REPORT OF THE TREASURER-MANAGER
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Sunmer, 1969, found your Credit Union changing its By-Laws to al- low members to retain membership in CPFCU for life .••• "once a mem- ber, always a member. 11 Another beneficial change in Federal Law now pennits federal employees to have payroll deductions to the Credit Union. This affords civilian employees the counterpart to military savings allotments. One of our major goals in 1970 is to get everyone eligible to save by this convenient method. This brings up some startling statistics worthy of mention. Al- though we outstripped the percentage growth of every Savings and Loan Assn. in San Diego County with gains of 20 per cent in loans and 21 per cent in shares, we cannot afford complacency. Some shocking figures bear this out . 16,71B members or 66 per cent of the membership own less than 6 per cent of Credit Union shares with an average of only $29 per member. Further,1273 or 5 per cent of the members own 56 per cent of shares amounting to $4,B59,000 or an average of $3,817 each . These divergent figures tell a sad story of the lack of under- standing by too many members about the advantages and benefits of systematic savings.If each of that large group of members increas- ed their savings by an average of only $71 in 1970, your Credit Union would have $1,186,978 more to loan to members and on which to earn higher than average dividends. Change even penetrated our hard-working staff,with several employ- ees leaving for reason of transfers, illness and other causes. A -"\;omplete reorganization of departmental functions occurred during ~ he year to provide smoother work flow and faster services to mem- bers . I take this opportunity to conmend your staff, officials and vol- unteer representatives for great cooperation, energy and enthu- siasm for the job we are all involved in • • .. serving one another .As each year slips swiftly by, a greater concern and encouraging at- titude is noted from the Secretary of Defense to all echelons of our broad field of membership regarding credit union affairs • Thanks to one and all. What is ahead for your Credit Union in the great seventies?
JAMES R. TAYLOR
The fabulous sixties ended with a year of fantastic change for your Credit Union in 1969. Webster says change means substitute, alter, ex-change, or make different . All of these action words came into play to produce the most dynamic year of your Credit Union's history. Not all of the changes were desirable but most were unavoidable. Certainly, the extrenely "tight money" situation adversely affect- ed our loan policies in many ways. Just at the time we had launch- ed our new Quick Cash loan service, it had to be curtailed along with student college loans and business loans. Short repayment tenns and higher down payments on new and used car loans also worked a hardship on many members . To keep pace with an extreme increase in loan demand and new mem- bers, we were forced to borrow heavily from other credit unions and banks, sometimes at prohibitive rates of interest. The untimely liquidation of 29 Palms Federal Credit Union in May. 1969, forced your Board of Directors to make a big decision. Th decision was to bury the floundering Credit Union and give birth to a 29 Palms branch of the CPFCU . The outstanding success of the branch office is now history, but not without its own problems. Rapid growth in membership and heavy loan demand by members put even a tighter bind on available money. 29 Palms members were ~e- positing (saving) only $1 for every $3 they borrowed. To cope w1th this imbalance of funds, your Board authorized the issuance to the public of Investment Certificates . The certificates earn 6 per cent on minim1111 $5,000 deposits for one year and 6½ per cent on certificates of $25,000 or more for 90 days. Through this device, and encouragement of our members to save regularly,we hope to meet our member's every credit need in 1970. Probably the greatest noticeable change in the main office is our "Talking Tenninals" connected directly to a 360-40 IBM computer in Los Angeles. The tenninals give members inmediate access to their accounts. Awithdrawal, share deposit or loan payment is instan- taneously recorded, showing the member's new balances.
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Perpetual change!
J. R. Taylor Treasurer-Manager
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