New Kings To Protest- The Kings of Wall Street

On this Veterans Day you can’t help but think of the personal freedoms we enjoy in the United States and in many parts of the world. When I think of inspiring documents that changed the course of history perhaps no document comes to mind more than that of The Declaration of Independence. It set forth the moral justification of a rebellion against a long-recognized political tradition—the divine right of kings. The central issue was the fundamental question of whether men’s rights were God-given or whether these rights were to be dispensed by governments to their subjects.

This document proudly proclaimed that all men have certain inalienable rights. In other words, these rights came from God. Therefore, the colonists were not rebels against political authority, but a free people only exercising their rights before an offending, usurping power. They were thus morally justified to do what they did. The power of this thought is incredible. 

Today in watching and reading the headlines it is easy to find ourselves pulled down into the petty arguments that are broadcast twenty four/seven by media to perpetuate ratings for advertisers. Big thoughts and soul stirring declarations seem to be buried and forgotten. At least that is what I thought till a few days ago.

This week I had the opportunity to spend a few days with some unbelievably talented people who had come together to understand seven fundamental principles. These principles are the very bedrock of where credit unions came from.  These principles were inspired by the Rochdale Principles, which were named after the first successful co-op, founded in Rochdale England in the 1840s by a group of weavers.These principles are:

1. Voluntary Membership
Credit unions are voluntary, cooperative organizations, offering services to people willing to accept the responsibilities and benefits of membership, without gender, social, racial, political or religious discrimination.

2. Democratic Member Control
Cooperatives are democratic organizations owned and controlled by their members, one member one vote, with equal opportunity for participation in setting policies and making decisions.

3. Members’ Economic Participation
Members are the owners. As such they contribute to, and democratically control, the capital of the cooperative. This benefits member owner in proportion to the transactions with the cooperative rather than on the capital invested.

4. Autonomy and Independence
Cooperatives are autonomous, self-help organizations controlled by their members.

5. Education, Training and Information
Cooperatives provide education and training for members, elected representatives, managers and employees so they can contribute effectively to the development of the cooperative.

6. Cooperation Among Cooperatives
Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, state, regional, national, and international structures.

7. Concern for Community
While focusing on member needs, cooperatives work for the sustainable development of communities, including people of modest means, through policies developed and accepted by the members.

As you think of these seven principles it is easy at first to dismiss them. Yet, the relevance of the seven fundamental concepts is so sorely needed in the world of financial services. Take the concept of voluntary membership.

Currently one of the biggest arguments on the airwaves is that about the size of government and the role of government. Last month riots were all over the news as France came to a standstill as people went on strike. Last week political futures were made and lost as voters in the United States took to the polls to vote to voice their discontent with the economy. This week students protested in England over the rise in tuition costs.

Now more than ever both sides of the political spectrum are looking for solutions that they can live with. This is where the concept of people having the right to voluntarily join together who are willing to accept the responsibility for the success of the group becomes so powerful. Achieving together what each person could not achieve alone. Achieving economic empowerment for all members regardless of gender, social, racial, political or religious status.

Now I know some of you are thinking I have suddenly drunk the Kool Aid and am going too far into the realm of “peace, love, and happiness.” To the contrary what excites me the most about this fundamental principle is that it is boundless. It crosses the political spectrum. It enables people to help people on a voluntary basis without the need for government handouts. It is bootstrap finance as each person contributes and receives benefit based on their economic contributions.

Take one dollar. We all probably have both lost and found one dollar on the street. What can you buy with a dollar? If you are a cooperative with voluntary membership you can create a foundation that charges one dollar per month for a checking account. What you accomplish with that dollar could be amazing. Imagine doing the following:

• Giving 10,000 dollar scholarships to the children of workers who were fatally injured on the job.
• Giving five million dollars as a grant to start a new cancer center.
• Giving a four year scholarship to every high school in the state (over 350 traditional public high schools) a total commitment of 4 million dollars a year.

All of this achieved by one foundation (www.ncsecufoundation.org) by a group of voluntary members who have joined together to empower one another based on economic participation.

These same types of activities happen in small credit unions with only three people who work to serve a thousand members to large multibillion dollar credit unions.

There should be no doubt what our task is today. If we truly cherish the heritage we have received, we must maintain the same virtues and the same character of our stalwart forebears—industry, frugality, self-reliance, and integrity. We have the obligation to maintain what those who came before us pledged with their time, hard work and their fortunes. The opportunity and obligation for doing so is clearly upon us.

It is up to each of you who read this blog and who work so diligently in the credit unions you work at to speak up and make sure that the principles of our past are written in the business plans of tomorrow. That we do not forget the very principles that set us apart from the people who would love to see us disappear.

Today there are new kings to protest. They hold tremendous power and like the days of old they are oblivious to the struggles of those around them. They are the Kings of Wall Street. Like those before us it is up to us to remind ourselves and those we care about that the Divine Right of Kings has passed.