
 ton, 1913. 
 
 Preliminary report on land and a^cultural credit in Europe. S. Doc. 967, 
 
 62d Cong., 3d sess., Washington, 1912. 
 American Commission for the Study of the Application of the Cooperative System 
 to Agricultural Production, Distribution, and Finance in European Countries. 
 S. Doc. 1071, 62d Cong., 3d sess., Washington, 1913. 
 Articles from the monthly Consular Reports, Department of Commerce, relative 
 to rural credits. Printed for the use of the Joint Committee on Rural Credits, 
 63d Cong., 3d sess. Washington, 1915. 
 Commission to Investigate and Study in European Countries * * » Co- 
 operative Rural Credit Unions and Similar Organizations. Part III, Personal 
 or short-term credit. S. Doc. 380, 63d Cong., 2d sess., Washington, 1914. 
 National Monetary Conimission. Interviews on the banking and ciurency systems 
 of England, Scotland, France, Germany, Switzerland, and Italy. S. Doc 405, 
 61st Cong., 2d sesB., Washington, 1910. 
 
 Articles on German banking and German banking laws. S. Doc. 508, 61st 
 
 Cong., 2d sess., Washington, 1911. 
 Subcommittee of the Committee on Banking and Currency, House of Representa- 
 tives. Rural credits. Hearings, December 3, 1913, to February 12, 1914. 63d 
 Cong., 2d sess., Washington, 1914. 
 Subcommittee of the Committee on Banking and Currency of the Senate and of the 
 House of Representatives. Rural credits. Joint hearings, February 16 to 
 March 18, 1914. 63d Cong., 2d sess., Washington, 1914. 
 Systems of rural cooperative credit. S. Doc. No. 574, 62d Cong., 2d sess. Wash- 
 ington, 1912. Reprinted from Bulletin of, Economic and Social Intelligence of 
 International Institute of Agriculture. 
 Villard, Henry. "People's banks of Germany." In Bankers' Magazine and Statis- 
 tical Raster, July, 1869, pp. 50-57. 
 Weber, A. F. "European example for American farmers." In North American Re- 
 view, February, 1898, pp. 152-163. 
 Wolff, Henry W.: 
 
 Cooperative Banking. London, 1907. . 
 
 "Cooperative credit banking in Germany." In Economic Review, October, 
 
 1892, pp. 460-477. 
 Cooperative Credit for the United States. New York, 1917. 
 People's Banks. London, 1919. Earlier editions^ 1893, 1896, 1910. 
 "People'sbanks for England." In Economic Review, October, 1893, pp. 521-540. 
 Zaldari, Peter. "The popular banks of Europe." In Moody's Magazine, July, 1912, 
 pp. 25-30. 
 
SERIES OF BULLETINS PUBUSHED BY THE BUREAU OF LABOR STATISTICS 
 
 [The publication of the annual and special reports and of the bimonthly bulletin u>aa 
 discontinued in July, 1912, and since that time a bulletin has been published at irregular 
 intervals. Each number contains matter devoted to one of a series of general subjects. 
 These bulletins are numbered consecutively, beginning with No, 101, and up to No. 236 they 
 also carry consecutive numbers under each series. Beginning with No, 237 the aerial num- 
 bering has been discontinued, A list of the series is given below. Under each is grouped 
 alt the bulletins which contain material relating to the subject matter of that series. A 
 list of the reports and bulletins of the Bureau issued prior to July 1, 1912, will be furnished 
 on application. The bulletins marked thus* are out of print.] 
 
 Wholesale Prices. 
 
 *Bul. lU. Wholesale prices, 1890 to 1912. 
 
 Bui. 149. Wholesale prices, 1890 to 1913. 
 
 ♦Bill. 173. Index numbers of wholesale prices in the United States and foreign countries. 
 ♦Bui. 181. Wholesale prices, 1890to^914. 
 *Bul. 200. Wholesale prices, 1890 to 1915. 
 
 Bui. 226. Wholesale prices, 1890 to 1916. 
 
 Bui. 269. Wholesale prices, 1890 to 1919. 
 
 Bui. 284. Index numbers of wholesale prices in the United States and foreign countries. [Revision 
 of Bulletin No. 173.] 
 
 Bui. 296. Wholesale prices, 1890 to 1920. 
 
 Betail Prices and Cost of Living. 
 
 •Bui. lOB. Retail prices, 1890 to 1911: Part I. 
 
