Efforts to fight depression
When the depression started in 1929 majority of the American Treaty is lightly and compared it with a hurricane or a blizzard which would soon pass. Hoover also believe that depression was caused by fear and try to restore confidence in the people by pointing out that ‘Prosperity is just around the corner’. He convened a meeting of the leaders of industries, labour and financers.
The people started to accuse Hoover for the economic depression it could not be anything which he did to accelerate the depression but for what he failed to do ameliorate its effects. His chief fault was that he believed that the American people would find their way through the depression by resolution and determination. Hoover did not introduce any scheme for relief and recovery and opposite government control or industry.
In 1931 he voted a bill which aimed at enabling the government to sell electric power generated at dams on the Tennesse river. The chief reason for opposing government in tension by Hoover was that he believed that it weekend the self Reliance and energy of the individuals. Hoover adopted more radical policies. In 1930 he asked the Congress to sanction huge sums to be used for the erection of public buildings, improvement of rivers and harbours and building of Federal roads, which provided employment to many. Due to depression the house building suffered a lot and so Hoover suggested to the Congress to establish 12 Federal home loan bank to provide cheap credit for builders and home owners. It was also on the advice of Hoover the Congress credited in 1932 the reconstruction Finance Corporation vested with large leading authority. This was intended to rescue from collapse certain important financial and credit institutions.
Hoover also tried to tackle the problem of depression at international level by making efforts to ease the world financial position, and thereby that of America, by declaring a moratorium on board apps for 12 months. The foreign countries were exempted from payment of principal and interest on all their obligations for a period of 1 year due to the virtue of monatoriu.
However, all these messages proved insdequate and the situation went from bad to worse. By 1930 the number of unemployed has risen to over 12 million, over 5000 banks were closed, 32000 commercial forms were closed, farm prices touched the ever lowest point in history national income came down to 40 bilion from 80 million in 1929.
Hoover’s failure was partly due to the control of Congress by the democrats, who refused to co-operate with him, and partly because he was not a politician who could not play with the public feeling.