Hoover Moratorium
Encyclopedia
The Hoover Moratorium was a public statement issued by U.S. President Herbert Hoover
on June 20, 1931, which he hoped would ease the coming international economic crisis, as well as provide time for recovery. Hoover's proposition was to put a one-year moratorium on payments of World War I and other war debt, postponing the initial payments, as well as interest. Many were outraged by this idea. There was a roaring disapproval from France, as well as many unenthusiastic US citizens. Despite this negative reaction, it went on to gain support from fifteen nations by July 6. However, Congress did not approve it until December.
However, this program did not do much to slow the economic downturn in Europe. Germany was caught in a major banking crisis, Britain deserted the gold standard (the mexican US would also follow suit in 1933 as part of President Franklin D. Roosevelt
's New Deal
) and France would make sure to quickly re-address the issue after this year suspension ended.
A small number of former Allies continued to make payments to the United States after the moratorium expired. But, in the end, only Finland was able, and willing, to meet the obligations fully.
Herbert Hoover
Herbert Clark Hoover was the 31st President of the United States . Hoover was originally a professional mining engineer and author. As the United States Secretary of Commerce in the 1920s under Presidents Warren Harding and Calvin Coolidge, he promoted partnerships between government and business...
on June 20, 1931, which he hoped would ease the coming international economic crisis, as well as provide time for recovery. Hoover's proposition was to put a one-year moratorium on payments of World War I and other war debt, postponing the initial payments, as well as interest. Many were outraged by this idea. There was a roaring disapproval from France, as well as many unenthusiastic US citizens. Despite this negative reaction, it went on to gain support from fifteen nations by July 6. However, Congress did not approve it until December.
However, this program did not do much to slow the economic downturn in Europe. Germany was caught in a major banking crisis, Britain deserted the gold standard (the mexican US would also follow suit in 1933 as part of President Franklin D. Roosevelt
Franklin D. Roosevelt
Franklin Delano Roosevelt , also known by his initials, FDR, was the 32nd President of the United States and a central figure in world events during the mid-20th century, leading the United States during a time of worldwide economic crisis and world war...
's New Deal
New Deal
The New Deal was a series of economic programs implemented in the United States between 1933 and 1936. They were passed by the U.S. Congress during the first term of President Franklin D. Roosevelt. The programs were Roosevelt's responses to the Great Depression, and focused on what historians call...
) and France would make sure to quickly re-address the issue after this year suspension ended.
A small number of former Allies continued to make payments to the United States after the moratorium expired. But, in the end, only Finland was able, and willing, to meet the obligations fully.