From the Depression to the recession

A glance through the pages of any University publication confirms that the current financial recession has taken a toll on all aspects of University life, but this is not the first time that an economic crisis has penetrated the Orange Bubble.

In a 1992 essay written for the ‘Prince’ titled “The Great Depression: Princeton Remains Fitzgeraldian,” John B. Oakes ’34 described the effects of the Depression on “every aspect of campus life” based on his own experience.

Oakes, who rose from the position of Editorial Chairman of The Daily Princetonian to become the editorial page editor at The New York Times, explained that during his time at Princeton, “The overwhelming majority — close to 90 percent — [of students] were white Anglo-Saxon Protestants” whose family finances weren’t especially dire. “Two-thirds of us never required even minimal outside financial help during our entire four years,” Oakes noted.

Yet, he explained, the consequences of the Great Depression “shook even Princeton out of its normal complacency.”

According to a March 14, 1933, article in the ‘Prince,’ many Princetonians were no longer able to meet their tuition bills. The article noted, “[A]bout half of the total enrollment of Princeton is receiving financial aid from the University, either through tuitions loans or student employment, [which] should indicate the state of the undergraduate purse.”

Oakes also noted the dwindling bank accounts of students. Though Princeton’s tuition, room and board at the time of the Depression was only around $1,000, Oakes noted that more than 40 Princetonians in his graduating year were forced to withdraw for financial reasons.

In fact, he explained, “The university’s own situation became so critical, and so much money was owed it by defaulting students (and parents) that it adopted a rule that no student would be allowed to register for courses until he paid his tuition charges in advance each semester.”

Though the current economic downturn has some parallels to the Great Depression, the University is taking steps to avoid similar repercussions for students. With an estimated 59 percent of next year’s student body requiring financial aid, the University announced in February plans to increase the undergraduate scholarship budget by 13 percent to help balance the 2.9 percent increase to the cost of attending the University next year. This 2.9 percent increase is the smallest since 1966.

The University will also increase its financial aid budget for the 2010 fiscal year by roughly $8 million, Provost Christopher Eisgruber ’83 announced in March.

The Depression affected every area of undergraduate student life, including social events. After the junior prom was called off, some suggested the clubs should also cancel Houseparties.

“Princeton cannot afford to let the impression get abroad … that only wealthy men will fit in here,” the March 1933 ‘Prince’ article stated. “There is little doubt that functions of the sort … will give that false idea, especially in times like these.”

Houseparties were ultimately held that year, though they were not as extravagant as usual, Oakes noted. But, he added, student discontent at the events’ relative modesty was mitigated by the legalization of beer in New Jersey at the end of Prohibition.

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Some measures taken during the Depression seem unlikely to have modern parallels, however. After the national bank holiday was announced in 1933, the ‘Prince’ issued $500 of scrip in 25-cent denominations, Oakes said. Students could buy up to $5 each with personal checks.

“[T]he Princetonian intends to show its confidence in the banks and in the checks of undergraduates,” the ‘Prince’ Editorial Board explained. “[T]here is no cause for excitement and every reason for confidence in local institutions and in the financial structure of the country.”

All student agencies, Princeton Garden Theatre, the U-Store and 15 other local businesses accepted the scrip instead of cash, according to an advertisement in a 1933 edition of the ‘Prince.’ When banks reopened, the ‘Prince’ was able to redeem all of the scrip, Oakes said.

As the University deals with economic circumstances reminiscent of the Depression, some themes resonate with the current situation, but current Princetonians may be able to take comfort in one of Oakes’ observations.

In the midst of labor strikes, stock market nosedives and home foreclosures, dining hall conversations transcended the harsh economic circumstances. Still, life for Oakes and his fellow classmates went on: Students still found solace in daily discussions of “[f]ootball, women, parties ... and how to get through the next exam.”