Hoover Moratorium

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The Hoover Moratorium is a public statement issued by US President Herbert Hoover on June 20, 1931, which hopes to reduce the international economic crisis and provide time for recovery. Hoover's proposal was to place a one-year moratorium on World War I payments and other war debts that would delay capital and interest payments. Many are angry with this idea.

The statement was met with refusals from France and many US citizens but went on to gain support from 15 countries on July 6. It was approved by the US Congress in December.

However, that does not do much to slow the economic downturn in Europe. Germany is caught in a major banking crisis, Britain abandoned the gold standard (the US will follow it in 1933 as part of Franklin Roosevelt's New Deal), and France will ensure to resolve the issue again after this year's suspension ends.

Some former Allied keeps making payments to the United States after the moratorium ends. However, only Finland is capable and willing to fulfill all obligations. After the Lausanne Conference of 1932, Germany was exempt from reparation payments. Although the US Congress voted against the proposition to free France and the United Kingdom from their debt, they never began to repay their debts again because German payments had been used for it before.

Hoover Moratorium

Kamis, 28 Juni 2018