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• 1 2021-06-29T19:24:30+00:00 The Great Depression and Hope as an Institution 17 Impact of the Great Depression on Hope College Financially plain 2021-08-02T13:54:11+00:00

  
  Our experience attempting to grasp the Great Depression’s impact on Hope College institutionally challenged us. We scoured the Board of Trustees Minutes, the Anchor, Hope at 150 by Jacob Nyenhuis, and A Century of Hope by Wynant Wichers, finding a variety of pieces of the full picture of the Hope’s response to the Great Depression. First, letters to the National Bank of Commerce in New York City from President Dimnent in October of 1928 indicate that Hope College sold their stock portfolio prior to the stock market crash in October of 1929, allowing them to avoid any major hit to their endowment as a result of the crash [1]. This surprised us as we found little indication of why he chose to do this. The Treasury Report of 1928, which would have evaluated the financial status of Hope College for the 1927-1928 school year reported that over time, the Permanent College Funds had increased in a constant ratio, and the preceding year had been no different [2]. However, the April 1929 Treasurer Report indicated a sudden deficit that the college would not be able to balance six months prior to the stock market crash. The Treasurer notes that the college increased tuition to aid their financial situation [3]. While we might wish that Dimnent predicted the crash of the stock market, the financial crisis that followed, and steered Hope to avoid financial disaster; however, it seems that Hope experienced financial struggle just before the crash of the Stock Market in October of 1929. 

  The spiraling of the entire country into the Great Depression did not help Hope’s financial situation. In June of 1930, the Board of Trustee’s report to the General Synod of the Reformed Church in America noted the incredible deficit that the college would acquire by the end of year that would exceed that of earlier years [4]. This indicates a financial crisis much worse than the years of struggle in the late 1920’s. 

  We ran into many difficulties when researching the early and worst years of the Great Depression at Hope. Writers of Hope’s history, such as Wynant Wichers, Jacob Nyenhuis, and the Board of Trustees documents that include Treasury reports give differing stories of the decrease or increase of the college’s endowment. In A Century of Hope, Wichers writes that by 1931, the college’s endowment had suffered and a portion had gone into default. Wichers also explains that the Board of Trustees struggled most with recovering the endowment of all difficulties during the Depression [5]. Contrastingly, Nyenhuis writes that Hope’s endowment actually increased during the Great Depression [6]. 

  Going back to the original sources, the Board of Trustees Minutes didn’t provide much clarity. While we have a few of the Treasury Reports for the late 1920’s and early 1930’s, they are all formatted in different ways with a variety of entries that indicate the permanent fund. We found Treasury Reports for 1927-1928, 1928-1929, and 1930-1931 that documented that the permanent fund and endowment receipts and disbursements balanced at $296,555.86, $364,386.99 and $108,553.21 respectively [7]. Sadly we do not have the treasury report from 1929-1930 to judge the immediate impact of the stock market crash. In 1928, the Treasurer listed the increase in the Endowment and Trust Account at $14,233.00 and the Operating Deficit at $5,909.45 [8]. In the 1930-1931 school year, the Treasurer Lists the endowment fund at an increase of $11,663.03 and the operating deficit at $8,221.72 [9]. Based on the Report to the General Synod for 1931, these entries indicate increases in the accounts or fund [10]. It is important to note, however, that the Treasurer Report for 1930-1931 listed the endowment and the trust fund separately. It is unclear if we should combine these numbers when comparing to the number listed as the 1928 increase, as the report to the General Synod did not include any note of an increase in the Trust fund that would make us believe the two numbers should be combined as a more important number than the $11,663.03 that the Board Reports in its more narrative report. Unfortunately, the 1929 report does not have entries for Hope’s endowment or operating deficit that can be compared with the 1928 or 1930-1931 entries [11].
  

  Interpreting these numbers proves difficult because of our inability to accurately compare the entries based on the variety of ways the Treasurer reported Hope’s finances in a short number of years. If we do not combine the Endowment and Trust Funds for 1931, we see that the Endowment did increase; however, as did the operating deficit, specifically compared to 1928. The endowment increased less than in 1928 while the operating deficit increased more than in 1928. If we do combine the Endowment and Trust Funds for 1931, we find a completely different story. This would be a massive increase in the permanent funds of $25,630.53 [12]. If this is a more accurate analysis of the Permanent Funds, this may indicate an intentional funneling of money into this fund by the Board of Trustees, acknowledging the increase in the operating deficit as well. 