 Retail prices, 1890 to 1911: Part H— General tables. 
 •Bui. 106. Retail prices, 1890 to June, 1912: Part 1. 
 
 Retail prices, 1890 to June, 1912: Part II— General tables. 
 
 Bui. 108. Retail prices, 1890 to August, 1912. 
 
 Bui. 110. Retail prices, 1890 to October, 1912. 
 
 Bui. 113. Retail prices, 1890 to December, 1912. 
 
 Bui. 115. Retail prices, 1890 to February, 1913. 
 •Bui. 121. Sugar prices, from refiner to consumer. 
 
 Bui. 125. Retail prices, 1890 to April, 1913. 
 •Bnl. 130. Wheat and flour prices, from farmer to consume r. 
 
 Bui. 132. Retail prices, 1890 to June, 1913. 
 
 Bui. 136. Retail prices, 1890 to August, 1913. 
 •Bui. 138. Retail prices, 1890 to October, 1913. 
 •Bui. 140. Retail prices, 1890 to December, 1913. 
 
 Bnl. 156. Retail prices, 1907 to December, 1914. 
 
 Bui. 164. Butter prices, from producer to constmiet. 
 
 Bnl. 170. Foreign food prices as affected by the war. 
 
 Bnl. 184. Retaa prices, 1907 to June, 1915. 
 
 Bui. 197. Retail prices, 1907 to December, 1915. 
 
 Bui. 228. RetaU prices, 1907 to December, 1916. 
 
 Bui. 270. Retail prices, 1913 to 1919. 
 
 Bui. 300. Retail prices, 1913 to 1920. 
 
 Wales and Hanra of Labor. 
 
 Bui. 116. Hours, earnings, and duration of employmentol wage^amlng women In selected industries 
 
 in the District of Columbia. 
 •Bui, 118. Ten-hour mftTriTnuTn worklng.day for women and young persons. 
 
 Bill. 119. Working hours of women in tW pea canneries of Wisconsin. 
 •Bnl. 128. Wages and hours of labor in the cotton, woolen, and silk industries, 1890 to 1912. 
 •Bui. 129. Wages and hours of labor in the lumber, millwork, and furniture industries, 1890 to 1912. 
 •Bnl. 131. Uiiion scale of wages and hours of labor, 1907 to 1912. 
 •Bui. 134. Wages and hours of labor in the boot and shoe and hosiery and knit goods industries, 1890 
 
 to 1912. 
 •Bui. 135. Wages and hours of labor in the cigar and clothing industries, 1911 and 1912. 
 
 Bui. 137. Wages and hours of labor in the building and repairing of steam railroad cars, 1890 to 1912. 
 
 Bui. 143. Union scale of wages and hours of labor, May 15, 1913. 
 
 Bui. 146. Wages and regularity of employment and standardization of piece rates In the dress and 
 
 waist industry of New York City. .„ j »wrt ind.istrv 
 
 •Bui. 147. Wages and regularity of employment in the cloak, smt, and skirt industry. 
 
 259°— 22 5 
 
H COOPEEATIVL 
 
 Wages and Hours of Labor— Concluded. 
 
 *BuI. 150. Wages and hours of labor In the cotton, woolen, and silk industries, 1907 to 1913. 
 
 *Bul. 161. Wages and hours of labor in the iron and steel industry in the United States, 1907 to 1912. 
 
 Bui. 153. Wages and hours of labor in the lumber, millwork, and furniture industries, 1907 to 1913. 
 *Bul. IM. Wages and hours of labor in the boot and shoe and hosiery and underwear Industries, IM7 
 to 1913. 
 
 Bui. 160. Hours, earnings, and conditions of labor of women in Indiana mercantile establishments 
 and garment factories. 
 
 Bui. 161. Wages and hours of labor in the clothing and cigar industries, 1911 to 1913. 
 
 Bui. 163. Wages and hours of labor in the building and repairing of steam railroad cars, 1907 to 191ti. 
 
 Bui. 168. Wages and hours of labor In the Iron and steel industry, 1907 to 1918. 
 '"Bui. 171. Union scale of wages and bours^ of labor. May 1, 1914. 
 
 Bui. 177. Wages and hours of labor in the hosiery and underwear Industry, 1907 to 1914. 
 
 Bui. 178. Wages and hours of labor in the boot and shoe Industry, 1907 to 1914. 
 
 Bui. 187. Wages and hours ol labor in the men's clothing industry, 1911 to 1914. 
 *BuI. 190. Wages and hours of labor in the cotton, woolen, and silk industries, 1907 to 1914. 
 *Bul. 194. Union scale of wages and hours of labor. May 1, 1915. 
 
