There had been financial panics before, and there have been some since, but never did a collapse in the market have such a devastating and long-term effect. Like a snowball, it formed and swept away the whole economy before it. Businesses closed, putting millions out of work. Banks failed by the hundreds. Wages for those who were fortunate enough to still have work fell drastically. The value of money decreased as the demand for goods declined. The international structure of world trade collapsed, and each nation sought to protect its own industrial base by imposing high tariffs on imported goods. This only made matters worse. By the fall of 1931, the international gold standard had collapsed, further damaging any hope for the recovery of trade. This started a series of currency devaluations in several countries, because these nations realized that a devalued currency posed at least a temporary advantage in the struggle to find markets for their goods.

This was the start of the Great Depression of 1929 to 1940, which began and centered in the United States but spread quickly throughout the industrial world. By 1932, United States industrial output had been cut in half. One fourth of the labor force (about 15 million people) was out of work, and there was no such thing as unemployment insurance. Hourly wages had dropped by about 50 percent. Prices for agricultural products dropped to their lowest level since the Civil War. More than 90,000 businesses failed completely.

For nearly every unemployed person, their were dependents who needed to be fed and housed. This massive poverty and hunger had never before been known in the United States. Former millionaires stood on street corners trying to sell apples at 5 cents apeice. Hundreds of pitiful shantytowns, called Hoovervilles in honor of the unfortunate Republican president who presided over the disaster, sprang up all over the country to shelter the homeless. People slept under "Hoover blankets" (old newspapers) in the out-of-doors. People waited in bread lines in every city, hoping for something to eat. In 1931 alone, more than 20,000 Americans committed suicide. The theme song of the time was "Brother, Can You Spare a Dime?"

For anyone who did have money, depression America was a shopper's paradise. A new home could be bought for less than $3,000. A man's suit costed about $10, a shirt about 50 cents, and a pair of shoes about $4. Milk was 10 cents a quart, a pound of steak only about 29 cents, and a loaf of bread a nickel. Not many lucky enough to be working had much change to spend after paying rent, and buying food. To turn to the government, at least during the Hoover years, was useless. There was no federally financed "safety net" of welfare programs to keep the working class from falling into poverty.



Then came Franklin Delano Roosevelt, a hero to almost every citizen of the time. In his first inaugural address, President Roosevelt made some attempt to assess the enormous damage: "The withered leaves of industrial enterprise lie on every side; farmers find no markets for their produce; the savings of many years in thousands of families are gone. More important, a host of unemployed citizens face grim problems of existence, and an equally great number toil with little return." These words were inadequate. This economic catastrophe and its impact defied description.

In 1935, under the administration of FDR, the Federal Government purchased about 12,000 acres of rural land in an area north of Washington D.C., and a Federal Housing Project called "Greenbelt" was created. It was under the supervision of the Federal Resettlement Administration. The cost of this land was about $97 per acre. (Today what acreage can be purchased in this vicinity is selling for more than $5,000 per acre.)


This was during the dark days of the depression years and the "project" was planned to create useful work for men on unemployment relief and to provide much needed low-rent housing for families of modest incomes. Several similar projects were also built in other parts of the Nation. By September 1937, the first tenants began moving to these well-planned homes. More than 9,000 people had been given gainful employment and the estimated cost was approximately $13,450,000, including utilities, roadways, shopping center, municipal services and the cost of 3,371 acres of land involved in this original project. It was recognized as one of the world's foremost experiments in community planning.

On June 1, 1937, a town charter enacted by the Maryland State Legislature became effective. The Town then consisted of 885 dwelling units, with all community facilities, an about 217 acres. Monthly rentals ranged from $18 to $41, with additional charges for electricity and water. The original tenant requirement was for families with an annual income of less than $2,000. In November 1937, 96% of the registered voters elected their first Town Council, naming Louis Bessemer as Mayor and Roy S. Braden as Town Manager. Mr. Braden was also at that time Community Manager for the Farm Security Administration which had taken over ownership and operation of the project from the Resettlement Administration. Greenbelt was the first in Maryland to have a "City Manager".

The functions of the Town government and the Federal Government were closely inter-related and such a dual relationship caused an extent of overlapping of official responsibilities and jurisdictions. To provide the necessary community stores and services, the "Greenbelt Consumer Services, Inc." was established. This was a "cooperative organization" which still operates as a "co-op" there, in fact, has expanded into other communities. Another unique local cooperative, the "Greenbelt Health Association", was organized. Greenbelt was the presence of the many such groups there.

