How did the Hoover administration react to the crisis of the Depression?

Answer 1

At first President Hoover tried to organize national optimism by summoning business execs to DC to declare that conditions were sound and that there would not be wage cutting. When that did not work (stop the depression), he became inactive for a while, trusting to the idea that it all would self-correct. When that did not work, he organized an international moratorium in war debts and reparations. This actually did help stem the slide further into depression, but only briefly. Then he set up the Reconstruction Finance Corp. to bring federal aid to hard pressed banks and businesses. Just as it seemed that this might work and that recovery was at hand, in the winter of 1932-33 the banking system in America went into a tailspin. On March 4, 1933, the American banking system ground to a complete halt. Hoover was an able and intelligent president who attempted orthodox economic ideas, but became a victim to the collapse of the system.

Answer 2

Hoover blamed the Depression on foreign economic collapse over which he had no control. While not believing in charity by the government, Hoover did try and help the economic mess that began during his administration. He gave much of his money to charity and encouraged Americans to do the same. He broke with Republicans and did away with the taxes that had been placed on citizens during the Coolidge administration. He thought that would allow for more income being spent to help the economy rebound. He spent $500 million a year on public works and government programs to build or improve government properties. The most famous was the Hoover (Boulder) Dam. Congress established the Reconstruction Finance Corporation (continued by FDR) which created an agency to help banks, railroads, and other key businesses to stay in business thus helping the economy.

Answer 3

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