Chicago credit union is proof that selfreliance is a concept that works (08/18/02)

Chicago credit union is proof that selfreliance is a concept that works

by Dr. Myron B. Kuropas

CHICAGO - It all began in the heart of the Ukrainian Village. The idea was born in a place called Besida, located in a dingy second-floor hall over what was once my grandfather's tavern on the north side of the 2400 block of west Chicago Avenue.

This was the first site of Selfreliance Federal Credit Union, a financial cooperative founded in 1951 by a group of visionaries headed by the late Roman Mycyk and Omelen Pleszkewycz. Supported primarily by third-wave immigrants, the so-called DPs, the tiny enterprise grew slowly. The displaced persons immigration had recently arrived and was yet to establish any financial stability. No one was making a lot of money; some people were still looking for work.

They were not discouraged, however. After all, they had survived the Bolsheviks, the Nazis and forced repatriation. As much as they loved Ukraine, they realized that they would probably remain in the United States for a long time. As soon as they could, they began to save: for a car, for a house, for their children's college education. And Selfreliance was there to help.

Assisted by second-wave immigrants, UNA stalwarts like Taras Shpikula and Stephen Kuropas, who told them that in America the maxim was "help yourself," the new immigrants decided to call their credit union "Samopomich," or Selfreliance. It was tough in the beginning. Don't give up, they were told by older immigrants. "Everyone who comes to America suffers at first; but if you work hard, things will get better. You'll see."

The U.S. economy was booming. Manual labor was at a premium. And so they went to work, any work, just to get started. In the beginning, attorneys worked in factories; doctors emptied bed pans in hospitals; engineers worked as janitors. It was humiliating, but they endured.

Cooperatives were nothing new to the third immigration. Most had lived in Galicia where the Ukrainian cooperative movement was born during the 1870s. The first such cooperatives were established by the Catholic clergy as self-help fraternal loan associations. The goal was to alleviate misery among the peasants. After Austria instituted a law regulating commercial trade organizations, these cooperatives began to thrive. The first association of credit cooperatives, Tsentrobank, was established in 1898.

Soon there were agricultural cooperatives such as Maslosoyuz, Silsky Hospodar and others. Following the first world war, these agricultural cooperatives dominated the cooperative scene. Out of a total of 3,455 cooperatives in 1939, 2,360 were devoted to agriculture. The credit union network, headed by Tsentrobank, included 115 larger city Ukrainbanks, 573 smaller rural banks and other cooperatives. The Narodna Torhovlia had 18 branches. The second world war and the subsequent invasion of the Bolsheviks ended the cooperative movement in Ukraine.

Many of the activists in the cooperative movement in Ukraine were involved in the cooperative movement in Chicago. They started with little more than a vision. When neighborhoods around what is called the Ukrainian Village began to decline, downtown banks simply red-lined the Ukrainian Village, refusing to grant mortgages in the area. It looked as if the neighborhood would soon become a haven for slumlords. Thanks to Selfreliance, however, the Ukrainian Village was saved from the ravages of urban blight. Confident in the future of the area, Selfreliance offered long-term loans to Ukrainians and others willing to invest in local real estate. This included personal as well as business mortgages.

The Ukrainian Village - officially designated as such by Mayor Jane Byrne - was saved. Because of its proximity to downtown Chicago, the Ukrainian Village is considered one of the most desirable neighborhoods in Chicago today.

Selfreliance continues to expand well beyond its humble beginnings. The 2001 Selfreliance Annual Report, informs readers that assets increased to a record $391,635,236. Loans increased to $199,656,060, while net income reached $3,656,818. Significantly, Selfreliance spent $588,278 for promotional and educational expenses in the community.

A recent educational expense was the hosting of UNA delegates and guests at a reception in the newly constructed three-story Selfreliance building in the Ukrainian Village. Bohdan Watral, Selfreliance CEO, was a gracious host who welcomed all UNA convention participants, wishing them a successful convention. It was a wonderful demonstration of Chicago hospitality and Ukrainian cooperation.

Thanks to Mr. Watral and other credit union activists, the cooperative movement is making a comeback in Ukraine. According to Michael Kos, chairman of the Selfreliance board of directors, there are some 450 registered credit unions in Ukraine, 120 of which are members of the Ukrainian National Association of Savings and Credit Unions (UNASCU).

The Selfreliance mission statement says it all: "Selfreliance Ukrainian American Federal Credit Union is a cooperative composed of members of a common background and bond. It exists for their benefit. It must provide varied types of financial services, at the highest professional levels and creating a caring environment for its members. It must foster the ideals of cooperation, promote ethnic strength and interest, and provide longterm stability to our Ukrainian community."

Today there are credit unions throughout the United States and all of them are flourishing. Besides the churches, credit unions are the only institution that fourth wave Ukrainians trust. There is a message here.

One can well ask why credit unions are succeeding with the Fourth Wave, while other institutions are not. Four reasons: Credit unions fill a need. They have a vision. They have professional leadership. They are truly committed to the Ukrainian community.

Selfreliance is truly a concept that works.

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