Roy Bergengren
Encyclopedia
Roy F. Bergengren was an American
attorney and pioneer of the United States credit union
movement. Hired by Edward Filene
in July 1921 to head the Credit Union National Extension Bureau
, Bergengren carried out an ambitious legislative agenda that resulted in the enactment of the Federal Credit Union Act
, the creation of the Credit Union National Association
(CUNA), and the foundation of thousands of credit unions across the United States.
. He participated in World War I
and was largely unsatisfied with his poverty law practice prior to meeting Edward Filene
, a successful Massachusetts businessman and champion of credit unions. In 1920, Bergengren was hired to manage the Massachusetts Credit Union Association where he promoted the development of credit unions. Massachusetts chartered 19 new credit unions in the following year. Filene found in Roy Bergengren the key organizer he needed to spearhead the credit union movement in the United States. Together with Filene, Bergengren founded the Credit Union National Extension Bureau
in 1921 to work towards establishing credit union laws in all states and at the federal level. Filene poured more than $1 million of his own money into the project.
and loan shark
s.
Bergengren and Filene proposed credit unions as the solution. The Extension Bureau, of which Bergengren was the executive secretary, had four goals:
1. to bring about the laws needed for credit union development in the various states,
2. subsequently, to organize some credit unions in each state that could serve as examples to others,
3. to expand the number of credit unions to the point that they could create self-sustaining state federations, and
4. to combine the federations into a self-sustaining national association.
In June 1924, the Extension Bureau began publishing The Bridge, a precursor to Credit Union Magazine of which Bergengren was the editor. Bergengren travelled the country and attended the meetings of credit union organizers. Bergengren appeared before state legislators and recruited volunteer organizers. He was a gifted orator and gave passionate speeches.
Laws were passed and the Extension Bureau began to realize its goals. When Bergengren started what he referred to as his "crusade," there were only 199 credit unions in the U.S. By 1925, 15 states had passed credit union laws and 419 credit unions were serving 108,000 members.
The collaboration between Bergengren and Filene, and the work of the Extension Bureau, proved very effective. It brought state laws to fruition in 26 states and substantially revised flawed legal frameworks in 5 others. In 1934 the Roosevelt Administration
passed the Federal Credit Union Act
, making it possible to form a credit union anywhere in the United States.
The Extension Bureau has been a model for many projects related to international development
and microfinance
since. Foreshadowing debates that still rage however, the views of Filene and Bergengren diverged on two key issues.
First, Bergengren believed that the Extension Bureau should attempt to secure federal legislation first, rather than work state by state. Filene prevailed in this debate, maintaining that a national law should be based on a sound understanding of the diverse circumstances of people across America—from shrimp fishermen in Louisiana, to factory workers in Massachusetts or farmers in the mid-West. Only by developing many state laws first would such a sound national understanding be possible.
Second, as the Great Depression
set in the Reconstruction Finance Corporation
under President Hoover
sought to stimulate the economy with soft loans targeted to banks, railways and large companies. Filene favoured asking for $100 million in reconstruction credits to be pumped into credit unions. Bergengren strongly opposed this position, and his view prevailed this time. "To him, it meant destroying the vital principle of the whole movement by converting a community enterprise into an agency of the government. To teach people how to help themselves was more important by far in times of depression than at any other time."
With the work of the Bureau essentially completed, a national meeting of credit union leaders was called at Estes Park, Colorado
. In a letter to Edward Filene, Bergengren wrote "I sincerely believe that what we are going to do at Estes Park will have extraordinary consequences." On August 11, 1934 the Credit Union National Association
(CUNA) – a national federation funded by the nation’s credit unions—was formed to replace the Bureau.
Bergengren was named managing director of the newly formed CUNA and by 1937, 6400 credit unions with 1.5 million members were active in 45 states.
Bergengren was forced to resign from CUNA in 1945 after a bitter internal struggle, and subsequently moved to Vermont, where he directed that state's League until his death. He was especially interested in international credit unions and one year before his death, Bergengren convinced CUNA directors to establish a world extension department.
is named for him as is an award from the CUNA Mutual Group
.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
attorney and pioneer of the United States credit union
Credit union
A credit union is a cooperative financial institution that is owned and controlled by its members and operated for the purpose of promoting thrift, providing credit at competitive rates, and providing other financial services to its members...
movement. Hired by Edward Filene
Edward Filene
Edward Albert Filene was an American businessman, social entrepreneur and philanthropist...
in July 1921 to head the Credit Union National Extension Bureau
Credit Union National Extension Bureau
The Credit Union National Extension Bureau was the organization that advocated for and fostered credit unions in the United States from 1921 until 1934. CUNEB laid the foundation for the Credit Union National Association and the Federal Credit Union Act...
