Unit IV: A Century of Philippine

Cooperative Movement

HISTORY AND ASSESSMENT OF PHILIPPINE COOPERATIVE MOVEMENT

STAGE ONE OF THE PHILIPPINE

COOPERATIVE MOVEMENT (1896-1941)

NATIONAL TEACHERS COLLEGE MANILA

A WRITTEN REPORT

IN PARTIAL FUFILLMENT

OF THE REQUIREMENTS

IN COOPERATIVE MANAGEMENT

BY

MHAYZE BELLE M. LECTOR

MARIANNE NICOLE D. REYES

JANETH V. JAMISON

……

SUBMITTED TO

ENGR. BERNARD EVAN JAMON

FEBRUARY 18, 2020

 Class Schedule: Tuesday/ Friday 8:30am – 10:00am
School: National Teachers College
Subject: Cooperative Management
Topic: Unit IV: A Century of Philippine Cooperative Movement Stage
One of Philippine Cooperative Movement (1896-1911)
School Year: 2nd Semester, 2019-2020

Q&A
Name Delivery Posture Content (Knowledge on Total
Student Number Contact Number Remarks
LN, FN MN (25%) (20%) (35%) the Topic) (100%)
(20%)

LECTOR, MHAYZE BELLE M. 61900420 09481573410

REYES, MARIANNE NICOLE D. 61903464

JAMISON, JANETH V. 61900689
 WRITTEN REPORT

Unit IV: A Century of Philippine Cooperative Movement

1. HISTORY AND ASSESSMENT OF PHILIPPINE COOPERATIVE MOVEMENT

Philippines we’re popularly known for their way of helping one another through “BAYANIHAN”. It

is a Filipino concept of cooperation even before the Spaniards Colonization. As part of the Filipino

culture, this practice is a compatible concept for cooperatives which evolves after the colonization of the

Spaniards in the country. The transformation of the economy from subsistence agriculture to a feudal and

commercialized economy, middle class illustrados (professionals, merchants, and artisans) emerged.

These illustrados were the organizers of the “gremios” (local crafts union and guilds) which where the

forerunners of cooperatives.

A. STAGE ONE OF THE PHILIPPINE COOPERATIVE MOVEMENT (1896-1941)

1. The Pre-Formation Period – Spanish Period

During the latter part of the Spanish colonization, the local “gremios” and other self-help association

emerged. In 1896, Dr. Jose P. Rizal started an agricultural marketing cooperative while in an exile in

Dapitan, Mindanao. It was 1898 when Emilio Jacinto organized a failed commercial marketing

cooperative in San Pedro, Laguna.

On the other hand, Isabelo De Los Reyes was sked to be a head of a cooperative association of a

group of printers in January 1, 1902. Within a month, February 2, 1902 this organization of workers

and gremios became the Union Obrero Democrata, the first Philippine labor federation.

It was noticed that they always recognize cooperatives as instruments for social justice and economic

development. However, due to the intense revolutionary struggles of the Filipinos against the Spaniards,

the initial origin of the cooperatives during the Spanish Colonial period failed to take the root.
 2. The Formative Years- The American Colonial Period

The Americans replaced the Spaniards as the new colonial administrators in 1900-1913. It is when the

Raiffeisen-type rural agricultural cooperatives were implemented in the Philippines through Irish-

American missionaries and teachers also with the help of local organizers. One of the first reported credit

cooperative in the country was organized at the University of the Philippines at Los Banos, Laguna.

Prantel (or Prauter) was one of the early rural credit cooperative organizers. He was also involved in

credit cooperative in India for many years before he came in the Philippines in 1898. He supported the

Sandiko Bill in 1907, through some articles in Manila newspaper, and became chief of the rural credit

section of the Bureau of Agriculture in 1915.

 In 1906, the Corporation Law (PA No. 1459) provided the legal framework for all private

organizations which included cooperatives.

