Baseball Cards and the Recession of 1937

[Archive]

Posted By: Chris Counts

As a big fan of baseball cards from the early gum era (1933 to 1941), I've always been curious why there are so many sets from 1933 to 1936, and then in 1937 and 1938, there is virtually nothing. By 1939, thanks to the folks at Gum, Inc, the production of cards was back in full swing until the interuption of WWII.

Just recently, I came across a Wikipedia article, "The Recession of 1937." Here are some of the highlights ...

Background:

"By 1936, all the main economic indicators had regained the levels of the late 1920s, except for unemployment, which remained high. In 1937, the American economy took an unexpected downturn, lasting through most of 1938. Production declined sharply, as did profits and employment. Unemployment jumped from 14.3% in 1937 to 19.0% in 1938. In two months, unemployment rose from 5 million to over 9 million, reaching almost 12 million in early 1938. Manufacturing output fell off by 40% from the 1937 peak; it was back to 1934 levels ..."

Response:

"The Roosevelt Administration reacted by launching a rhetorical campaign against monopoly power, which was cast as the cause of the depression, and appointing Thurman Arnold to act; Arnold was not effective, and the attack ended once World War II began and corporate energies had to be directed to winning the war ..."

Recovery:

It began to get better in mid-1938, and every month it was better. However, employment did not regain the 1937 level until the war boom began in late 1940. Productivity steadily increased, and output in 1940 as well above the levels of both 1929 and 1937. Personal income in 1939 was almost at 1919 levels in aggregate, but not per capita ...

I always assumed the Great Depression peaked early, and was followed by a slow but steady recovery, but that clearly wasn't the case. Anyway, it seems logical to me that this profound economic downturn must have had some effect on the production and popularity of baseball cards ...

[Archive]

Posted By: Steve

Never knew this occured. The war today isn't having a like effect -yet anyways. I think Goudey went under in '38 correct? Thanks for this post Chris.

[Archive]

Posted By: Frank Wakefield

Yikes!! My 1941 Goudey cards are bogus...

[Archive]

Posted By: Chris Counts

I don't believe Goudey went under in 1938, although from looks of their cards that year, it's clear to me that their artist went insane (insert smiley face here!) ...

[Archive]

Posted By: Steve

Yes Frank, you've been scammed (: Sorry, I'm ignorant on the 30-40s stuff.

Wondering if Goudey closed their doors after this issue or began printing publications for the military.

I remember these now, but they're so scarce compared to the '30s version.

[Archive]

Posted By: Dave Hornish

Goudey waxed and waned with their cards but produced gum well after WW2. Here is a good site. There is another great Goudey site that I can't find in my bookmarks right now. I'll post it if I find it.

http://www.goudey.org/Goudey/Gum/Goudey_Gum_Brands.html

[Archive]

Posted By: Matt

"In 1947 and 1948, Goudey Gum issued a 96 Indian card gum set. The postwar period was Goudey's last attempt to enter the bubble gum card market. Due to the financial strength of the Wrigley Gum Company and other large gum enterprises, Goudey could not compete."

http://www.psacard.com/articles/article3886.chtml

[Archive]

Posted By: Dave Hornish

Found it, although you need the Wayback Machine to access it. Some detail is missing due to this...

http://web.archive.org/web/20020204154617/http://goudey.home.netcom.com/Goudey/Goudey_Gum.html

[Archive]

Posted By: Al C.risafulli

Goudey actually ate their biggest competitor, National Chicle, in 1937. They used the Diamond Stars Gum brand name, as well as the artwork from Chicle's Rabbit Maranville "How To" booklets (which were originally inserted inserted into high number packs of Batter Up cards) on the backs of what we know today as R-303 premiums.

What was always lost to me was what happened to the Diamond Stars brand after 1939. Between 1939 and 1941, Goudey did not issue baseball cards, and yet they had purchased all these assets from Chicle. Yes, the country was in another economic downturn, but Goudey as a company seemed healthy enough.

About two years ago, a hobby friend solved this mystery by discovering a wrapper from Diamond Stars gum, made by Goudey. You can see the wrapper on Ken Goudey's outstanding Goudey Gum site. This answers the critical (for me, at least) question of what Goudey was up to between 1939 and 1941. It seems like they moved away from printing cards, and focused instead on gum, using what we know as the R303 premiums to sell packs of Diamond Stars brand gum.

-Al

[Archive]

Posted By: Dave Hornish

Here is the Ken Goudey site link-I had lost this and am happy to have it back

http://www.goudey.org/

[Archive]

Posted By: Ted Zanidakis

Mr. Bowman started off as a one-man operation in Philadelphia producing GUM products that kids
found very tasty. His BLONY bubble gum was very popular during the mid 1930's. In 1937-38 he
contracted the George Moll Advertising Agency to design and print a large series of trading cards
titled "THE HORRORS OF WAR". These cards were so popular nationwide, that Bowman's overwhel-
ming success monopolized the Bubble Gum trading card market from 1939 to 1942. I think this can
explains why there were no Goudey BB cards in 1939, 1940; and, a limited printing of the 1941 set
of Goudey BB cards.

TED Z

[Archive]

Posted By: dennis

if anyone is interested in baseball in the 1930s, then without a doubt this is the book to read.
http://books.google.com/books?hl=en&id=WIxmBou5qyAC&dq=charles+c.+alexander+breaking+the+slump&printsec=frontcover&source=web&ots=hPtY9tuIMe&sig=EZakWd-w5LObyd8AkU0WEwkflwE&sa=X&oi=book_result&resnum=1&ct=result#PPP1,M1

[Archive]

Posted By: jim sexton

Chris, thanks for some interesting information. For the last 15 years I have been collecting 1936-37 BF3 felt pennants. The company thought responsible for their distribution was the Red Ball Sales Co.which described itself as a national gum company. The company only was in existence for about two years, from 1936 to 1938. Your information about the economy at that time might explain the short life of the company.