By: Claude Genest, Societe historique Alphonse Desjardins

2008 marks the 100th anniversary of the founding of the Civil Service Savings and Loan Society of Ottawa, the first Canadian savings and credit cooperative to be established outside Québec. Organized to thwart the practices of usurious moneylenders to whom federal civil servants had fallen victim, this institution was established during the summer of 1908 by the founder of Desjardins Group, Alphonse Desjardins.

Let’s recap on the main facts: On May 22,1908, an editorial published in The Civilian, a periodical aimed at federal civil servants, put forward the idea of founding a “loan association.” The goal was to eliminate usury, which was rife throughout the various government departments in Ottawa. The article mentioned that approximately ten “parasites” were engaged in usurious practices within the civil service and that they often demanded annual interest rates exceeding 200%.

The reaction was almost instantaneous. Civil servants interested in the project looked to their own ranks, to Alphonse Desjardins who, as you may recall, worked as French stenographer at the House of Commons in Ottawa and resided in the city several months of the year. On June 5, The Civilian announced that the man considered to be  “the most eminent authority in Canada upon this subject” had offered to help set up a savings and credit cooperative for civil servants. Pleased with this development and no doubt hoping to draw benefit from the reputation of the founder of the Caisse populaire in Lévis, The Civilian affirmed that Desjardins had “made himself master of the co-operative movement throughout the world.”

The initiative of The Civilian was a resounding success. An information meeting was held on June 12, 1908 inside the Canadian Parliament building. Some 150 civil servants came to hear Alphonse Desjardins speak. According to the meeting report, he easily convinced his audience that civil service employees would benefit from the creation of a cooperative association. A committee was quickly established, to which Alphonse Desjardins promised his support.

The committee completed its mandate that summer, and a founding meeting was held on September 3, 1908, with 26 people in attendance. In its September 11, 1908 issue, The Civilian applauded the contribution and enthusiasm of Alphonse Desjardins. It also published the full text of the constituting document.  Three weeks later, on September 24, the new cooperative opened for business, with its provisional offices located at 143 Sparks Street, just a block away from the Canadian Parliament building . The only downside, reported The Civilian, was that Alphonse Desjardins could not participate in its management because of his long absences from Ottawa.

Despite some opposition, the Civil Service Savings and Loan Society grew rapidly. Indeed, at its Annual General Meeting on November 23, 1909, Alphonse Desjardins announced to the members in attendance that he was extremely impressed by its progress, which he considered to be even faster than the growth of the Caisse populaire in Lévis -- of which he was President and Manager  -- during its first year of activities. This success would also be recognized abroad: an article published by the Boston Transcript on June 8, 1911, for instance, reported that the association had freed over fifty civil servants from the clutches of the loan sharks.

Today, the Civil Service Savings and Loan Society lives on as Alterna Savings / Caisse Alterna in Ottawa.

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1. The Civilian, June 5, 1908
2. There is no document confirming the attendance of Alphonse Desjardins at this founding meeting
3. For the opening date and provisional office address, see The Civilian, September 25, 1908 and October 23, 1908
4. The Civilian, September 11,1908
5. The Civilian, December 3, 1909
6. Boston Transcript, June 8,1911