Jump to content

Welcome to FutureTimeline.forum
Register now to gain access to all of our features. Once registered and logged in, you will be able to create topics, post replies to existing threads, give reputation to your fellow members, get your own private messenger, post status updates, manage your profile and so much more. If you already have an account, login here - otherwise create an account for free today!

  • Please log in to reply
3 replies to this topic

#1
Yuli Ban

Yuli Ban

    Born Again Singularitarian

  • Moderators
  • PipPipPipPipPipPipPipPipPipPipPip
  • 22,012 posts
  • LocationNew Orleans, LA

Unemployment was low – calculated at only 3.2 percent. And during the years of Coolidge's presidency many people saw their lives as better than their parents' lives had been. Real wages for the skilled and unskilled were higher in the twenties than they had been at the beginning of the century, and real wages meant an improved quality of life. In general, the poor were healthier than they had been in previous decades.
The United States had its poor, some people with incomes too small for buying beyond bare subsistence. People working in coal mining and the textile or leather industries were suffering. Among the working poor were those who, if they were frugal and unburdened by health problems, could save a little money to invest in property or in advancing themselves in other ways. But they were a minority among the poor.
Manufactured goods still cost a lot more relative to family incomes than manufactured goods would in decades to come. And many families had incomes too low to afford labor saving devices such as vacuum cleaners and washing machines. A washing machine, for example, cost from 60 to 200 dollars, while the average factory worker was earning only about 100 dollars a month.
And pressure from organized labor for a greater share of wealth going to the common wage earning was down. By the late 1920s labor union membership was again below 11 percent of the labor force, down from 17 percent in 1924.
 
There were no food stamps, which would have created the greater demand that farmers needed for their products. There was still no social security as income for the elderly. There was no unemployment insurance. People were taking care of their own unemployed family members, their elderly, their brothers, brothers-in-law – compelling family togetherness.
The ability to produce had increased, but the ability to consume was limited. Free enterprise was not automatically was not producing in balance between the two. This had happened with grain production and the tractor in the early twenties. Farmers responded to the drop in grain prices (because of increased supply) and the individual farmer increased production even more to keep his income up. What was right for the individual didn't always correct an imbalance.
 
In manufacturing, businessmen were encouraged by a growth in sales. They were optimistic. Many who were warned about market saturation laughed. What was market saturation? For example, the number of people lacking alarm clocks had declined. And many who could afford cars had cars, with not enough people willing or able to buy a new car every year. Market saturation was not a concept readily understood. Want was infinite, but the wealth to buy was not. Over-production and declining profits was not a widely recognized phenomenon. Enthusiasm and optimism were patriotic, and the economy appeared healthy to many market watchers. But the boom years of 1925 and 1926 had tapered off. Production in the United States had begun to decline, most notably in automobiles and in building materials such as steel, rubber and other materials for the automobile. Home buying and home building were also down. Not enough people could afford to buy a home. Too many people were paying rent rather than making payments on their own home, a benefit to landlords but for common people an unfortunate distribution of wealth upwards.
Among people with money to invest, including bankers, there was a slowness in adjusting from the years of boom: 1925 and 1926. There was a failure in measuring the potential for profits, as if there were no limits. Many people with money to invest didn't notice the economic bubble in the making. Like many across the span of history, they were not as wise as they thought themselves to be.

 
 
Sound familiar, doesn't it? Except our youths aren't better off than our parents, the poor aren't healthier, and there's general malaise amongst most of the world. 
But we do have a GOP controlled government and a looming trade war! Hell, even nativism's back!


And remember my friend, future events such as these will affect you in the future.


#2
Yuli Ban

Yuli Ban

    Born Again Singularitarian

  • Moderators
  • PipPipPipPipPipPipPipPipPipPipPip
  • 22,012 posts
  • LocationNew Orleans, LA

