Neha Patil (Editor)

Hoover Moratorium

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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. This statement was met with disapproval from France, as well as many US citizens. Despite this negative reaction, it went on to gain support from fifteen nations by July 6. The moratorium was approved by Congress in 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 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.

References

Hoover Moratorium Wikipedia