, Bergengren carried out an ambitious legislative agenda that resulted in the enactment of the Federal Credit Union Act
Federal Credit Union Act
The Federal Credit Union Act is an Act of Congress enacted in 1934. The purpose of the law was to make credit available and promote thrift through a national system of nonprofit, cooperative credit unions...
, the creation of the Credit Union National Association
Credit Union National Association
The Credit Union National Association, commonly known as CUNA , is a national trade association for both state- and federally-chartered credit unions located in the United States. CUNA provides member credit unions with trade association services, such as lobbying, professional development, and...
(CUNA), and the foundation of thousands of credit unions across the United States.
Early career
Bergengren was trained as an attorney and in 1914 was elected the Commissioner of Finance in Lynn, MassachusettsLynn, Massachusetts
Lynn is a city in Essex County, Massachusetts, United States. The population was 89,050 at the 2000 census. An old industrial center, Lynn is home to Lynn Beach and Lynn Heritage State Park and is about north of downtown Boston.-17th century:...
. He participated in World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...
and was largely unsatisfied with his poverty law practice prior to meeting Edward Filene
Edward Filene
Edward Albert Filene was an American businessman, social entrepreneur and philanthropist...
, a successful Massachusetts businessman and champion of credit unions. In 1920, Bergengren was hired to manage the Massachusetts Credit Union Association where he promoted the development of credit unions. Massachusetts chartered 19 new credit unions in the following year. Filene found in Roy Bergengren the key organizer he needed to spearhead the credit union movement in the United States. Together with Filene, Bergengren founded the Credit Union National Extension Bureau
Credit Union National Extension Bureau
The Credit Union National Extension Bureau was the organization that advocated for and fostered credit unions in the United States from 1921 until 1934. CUNEB laid the foundation for the Credit Union National Association and the Federal Credit Union Act...
in 1921 to work towards establishing credit union laws in all states and at the federal level. Filene poured more than $1 million of his own money into the project.
Credit Union National Extension Bureau
Many ordinary American workers did not have access to loans when they needed them and fell victim to usuryUsury
Usury Originally, when the charging of interest was still banned by Christian churches, usury simply meant the charging of interest at any rate . In countries where the charging of interest became acceptable, the term came to be used for interest above the rate allowed by law...
and loan shark
Loan shark
A loan shark is a person or body that offers unsecured loans at illegally high interest rates to individuals, often enforcing repayment by blackmail or threats of violence....
s.
Bergengren and Filene proposed credit unions as the solution. The Extension Bureau, of which Bergengren was the executive secretary, had four goals:
1. to bring about the laws needed for credit union development in the various states,
2. subsequently, to organize some credit unions in each state that could serve as examples to others,
3. to expand the number of credit unions to the point that they could create self-sustaining state federations, and
4. to combine the federations into a self-sustaining national association.
In June 1924, the Extension Bureau began publishing The Bridge, a precursor to Credit Union Magazine of which Bergengren was the editor. Bergengren travelled the country and attended the meetings of credit union organizers. Bergengren appeared before state legislators and recruited volunteer organizers. He was a gifted orator and gave passionate speeches.
Laws were passed and the Extension Bureau began to realize its goals. When Bergengren started what he referred to as his "crusade," there were only 199 credit unions in the U.S. By 1925, 15 states had passed credit union laws and 419 credit unions were serving 108,000 members.
The collaboration between Bergengren and Filene, and the work of the Extension Bureau, proved very effective. It brought state laws to fruition in 26 states and substantially revised flawed legal frameworks in 5 others. In 1934 the Roosevelt Administration
Franklin D. Roosevelt
Franklin Delano Roosevelt , also known by his initials, FDR, was the 32nd President of the United States and a central figure in world events during the mid-20th century, leading the United States during a time of worldwide economic crisis and world war...
passed the Federal Credit Union Act
Federal Credit Union Act
The Federal Credit Union Act is an Act of Congress enacted in 1934. The purpose of the law was to make credit available and promote thrift through a national system of nonprofit, cooperative credit unions...
, making it possible to form a credit union anywhere in the United States.