In 1928, Herbert Hoover became the Republican Party's candidate for president, and Alfred Smith, governor of New York, was the candidate for the Democrats. Hoover and the Republicans played the role of the morally superior and supported prohibition, and they promised farm relief including higher tariffs against farm imports. The Republicans made much of Smith being from the big-city and a Catholic, and Smith's candidacy revived the Ku Klux Klan temporarily. Smith, on the other hand, opposed prohibition, and he and the Democrats described Republican policies as leaving "agriculture prostrate, industry depressed and workmen without employment." And the Democrats tried their hand on the morality issue and denounced what they called the "sordid corruption and unabashed rascality" of Republican rule. Their moralizing proved futile. Hoover won forty of the forty-eight states. And the Republicans retained their majorities, with 56 seats in the Senate against 39 for the Democrats, and 267 seats in the House against 167 for the Democrats.
Hoover's victory and reputation stimulated great hopes, causing Hoover concern that the nation was seeing him as too much of a superman. The year 1928 ended with the stock market industrial average up 48 percent for the year. As described on the previous page, economic dislocation, the relation between the ability to produce and the ability to consume was being ignored. So too was a speculation bubble. There was one aspect of the problem that Hoover did see: after he took office in March he continued what had been his criticism of excessive speculation and excessive use of borrowed money in buying stocks. He remained an economic conservative insofar as he believed that little government intervention in the economy was necessary during peacetime, but he believed that too much money was being put into unproductive speculation.
Hoover's powers over the stock market were limited. The Federal Reserve Board was an independent body, and the legal authority to curb Wall Street lay with the governor of New York rather than the President of the United States. And the new Governor of New York, Franklin D. Roosevelt, was one of those who dismissed Hoover's concerns. Until he had become governor-elect in November 1928, Roosevelt had been gleefully participating in the stock market boom. And others on Wall Street had joined Roosevelt's opposition to Hoover's views on the market, complaining in effect that if things were not broken no one should try to fix them.
After taking office on March 4, 1929, Hoover expressed concern about economic instability abroad, and he was concerned, too, about weakness or a lack of soundness in banking. He called on Congress to examine the banking structure and to recommend legislation. Congress ignored his request. Then he asked Congress to pass legislation that would require every commercial bank to join the Federal Reserve System and require banks to submit to inspections. Congress ignored these requests.
Buying on credit (borrowed money) by the middle and upper classes was extensive, and the Federal Reserve Board was concerned. The Board had been both raising and lowering interest rates, and when word spread that it might again raise interest rates – to discourage borrowing – the stock market dipped slightly. Then, instead of raising interest rates, the Board tried to discourage borrowing through moral persuasion. Interest rates remained low, which encouraged continued borrowing, and stocks recovered and continued their phenomenal rise.
Everybody with an extra dollar was investing in stocks, from the wealthy to the postman and the corner grocer. They believed that the United States was onto something good and that the boom would go on uninterrupted. There were investors who saw as reasonable the prices of stocks in relation to the earnings of the popular US companies. Among them were the British economist John Maynard Keynes and also Winston Churchill. But there was not a good amount of money available for bidding the prices of stocks higher and higher as some people were now investing were hoping would happen.
In August the US economy went into decline. Business had the good sense to slow production to meet the fact that buying was in decline. Production was falling at an annual rate of 20 percent and personal income for that August was down at an annual rate of 5 percent. Also in August came news from Britain that scared some investors in the United States. Talk had arisen of Britain raising its interest rates to stem its outflow of gold – the gold supply in Britain having become uncomfortably low, threatening British currency, which was pegged to gold. This, some believed, would attract money out of the US stock market and back to Britain. In August, the Federal Reserve Bank of New York increased its discount rate from 5 to 6 percent to restrict lending. The Dow Jones Industrial Average continued to rise, reaching a new high on September 3, at 381.2. But later in the month stock prices leveled and began a moderate decline.
 
