The U.S. food stamp program was launched at a time when the nation was facing a tragic paradox: As millions of Americans suffered from hunger during the Great Depression, the country’s farmers agonized under a crushing bounty. The economic collapse of the 1930s had sapped food consumers of their purchasing power, so farmers found themselves with a glut of crops and livestock. That glut, in turn, sent agricultural prices plummeting.
In order to create artificial scarcity and boost prices, the U.S. Department of Agriculture under President Franklin D. Roosevelt initially paid farmers to plow under their fields and slaughter their pigs. The destruction of food at a time when so many stomachs rumbled sparked an outcry that prompted the Federal Surplus Commodities Corporation (FSCC), a New Deal agency established in 1933, to instead purchase excess food and distribute it directly to the needy at little or no cost. This initiative, however, dampened business for grocers and food wholesalers, who complained of government interference and unfair competition in the marketplace.
Facing the triple problems of farm surpluses, weak sales for grocers and hungry citizens at a time of 17 percent unemployment, the FSCC hoped tiny paper squares could solve its trilemma. Rochester, New York, then became the petri dish for a new government-run economic experiment.
Food Stamps Debut in Rochester, NY
On the morning of May 16, 1939, FSCC officials watched anxiously as they opened their doors inside Rochester’s old post office to launch the country’s latest relief measure. As newspaper reporters and photographers jockeyed for position to document history in the making, the first person in line approached a cashier window. Ralston Thayer, a 35-year-old machinist who had been out of work for nearly a year, handed a clerk $4 from his latest unemployment check and received $4 of orange stamps in return as well as $2 of blue stamps for free.
The orange “food stamps” could be redeemed at any of the 1,200 participating Rochester groceries for any goods on the shelves, while blue stamps could only be used to buy surplus agricultural items such as butter, eggs, prunes, flour, oranges, cornmeal and beans. Grocers could exchange the food stamps for money at commercial banks and FSCC offices.
“I never received surplus foods before, but the procedure seems simple enough and I certainly intend to take advantage of it,” Thayer told reporters.
Throughout the day, approximately 2,000 Rochester residents followed in Thayer’s footsteps. For every $1 of orange stamps bought, they received 50 cents worth of blue stamps for free, thereby expanding their purchasing power by 50 percent. That afternoon, waves of customers poured into Rochester’s grocery stores with their crisp new booklets of orange and blue stamps in hand.