The Extension Bureau has been a model for many projects related to international development
International development
International development or global development is a concept that lacks a universally accepted definition, but it is most used in a holistic and multi-disciplinary context of human development — the development of greater quality of life for humans...
and microfinance
Microfinance
Microfinance is the provision of financial services to low-income clients or solidarity lending groups including consumers and the self-employed, who traditionally lack access to banking and related services....
since. Foreshadowing debates that still rage however, the views of Filene and Bergengren diverged on two key issues.
First, Bergengren believed that the Extension Bureau should attempt to secure federal legislation first, rather than work state by state. Filene prevailed in this debate, maintaining that a national law should be based on a sound understanding of the diverse circumstances of people across America—from shrimp fishermen in Louisiana, to factory workers in Massachusetts or farmers in the mid-West. Only by developing many state laws first would such a sound national understanding be possible.
Second, as the Great Depression
Great Depression in the United States
The Great Depression began with the Wall Street Crash of October, 1929 and rapidly spread worldwide. The market crash marked the beginning of a decade of high unemployment, poverty, low profits, deflation, plunging farm incomes, and lost opportunities for economic growth and personal advancement...
set in the Reconstruction Finance Corporation
Reconstruction Finance Corporation
The Reconstruction Finance Corporation was an independent agency of the United States government, established and chartered by the US Congress in 1932, Act of January 22, 1932, c. 8, 47 Stat. 5, during the administration of President Herbert Hoover. It was modeled after the War Finance Corporation...
under President Hoover
Herbert Hoover
Herbert Clark Hoover was the 31st President of the United States . Hoover was originally a professional mining engineer and author. As the United States Secretary of Commerce in the 1920s under Presidents Warren Harding and Calvin Coolidge, he promoted partnerships between government and business...
sought to stimulate the economy with soft loans targeted to banks, railways and large companies. Filene favoured asking for $100 million in reconstruction credits to be pumped into credit unions. Bergengren strongly opposed this position, and his view prevailed this time. "To him, it meant destroying the vital principle of the whole movement by converting a community enterprise into an agency of the government. To teach people how to help themselves was more important by far in times of depression than at any other time."
Credit Union National Association
With the work of the Bureau essentially completed, a national meeting of credit union leaders was called at Estes Park, Colorado
Colorado
Colorado is a U.S. state that encompasses much of the Rocky Mountains as well as the northeastern portion of the Colorado Plateau and the western edge of the Great Plains...
. In a letter to Edward Filene, Bergengren wrote "I sincerely believe that what we are going to do at Estes Park will have extraordinary consequences." On August 11, 1934 the Credit Union National Association
Credit Union National Association
The Credit Union National Association, commonly known as CUNA , is a national trade association for both state- and federally-chartered credit unions located in the United States. CUNA provides member credit unions with trade association services, such as lobbying, professional development, and...
(CUNA) – a national federation funded by the nation’s credit unions—was formed to replace the Bureau.
Bergengren was named managing director of the newly formed CUNA and by 1937, 6400 credit unions with 1.5 million members were active in 45 states.
Bergengren was forced to resign from CUNA in 1945 after a bitter internal struggle, and subsequently moved to Vermont, where he directed that state's League until his death. He was especially interested in international credit unions and one year before his death, Bergengren convinced CUNA directors to establish a world extension department.
Legacy
Bergengren's tenacity and dedication resulted in the proliferation of credit unions across the United States. By the end of 2008, U.S. credit unions had 89 million members. This is the largest membership of any country in the world, and one of the highest levels of market penetration in the world. Bergengren was inducted to the Cooperative Hall of Fame in 1979. A credit union in Nova ScotiaNova Scotia
Nova Scotia is one of Canada's three Maritime provinces and is the most populous province in Atlantic Canada. The name of the province is Latin for "New Scotland," but "Nova Scotia" is the recognized, English-language name of the province. The provincial capital is Halifax. Nova Scotia is the...
is named for him as is an award from the CUNA Mutual Group
CUNA Mutual Group
CUNA Mutual Group is a mutual insurance company that provides financial services to cooperatives, credit unions, their members, and other customers worldwide. CUNA Mutual Group sells commercial and consumer insurance and protection products....
.
See also
- Credit unions in the United StatesCredit unions in the United StatesCredit unions in the United States served 89 million members as of 2008, comprising 43.7% of the economically active population. U.S. credit unions are not-for-profit, cooperative, tax-exempt organizations....
- Edward FileneEdward FileneEdward Albert Filene was an American businessman, social entrepreneur and philanthropist...
- History of credit unions
- National Credit Union AdministrationNational Credit Union AdministrationThe National Credit Union Administration is the United States independent federal agency that supervises and charters federal credit unions...