By Peter Clements (Wr
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Sample text
Finally, we shall consider the views of historians on the issues of why the Depression was so great and lasted so long. Herbert Hoover: his background and beliefs If anyone deserved to be president then that person surely was Herbert Hoover. Rarely has anyone been so well qualified for the task or had so much confidence placed in his ability. Hoover encapsulated the American dream. Herbert Hoover was shy and taciturn, uncomfortable with strangers and often shunned publicity. He was an administrator more than a politician, and avoided political tricks and infighting.
33 from depressed economic conditions arising from the war, could not afford to repay them. In February 1922, Congress created the Debt Funding Commission. 25 per cent. However, the simple truth was that Europeans just could not afford to repay the loans. The prohibitive tariffs made matters worse. European countries could not export their manufactured goods to the USA in great quantities; therefore they found it impossible to earn the money to repay the loans. Much of their gold reserves went to the USA as loan repayments.
With Germany paying the European victors less, this meant that they in turn could repay less of their own debts to the USA. All in all, no one gained from an incredibly complex situation that, according to one commentator, would have made more sense if ‘the US had taken the money out of one Treasury building and put it in another’. The banks hoped the movement of American funds to Europe would help the victors to repay the loans. American investors did increasingly put their money in European ventures.
Access to History for the IB Diploma. The Great Depression and the Americas 1929-39 by Peter Clements (Wr
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