As new residents continued to move in, the number of organizations and clubs increased. In fact, there were not enough nights in the week to attend meetings. When asking a resident how he spends his time, he would most likely respond, "we join". Another local organization to secure a home at this time was the Greenbelt National Guard unit organized in 1948. The Federal Government dedicated eight acres of land to the State of Maryland for an armory in October 1949. On the site at the juncture of Glenn Dale Road and Southway was constructed a $300,000 building containing a drill hall, which doubled as an auditorium, three attractively furnished lounges, an equipped kitchen, indoor rifle range, seven classrooms, and a suite of offices. The building was completed in May 1955, and is now the headquarters of Battery B, 2nd Howitzer Battalion, 110th Artillery.

This planned community was placed around a lake covering 28 acres. It was dedicated by President Roosevelt personally, at which time he also placed a stock of various fish in the lovely lake. The new town of Greenbelt attracted public attention, was visited by many people and was the subject of many stories in newspapers and magazines. Many visitors from foreign countries came to see and study this new venture in public housing. When the town of Greenbelt was under construction, a number of private cemeteries were located within the area, including the burial grounds of the Isaac Walker family, one of the original settlers under a grant from Lord Baltimore, and another owned by the Thomas Turner family, one of the area's first settlers, which was acquired by the Federal Government and established as the "Greenbelt Cemetery". It appears very few "Greenbelters" have been buried there and, in fact, it seems very few know of its existance.

The years of World War II brought a major change to Greenbelt. In February 1941, the Federal Government announced that a thousand new homes for defense workers were to be built. Construction was started in July 1941, and more families started moving in by December. The cost of these homes, excluding land which had previously been obtained in the original land purchases, was about $4,000,000. The addition of these defense homes brought many problems -- such as more school facilities, shopping requirements, and other demands incident to such an expanded population. The North End Elementary School was built and the Greenbelt Junior High School enlarged. The Greenbelt Consumer Services expanded its facilities and established a travel-market -- a store on wheels.

The big event of Greenbelt's post-war history was the withdrawal of the Federal Government from the scene. As early as August 1940, reports had circulated that the Federal Government was considering the transfer of Greenbelt to a non-profit local housing corporation or authority. After the war, reports of such a transfer persisted, and finally were verified. Since the Federal Government owned practically everything in Greenbelt, the problem of disposing of the project was not restricted solely to the homes. There were also the commercial and municipal buildings, the recreation and park areas, the swimming pool, the roadways, the public utilities, and the vacant land. In July 1946, about 400 residents of Greenbelt formed a mutual housing cooperative to negotiate with the government for the purchase of the entire project. The Federal Public Housing Administration (PHA) at first contended that the sale of original Greenbelt could not be negotiated but must be made as the result of advertising and competitive bidding. This impasse was resolved by an act of Congress (Public Law 65), approved May 19, 1949, which authorized PHA to sell the "greenbelt" towns without regard to provisions of existing law requiring competitive bidding or public advertising and at a fair market value as determined on the basis of an appraisal by an independent real estate expert. The Act further provided that first preference in purchasing be given to veterans' groups organized on a non-profit basis, provided they accepted as members with full privileges, any tenant occupying a dwelling unit in the particular project at the time of his application. A down payment of at least 10% of the purchase price was specified, the remaining balance to be amortized over a period of not more than 25 years and to bear interest in four per cent per annum. To meet the veteran requirement, the local housing cooperative reorganized itself into the Greenbelt Veterans Housing Corporation (GVHC). (The name was later changed to Greenbelt Homes, Inc., in July 1957). In June 1950, PHA announced the terms and price for the city's sale. It offered all of the housing units, the commercial facilities, and that part of the undeveloped land not otherwise earmarked for $8,522,350. Excluded from the sale were 1,148 acres of land south of Greenbelt Road, which were later dedicated to the National Capital Planning Commission for a recreation area. GVHC accepted the proposal to negotiate, but the outbreak of the Korean conflict and the possible need for emergency housing led to a placing of a general freeze on all government property.

Negotiations were not resumed until two years later and finally, on September 26, 1952, GVHC, which had previously been designated as the preferred negotiator, executed a preliminary contract of purchase for the 1,575 dwelling units at a price of $6,285,450. Title was transferred on December 30, 1952, when GVHC president Michael Salzman handed PHA Commissioner John Taylor Egan certified checks for the required 10% down payment. Most of the remaining undeveloped acreage was sold at open competitive bids to private individuals. The city was now left entirely on its own resources, which presented serious financial problems. However, under the capable guidance of the Mayor and Council, the town assumed this responsibility, absorbed the rapid growth, and carried on.

President Roosevelt's idea to create a community which would greatly aid to those suffering from the Great Depression was a splendid one. Greenbelt, Maryland, which was originally built as a low-cost housing project, has turned out to be one of the greatest establishments that this country has ever witnessed. It is very rare to come across such a clean, safe, and strongly-bonded community nowadays, but this city clearly shows that it is not impossible.