On October 11 the Dow Jones Industrial Average reached 446, but there were not enough buyers to keep stocks climbing. A significant minority could impact the market by selling, and by October 21 the stock market had fallen back to 409 – a decline of eight percent in ten days.
Since 1927 from her New York City studio above Carnegie Hall, the famous fortune teller and astrologer Evangeline Adams had been forecasting rises in stock market prices. She was believed to have foretold Rudolph Valentino's death and to have prophesied the 1923 Tokyo earthquake. She had been selling a monthly newsletter to a readership of around 100,000, and four thousand people were writing her daily. A few of her clients were wealthy financiers, and a few, like Mary Pickford, were famous. On October 22, stock prices were to end the day up slightly. But just after noon Adams forecast that stocks would fall the next day. On the 23rd, stock prices rose in the morning. Then prices began a steep fall. And by the end of the trading day, stock prices were down 7.5 percent, with the ticker tape 1.5 hours in delay. It was the second largest day in trading volume in the exchange's history.
The following day is known as Black Thursday. There were many more who wanted to sell than buy, making falling prices, and stock prices declined 3.2 percent, the Dow Jones Industrial Average down to 372. People flocked to Adam's studio for guidance. She told them of a favorable conjunction and interrelationship of certain planets that were creating "spheres of influence over susceptible groups," and she predicted good times ahead. After the last of her clients had wandered away, her broker told her she was down $100,000. Apparently stocks had declined more than she had expected, and apparently her loss caused her to panic. Lacking confidence in the forecast she had given her clients, she told her broker to sell at the opening of the market the following day.
The following day, Friday the 25th, the market held, closing at 372. On Saturday, the market dropped another 1.5 percent, to 367. On Monday came the market's biggest slide, falling nearly 12 percent, to 318. On the 29th it dropped another 13.5 percent, to 275. It was a thirty-three percent drop in one week.  Investors who had bought stocks on credit had lost enough in the value of their stocks that they were obliged to pay back the loans. If they could not pay they were obliged to sell their stocks, and many who had bought stocks on borrowed money lost all of their stocks. Some lost all they had invested and their life savings, and some of these people were still in debt. A few who lost everything committed suicide.
For every seller there had to be a buyer. Some, in other words, were still buying stocks, believing that at lower prices the stocks were a bargain. A short rally began. On October 30 and 31 stock prices surged to 327 – a nineteen percent gain in two days. But during November, prices began drifting lower again, to 238.95, below what prices had been on the dark day of October 29. I
In December, stock prices steadied, and the Dow Jones Industrial Average closed the year at 248. For the year, the Dow was down only twelve percent, and stock prices were well above what they had been in 1927 and 1928. But enthusiasm for investing had declined. The shine was off the market. Newspapers and journals were focused on the decline in the value of stock market equities, and some were editorializing with cries of shame. A few people believed that the stock market had made a normal correction and would now begin to recover. And stock prices began a minor recovery into April 1930, causing some people to believe that the bull market had returned. But, in late April, the Dow began falling again. In May, Hoover announced that "we have passed the worst." But more decline was on the way.

 

Oooh, can't wait to see how things go to hell today. 

And you know China's gonna profit from all this. They're already spreading their power into Oceania, via New Zealand and Australia. I can only imagine what will happen in this upcoming downturn when the CCP are able to stoke tensions to shatter the USA.

Because you see, the US doesn't see China the same way we saw the Soviet Union. The Chinese have so perfectly disguised their brand of Marxism as capitalism that Westerners don't see any sort of existential cultural threat posed by the Chinese. Hell, I've seen more conservatives praise China than liberals, while leftists say China is not their comrade. 

I wonder if they'll maintain this attitude when you see these sights in America and Britain:

BN-MZ997_cflag1_G_20160310051637.jpg

16271524_303.jpg

Comunismo_woflsonian.jpg


And remember my friend, future events such as these will affect you in the future.


#3
Erowind

Erowind

    Anarchist without an adjective

  • Members
  • PipPipPipPipPipPipPip
  • 1,426 posts

To answer your question I see real leftists moving underground and quietly influencing society in the same way we did during the 1950s in America. I'd have to scan them in because they're only in physical form to my knowledge, but I was reading some zines from the 80s talking about how anarchists during that during time opted to gain influential positions in society, network with one another, and gradually push socially and economically progressive thought as revolution was utterly hopeless at the time. Think people becoming doctors, professors, engineers and the like and using their positions to push that agenda. Openly declaring oneself a leftist at the time was a social, political and professional death sentence.



#4
Yuli Ban

Yuli Ban

    Born Again Singularitarian

  • Moderators
  • PipPipPipPipPipPipPipPipPipPipPip
  • 22,012 posts
  • LocationNew Orleans, LA

BY THE TIME Lyndon Johnson arrived in Washington, the district’s arrogance was gone; its people were asking the government for help now—for government participation in relief funding; for government refinancing of farm mortgages; for government support of crop prices; and, more and more, because “surplus is ruin,” for government-enforced crop controls. There was desperation in the mail sacks he opened each morning.
 
