Then & Now: The first lady of credit unions

NORA HERLIHY from county Cork is the name most associated with founding the Irish Credit Union Movement in Ireland. At present there is a branch in most towns and villages around Ireland and the general public have benefited greatly as a result, due to the combined hard work of volunteers, staff, directors, and loyal members. The various Credit Union branches have fashioned itself as an integral part of the community with healthy assets, friendly staff and customer satisfaction.

I joined the Desmond Credit Union Newcastle West (opened its doors in May 1973) on January 18, 1974, and my membership number was 175. A sub branch had opened in Ardagh and Tom McCrave, who was foreman at Patrick McCormack's Joinery Works was promoting its advantages. I bowed to his wisdom and joined up and paid two pounds per week. I have been a member ever since and have been delighted in playing my part in its progress.

Credit Unions were founded in Germany in 1849 and its founder Frederick Wilhelm Raiffeisen wished to free the poor from the grasps of moneylenders, which were the sole source of finances at that time. By the year 1865 the Credit Unions had spread to Italy and by 1900 became a worldwide facility to obtain the stature it holds today. A Credit Union may be classified as a group of people who come together out of normal circumstances with an objective of helping each other, and other members of the community in which they live. A Credit Union is usually formed in an area where a lot of people live and work within a certain radius.

The principal objectives of a Credit Union are to encourage members to save on a regular basis and to grant and provide credit facilities at the lowest interest rate possible. One of the principal ideas of a Credit Union, is that there is no money made in the money transactions of the members for the Credit Union. The income received from the interest on loans goes to pay dividends on savings, to cover incurred expenses, and to build up reserves for the future.

Nora Herlihy was born on February 27, 1910, to parents Denis the principal of Kingwilliamstown NS and Nora. She was the third eldest of 12 children, nine of whom survived. In an area on the Cork-Kerry border in the middle of Sliabh Luachra, famous for its music and song it is now called Ballydesmond. Nora was a good student and exceedingly intelligent and received her primary education in the local school. Her secondary education was as a boarder at the Convent of Mercy in Newcastle West. Nora trained as a primary teacher in Carysfort College in Dublin graduating in 1931 and did temporary teaching in Ferrybank, Waterford for five years. She then received a permanent teaching position with the Irish Sisters of Charity in Dublin in 1936.

Throughout her life, Nora Herlihy was exceptionally religious and a staunch upholder of catholic values; in 1941 she resigned from her teaching position and spent ten months at a missionary congregation in Cavan but was advised she had no vocation. She was to remain in the capital city, mainly in rented accommodation until her retirement for the remainder of her life. She received a BA from UCD and also qualified to teach Montessori in the education system. This was to help her to be a better teacher to the children she taught during her career among the poor in inner-city Dublin. She taught in a number of Dublin Schools including St Joseph's Girls National School, becoming principal in 1965. She became aware of the plight of the poor people living there which shocked her. She witnessed widespread unemployment, money lending and the importance of the pawnshops which helped to feed families during the week.

As a result of the poverty and scarcity in Irish society Nora became determined to find a way to put an end to the peoples struggles and improve their lifestyles. It was while attending a course in University College, Dublin she met Tomás Ó'hOgáin, a social economics student. Of like mind they set about ways that could help the circumstances of the poor. The model of the co-operative movement set up by Horace Plunkett appealed to both and they established the Dublin Central Co-Operative Society by 1954. Its aim was to set up worker co-operatives in a bid to reduce unemployment.

Séan Lemass, Minister for Industry and Commerce appointed Nora to a legislative advisory committee on non-agricultural co-operatives in 1957. Similarly, the Credit Union National Association in America he asked Nora to study how the Credit Union model could be modified for its introduction in Ireland at that time. The first two Irish credit unions were formed under Herlihy's influence in 1958 and she promoted credit unions throughout Ireland. She had played a major part in setting up the Civil Service Credit Union and the Irish League of Credit Unions. Sean Forde, an employee in a Dublin Bakery also played an important role in the movement.

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Nora was so dedicated to the Credit Union ideals that she served as unpaid secretary from her residence for the Irish League of Credit Unions. She was a full-time teacher as well and used part of her salary to fund the continued expansion in the following years. Nora was recognised by the Board of the Credit Union League of Ireland as having made the greatest individual contribution to the Irish Credit Union Movement in 1963. Nora was also present when Irish President Eamon De Valera signed the Credit Union Act into law in 1966.

As the movement expanded, however, there was increasing doubt about Nora's exact status, and in 1966 she faced the ignominy of being voted out of her role as managing director. Viewing this as a blatant attempt to sideline and neutralise her influence, she deeply resented the move, which was also no doubt a product of an ingrained sexism. In the 1970s relations within the Credit Union League worsened, and a high court case in 1976 between two members of the insurance committee of the league greatly distressed her. In 1979 she admitted that her relations with the league were ‘practically non-existent’.

When Nora retired from teaching in 1974, she bought a small cottage in Dalkey where she spent the remainder of her life living frugally with an almost monastic routine. It was there she died in her sleep on February 7, 1988. She is buried in her native Ballydesmond amongst her own people.

The Nora Herlihy Memorial Centre was opened by John Hume in November 2000 in the village. The centre includes graphic panels depicting Nora's life. Her niece was Marian Finucane the late RTE broadcaster. At the time of Nora Herlihy's death the league could claim almost one million members in more than 500 branches. The growth continues and Nora's name will always be linked with a movement that was created to help the poor and underprivileged and continues to do so today.