 Bui. 204. Street railway employment In the United States. 
 
 Bui. 214. Union scale ol wages and hours of labor. May 15, 1916. 
 
 Bui. 218. Wages and hours of labor In the iron and steel industry, 1907 to 191S. 
 
 Bui. 221. Hours, fatigue, and health in British munition factories. 
 
 Bui. 225. Wages and hours c< labor in the lumber, millwork, and furniture Industries, 191S. 
 
 Bui. 232. Wages and hours otlabor in the boot and shoe Industry, 1907 to 1916. 
 
 Bui. 238. Wages and hours Qf labor in woolen and worsted goods manufacturing, 1916. 
 
 Bui. 239. Wages and hours ol labor In cotton goods manufacturing and finishing, 1916. 
 
 Bui. 245. Union scale of wages and hours of labor. May 15, 1917. 
 
 Bui. 252. Wages and hours of labor in the slaughtering and meat-packing industry, 1917. 
 
 Bui. 259. Union scale of wages and hours of labor, May 15, 1918. 
 
 Bui. 260. Wages and hours of labor in the boot and shoe industry, 1907 to 1918. i 
 
 Bui. 261. Wages and hours of labor in woolen and worsted goods manufacturing, 1918. 
 
 Bui. 262. Wages and hours of labor in cotton goods manufacturing and finishing, 1918. 
 
 Bui. 265. Industrial survey m selected Industries in the United States, 1919. Preliminary report. 
 
 Bui. 274. Union scale of wages and hours of labor. May IS, 1919. 
 
 Bui. 278. Wages and hours of labor In the boot and shoe industry, 1907 to 1920, 
 
 Bul. 279. Hours and earnings in anthracite and bituminous coal mimng. 
 
 Bui. 286. Union scale of wages and hours of labor, May 15, 1920. 
 
 Bul. 288. Wages and hours of labor In cotton goods manufacturing, 1920. 
 
 Bul. 289. Wages and hours of labor In woolen and worsted goods manufacturing, 1920. - 
 
 Bul. 294. Wages and hours of labor In the slaughtering and meat-packing Industry in 1921. 
 
 Bul. 297. Wages and hours of labor in the petroleum Industry. 
 
 Bul. 302. Union scale of wages and hours of labor. May 15, 1921. 
 
 Bul. 305. Wages and hours of labw In the iron and steel ind.ustry, 1907 to 1920. 
 
 Employment and Unemployment. 
 
 *BuI. 109. Statistics of unemployment and the work of employment oSlces. 
 Bul. 116. Hours,earntngs,and duration ot employment of wage-earning women In selected industries 
 
 in the District of Columbia. 
 Bul. 172, Unemployment In New York City, N. Y. 
 •Bul. 182. Unemployment among women In department and other retail stores of Bostan, Haai. 
 •Bul. 183. Regularity of employment m the women's ready-to-wear garment Industries. 
 Bul. 192. Frooeedlnp of the American Association of Public Employment Offices. 
 •Bul. 195. Unemployment in the United States. 
 Bul. 196. Proceedings of the Employment Managers' Conference held at MinneappUs, January, 1916. 
 Bul. 202. Proceedings of the conference of the Employment Managers' Assodatioa of Beaton, Mass,, 
 
 held May 10, 1916. 
 Bul. 206. The Bntish system of labor ezohonges. 
 
 Bul. 229. Proceedings of the Fourth Armual Meeting of the American Association of Fablio Employ- 
 ment Offices, Buffalo, N. Y., July 20 and 21, 1816. 
 Bul. 223. Employment of women and Juveniles In Oreat Britain daring the war. 
 •Bul. 227. Proceedings of the Employment Managers' Conference, Philadelphia, Fa., April SaadS, 
 
 1917. 
 Bul. 235. Eiiq>loyment system of the Lake Carriers' AssocIatiaD. 
 Bul. 241. Public employment offices in the United States. 
 
 Bul. 247, Proceedings ot Employment Managers' Conference, Rochester, N. T., May 9-11, 1911. 
 BuL 3U>. Industrial unemployment: A statistical study of Its extent and causes. 
 Bul. 311. Proceedings of the Ninth Annual Meeting ol the International Associatton at Publio 
 Employment Services, September 9-11, Buffalo, N. Y, 
 
BULLETINS PUBLISHED BY BUREAU OF LABOR STATISTICS. HI 
 
 Women In Industry. 
 
