(1933 vs. 2012) MORATORIUM ON FORECLOSURES NOW!
By Nick ShillingfordSouth Minneapolis Homeowner and member of the Canvassing Sub-Committee of Occupy Homes
The call for an immediate moratorium (government imposed suspension
of activity) on all foreclosures is not a new idea. In fact a moratorium
was put in place by the Minnesota legislature to halt foreclosure
proceedings in 1933 during the Great Depression. In the mid-west this
movement was lead by radical farmers in the Farmers Holiday Association.
But ultimately a total of 27 states would enact some form of
foreclosure moratorium by the middle of 1934 for both urban and rural
home owners. (Wheelock 2008)
In 1932 it became clear that “sharply falling incomes made it
increasingly difficult for farmers to pay the interest and principal on
their outstanding debts, but falling property values made it less likely
that farmers could sell their properties for more than the outstanding
balance on their mortgages. The result was a sharp increase in
farm mortgage delinquencies and foreclosures.” (Wheelock 2008)
Similar to the 1930’s today many families have seen their incomes
shrink while dropping property values have put their homes actual market
worth well below what they still owe the banks on their mortgage.
Unemployment, wage pressures and market pressures are now squeezing
families across the country.
In Minnesota, Iowa, and Wisconsin the Farmers Holiday Association,
which was made up of farmer radicals played a leading role in activating
the wider community and pressuring the legislature to act. According to
a paper by Kim Neilsen presented to the Minnesota Historical society
“In the fall of 1933, Konrad K. Solberg, Minnesota’s
lieutenant governor, told frustrated Douglas County farmers, ‘If you
haven’t got 50 [cents] for the [Farm Holiday] membership, steal one of
your mortgaged pigs and sell it!’” (Neilsen 1988) In addition to calling
on farmers to join the Farmers Holiday Association he was also telling
them to committee an act of non-violent civil disobedience in stealing
a mortgaged pig back from the bank.
Years of movement building accompanied by other direct action had
been crucial in bringing about the situation in 1933 that ultimately
resulted in the passage of the moratorium bill of that year. One popular
direct-action technique that was widespread was the penny auction. “The
concept was simple. Farm families gathered in large numbers at
a foreclosure sale and quietly but confidently informed any prospective
buyers that they were not to bid…When items came up on the auction
block, only designated bidders were allowed to speak. Cars, tractors,
and livestock were purchased for sums ranging from about 10 cents to 50
cents. At the end of the auction, all the goods were returned to the
original owner.” Just the threat of this tactic in some cases was enough
to convince the banks to renegotiate with the farm families before the
date of the auction came. (Neilsen 1988)
All the while the Farmers Holiday Association and other farm member
organizations were also drafting and publicly speaking about legislation
to halt foreclosures all together. It was the pressure on the banks
that won gains for individual families but ultimately national public
pressure on the politicians that brought about a moratorium in many
states. Just days before the Minnesota moratorium was passed in November
of 1933 Milo Reno, the original organizer of the Farmers Holiday
Association, said “We have been patient and long suffering. We have been
made a political football for jingo politicians, who are controlled by
the money-lords of Wall Street.” (Neilsen 1988)
Once again many Americans are now becoming aware of the stranglehold
Wall Street and big banks have on our communities. We must seize this
opportunity to call for a moratorium on all foreclosures while also
making it difficult, if not impossible, for banks and the police to
forcefully take us and our neighbors from our homes.
Homelessness HURTS. Help us prevent homelessness and fight the corrupt banks ..
The link to the 2012 foreclosure petition is on signon.org here. Please sign!
An article about how to achieve a foreclosure moratorium in your state is at:
http://www.opednews.com/articles/State-wide-Foreclosure-Mor-by-Virginia-Simson-120618-544.html
