[Congressional Record (Bound Edition), Volume 160 (2014), Part 8]
[Extensions of Remarks]
[Pages 10838-10839]
[From the U.S. Government Publishing Office, www.gpo.gov]




          THE 80TH ANNIVERSARY OF THE FEDERAL CREDIT UNION ACT

                                 ______
                                 

                          HON. EDWARD R. ROYCE

                             of california

                    in the house of representatives

                         Tuesday, June 24, 2014

  Mr. ROYCE. Mr. Speaker, I rise today to celebrate the 80th 
anniversary of the Federal Credit Union Act and to use this occasion to 
honor the contributions that the credit union movement has made to the 
United States. The Act, which was passed by Congress and signed into 
law by President Franklin Roosevelt in 1934, permits credit unions to 
be formed anywhere in the United States. The legislation bolstered the 
development of credit unions as a way to promote thrift among the 
American people while setting in place federal oversight of these 
financial institutions.
  Eighty years later, credit unions in the United States claim nearly 
100 million members. If the credit unions those members own were a 
single financial institution, it would be the fifth largest bank in 
America.
  But thankfully, those credit unions are more than 6,600 independent, 
consumer-owned, volunteer-led, democratically controlled financial 
institutions, vital to the well-being of their members.
  Credit unions are part of the great fabric that makes our country 
strong.
  They are cooperatives--bound together by a common set of business 
principles and values: voluntary membership; democratic control; 
economic participation; autonomy and independence; member education; 
cooperation among cooperatives; and concern for community.
  A Canadian, Alphonse Desjardins, brought the idea for credit unions 
west from Europe in 1900 and by 1909 he had successfully organized the 
first American credit union in New Hampshire. Two Americans, Pierre 
Jay, the Massachusetts banking commissioner and Edward Filene, a Boston 
merchant, took up the cause of promoting credit unions in those early 
years.
  In 1908 a national conference on credit unions was held in Boston 
that brought together Desjardins, Filene, Jay and others interested in 
the formative stages of the movement. That conference led to the 1909 
draft of legislation in Massachusetts that became the nation's first 
state credit union act.
  The movement developed slowly during the following decade and by 1921 
Filene become convinced that federal legislation was needed in addition 
to existing state legislation. He hired Massachusetts attorney Roy 
Bergengren to help. The Credit Union National Extension Bureau was 
formed. Four years later, 15 states had passed credit union enabling 
laws and 419 credit unions were serving 108,000 consumers.
  After the 1934 passage of the Federal Credit Union Act, credit unions 
recognized their need for stronger national representation and unity. 
The Credit Union National Association was formed--replacing the Credit 
Union National Extension Bureau.
  Robust credit union growth continued until World War II. Wartime 
slowed the expansion of the movement considerably. Interest picked up 
again once the conflict ended and by 1955 there were more than 16,000 
credit unions across the United States. By 1969, that number had 
swelled to nearly 24,000.
  The 1970s brought about great change to credit unions as they 
broadened their services to meet the expanding needs of their members. 
Legislation permitting mortgage lending by credit unions was passed and 
the total number of credit union members more than doubled during the 
decade.
  As consumer needs evolved and became more complex, many credit unions 
merged to increase their ability to pool resources and improve member 
services. While the total number of actual credit unions decreased with 
mergers, the number of consumer members of credit unions soared, and is 
now on the cusp of 100 million across the nation.
  Credit unions continue to innovate with new services and tools to 
help their members build economic security.
  The work Congress did 80 years ago in passing the Federal Credit 
Union Act continues to serve the country well.
  In fact, the influence credit unions have on the entire financial 
system saves all consumers money with generally lower rates for loans 
and higher rates for savings--no matter where they bank. An impressive 
$8 billion dollars in savings in 2013 alone is attributed to credit 
unions.
  Today, credit unions are utilized by their members for the 
convenience, prices, product choice, and financial education they 
offer.
  Credit unions are living up to the promise outlined in their 
principles. They are institutions that their members and all Americans 
can choose to be their best financial partner.

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