Here"s what frequently happened. During the 20s, countless farmers borrowed money from banks to buy more land or brand-new machinery. Farmer pledged your assets as protection on the loan. For this reason if a farmer couldn"t do the payment on a loan for land, the financial institution could take ago the asset the soil and sell it to get back their money. In the 1920s, countless loans to be written as soon as land values and also crop prices were high. ~ the stock industry crash, couple of people had actually the money to buy land, and so land worths plummeted. As soon as a financial institution had to foreclose and also sell the land, they couldn"t
Harvey Pickrel (left) had two experiences through foreclosure. His father-in-law, Merle, couldn"t pay off his loan, for this reason the bank sold his farm at auction. But Merle to be luckier than most. He maintained farming only currently he was a renter quite than one owner that the farm. Later on in the decade, Harvey acquired behind on payment
And some farmers and also townspeople do the efforts to uncover buyers that their property so lock wouldn"t have actually a foreclosure on their record. That"s exactly how Louise Dougherty and also her husband, John, to buy their first house.
Written by bill Ganzel of the Ganzel Group. First written and also published in 2003.
You are watching: How were farmers and banks connected in the 1930s?
See more: A Key Element Of Customer Relationship Management Is To, What Is Crm
Making Money Crash!What followed the CrashWorldwide DepressionWall Street to RFDBurning Corn because that FuelCouldn"t also Buy a JobRFD to main StreetBank FailuresForeclosuresPenny AuctionsRadical farm ProtestsBarter EconomiesA brand-new DealFDRNew financial LawsWPAWPA arts ProjectsSocial SecurityThe national politics of REALocal PoliticsPolitical AttitudesMarketing in the 30sA 1930s Balance SheetParityDepression Legacy