Show TOPAZ aal CREDIT orasia MT ION i nhon the canteen was taken over by the then in the fall of 1942 when temporary doard board of direct ors 0 f the newly organized consumer coopepor of baking facilities wore rative it was apparent that sone sor we e wee toly needed in who urgen urgently the center QS the other serviced ez which were rd in about to be esta to fact the needs of the fa3 banar n dehartman department was set up within the coop before the cool raa caje r llad tive the residents ca had to transact business with outsider cither booyp ataactive banks or with the cooper t iva which provided at the tine tanks time only mcabe r check cashing service through tha accounting department ahr agh the se serr this sey ice was very unsatisfactory because sufficient funds were not alway chever method the residents used available for the purpose but whichever they experienced undue inconvenience 1 I1 V t Y in view of such a deplorable situation the Board met consistently for several weeks with mr Hon honderick ic h to study and discuss the deric condei banking bankinFr problem thoroughly at these meetings the following altera to have some outside natives were presented and deliberated bank establish a branch bank in the center b to set up a local cooperative bank to establish a credit union As a result of these discussions some concrete plans were formulated however the first two plans enumerated as io and b were discarded for reasons as follow a that because outside bunks viz zc banks we primarily interested in profits they would not serve the residents adequately unless assured of sufficient returns for their for such undertaking would involve considerable investment b that no charter could be obtained for a cooperative bank it would be hazardous to operate a bank as such by the cooperative thus it was finally decided by the board to sot set up a banking department within the cooperative which would not operate in strict accordance with the law but would servo serve as temporary measure until such time when the credit Union could be legally for the past one year as all residents of topaz know established present bankthe ing department hov veve however imperfect has been an indispensable institution as impo important bitant as other se services rendered by the cooperative to- fl 0 o in this center the present banking department do part ment has been moderately successful tc apartment meet the general needs of our abnormal community one good feature is simplicity of organization and operation its it is controlled by the board of directors one of whose members actually supervises optfration the op rat ion and who has through diligent work set up a very simple deposit account which has grown rown into such an enormous proportion at present that it is able to cash all checks yet despite its good features the present banking arrangement has several ddistinct 1I sti net disadvantages cx for example ample funds deposited with the bank cannot be kept cn braly entirely independent the cooperative of so that in the event of judgment against the cooperative sone through scra day unforeseen cause there is the danger of its funds being tied up pen ding the outcome of the lawsuit pending again funds received from residents for safe kee aing cannot be legally safekeeping re loaned thereby resulting lc gally ih a situation where there is an cnormous in enormous sum laying idly without adequate protection to the deno no sitors de depositors such being be ing the situation 11mr ar Hondr in his capacity as suhonderich rich center perin aident of business perintendent in this late in october of 1942 wired the credit union national have them to tham sen a field man to go over our situation and association or not a whether determine credit union would be bc the most suitable means of solving our banking problem prabirm mr skorstad was thereupon by this reputable organization who he an open morting coope meeting hald id the in cooperative office on ov ember november 1942 to explain the credit union program his it was judgment that credit union would be preferable to the present bank ing arrangement for the reason it can carry ca carty out the simplified bank sg program now in ing operation IL al protection in addition to with legal baying several distinct advantages ddn tally ew of these incidentally in afew c worth mentioning ar are a keep a credit union aan r deposits entirely independent of the cooperative agell b isell M ell compera hive Life Insurance through credit union national association tive fc W make loans to members and inac pe government ment se deposits overn surplus st invest in ing cur huiea that will earn interest thi ate inte thereby rc jt du e reducing hazard of efing large uninsured deposits in ba S banks b j outside loans insure against the dath death of borrower fee affiliate with a strong national organization f tr ir tlmn an 1 unions having asW d af bg tat I 1 v sets 6 tira rl at 4 ii i ol ia r 1 01 1 |