The GREAT DEPRESSION Diaries – PART 1
Does This 90 Year-Old Diary Predict The Next GREAT DEPRESSION?!
August 1931: People are growing their own vegetable gardens for food
Soup kitchens become overrun, there are sometimes 7 mouths for 1 available bowl
Starvation is now common
The Government has been paying farmers to destroy their livestock and produce at a time when our children are starving. I saw some farmers today pouring gallons of milk into the river
Farm animals are slaughtered and disposed of in pits. Cotton and wheat ploughed back into the soil. While people were starving, the government was trying to boost the prices of our exports
I just heard from the butcher that the animals at the zoo have been slaughtered for food, he has some of the meat
Even though the trees are loaded with fruit, it will go to waste because the fruit cannot be sold. At the same time, thousands are starving
After a rapid increase in prices, houses that were purchased just two years earlier, now sell at less than half of their value at public auction, there are no buyers in sight
The owners seem shaken. They know they must get a sale or they will lose the house to the bank
We’ve seen a mass exodus from the city to farms and rural locations. The people that got land early, were able to work the land and feed themselves and their families. Many who stayed in the city, waiting for Government relief, starved to death
Vacation resorts were hit the hardest. People expected them to recover after a year or two, but many of the hotels still remain empty
There are empty homes everywhere. Even though families need housing, people simply have no income in order to pay rent
The banks seem to own every other house right now, they hold it on their books for better days
Construction of residential property is down 80%
Investors have started to demolish their own real estate to avoid paying the high taxes to the Government
This entry is from Benjamin Roth:
The effects of mass unemployment were not felt straight away. Then all of a sudden the response was rapid, car sales dropped by 25% in 1-month alone. Manufacturers who were over-stocked with large overheads began to lay off even more workers
People didn’t have money to buy food or pay their bills, and businesses couldn’t pay their employees, it became a vicious cycle
We are told today that unemployment is now at 25%. This means that 75% are still working, but very few that I know have a job. It’s the same in the next City along
Wages have crashed down as much as 50% as people are willing to work for whatever they can get these days
Most people now only work on alternative days and the best case I’ve seen is a 25% cut in wages, Most people will agree to any working conditions now, just so they can buy food
1931: 75% of the workforce are now on part-time hours
Well educated people including those with university degrees have been out of work for years now, they will take any job they can find
School teachers have not been paid in months
Florida and California hit really hard
Armies of unemployed march towards the capital for relief
The army was constantly called in to dispel protesters and rioters. They use bayonets & teargas and even burned down a shanty town to dispel the people to leave. With nothing to lose, the protestors slept in the streets
November 1933: The NRA plan is failing and employers are laying off staff (The National Recovery Administration)
1938: We’re told that unemployment has gone back to 20% again. The cycle has started all over again
The popularity of dance marathons began in 1923. Initially, participants competed in order to break the 27 hour record, but later on people began to compete to win prizes which could range from money to publicity
Dance marathons were a huge hit during the Great Depression as they provided contestants and spectators food, shelter and the opportunity to earn cash prizes, at a time when many people needed a meal and free entertainment
I just heard today that a man collapsed and died on the dance floor after dancing for more than 80 hours straight
December 1930: the bank of the United States (a private bank with no actual government status) collapses in what was the largest bank failure in US history at the time, freezing some $200 million in depositors funds
Prices are falling rapidly and the dollar buys you a lot more today than it did a couple of years ago, the problem is, there is no money in circulation
March 1930: Long lines of people can be seen withdrawing their deposits from the bank today, the bank officials look scared, (then a few days later):
No bank withdrawals are allowed today, they are doing an audit they tell me. Everything will be back to normal on Monday the manager has just told us all in line.
At home, the president is on the radio and tells us not to panic, all is well
The banks cannot allow withdrawals anymore because the money is no longer there. The banks explain that they lent the money to people for mortgages and businesses which they can no longer collect upon. This is due to homes being in the negative & business at a standstill, there is no hope, how will we ever escape this trap?
Bank holidays are used as a way to stop people withdrawing money.
Entry 1: Without warning, all banks, which are not even connected to one another, restrict withdrawals to 5% of balances! This all occurred on the same day. I’m told this has happened not just here, but across many Cities! It’s hard not to think suspicious thoughts.
Entry 2: It has come to light that The 5% withdrawal restriction was passed into law in a secret meeting… I am starting to lose all faith in our Government.
But anyone who deposits new money in the bank may withdraw on demand
There was constant restructuring of the banks with broken promises, constantly going back to freezing withdrawals even of the accounts that had recently deposited money!
