What Did Hoover Do During The Great Depression

Words: 208
Pages: 1

In the years from 1920 to 1929 before the stock market crashed, more and more banks kept opening up all across the country. Because of this there were too many banks. Most banks invested their funds in the stock market. The Federal Reserve, which only covered one-third of the nation's banks, was unable to save failing banks. As the banks failed, savings accounts were wiped out and the money supply shrank. This made it impossible for people or businesses to spend money or invest.

Once the Great Depression started it only worsened, demanding more government intervention. But Hoover refused to allow it fearing a movement toward socialism. While Hoover was supportive of giving aid to banks, he would not approve direct government aid to the