  Due to the number of differing secondary sources and the nature of the primary documents to which we have access, we had incredible difficulty interpreting what truly happened to Hope’s permanent funds in the midst of the worst years of the Great Depression. However, we do know that the Depression obviously hit Hope College with force, similar to the rest of the country. The 1931 Report to the General Synod states, “The economic situation of the country is having its effect upon the various phases of the work of the college. Gifts from individuals have decreased. A general shrinkage in receipts by all the agencies of the Church, the Board of Education included, is naturally reflected in the amount received by the College. Doubtless the enrollment has been affected also, but it is impossible to ascertain whether conditions of large unemployment bring an increase or a decrease in the attendance of liberal arts colleges. It is certain that the student group as a whole finds it hard to meet college bills” [13]. This narrative depicts a terrified college that struggled with the same issues the rest of the country faced during the darkest years of the Great Depression. 

  With the diversification of Hope’s investments, Hope’s financial future became a bit more secure. In June of 1932, the Treasury reported a much smaller deficit of $6,000 for the 1931-1932 school year. However, they do note that the deficit might be higher because of inflation during this time [14]. Reinvestment of Hope’s finances proved to be the saving grace for Hope College, according to Wichers. Looking at the Minutes from 1933, the Board of Trustees amended their financial by-laws in order to make investment easier. The minutes quote Mr. Winter: “Whereas, we find ourselves, under the present circumstances, handicapped by the terms of the by-laws with reference to the investment of our permanent funds, there-fore, be it resolved that in order to secure proper diversification and also possible future recovery of present loss, the Executive Committee be authorized… to reinvest funds secured by the sale of real estate or defaulted securities in securities listed on the New York Exchange, provided that in the judgement of the Committee, such securities be suitable for the investment of college funds” [15]. Wichers gave context to these amendments by explaining that Hope’s by-laws stated that the college could only invest in state and federal bonds as well as real estate securities for savings banks. By 1935, an executive committee through the Board of Trustees successfully sold the college’s stock in real-estate securities on the New York Exchange and reinvested the funds. This resulted in the increase of the endowment by 1938 according to Wichers. With the change of 1935, the Treasurer at the time stated that he believed that Hope would “weather the storm” [16]. 

  Hope also made many sacrifices and changes in order to cut spending. One of the largest changes they made was the closing of the Hope High school in 1934. The Board of Trustees Minutes explain that this closure would save them $5,000-$6,500. The high school had become more of a burden than an asset to the college. It did not feed students into the college and could have cost the college its accreditation by the Association of American Universities. They also employed a number of other smaller measures to cut costs and acquire money [17]. On June 18, 1935, the Board decided that an annual meeting sufficed rather than a biannual meeting for the Board. Limiting meeting times would save money for the college [18]. The Board also communicated with other colleges to find other avenues to acquire funds. In the June 18, 1935 minutes, the secretary documented communication with Irwin J. Lubbers, president of Central College in Pella, Iowa and the future president of Hope College, about combining the two college’s efforts in fundraising to supplement the college’s income [19].
  
  What I would argue as symbol of rebirth from the depths of the Depression and what Wichers argues was his greatest achievement in his administration was the much needed addition of the Science Building (now Lubbers Hall). According to the Board of Trustees Minutes, Wichers presented the Board with his plans for the new building on April 26, 1939, planning on campaigning for $250,000. Wichers writes that campaigning from the General Synod, gifts from Dr. Samuel M. Zwemer, Margaret, Bertram, and Albert Hopeman, fundraising from Holland and Muskegon alumni, and even some fundraising from Hope students from 1939 to 1942 allowed the college to fund the new building completely. Building began on June 3rd, 1941 and the Science Building was dedicated on September 16, 1942 [20]. As we look at the success of the fundraising and building of the new Science Building as well as the timeline of the Great Depression at Hope, we can observe a final push as Hope emerged from the Depression as complaints of lower alumni donations, little funding, and cash shortages turned to a successful fundraising campaign and necessary new building. 
  