 Bui. 116. Hours, earnings, and duration of employment of wage-earning women in selected iudui- 
 
 tries in the District of Columbia . 
 *Bul. 117. Prohibition of night work of young persons. 
 *Bul. 118. Ten-hour maximum working-day tor women and young persons. 
 
 Bui. 119. Working hours of women in the pea canneries of Wisconsin. 
 •Bui. 122. Employment of women in power laundries in Milwaukee. 
 
 Bui. 160. Hours, earnings, and conditions of labor of women in Indiana mercantile establishment! 
 
 and garment factories. 
 •Bui. 167. Min i mu m-wage legislation in the United States and foreign countries. 
 •Bui. 176. Siimmary of the report on condition of woman and child wage earners in the United States. 
 •Bui. 176. Effect of minimum wage determinations in Oregon. 
 •Bui. 180. The boot and shoe industry in Massachusetts as a vocation for women. 
 
 Bui. 182. Unemployment among women in department and other retail stores of Boston , Mass. 
 
 Bui. 193. Dressmaking as a trade for women in Massachusetts. 
 
 Bui. 21S. Industrial experience of trade-school girls in Massachusetts. 
 
 Bui. 217. Effect of workmen's compensation laws in diminishing the necessity of industrial employ- 
 ment of women and children. 
 
 Bui. 223. Employment of women and juyeniles in Great Britain during the war. 
 
 Bui. 263. Women in the lead industry. 
 
 Workmen's Insurance and Compensation (Including laws relating thereto). 
 
 Bui. 101. Care of tuberculous wage earners in Germany. 
 Bui. 102. British National Insurance Act, 1911. 
 Bui. 103. Sickness and accident insurance law of Switzerland. 
 Bui. 107. Law relating to Insurance of salaried employees in Germany. 
 •Bui. 126. Workmen's compensation laws of the United States and foreign countries. 
 •Bui. 155. Compensation for accidents to employees of the United States. 
 •Bui. 185. Compensation legislation of 1914 and, 1915. 
 
 , Bui. 203. Workmen's compensation laws of the United States and foreign countries. 
 Bui. 210. Proceedings of the Third Annual Meeting of the International Association of Industrial 
 
 Accident Boards and Commissions. 
 Bui. 212. Proceedings of the conference on social insurance called by the International Association 
 
 of Industrial Accident Boards and Commissions. 
 Bui. 217. Effect of workmen's compensation laws in diminishing the necessity of industrial employ- 
 ment of women and children. 
 Bui. 240. Comparison of workmen's compensation laws of the United States. 
 Bui. 243. W'orkmen's compensation legislation in the United States and foreign countries. 
 Bui. 248. Proceedings of the Fourth Annual Meeting of the International Association of Industrial 
 
 Accident Boards and Commissions. 
 Bui. 264. Proceedings of the Fifth Annual Meeting of the International Association of Industrial 
 
 Accident Boards and Commissions. 
 Bui. 272. Workmen's compensation legislation of the United States and Canada, 1919. 
 •Bui. 273. Proceedings of the Sixth Annual Meeting of the International Association of Industrial 
 
 Accident Boards and Commissions. 
 Bui. 275. Comparison of workmen's compensation laws of the United States and Canada. 
 Bui. 281. Proceedings of the Seventh Annual Meeting of the International Association of Industrial 
 
 Accident Boards and Commissions.. ' 
 
 Bui. 301. Comparison of workmen's compensation insurance and administration. 
 Bui. 304. Proceedings of the Eighth Annual Meeting of the International Association of Industrial 
 
 Accident Boards and Commissions. 
 Bui. 312. National HcEilth Insurance in Great Britain, 1911 to 1920. [In press.] 
 
 Industrial Accidents and Hygiene. 
 
 Bui. 104. Lead poisoning in potteries, tile works, and porcelain enameled sanitary ware factories. 
 
 Bui. 120. Hygiene of the painters' trade. 
 •Bui. 127. Dangers to workers from dust and fimies, and methods of protection. 
 
 Bui. 141. Lead poisoning in the smelting and refining of lead. 
 •Bui, 167. Industrial accident statistics, 
 
 Bui. 165. Lead poisoning in the manufacture of storage batteries . 
 •Bui. 179. Industrial poisons used in the rubber industry. 
 
