The Waterbury Democrat., 1935-03-22
Credit Union Plan
 Explained d By Moran
Wilby High School Faculty Member Gives Interesting
 Radio Interview on Popular Thrift, Loan Plan

An instructive review of the Credit Union movement locally as well as nationwide was given yes- terday afternoon by James E. Moran, instructor in economies at | the Wilby nigh school. Some of lthe achievements recorded,.in aid- 1 ing wage-earners of modern means in banding together with govern mental sanction, investing earn ings or borrowing funds at con- venitne rate of interest, were out lined by MT. Moran, who was the guest speaker in the Democrats weekly radio interview program. In answer to questions propounded by William T. Harrington, city ed- itor of the Democrat, MT. Moran, who is identified with the state and local teachers, unions. explains the plan of organization as required operation of the system in the fol- lowing statements: ", A credit union, Is cooperative savings bank - call it, if you will, a thrift and loan association. Its primary purposes are to promote savings on the part of the members of the group within which it is formed and to enable its members, with their own money, to finance their own short-term borrowing at minimum interest rates. Thus it frees it's members from the neces- sity of paying the brutal rates which are so often charged for this type of loan.
 The members of the credit union save somewhat as they do ip the case of the building and loan asso- ciation, by buying five dollar shares in the credit union. They pay for the shares at the rate of 25c, soc, $1. or more, each payday. accord ing to what they can afford. Then they receive loans from these saw ings.
 Mutual Concern
 Now here is very important union. Membership is limited to persons having a common bond of occupation or association, and to groups within well-defined neigh borhood, community, or rural dis trict: For example. there may be credit unions for employees of q tdCLOIye 6tOEC, VT OlLlCC, TUT lHCIl~ bers of church or fraternal organ .izations, and for professional. com munity or neighborhood groups.
 In Connecticut, all credit unions are Federal Credit Unions n that Is, they operate, under a charter granted by the United States gov ernment, and are supervised by the federal government. 4%a
 By furnishing better borrowing facilities, the credit union frees the small borrower from the necessity of patronizing the high-rate lender. At the same time, it adds to his financial security by systematic savings plan which provides a fund for emergencies. Thus in the case of the member who is a borrower, it not only pulls him out of the hole he is in, 1t also, by the savings program, fills in the hole.
 In my opinion the small-loan company lends at a higher rate than the average man can afford to pay. It is unfortunately true that the little fellow who can least afford it often has to pay the highest price for credit. Only by cooperative organization in the form of credit unions - in short, by financing his own credit needs = can the small borrower get a loan at adequately low interest rates. i. Plan of Organization
 | The directors choose from their own number a president, vice. president and Q clerk-treasurer who acts as manager.
 The board of directors has gen. eral direction and control. The credit committee approves all loans and the supervisory committee periodically audits the books. All officials act without compensation When a new member joins, he agrees to subscribe for one five dollar share payable in cash 0I periodical installments. He may save in larger sums if he so de- sires. When he has become q member, he may apply for and rs.