  These efforts to diminish the financial burden on the college proved successful. The Hope College tradition lived on, but not without incredible costs to the college during the 1930’s financial crisis. Through reinvestment, cost cutting measures, and only a small lull in enrollment in the beginning of the Depression, Hope College “weathered the storm” of national disaster. Unfortunately, the records of this event’s impact on the college do not provide incredible clarity, but they do tell pieces of the true story of the Great Depression at Hope College. 
  
  References: 
  
  [1] Edward Dimnent, "Letter from Edward Dimnent to National Bank of Commerce in New York City", October 26, 1928, Dimnent, Edward D. in Dykhuizen, Adelaide (1905-1973) and Geraldine (1905-1988), Papers, 1868-1986 (H88-0046), Joint Archives of Holland, Hope College, Holland, MI. 
  [2] Treasurer's Report, 1927-1928, April 1928, Minutes, Board of Trustees, 1866-[ongoing] (H88-0246), Joint Archives of Holland, Hope College, Holland, MI. 
  [3] Treasurer's Report, 1928-1929, April 1929, Minutes, Board of Trustees, 1866-[ongoing] (H88-0246), Joint Archives of Holland, Hope College, Holland, MI.
  [4] Board of Trustees Report to the General Synod of the Reformed Church in America, June 1930, Minutes, Board of Trustees, 1866-[ongoing] (H88-0246), Joint Archives of Holland, Hope College, Holland, MI.
  [5] Wynand Wichers, A Century of Hope (Grand Rapids: William B. Eerdmans Publishing Company, 1968), 204-205.
  [6] Jacob Nyenhuis, Hope at 150 (Holland: Van Raalte Press, 2019), 539. 
  [7] Treasurer's Report, 1927-1928, April 1928, Minutes Board of Trustees, 1866-[ongoing] (H88-0246)., Treasurer's Report, 1928-1929, April 1929, Minutes, Board of Trustees, 1866-[ongoing] (H88-0246)., Treasurer's Report, 1930-1931, April 1931, Minutes, Board of Trustees, 1866-[ongoing] (H88-0246), Joint Archives of Holland, Hope College, Holland, MI, 4. 
  [8] Treasurer's Report, 1927-1928, April 1928, Minutes Board of Trustees, 1866-[ongoing] (H88-0246).
  [9] Treasurer's Report, 1930-1931, April 1931, Minutes, Board of Trustees, 1866-[ongoing] (H88-0246), 4. 
  [10] Board of Trustees Report to the General Synod of the Reformed Church in America, April 1931, Minutes, Board of Trustees, 1866-[ongoing] (H88-0246), Joint Archives of Holland, Hope College, Holland, MI, 1. 
  [11] Treasurer's Report, 1927-1928, April 1928, Minutes Board of Trustees, 1866-[ongoing] (H88-0246)., Treasurer's Report, 1928-1929, April 1929, Minutes, Board of Trustees, 1866-[ongoing] (H88-0246)., Treasurer's Report, 1930-1931, April 1931, Minutes, Board of Trustees, 1866-[ongoing] (H88-0246), 4. 
  [12] Treasurer's Report, 1930-1931, April 1931, Minutes, Board of Trustees, 1866-[ongoing] (H88-0246), 4.
  [13] Report to the General Synod of the Reformed Church in America, April 1931, Minutes, Board of Trustees, 1866-[ongoing] (H88-0246), 1.
  [14] Treasurer's Report, 1931-1932, June 1932, Minutes, Board of Trustees, 1866-[ongoing] (H88-0246), Joint Archives of Holland, Hope College, Holland, MI. 
  [15] Winter in Minutes, June 10, 1933, Minutes, Board of Trustees, 1866-[ongoing] (H88-0246), Joint Archives of Holland, Hope College, Holland, MI, 50.
  [16] Wichers, A Century of Hope, 205. 
  [17] Board of Trustees Minutes, April 25, 1934, Minutes, Board of Trustees, 1866-[ongoing] (H88-0246), Joint Archives of Holland, Hope College, Holland, MI. 
  [18] Board of Trustees Minutes, June 18, 1935, Minutes, Board of Trustees, 1866-[ongoing] (H88-0246), Joint Archives of Holland, Hope College, Holland, MI. 
  [19] Board of Trustees Minutes, June 18, 1935, Minutes, Board of Trustees, 1866-[ongoing] (H88-0246).
  [20] Wichers, A Century of Hope, 206-207.