 In 1907, Gov. Teodoro Sandiko of Bulacan and Rep. Alberto Barreto of Zambales introduced a

rural cooperative bill which was the first attempt to make use of the state in assisting rural

cooperatives via legislation.

 In February 15, 1915 The Sandiko bill was disapproved and it took 8 more years to be able to

pass a Rural Credit Cooperative Association Act (PA No. 2508) which was authored by Rep.

Rafael Corpuz of Zambales and Reps. Palma and Singson. PA 2508 appropriated P1 million for a

fund for farmers' credit through their associations and rural coops.

 In 1916, PA No. 2508 was amended and the administration of coops by the government was

transferred from the Bureau of Commerce and Industry to the Bureau of Agriculture.
  On October 19, 1916, the first rural credit cooperative association assisted by the government

was formed in Cabanatuan, Nueva Ecija. It was reported that state assistance to rural coops has

speed up coop organizing.

 On October 20, 1916, the UP Los Banos College Cooperative was formally registered.

 By 1926, there were already 541 credit cooperatives in 42 provinces nationwide.

3. State-initiated Cooperatives

The Cooperative Marketing Law (PA No. 3425) was introduced by the Americans in 1927. It

encourages the formation of state-initiated farmer’s marketing cooperative. It was said to be prompted by

political motives, which is to control the rising unrest among the peasantry. This law enforced

government control and intervention in operating cooperatives and gives the Bureau of Commerce and

Industry the right to organize farmers' marketing cooperatives.

 On June 7, 1940, the Commonwealth Act No. 565 created the National Trading Corporation

(NTC) to supervise cooperatives and grant them a 5-year tax holiday.

 In 1941, the National Cooperative Administration (NCA) was created and it assumed the

functions of the NTC, but was disrupted by the war.

4. Privately-initiated Cooperatives

The privately-initiated Raiffesein-type of cooperatives was maintained and grew. It was exemplified

by the organization of the Vigan Credit Union, Inc. in August 1938 at Vigan, Ilocos Sur. Allen R. Huber

who came in the Philippines in 1926 was the founder of this credit union. He was exposed to the credit

problems of the Filipino farmers. He went back to the U.S. in 1931 to study at the University of Chicago,

and became a pastor of the First Christian Church in Frankfurt, Indiana, USA. He is the one who

organized the first Protestant church-based credit union in the

United States. Huber returned to the Philippines in 1937 to collaborate with D. Howe, a cooperative

technical adviser to train Filipinos in organizing and operating cooperatives.

The Consumers Cooperative League of the Philippines was the first cooperative federation

which was organized in October 1938, and by 1939, there are already an estimated number of 570 credit

cooperatives, 150 farmers’ cooperatives and 48 consumers’ cooperatives. Among these cooperatives, only

20% were said to be active.

By 1941, there were already 30 privately-initiated credit unions with some 2,000 members in the

northern region. Batac Christian Credit Union (BCCU) of Batac, Ilocos Norte was became remarkable

because its member increased to 590 within 2 years, with a capitalization of P 2,000 and loans amounting

to P 38,000. Like the other Raiffeisen-type credit unions, BCCU relied on its own resources and none

from the state.

 ACTIVITIES (Q & A)

STAGE ONE OF THE PHILIPPINE COOPERATIVE MOVEMENT (1896-1941)

QUIZ

1. What is first Philippine labor federation?

2. He became chief of the rural credit section of the Bureau of Agriculture in 1915.

3. This law enforced government control and intervention in operating cooperatives and

gives the Bureau of Commerce and Industry the right to organize farmers' marketing

cooperatives.

4. Who is the founder of Vigan Credit Union, Inc?

5. What is the first cooperative federation which was organized in October 1938?
 REFERENCES & POWER POINT

Unit IV: A Century of Philippine Cooperative Movement

Stage One of the Philippine Cooperative Movement (1896-1941)

http://philippinecooperative.blogspot.com/2008/09/century-of-philippine-cooperative.html?m=1