The Farmers' Bank of Rustico operated in the village of South Rustico,

Prince Edward Island Prince Edward Island (PEI; ) is one of the thirteen Provinces and territories of Canada, provinces and territories of Canada. It is the smallest province in terms of land area and population, but the most densely populated. The island has seve ...

, from 1864 to 1894. It is often considered to have been the first community-based bank in

Canada Canada is a country in North America. Its ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, covering over , making it the world's second-largest country by tot ...

. Founded and managed under the leadership of Father

Georges-Antoine Belcourt Georges-Antoine Belcourt (April 22, 1803 – May 31, 1874), also George Antoine Bellecourt, was a French Canadian Roman Catholic diocesan priest and missionary. Born in Baie-du-Febvre, Quebec, Belcourt was ordained in 1827. He established missi ...

(1803-1874), the Farmer's Bank of Rustico was established on April 21, 1863. The bank received Royal Assent for its act of incorporation at the Court of Windsor on April 7, 1864." The first president was farmer Jerome Doiron, and the first cashier was Marinus Blanchard, a local school teacher. The Farmers' Bank "was the precursor of the North American

credit union A credit union, a type of financial institution similar to a commercial bank, is a member-owned nonprofit organization, nonprofit financial cooperative. Credit unions generally provide services to members similar to retail banks, including depo ...

movement through its influence upon the pioneer credit union organizer, Alphonse Desjardins of Quebec." Like the later credit unions, the Farmers' Bank accepted deposits and provided loans, primarily for less than 1 year. It showed that villagers could successfully operate a financial institution without the assistance of banking experts. However, there are also important differences. The Bank issued its own currency and kept its working funds in specie. But it never built up a substantial reserve fund—preferring to return most of its annual profits to shareholders as dividends. The Farmers' Bank was also one of the earliest manifestations of a strong movement of

Acadian The Acadians (french: Acadiens , ) are an ethnic group descended from the French who settled in the New France colony of Acadia during the 17th and 18th centuries. Most Acadians live in the region of Acadia, as it is the region where the de ...

economic self-determination. Belcourt's innovative ideas also gave rise to dozens of seed grain banks in Acadian communities in the 1860s, including one in Egmont Bay that was a precursor to the later co-operative movement in the

Evangeline ''Evangeline, A Tale of Acadie'' is an epic poem by the American poet Henry Wadsworth Longfellow, written in English and published in 1847. The poem follows an Acadian girl named Evangeline and her search for her lost love Gabriel, set during t ...

region of the Island. The Bank also anticipated

Mouvement des caisses populaires acadiennes Caisse populaire acadienne ltée, operating as UNI Financial Cooperation (french: UNI Coopération financière), is a Francophone credit union (french: caisse populaire) based in New Brunswick, Canada whose members are primarily Acadians. UNI's ad ...

, a 200,000 member network of credit unions in New Brunswick. As such, it played an important role in the development of the Acadian community in the Maritimes. In the view of MacDonald, "the steady availability of cheap credit for thirty years enabled the predominantly Acadian community to attain economic independence." However, the Canadian

Bank Act The ''Bank Act'' (1991, c. 46) (the ''Act'') is an act of the Parliament of Canada respecting banks and banking. History The ''Bank Act'' was originally passed in 1871. The terms of the ''Act'' provide for a statutory review of the ''Act'' ...

of 1871 did not envision such small financial institutions, and the Farmers' Bank wound up its operations when its charter was not renewed in 1894.

Farmers' Bank of Rustico Museum

The Farmers' Bank of Rustico in South Rustico,

built in 1861 to 1863 is a

National Historic Site of Canada National Historic Sites of Canada (french: Lieux historiques nationaux du Canada) are places that have been designated by the federal Minister of the Environment An environment minister (sometimes minister of the environment or secretary of t ...

, and serves as a local history museum. Displays include Father Georges-Antoine Belcourt and the bank's history, Acadian culture, the fishing industry and area natural history. Admission to the museum includes a tour of the adjacent Doucet House, which was moved to the site in 1999 from its original location on Grand-Père Point. The home has been restored to its pioneer appearance.

External links

Site of the Museum of the Farmers' Bank of Rustico, PEISite of New Brunswick's Mouvement des Caisses populaires acadiennes

References

{{Prince Edward Island parks Microfinance organizations Community development financial institutions Agricultural cooperatives in Canada 1894 disestablishments in Prince Edward Island Defunct banks of Canada Companies based in Prince Edward Island Buildings and structures in Queens County, Prince Edward Island Banks established in 1864 Banks disestablished in 1894 National Historic Sites in Prince Edward Island Museums in Prince Edward Island History museums in Canada Acadia 1864 establishments in Prince Edward Island