There was desperation in the mail sacks of almost every Congressman, it seemed. Americans everywhere were asking their government for help. Despair was stalking city streets as well as the countryside. In Chicago, 600,000 persons were unemployed, in New York, 800,000; the total of unemployed men in America’s cities was between 15 million and 17 million, and many of these men represented an entire family in want. Witnesses were telling congressional committees that private charities had run out of money, that states and local municipalities which had attempted to shoulder the burden had run out of money—that, for want of federal assistance in relief, growing numbers of America’s people were, literally, starving.
 
During that session of Congress, there were reminders of the nation’s plight not only in Washington’s committee rooms but in Washington’s streets—25,000 reminders: the penniless World War veterans who, in May, 1932, marched up Pennsylvania Avenue, their faces set in concentration as they tried to march in step as they had marched when they were young, and who then encamped with their wives and children in abandoned warehouses and empty stores, and in tents set up in parks, so that “Washington, D.C., resembled the besieged capital of an obscure European state.”
 
But little help came from the government. When its legislative branch, which had, in December, 1931, turned a deaf ear to suggestions that it forgo its usual two-week holiday, returned in January, it was to begin seven months of wrangling and delay, enlivened only by Congressmen’s near panic when they encountered Bonus Marchers; some Congressmen broke into a run when the ragged men approached. When Congress finally adjourned in July, 1932, the only substantial aid that had been given to farmers was a $125 million increase in the capital available for federal mortgages—an increase so far below the amount needed as to be all but meaningless, particularly since it was not accompanied, despite the pleas of farm organizations, by even a token easing in the onerous interest and repayment schedules. Despite the urgency of witnesses’ pleas for help with relief funding, the Congressmen who had heard those pleas squabbled over minor details for weeks that turned into months—and the provisions of the bill that finally passed were so niggardly that the average relief stipend for a family of four would be fifty cents per day. As for the vital tax and tariff reform bill, special interest blocs squabbled over its provisions, and states traded tariff proposals back and forth until, in May, one Senator was moved to shout: “Have we gone mad? Have we no idea that if we carry this period of unrest from one week to another, a panic will break loose, which all the tariffs under heaven will not stem? Yet we sit here to take care of some little interest in this state or that. … ‘My state! My state!’ My God! Let’s hear ‘My country!’ What good is your state if your country sinks into the quagmire of ruin!” For months, the Forum magazine said, “the country [has] been looking on, with something like anguish, at the spectacle of the inability of the national legislature, in a time of desperate need, to take any action—good, bad or indifferent—for dealing with the crucial problem of national finance.” A columnist, more succinct, called the House of Representatives “The Monkey House,” and his sentiment was echoed by some of the congressmen themselves; declared McDuffie of Alabama: “representative government is dead.”
 
AS FOR THE leader of the government’s executive branch, when the Bonus Marchers begged Herbert Hoover to receive a delegation of their leaders, he sent word that he was too busy. Reinforced police patrols surrounded the White House; barricades were erected to close nearby streets to traffic; a New York Daily News headline proclaimed: HOOVER LOCKS SELF IN WHITE HOUSE. And in July, the President had the Army, with fixed bayonets and tear gas, drive the veterans out of Washington.
 
He handled the Depression with equal firmness. In December, 1929, he had said, “Conditions are fundamentally sound.” In March, 1930, he said the worst would be over in sixty days; in May, he predicted that the economy would be back to normal in the Autumn; in June, in the midst of still another market plunge, he told a delegation which called at the White House to plead for a public works project, “Gentlemen, you have come sixty days too late. The Depression is over.” In his December 2, 1930, message to Congress, he said that “the fundamental strength of the economy is unimpaired.” Asked why, then, so many unemployed men were selling apples on street corners, he said: “Many people have left their jobs for the more profitable one of selling apples.” His secretary noted that the President was beginning to regard some criticism as “unpatriotic.” In 1932, his tune had not changed; in April of that year, a visitor was authorized to report that “Conditions are getting better. The President was in high spirits over the economic improvement.” When delegations came to the White House begging him to endorse direct federal aid for relief, or increased spending on public works, he refused; “As long as I sit at this desk, they won’t get by,” he said. He couldn’t bear to watch suffering, so he never visited a breadline or a relief station; as his limousine swept past men selling apples on street corners, he never turned his head to look at them. Even Time magazine, after more than two years of maintaining a fagade almost as cheery as Hoover’s, noted in 1932 that “the nation’s needy have gone through three hard winters without a dollar’s worth of direct aid from the Federal Treasury.” Said Hoover: “Nobody is actually starving. The hoboes, for example, are better fed than they have ever been. One hobo in New York got ten meals in one day.”
 
