Give them a little credit
The first credit union in the United States, St. Mary’s Cooperative Credit Union, was chartered by the New Hampshire legislature on April 6, 1909. A week later, the state of Massachusetts would pass the first statewide credit union law, paving the way for the eventual spread of credit unions across the country. Citizens of the United States at last had an alternative to the banks that had long held exclusive dominion over the country’s financial system.
Credit unions, which are nonprofit financial institutions, serve anyone willing to “invest” a nominal amount (typically a few dollars) to become a member. Marketed as “community-oriented” alternatives to big banks, credit unions have grown into a significant part of the American financial picture, particularly following the passage of the Federal Credit Union Act in 1934. In 2009, a century after St. Mary’s Cooperative (now simply St. Mary’s Bank) opened its doors, more than 7,500 federally insured credit unions assisted communities throughout the country. Despite the lingering economic weakness that year, these credit unions held more than $750 billion in assets — including roughly $575 billion in loans — producing an aggregate industrywide net worth of nearly $90 billion.
Make a note of this big opportunity
3M Co (NYSE:MMM) launched Post-It notes on April 6, 1980. The world-famous sticky-backed notes had a long, convoluted trip to commercial success. The first development on this path came in 1968, when researcher Spencer Silver developed a weak pressure-sensitive adhesive — acrylate copolymer microspheres — while trying to create something more suitable for bonding the joints on airplanes. The weak adhesive had no apparent use to 3M executives, and the new chemical was shelved until 1973, despite Silver’s hopeful touting of its as-yet-undiscovered value.
In 1973, 3M Co (NYSE:MMM) chemical engineer — and devout Christian — Art Fry had a serendipitous breakthrough that made something useful of the microsphere adhesive. Fry was frustrated that the markers in his choir books would always fall out when he was singing, and he realized that sticky-backed paper using the microsphere adhesive would be the perfect solution. Silver agreed to work on this new application with 3M’s Geoff Nicholson, who had considered adhesive bulletin boards as an alternative use. After further research and refinement, the Post-It was born — but it didn’t catch on with top brass right away.
From 1977 to 1980, Nicholson’s tireless advocacy helped push the company toward a national rollout, which finally happened, as you already know, on April 6, 1980. The Post-it became a monster success, and it remains one of the most popular office products in the world to this day. You might even have one within reach right now. Write “Happy Birthday, Post-It” on that pad if you have it, and thank the small group of true believers at 3M Co (NYSE:MMM) who brought it from the lab to within arm’s reach.
The article How Microsoft and 3M Justified Their Place on the Dow originally appeared on Fool.com.
Fool contributor Alex Planes holds no financial position in any company mentioned here. Add him on Google+ or follow him on Twitter, @TMFBiggles, for more insight into markets, history, and technology.The Motley Fool recommends 3M and Apple and owns shares of Apple and Microsoft.
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