In the Spring of 1951, after more than three years of planning, the organized leadership of the Canadian co-operative movement made a determined effort to persuade the Government of Canada to support before Parliament a bill to incorporate a national co-operative credit society–a national co-operative central bank. While this attempt did not succeed, the co-operative leaders, far from abandoning the proposal, intensified their efforts to secure this incorporation, and a campaign is being conducted throughout the country. In this article an examination will be made of the central co-operative credit societies now existing in the different provinces of Canada; their economic function will be considered and elements of strength and weakness found in them will be analysed. While the emphasis will centre on the provincial units, certain observations on the proposed national co-operative credit society will also be made.
The principles of co-operative banking can be derived from observation of existing institutions. During the 1930's well-developed systems of co-operative credit were operating in almost every civilized country in the world. While these banking systems professed a certain similarity of purpose, embracing such characteristics as non-profit operation, low interest rates to borrowers, the accumulation of funds for the development of co-operatives, and the like, they exhibited a wide variety of organizational structures. Some of these societies served only co-operatives, while others dealt with the general public; some served only credit societies, others all types of co-operatives; some were primarily systems of agricultural credit, while others served urban tradesmen and producers; some operated under the aegis of the state while others were independent of state aid; some practised open membership, while others accepted as members only certain racial or religious segments of the population. Thus the problem of classification of co-operative banking systems is a difficult one.