He wasn’t starving. Having decided that economy in the President’s kitchen would be bad for the country’s morale, he continued eating at the most elaborate table ever set in the White House. Even when the only other diner was his wife, Lou, dinners were always seven courses; while Hoover, dressed always in black tie, ate his way through them, the dress blues of the Marine duty officers in the doorways provided ceremonial trappings, and butlers and footmen—all of them the same height—stood as rigid as statues, “absolutely silent, forbidden to move unbidden.”
 
When, after months of haggling, Congress finally passed a public works bill, the President called it “an unexampled raid on the public treasury,” and warned, “We cannot squander ourselves into prosperity.” When Congress attempted to add to his request for $25 million for the relief of animals in Southern drought regions another $35 million so that humans as well as livestock might be fed, he refused to allow the measure, saying: “Prosperity cannot be restored by raids on the public treasury.” When, finally, he became convinced that some government action was necessary, the action he selected was the creation of the Reconstruction Finance Corporation, which critics called a “breadline for big business,” because of its emphasis on bailing out corporations, railroads, insurance companies and banks (big banks; in general, it would not help smaller institutions); the RFC’s attitude toward suffering on a human scale was revealed when Congress in 1932 pushed through against the administration’s wishes an act authorizing the agency to advance the states $300 million for relief; it deliberately dragged its feet, so that the states actually received only $30 million—exactly one-third of the amount the RFC’s president had loaned his own bank. Herbert Hoover, said Breckenridge Long, “has set his face like flint against the American government’s giving one cent to starving Americans.” And when, in the Autumn of 1932, Hoover went to the country to campaign for another term, crossing states he had never visited since he had been elected four years before, the reception that greeted him was one that had been afforded no previous American President—not even Lincoln in Richmond in the last days of the Civil War; as the President’s train was pulling into Detroit, the men on it heard a hoarse, rhythmic chant rising from thousands of throats; for a moment they had hopes of an enthusiastic reception—and then they made out the words of the chant: “Hang Hoover! Hang Hoover! Hang Hoover!” Mounted police charged the crowd, and the Secret Service hustled the President into a limousine for the four-mile drive to Olympic Stadium. And as the Presidential caravan sped past, those inside his limousine saw, through its thick windows, that the route was lined, block after block, with tens of thousands of men and women who were, in Gene Smith’s words, “utterly silent and grim save for those who could be glimpsed shaking their fists and shouting unheard words and phrases.” When, in St. Paul, the President defended his treatment of the Bonus Marchers, saying, “Thank God we still have a government in Washington that still knows how to deal with a mob,” the crowd responded with one vast snarl, a snarl so vicious that the Secret Service chief suddenly found himself covered with sweat. As the President’s train moved across his country, its people pelted the train with eggs and tomatoes. Four years before, he had carried forty of the forty-eight states; in 1932, he carried six.
 
DESPITE HIS REJECTION by the people in November, 1932, Hoover was going to be President until March, 1933—March which lay on the far side of the winter ahead. Although no fewer than 158 Congressmen had been defeated in November, they were going to be Congressmen until March.
 
That was a winter of despair. When, on December 5, 1932, the lame-duck Congress reconvened, those of its members who had hoped that the tear-gassing of the veterans had frightened the jobless away from Washington received a surprise; crowded around the Capitol steps were more than 2,500 men, women and children chanting, “Feed the hungry! Tax the rich!” Police armed with tear gas and riot guns herded the “hunger marchers” into a “detention camp” on New York Avenue, where, denied food or water, they spent a freezing night sleeping on the pavement, taunted by their guards. Thereafter, Congress met behind a double line of rifle-carrying police, who blocked the Capitol steps. And behind these bodyguards, as the weeks of the terrible winter turned into months, Congress dawdled and wrangled as it had been dawdling and wrangling ever since the Depression began; sullenly, it deadlocked over the scores of competing relief proposals, while spending hours and days squabbling over whether to legalize beer and what percent of it should consist of alcohol. As for the man in the White House, he spent the interregnum maneuvering to tie his successor to his discredited policies. The program of the “President-reject,” as Time called him, had the virtue of consistency; his State of the Union message called, as had his previous three messages, for economy in government and a balanced budget; the lone new proposal was for a sales tax that would fall hardest on those least able to afford it. With conditions worsening as rapidly as the weather, with the welfare rolls growing longer and longer, and the relief structure, so long crumbling, beginning to disintegrate, he continued to withhold federal help.
 
