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WINSTONCH [101]
3 years ago
14

What was the effect of Hoover's moratorium on wartime debt and reparation payments?

History
2 answers:
leva [86]3 years ago
6 0

On June 20, 1931, the Hoover Moratorium was a common declaration announced by US President Herbert Hoover who expected to facilitate the aspiring global financial crisis and render time for restoration. After World War I there were several reasons coupled to bring about an intense economic crisis in Germany. The circumstances became so dangerous in the month of June 1931  that President Hoover exercised the radical step of introducing a one-year moratorium on repayment and inter-governmental mortgage repayments to limit the economic and financial destruction of Germany.

kolbaska11 [484]3 years ago
4 0

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.

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