Depression-Era Diary, Part Three

I had lunch and a talk with R--- M--- of the Home Savings & Loan Co. He is not very optimistic about the near future. Says that the city of Toledo is completely tied up for lack of money. Money is either in hoarding or tied up in closed banks and business is crippled. He does not think bank money will be released for a long time. He also fears that people who owe money on mortgages will withhold their payments and thus make the situation worse. Foreclosure does not help because there is no re-sale market. The bank simply becomes the owner of the real estate. Moratoriums of one year are being considered on mortgage payments in many states.

Aug. 18, 1931. This town is fast becoming panic-stricken. Everybody is talking about the depression and wondering where it will end. The failure of the 4 big Toledo banks and the stoppage of withdrawals by practically all of the savings and loan companies has tied up everything. There is no money in circulation and all business is at a standstill. Dr. W--- our family dentist stopped me today and urged me to continue to send my family in for dental work even tho we could not pay promptly. This was a very unusual thing for him to do but people have simply stopped worrying about dental needs. If a tooth aches they have it extracted but neglect all other dental services that might be expensive.

Today's Legal News recites that two vacant lots on Main St. in Wickliffe sold for taxes at 25.00 each. I did not bid on them because each carries future special tax assessments of 250.00 each. I suppose I will be sorry 10 years from now.

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