The credit union movement had flourished in the 1930s, but a new decade brought a second world war and a new concern: inflation. The U.S. government attempted to curb inflation by issuing Regulation W, which limited the time allowed for repaying loans. It also severely restricted the granting of installment credit. Savings growth diminished, and the number of loans dropped. As a result, the organization of credit unions slowed, and many credit unions were forced to liquidate.
Despite this challenge, credit unions did their part to aid the war effort by selling war bonds. New York State credit unions raised enough through their war bond drive to build seven bombers and four pursuit ships, earning them a citation from the U.S. Treasury Department recognizing their efforts.
After the war, credit unions began to bounce back from the effects of Regulation W.
In 1946, Dora Maxwell, a potent and influential advocate for credit unions, both in New York and nationally, organized 120 credit unions in New York State in just 5 months.
By 1950, New York was the home of 790 credit unions with 364,824 members and assets totaling $67,658,719.
On October 21, 1948, the first International Credit Union Day commemorated 100 years of credit unions. International Credit Union Day is now celebrated on the third Thursday of October each year.
