North Sound Property News

Everyone’s family has a Great Depression story.  Some families were devastated by economic crisis, others came through relatively unscathed.  But in some way, our nation (in fact, the world) carries deep psychic scars from this period and in any time of economic upheaval, those cultural memories can come rushing back whether the situation merits such thinking or not.

Naturally, with all that is currently happening in the mortgage industry, I am reminded of one of my family’s best depression stories.  My grandmother was in her teen years during the depression, and came from a relatively wealthy family in Boise, ID. By and large, her family was one of those “unscathed.”  And yet, we have a story too.

Our story is of my grandmother’s uncle Lynn Driscoll, who was president of the Boise’s First Security National Bank.  First Security was the only bank in Boise that survived the bank runs of 1932.  And the reason why it was the only bank to survive was Uncle Lynn.

According to the city of Boise’s Morris Hill Cemetary walking tour:

With wise planning and the bold use of red and black paint, J. Lynn Driscoll prevented a panic from shutting down the last bank in Boise. In August 1932, two of the capital’s three banks had closed their doors-Boise City National and First National Bank of Idaho. That left First Security Bank, managed by Driscoll.

As lines formed Wednesday morning, August 31st, he was ready for the run. He had ordered one million dollars in extra currency from the Federal Reserve Bank in Salt Lake City. His tellers were told to pay all comers, but not to act in too hasty a manner. He had intended for the bank to close at noon in support of the Western Idaho Fair but early that morning, he reversed his decision. He and his employees prepared to work until midnight and engaged a sign painter to paint a sign saying:

“For the benefit of our patrons This Bank Will Be OPEN UNTIL LATE TONIGHT. If You Want Your Money Come and Get It!”

The sign was hung before the paint was dry. One customer said “If you’ve got my money, I guess I really don’t want it. But if you haven’t got it, then by heaven, I want it now and in full!”. First Security stayed open until 9:00pm and survived the panic.

So what’s the point of this story?  In troubled economic times, the person who keeps a cool head usually will prevail. Focus on your work, or as Uncle Lynn’s generation would have said, “stick to your knitting.” Changes in interest rates and lending standards aren’t what lead to economic disaster–panic is. Uncle Lynn didn’t necessarily have that guy’s money but the guy believed he did, and that was enough. Sometimes belief is all we have. Years later, that man was probably glad he left his money deposited.

Is now the best time to be a buyer or seller? People talk a lot about buying when prices are down and selling when prices are up. Right now prices are stable but sales are slowing down and there are some forces in play that could lead to a decline–by how much, it is tough to say. They also might increase or not do anything–without a crystal ball, it’s hard to predict the future. But the reality is, unless you are an investor, you will be making a move at the time that works best for you and your family, and the market may or may not be favorable. But if you have a long term perspective, make your payments, and have considered the pros and the cons, buying a home can still be a very smart decision.

About the Author: Sandy Kaduce is Associate Broker of Gallery Homes Real Estate. She serves buyers and sellers in North King and South Snohomish counties. She is 2009 Board President of the Mukilteo Chamber of Commerce, as well as Vice President of Site Selection for Habitat for Humanity of Snohomish County. For more information, visit Sandy on the web at www.sandykaduce.com! Read more from this author