Cooperative Activity in America

The success of the cooperative movement in Canada influenced many Americans, including Pierre Jay, the Massachusetts banking commissioner, and Edward Filene, a Boston merchant.

Jay and Filene helped organize public hearings on credit union legislation in Massachusetts, leading to passage of the first state credit union act in 1909. However, fewer than 10 states passed credit union laws, and the growth of the Massachusetts Credit Union Association very slow.

In 1921, Filene created the Credit Union National Extension Bureau, to work towards establishing effective credit union laws in all states and at the federal level. He poured more than $1 million of his own money into the project, and hired a Massachusetts attorney, Roy F. Bergengren, to support the Bureau's efforts.

Bergengren appeared before state legislators, laws were passed and volunteer organizers were initiated into the "movement." When Bergengren began his efforts, there were only 199 U.S. credit unions. By 1925, 15 states had passed credit union laws; 419 credit unions were serving 108,000 members. And by 1935, 39 states had credit union laws and 3,372 credit unions were serving 641,800 members.

Credit unions banded together into leagues on a state-wide basis. Leagues provided financial and legal advice, organizing know-how, and an instrument for credit unions to seek favorable state legislation.