Cash is King, if you have cash you can buy assets like stocks for pennies on the dollar, the problem is that very few people have any cash
Cash is the only thing that talks these days, no checks or credit are accepted, anywhere
There is no money in circulation anywhere. Scrip is now used in place of money in most major cities since cash is so hard to come by
July 1933: there is yet again another criminal case against some bankers in the newspaper today. The investigation shows that the officers manipulated the figures in the financial reports and made loans to themselves for speculation without collateral
At the same time, other bankers were promoting and selling their stock just the day before it collapsed, taking vast profits but leaving those who had bought the stock bankrupt as it crashed to being worthless – (according to the report, they sold these worthless stocks to those with very little money to begin with)
More and more banking corruption comes to light on a weekly basis
There were breeches in integrity everywhere, lawyers and bank officials were the main culprits. The bank officials were stealing people’s money to live luxuriously with their family, while children on their doorstep were starving. What have we become? Have we really fallen so far from God’s grace?
March 1930: Our banks are collapsing at an ever-increasing rate, taking the depositors money along with them, 20% of the banks we’re told, have already collapsed
August 1931: The panic starts to set in as the banks closed their doors with depositors money inside
October 1931: dozens of banks start to combine into larger banks as they consolidate power
After 2 years, people’s money at the bank is still frozen, yet the banks are open for new business!
Banks closing every single week, (March of 1933) almost every single bank in the country has now closed
April 1934: The banks start to remove restrictions on deposits frozen for over 3 years. People can finally get access to their now devalued money again
The GREAT DEPRESSION Diaries – PART 3
Are We Going Into An Even Greater Depression?
In 1938: Benjamin Roth made this entry into his diary which I found to be most profound on a MACRO level, here it is:
*After 8 years of pump-priming and other trick methods of bringing back prosperity, it is my conclusion that none of them are any good. In our capitalistic system we must let the forces of competition as well as demand and supply work things out in a natural way. No man or group of men is smart enough to control prices or the supply & demand curve*
Business is dead and even the big department stores are empty
We’re already seeing this now, except this time around, this is a Government led assault against businesses
Small businesses go bankrupt first and very quickly, usually within the first 3 years. The big stores held out for a lot longer because they had more access to lines of credit
Big companies received government loans but there was nothing for small businesses this is why the small businesses collapsed so easily
The President insists that it’s the right thing to do. He says people cannot be paid so little for their work
The President’s plan has ended in disaster. The higher wages resulted in reduced hours and eventually more layoffs
March 1933: Banks have been ordered to turn in all gold
March 1933, gold ownership is now illegal, the Government will pay $20.67 per ounce
100 million US Dollars in gold is returned in the first 2-days over fear of arrest
After my gold was confiscation in March of 1933 under Executive Order 6102, it was then revalued from $20.67 per ounce up to $30.00 per ounce, this was theft by any other name
To add to the injustice, the Government has just devalued the dollar, this has caused a rise in food prices and riots ensue
The Government threat of shame and punishment was a bluff, no one has been shamed or tried to my knowledge
No action was taken against gold hoarders – very unfair!
GOVERNMENT & MEDIA
1929: The magazines and newspapers are full of articles telling people to buy stocks, real estate and other assets at these runaway prices. Update Note 1931: Many of the people that took the advice of these newspapers are now bankrupt and lost over 80% of their money
The Government tries to pay off its debt by printing money. Prices sky rocket and violence breaks out because wages don’t keep pace
When the government printed money, prices went up 40 to 100%, but wages remained the same! The Government fooled us again. I now realise I must understand the mysterious world of the bankers to have any hope for the future…
A number of anti-free market policies came about fixing and increasing wages. The minimum wage of $7.50 per week for a department store clerk went up to $14 per week… layoffs were inevitable
1933: The Government plans are not working: money printing, putting money into the hands of people, buying bank bonds, making business loans with printed money – none of it has worked
MENTAL HEALTH & VIOLENCE
Suicide among prominent business men is on the increase
There are now constant riots, suicides, and mental health issues as a result of many people losing everything
Tempers are short and there is constant violence due to anger and hunger
1932: hold-ups and murders are now an everyday occurrence, home invasions are common and you cannot walk the streets after dark
History repeating: President Hoover blamed the financial crisis on greedy people buying stocks and thought nothing of people’s spending habits and production going overseas
November 1932: Democratic candidate, Franklin D Roosevelt wins presidency offering the New Deal to the people
Groups of hundreds of people are trucked into Ohio, Pennsylvania and West Virginia in order to disrupt the memorial day celebration – violent clashes ensue. No one knows who paid for these people to travel
Oct 1941: The great effect of President Roosevelt’s plan is wearing off rapidly. Despite many of the feelings that it was just a ploy to get votes, we now know for a fact
Radical socialism is the order of the day in March 1934 with demands from the people to the Government for work as well as debt forgiveness!
With greater prosperity, radical talk diminishes. People want the government to have less control of their life since proving.
Source Neil Mc Coy Ward