Domestic Economic Concerns Loom
•Hawley-Smoot Tariff
•Highest protective tariff in history
•Economists urged Hoover to veto
•Hoover passed, 25 other nations retaliated
with acts of their own
•Did more to hurt US economy
•Farmers
– Prices of farm goods continued to spiral
downward
Hoover’s Strong Resolve
• Hoover was moved by the poor
– But still did not believe in direct handouts
– Believed in trickle down theory
• Established the Reconstruction Finance
Corporation
– Made loans to business to be paid back
• Vetoed Garner-Wagner
– Given aid to unemployed
Efforts for Peace
• Hoover wanted to maintain peace
• Latin America
– Abandoned military intervention
– Clark Memorandum
•Went against Roosevelt Corollary
• Disarmament
– London conference to
extend Five-Power Treaty
Efforts for Peace
•War Reparations
– Germany could not afford to pay
reparations
– Gave rise to two antidemocratic parties
•Communist party and Nazi party
•Moratorium
– Hoover proposed a suspension of war
debts for one year
The Hoover-Stimson Doctrine
• 1931 – Japan seized Manchuria
• The Intent of the Doctrine
– Hoover sent Secretary Stimson to investigate
•Proclaimed that the US would not recognize any
territory breaking the
Kellog-Briand Pact
– Western nations
failed to apply
sanctions
• Public Opinion
wanted to avoid war