The ominous financial situation throughout the world in the spring of 1931 and its disastrous effects on American economic conditions led President Herbert Hoover, on 20 June, to propose a one-year international postponement "of all payments on intergovernmental debts, reparations, and relief debts, both principal and interest, of course not including obligations of governments held by private parties." He hoped that this measure, which came to be known as the "Hoover moratorium," would promote a worldwide restoration of confidence and economic stability. By 6 July all fifteen of the nations involved had accepted the proposal.
Bibliography
Kennedy, David M. Freedom from Fear: The American People in Depression and War. New York: Oxford University Press, 1999.