As the people saw that their government was going to give them no leadership, there began to be heard throughout America the sound of hungry men on the march. In Columbus, Ohio, 7,000 men in ranks tramped toward the Statehouse to “establish a workers’ and farmers’ republic.” Four thousand men occupied the Lincoln, Nebraska, Statehouse; 5,000 took over the Municipal Building in Seattle; in Chicago, thousands of unpaid teachers stormed the city’s banks. A Communist Party rally in New York’s Union Square drew an audience of 35,000.
 
IN THE CITIES, such outbreaks, while violent, were brief. It was in America’s countryside that rebellion began to flare with a flame that, while fitful, did not die out—in the countryside, among the descendants of the People’s Party, among the descendants of the Alliancemen. For half a century and more, America’s farmers had been asking for tariff reform, for railroad and bank regulation, for government loans, for silver remonetization—for help in fighting forces too big for them to fight—and for half a century, their government had turned to them a very deaf ear. Now, starving, they asked again—often in words that echoed those spoken in Chicago thirty-six years earlier before an audience bearing silver banners that fluttered in the breeze; an Oklahoma rancher told a House subcommittee: “We will march eastward, and we will cut the East off. We will cut the East off from the West. We have got the granaries; we have the hogs, the cattle, the corn, and the East has nothing but mortgages on our places. We will show them what we can do.” And this time, when their pleas were, as usual, unanswered, the House passed farm legislation; Hoover, calling it “wholly unworkable” (his Memoirs reveal that he had not taken the trouble to understand it), let it be known that he would veto it, and it died in the Senate—farmers reached for their pitchforks and their guns.
 
The previous summer, under the leadership of sixty-five-year-old Milo Reno, who had in fact been one of the early Populists, Iowa farmers, singing, “Let’s call a farmers’ holiday,/A holiday let’s hold;/We’ll eat our wheat and ham and eggs/And let them eat their gold,” had refused to deliver milk to Sioux City, where distributors who bought it from them for two cents were selling it for eight cents—and, to enforce the strike, blocked every road leading into the city with spiked telegraph poles and logs. Warned by sympathetic telephone operators of the approach of police and sheriffs, they disarmed them and threw their pistols and badges into corn fields. The movement had spread—soon Des Moines, Council Bluffs and Omaha were isolated; when sixty insurgents were arrested in Council Bluffs, a thousand farmers marched on the jail and released them. That revolt had died away, but now, in the desperate interregnum winter, rebellion flickered and flared all across America’s countryside. In Iowa, a mob of farmers, flourishing a rope, threatened to hang a lawyer who was about to foreclose on a farm. In Kansas, the body of a lawyer who had just completed foreclosure proceedings was found lying in a field. In Nebraska, the leaders of 200,000 debt-ridden farmers announced that if they didn’t get help from the Legislature, they would march on the Statehouse and raze it brick by brick. A judge who had signed mortgage foreclosures was dragged from his bench by black-shirted vigilantes, blindfolded, driven to a lonely crossroads, stripped and beaten. And in scores of county seats in America’s farm belt, the same scene was repeated: when a foreclosed farm was to be auctioned, crowds of armed farmers would appear at the courthouse; prospective bidders would be jostled and shoved until they left, and the farm would be “bid in” for a dollar or two, and returned to the original owner. The respect for institutions and public authority that holds societies together was beginning to vanish.
 
IN FEBRUARY, 1933, the country’s banks began to close. Some 5,500 had already closed in the three years since the Crash. Few of the remaining 13,000 were healthy; they had a total of $6 billion in cash to meet $41 billion in deposits; should a wholesale run begin, they would have to cover the balance by selling securities and mortgages which had by now declined to a fraction of their previous value. And now the run was beginning. On February 14, 1933, Governor William A. Comstock of Michigan was told that Detroit’s Union Guardian Trust Company was tottering, and that if it fell, every other bank in the city would go down with it. He was asked to declare a banking moratorium throughout Michigan, and at midnight he agreed, and issued a proclamation closing the state’s 550 banks.
 