 Bui. 188. Report of British "departmental committee on the danger in the use of lead in the paintini 
 
 of buildings. 
 *BuI.201. Report of committee on statistics and compensation insurance cost of the International 
 Association of Industrial Accident Boards and Commissions. (Limited edition.] 
 
 Bui. 205. Anthrax as an occupational disease. 
 
 BtU. 207. Causes of death by occupation. 
 
 Bui. 209 Hygiene of the printing trades. 
 
IV COOPERATIVE CEEDIT SOCIETIES. 
 
 Industrial Accidents and Hygiene— Concluded. 
 
 *Bul. 216. Accidents and accident prevention in machine building. 
 Bui. 219. Industrial poisons used or produced in the manulacture of explosives. 
 Bui. 221. Hours, fatigue, and health in British munition factories. 
 Bui. 230. Industrial efficiency and fatigue in British munition factories. 
 Bui. 231. Mortality from respiratory diseases in dusty trades. 
 *Bul. 234. Safety movement in the iron and steel iiidustry, 1907 to 1917. 
 Bui. 236. Effect of the air hammer on the hands of stonecutters. 
 Bui. 251. Preventable death in the cotton manufacturing industry. 
 Bui. 253. Women in the lead industries. 
 
 Bui. 256. Accidents and accident prevention in machine building. Revision of Bui. 219. 
 Bui. 267. Anthrax as an occupational disease. [Revised.] 
 Bui. 276. Standardization of industrial accident statistics. 
 Bui. 280. Industrial poisoning in making coal-tar dyes and dye intermediates. 
 Bui. 291. Carbon monoxide poisoning. 
 
 Bui. 293. The problem of dust phthisis in the granite stone industry. 
 Bui. 298. Causes and prevention of accidents in the iron and steel industry, 1910 to 191!f. 
 Bui. 306. Occupation hazards and diagnostic signs: A guide to impairment to be looked for in hazard- 
 ous occupations. 
 
 Conciliation and Arbitration (including strikes and lockouts). 
 
 *Bul. 124. Conciliation and arbitration in the building trades of Greater New York. , 
 *Bul. 133. Report of the industrial council of the British Board of Trade on its Inquiry into industrial 
 agreements. 
 
 Bui. 139. Michigan copper district strike. 
 
 Bui. 141. Indastrial court of the cloak, suit, and skirt industry of New York City. 
 
 Bui. 145. Conciliation, arbitration, and sanitation in the dress and waist industry of Now York 
 City. 
 
 Bui. 191. Collective bargaining in the anthracite coal industry. 
 *Bul. 198. Collective agreements in the men's clothing industry. 
 
 Bui. 233. Operation of the Industrial Disputes Investigation Act of Canada. 
 
 Bui. 303. Use of Federal power in settlement of railway labor disputes. 
 
 Labor Laws of the United States (Including decisions of courts relating to labor). 
 
 *Bul. 111. Labor legislation of 1912. 
 
 *Bul. 112, Decisions of courts and opinions aflecling labor, 1912. 
 *Bul. 1 1-*. Labor laws of the United States, with decisions of courts relating thereto. 
 *Bul. 152. Decisions of courts and opinion^ aSesting labor, 1913. 
 •Bui. 160. Labor legislation of 1914. 
 *Bul. 169. Decisions of courts affecting labor, 1914. 
 *Bul. 186. Labor legislalion of 1915. 
 •Bill. 189. Decisions of courts affecting labor, 191S 
 Bui. 2U. Labor laws and their administration in the Pacific States. 
 *Bul; 2L1. Labor legislation o( 1916. 
 Bui. 224. Decisions of courts affecting labor, 1916. 
 Bui. 229. Wage-paymont legislation in the United States. 
 Bui. 244. Labor legislation of 1917. 
 Bui. 243. Decisions of cdurts affecting labor, 1917. 
 Bui. 257. Labor legislation of 191S. 
 
 Bui. 258. Decisions of courts and opiidons affecting' labor, 1918. 
 Bui 277. Labor legislation of 1919. 
 Bui. 285. Minimum-wage legislation in the United States. 
 Bui. 290. Decisions of courts and opinions affecting labor, 1919-1920. 
 Bui. 292. Labor legislation of 1920. 
 Bui. 308. Labor legislation of 1921. [In press.] 
 Bui. 309. Decisions of courts and opinions affecting labor, 1921. [In press.] 
 
 Foreign Labor Laws. 
 
 Bui. 142. Administration of Ubor laws and factory inspection in certain European countrlM. 
 Vocational Education. 
 