With the collapse in Michigan, suddenly there were long lines—of depositors withdrawing their savings—in front of tellers’ windows in banks all across the country. On Monday, February 20, the Baltimore Trust Company paid out $1 million, on Tuesday $2 million; on Friday, February 24, it paid out in a single day more than $6 million. Governor Albert C. Ritchie closed Maryland’s 200 banks; another state had gone under. On February 26, banks in Indianapolis and Akron announced that withdrawals would be limited to 5 percent of balances; by the next day, that policy had been adopted by a hundred Ohio banks. In neighboring Kentucky, banks began imposing similar restrictions. By March 1, frantic Governors had declared bank “holidays” in seventeen states. By noon on March 3, every bank in Kansas and Minnesota had closed, and closings had begun in North Carolina and Virginia. And in New York, opposite Grand Central Station, depositors had formed long lines to withdraw their money from the Bowery, the world’s largest savings bank; in Chicago, bankers totaling their shrinking reserves realized that their institutions had paid out $350 million in two weeks. The nation’s two great financial strongholds were at the brink of chaos.
 
CHAOS WAS THREATENING even those farm areas that had once seemed most secure—areas such as the one that Lyndon Johnson’s Congressman represented. Revolt was flaring down on the Gulf. As the desperate winter of 1932 finally drew near its end, farmers applied to local banks for the usual seasonal loans for seed for the Spring planting—and were told that the banks had no money to lend. Soon the truth of that statement was demonstrated to them the hard way: a farmer who still had money in a bank would suddenly hear that the bank had closed.
 
To the farmers of South Texas, it was as if the very fabric of their society was ripping apart. One of the shuttered banks was the depository of the Corpus Christi School District; with the bank’s doors closed, the school doors closed. Other school districts, dependent on property tax payments, found that with tax payments so sharply down, there was no money for teachers’ salaries. Many children weren’t going to school, anyway; they had to work “off the farm,” work like field hands, for a nickel an hour. The education of their children had been so important to these farmers; now the children were no longer receiving an education.
 
Few farmers were free now from the dread of losing their homes. In 1933) only 38 percent of the farmers—about one out of every three—in once-prosperous Nueces County were able to pay their taxes; many were three years behind now, so penalties and interest had been piled atop the debt. And the abyss that gaped before them seemed bottomless. Farmers who had lost their land the year before had been able to go on relief, so that at least their families would not starve. Now relief organizations were all but out of funds. In February, the Corpus Christi branch of the Salvation Army announced that the last of its funds would be exhausted by the end of May.
 
Government couldn’t, or wouldn’t, help. Their local government was poor because they were poor. Their state government was dominated by what Populists called “the Interests.” In January, 1933, Nueces County farmers joined farmers from all over Texas in asking the Legislature for passage of a bill authorizing the issuance of bonds to raise money for relief funding; the bill was defeated. Eleven bills providing for a tax moratorium were introduced in the Legislature in January and February, 1933, by its small group of Populists; lumping all eleven bills together for easy handling, the Legislature defeated them on February 11—although, just a few days before, it had been informed that without a moratorium, tens of thousands of Texas families would shortly lose their farms. Hope for assistance from the national government had long since faded. And when the farmers realized that there was going to be no help from government, they decided to help themselves—even if it meant breaking the law. The first Tuesday of each month was “foreclosure day” in Corpus Christi: the day on which foreclosed farms were auctioned off on the steps of the Nueces County courthouse. Twenty-five farms were scheduled for auction on Tuesday, March 7. At a rally on February 25, more than 1,500 grim farmers, after being told by a speaker, “I know you are here to see that the masses of the land get justness and fairness and right,” vowed to be at the courthouse on March 7—with guns. Similar vows were being taken that week in county seats all across rural America. An entire nation was going up in flames, and its government seemed paralyzed; as James MacGregor Burns has written: “Crisis was in the air—but it was a strange, numbing crisis, striking suddenly in a Western city and then in the South a thousand miles away. It was worse than an invading army; it was everywhere and nowhere, for it was in the minds of men. It was fear.”


And remember my friend, future events such as these will affect you in the future.






Also tagged with one or more of these keywords: 1928, 1929, Great Depression, Pre-Depression, Roaring 20s, economic collapse, economics, Herbert Hoover, Donald Trump, USA

0 user(s) are reading this topic

0 members, 0 guests, 0 anonymous users