 Bui. 145. Conciliation, arbitration, and sanitation In the dress and waist industry of New York 
 
 City. 
 *Bul. 147. Wages and isgularity of employment in thb cloak, suit, and skirt industry. 
 *Bul. 169. Short-unit courses tor wage earners, and a factory school experiment. 
 Bui. 162. Vocational education survey of Richmond, Va. 
 Bui. 199. Vocational education 'survey of Minneapolis. 
 Bui. 271. Adult working class education (Great Britain and the Unitisd States). 
 
BULLETINS PUBLISHED BY BUREAU OF LABOR STATISTICS. V 
 
 Labor as Affected by the War. 
 
 Bui. 170. Foreign food prices as affected by the war, 
 
 Bui. 219. Indvistrial poisons used or produced in the manufacture of explosives. 
 
 Bui. 221. Hours, fatigue, and health in British munition factories. 
 
 Bui. 222. Welfare work in British munition factories. 
 
 Bui. 223. Employment of women and juveniles in Great Britain during the war. 
 
 Bui. 230. Industrial elBcienoy and fatigue in British munition factories. 
 
 Bui. 237. Industrial unrest in Great Britain. 
 
 Bui. 249. Industrial health and efficiency. Final report of British Health of Munition Workers 
 
 Committee. 
 Bui. 255. Joint industrial councils in Great Britain. 
 
 Bui. 283. History of the Shipbuilding Labor Adjustment Board, 1917 to 1919. 
 Bui. 287. National War Labor Board. 
 
 Miscellaneous Series. 
 
 * Bui. U7. Prohibition of night work of young persons. 
 
 * Bui. US. Ten,-bour maximtun working day for women and young persons. 
 
 * Bui. 123. Employers' welfare work. 
 
 * Bui. 158. Oovemment aid to home owning and housing of working people in foreign coontrles. 
 
 * Bui. 159. Short-unit courses for wage earners and a factory school experiment. 
 
 * Bui. 167. Minimum-wage legislation in the United States and foreign countries. 
 Bui. 170. Foreign food prices as aflected by the war. 
 
 Bui. 174. Subject index of the publications of the United States Bureau of Labor Statistics up to 
 
 May 1, 1915. 
 Bui. 203. Profit sharing in the United States. 
 Bui. 222. Welfare work in British munition factories. 
 Bui. 242. Food situation in central Europe, 1917. 
 
 Bui. 250. Welfare work for employees la industrial establishments in the United States. 
 Bui. 254. International labor legislation and the society of nations. 
 Btil. 263. Housing by employers in the United States. 
 Bui. 266. Proceedings of Seventh Annual Convention of Oovemmental Labor Officials of the United 
 
 States and Canada. 
 Bui. 26>i. Historical survey of intematinnal action aSecting labor. 
 Bui. 271. Adult working-dass education in Great Britain and the United States. 
 Bui. 282. Mutual relief associations among Government employees in Washington, D. G. 
 Bui. 295. Building operations In representative cities in 1920. 
 Bui. 299. Persoimel research agencies: A guide to organited research in employment management, 
 
 industrial relations, training, and working conditions. 
 Bol. 313. Consumers' cooperative societies in the United States in 1020. [In press.] 
 
SPECIAL PUBUCATIONS ISSUED BY THE BUREAU OF LABOR STATISTICS. 
 
 B«aeripUons ofoeeapatioiis, prepared for the United States Employment Serrice, 1918-19. 
 Boots and shoes, harness and saddlery, and tanning. 
 Can»«iigar refining tnd floor ndlltng. 
 
 Coal and water gas, paint and varnish, paper, printing trades, and rubber goods. 
 Electrical manubcturlng, dlstrlbatlon, and maintenance. 
 Olass. 
 
 Hotels and restaurants. 
 Logging camps and sawmills. 
 ^ Uedidnal mannfticturing. 
 ifetal walking, building and general construction, railroad transportation, and shlpbuUdlnf . 
 Uines and mining. 
 Office employees. 
 Slaughtering and meat packing. 
 Street railways. 
 *Tea:tiles and clothing. 
 'Water transportation. 
 
 ADDITIONAL COPIES 
 
 or THIS FITBLICATION HA.T BE PBOCITRXD FBOH 
 
 THS SVPEBIHTBNDENT OT DOCUUBNTS 
 
 QOTEBNMINT PRINTDIG OITIOE 
 
 WASHINOTON, D.'C. 
 
 AT 
 
 10 CENTS PER COPY 
 
^57. 
 
 mmi